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Sagimet Biosciences, Inc. Class A (SGMT)
:SGMT
US Market
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Sagimet Biosciences, Inc. Class A (SGMT) AI Stock Analysis

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SGMT

Sagimet Biosciences, Inc. Class A

(NASDAQ:SGMT)

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Neutral 44 (OpenAI - 4o)
Rating:44Neutral
Price Target:
Sagimet Biosciences' overall score reflects substantial financial difficulties marked by persistent losses and reliance on external funding. While technical indicators show short-term bullish momentum, the lack of profitability and negative equity pose significant long-term risks. Valuation metrics further highlight the challenges in viewing this stock as an attractive investment.
Positive Factors
Innovative Drug Pipeline
Sagimet's focus on innovative drug development for liver diseases and cancer positions it well in the biotech industry, potentially leading to breakthrough treatments and partnerships.
Strategic Partnerships
Strategic partnerships could provide financial support and expand market reach, enhancing Sagimet's ability to progress its drug pipeline and achieve regulatory approvals.
Cash Position
A stable cash position provides Sagimet with the necessary resources to continue R&D activities and support its operations, crucial for a clinical-stage biotech company.
Negative Factors
Negative Equity
Negative equity indicates high liabilities relative to assets, suggesting financial instability and potential challenges in securing future funding or investments.
Reliance on External Financing
Dependence on external funding rather than generating cash from operations raises concerns about Sagimet's long-term financial health and sustainability.
Lack of Profitability
Ongoing operational challenges and lack of profitability hinder Sagimet's ability to generate sustainable income, crucial for future growth and stability in the competitive biotech sector.

Sagimet Biosciences, Inc. Class A (SGMT) vs. SPDR S&P 500 ETF (SPY)

Sagimet Biosciences, Inc. Class A Business Overview & Revenue Model

Company DescriptionSagimet Biosciences, Inc. Class A (SGMT) is a clinical-stage biopharmaceutical company specializing in the development of novel therapeutics targeting key metabolic pathways to treat diseases with unmet medical needs. The company focuses primarily on the development of innovative drugs for the treatment of liver diseases, cancer, and other metabolic disorders, leveraging its expertise in fatty acid synthase (FASN) inhibition.
How the Company Makes MoneySagimet Biosciences generates revenue through the development and potential commercialization of its proprietary drug candidates. The company's revenue model is primarily based on progressing its drug pipeline through phases of clinical trials, with the aim of achieving successful regulatory approvals. Additionally, Sagimet may engage in strategic partnerships and licensing agreements with larger pharmaceutical companies, which can provide milestone payments, upfront fees, and royalties on sales. These collaborations can significantly contribute to the company's earnings by providing financial support for research and development activities, as well as expanding market reach. However, as a clinical-stage company, it may currently rely on external funding sources such as venture capital, public offerings, and grants to support its operations.

Sagimet Biosciences, Inc. Class A Financial Statement Overview

Summary
Sagimet Biosciences faces significant financial challenges with persistent losses, negative equity, and high leverage. The reliance on external financing over sustainable free cash flow raises concerns about its long-term viability.
Income Statement
10
Very Negative
Sagimet Biosciences has shown an erratic revenue pattern with occasional small revenues and significant losses. Despite a brief revenue appearance in 2023, there is a consistent negative EBIT and net income trend, indicating ongoing operational challenges and a lack of profitability. The company is struggling to generate sustainable income, which is critical for future growth and stability.
Balance Sheet
40
Negative
The balance sheet reflects a somewhat stable cash position with a substantial increase in cash and short-term investments in 2024. However, the company has a negative stockholders' equity, indicating high liabilities relative to assets. The debt-to-equity structure is highly unfavorable, suggesting potential financial instability and high leverage risk.
Cash Flow
30
Negative
The cash flow statement reveals negative operating cash flow, indicating the company is not generating sufficient cash from operations. Although there was positive financing cash flow in 2024, it primarily stemmed from external financing rather than operational success. The reliance on external financing over sustainable free cash flow growth poses a risk to long-term financial health.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.002.00M0.000.000.00
Gross Profit0.000.002.00M-130.00K-134.00K-124.00K
EBITDA-64.89M-45.57M-30.74M-30.37M-24.31M-11.25M
Net Income-59.38M-45.57M-27.88M-30.50M-24.44M-11.37M
Balance Sheet
Total Assets137.41M160.26M96.72M33.03M59.03M68.96M
Cash, Cash Equivalents and Short-Term Investments125.41M151.25M94.90M32.34M56.73M68.70M
Total Debt152.00K78.00K65.00K211.00K348.00K210.00K
Total Liabilities7.25M4.45M5.65M219.98M217.29M204.87M
Stockholders Equity130.16M155.81M91.06M27.67M56.37M66.98M
Cash Flow
Free Cash Flow-54.23M-42.44M-23.77M-24.49M-21.71M-10.42M
Operating Cash Flow-54.23M-42.44M-23.77M-24.49M-21.71M-10.42M
Investing Cash Flow597.00K-61.68M12.58M-32.01M0.0020.00K
Financing Cash Flow1.00K104.82M86.17M-73.00K9.74M68.89M

Sagimet Biosciences, Inc. Class A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.28
Price Trends
50DMA
7.92
Negative
100DMA
7.02
Positive
200DMA
5.49
Positive
Market Momentum
MACD
-0.20
Negative
RSI
52.61
Neutral
STOCH
90.14
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGMT, the sentiment is Positive. The current price of 7.28 is above the 20-day moving average (MA) of 6.93, below the 50-day MA of 7.92, and above the 200-day MA of 5.49, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 52.61 is Neutral, neither overbought nor oversold. The STOCH value of 90.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SGMT.

Sagimet Biosciences, Inc. Class A Risk Analysis

Sagimet Biosciences, Inc. Class A disclosed 78 risk factors in its most recent earnings report. Sagimet Biosciences, Inc. Class A reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sagimet Biosciences, Inc. Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
49
Neutral
94.64M-0.57-185.15%1.80%
48
Neutral
104.98M-1.69-77.40%-42.94%
46
Neutral
9.51M-0.35840.45%9.03%
45
Neutral
92.38M-3.05-66.16%-87.65%11.76%
44
Neutral
$227.55M-37.89%-100.00%-62.44%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SGMT
Sagimet Biosciences, Inc. Class A
7.34
4.52
160.28%
EPIX
ESSA Pharma
0.20
-0.60
-75.00%
ADVM
Adverum Biotechnologies
4.51
-2.43
-35.01%
ADAG
Adagene
1.96
-0.28
-12.50%
TCRX
TScan Therapeutics
1.85
-3.19
-63.29%
ANL
Adlai Nortye Ltd. Sponsored ADR
1.72
-0.34
-16.50%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 02, 2025