SIGA Technologies (SIGA) AI Stock Analysis

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SIGA Technologies

(NASDAQ:SIGA)

80Outperform

SIGA Technologies scores well overall due to strong financial health, a robust balance sheet, and attractive valuation metrics. The technical analysis indicates stable momentum, while recent strategic moves, such as international expansion and board strengthening, provide additional positive outlooks. However, stagnant revenue growth and challenges in clinical trials are areas to watch.

SIGA Technologies (SIGA) vs. S&P 500 (SPY)

Market Cap

$437.91M

Dividend Yield10.13%

Average Volume (3M)540.86K

Price to Earnings (P/E)7.5

Beta (1Y)0.96

Revenue Growth-0.86%

EPS Growth-13.33%

CountryUS

Employees46

SectorHealthcare

Sector Strength64

IndustryDrug Manufacturers - Specialty & Generic

Share Statistics

EPS (TTM)0.83

Shares Outstanding71,436,930

10 Day Avg. Volume731,025

30 Day Avg. Volume540,858

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)2.89

Price to Cash Flow (P/CF)1.80

P/FCF Ratio1.80

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

SIGA Technologies Business Overview & Revenue Model

Company DescriptionSIGA Technologies, Inc., a commercial-stage pharmaceutical company, focuses on the health security and infectious disease markets in the United States. Its lead product is TPOXX, an oral formulation antiviral drug for the treatment of human smallpox disease caused by variola virus. SIGA Technologies, Inc. has a strategic partnership with Cipla Therapeutics to deliver sustained innovation and access to antibacterial drugs primarily against biothreats. The company was incorporated in 1995 and is headquartered in New York, New York.

How the Company Makes MoneySIGA Technologies generates revenue primarily through government contracts and sales of its antiviral products. A significant portion of its income is derived from contracts with the U.S. government, particularly through the Biomedical Advanced Research and Development Authority (BARDA) for the procurement of TPOXX to maintain the national stockpile for biodefense. Additionally, SIGA benefits from international government contracts and collaborations with global health organizations seeking to bolster their emergency preparedness. The company may also earn from licensing agreements and future expansion of its product line for commercial markets.

SIGA Technologies Financial Statement Overview

Summary

SIGA Technologies exhibits strong financial health characterized by high profitability, a robust balance sheet with no debt, and sufficient cash flow generation. The company demonstrates excellent cost control and capital management. However, stagnant revenue growth and a decline in operating cash flow are areas to monitor closely for future financial performance.

Income Statement

Very Positive

SIGA Technologies has shown strong profitability with consistent gross and net profit margins over the years. The gross profit margin remains high at 100% in the latest year, indicating effective cost management. The net profit margin, although slightly reduced from the previous year, is still robust at 42.7%. However, the revenue growth has been stagnant, with a slight decrease of 0.9% from the prior year, which could suggest a plateau in sales expansion.

Balance Sheet

Very Positive

The company maintains a solid financial position with no debt, reflected in a debt-to-equity ratio of 0. The equity ratio is strong at 88.3%, indicating financial stability and a low-risk profile. Return on equity (ROE) is healthy at 27.4%, showcasing effective use of equity financing to generate profits. The absence of debt reduces financial risk significantly.

Cash Flow

Positive

Operating cash flow has decreased by 48.6% compared to the previous year, which could be a concern if the trend continues. However, free cash flow remains positive, indicating the company can cover its capital expenditures. The free cash flow to net income ratio is satisfactory, showing that profits are backed by cash generation. The decline in cash flow growth rate is a potential risk area.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
138.72M	139.92M	110.78M	133.67M	124.96M
	Gross Profit
138.72M	122.09M	77.82M	107.13M	99.22M
	EBIT
129.49M	83.62M	42.70M	89.09M	84.50M
	EBITDA
70.52M	84.16M	43.22M	89.62M	85.03M
	Net Income Common Stockholders
59.21M	68.07M	33.90M	69.45M	56.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
155.40M	150.15M	98.79M	103.14M	117.89M
	Total Assets
244.34M	254.35M	195.04M	214.73M	149.83M
	Total Debt
546.82K	564.01K	528.17K	466.83K	449.94K
	Net Debt
-155.40M	-149.58M	-98.26M	-102.67M	-117.44M
	Total Liabilities
28.53M	57.49M	24.88M	40.41M	20.04M
	Stockholders Equity
215.80M	196.86M	170.16M	174.31M	129.79M
Cash Flow		Free Cash Flow
48.72M	94.78M	41.61M	11.44M	71.50M
	Operating Cash Flow
48.76M	94.80M	41.61M	11.49M	71.52M
	Investing Cash Flow
-42.45K	-21.69K	0.00	-50.62K	-15.50K
	Financing Cash Flow
-43.46M	-43.42M	-45.96M	-26.20M	-114.60M

SIGA Technologies Technical Analysis

Technical Analysis Sentiment

Positive

Last Price6.24

Price Trends

50DMA

5.76

Positive

100DMA

6.02

Positive

200DMA

7.02

Negative

Market Momentum

MACD

0.12

Negative

RSI

61.30

Neutral

STOCH

67.80

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIGA, the sentiment is Positive. The current price of 6.24 is above the 20-day moving average (MA) of 5.78, above the 50-day MA of 5.76, and below the 200-day MA of 7.02, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 61.30 is Neutral, neither overbought nor oversold. The STOCH value of 67.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SIGA.

SIGA Technologies Risk Analysis

SIGA Technologies disclosed 39 risk factors in its most recent earnings report. SIGA Technologies reported the most risks in the “Legal & Regulatory” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

SIGA Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIGA	80 Outperform	$437.91M	7.53	28.70%	10.13%	-0.86%	-13.33%
ORGO	59 Neutral	$549.17M	794.64	0.26%	―	11.29%	-79.52%
EBS	51 Neutral	$256.47M	―	-33.67%	―	-0.62%	75.57%
Sector *	51 Neutral	$5.20B	3.26	-40.34%	2.93%	17.68%	1.94%
EVO	50 Neutral	$1.38B	―	-19.05%	―	―	―
AQST	40 Underperform	$271.90M	―	77.48%	―	13.80%	-389.41%

* Healthcare Sector Average

Performance Comparison

SIGA

SIGA Technologies

6.24

-2.42

-27.94%

EBS

Emergent Biosolutions

4.98

2.80

128.44%

EVO

Evotec AG

4.09

-1.14

-21.80%

ORGO

Organogenesis Holdings

4.45

1.47

49.33%

AQST

Aquestive Therapeutics

2.82

-1.08

-27.69%

RGC

Regencell Bioscience

30.49

25.39

497.84%

SIGA Technologies Earnings Call Summary

Earnings Call Date: Mar 11, 2025 | % Change Since: 11.43% | Next Earnings Date: May 1, 2025

Earnings Call Sentiment Positive

SIGA had a year of strong financial performance and strategic progress, with notable sales growth and international expansion. Challenges with mpox clinical trials were addressed, but they did not significantly dampen the overall positive trajectory. The company's strong cash position and strategic partnerships provide a solid foundation for future growth.

Highlights

Continued Product Sales Growth

2024 product sales reached $133 million, a 2% increase from 2023, marking the second consecutive year of growth.

Significant Fourth Quarter Revenue

$80 million generated in the fourth quarter, driven by diverse revenue sources including the U.S. strategic national stockpile and international markets.

International Expansion Achievements

TPOXX received regulatory approval in Japan, and a notable $11 million sale in East Asia, more than doubling the largest prior sale in the region.

Strong Financial Position

SIGA ended the year with a cash balance of $155 million and no debt, reflecting strong financial discipline.

Strategic Partnerships for Long-term Growth

An exclusive license agreement with Vanderbilt University for monoclonal antibodies with potential to complement the TPOXX franchise.

Lowlights

Challenges with Mpox Clinical Trials

PALM 007 and STOMP trials did not show statistical significance at the primary endpoint, leading to discussions on TPOXX's use for mpox.

Reduced Pretax Operating Income

Pretax operating income for 2024 was $70 million, down from $84 million in 2023, due to different product mixes.

Company Guidance

During the SIGA business update call for the fiscal year 2024, CEO Diem Nguyen highlighted a year of strong financial performance with product sales reaching $133 million, marking a 2% increase from 2023. The fourth quarter alone contributed $80 million to these sales, predominantly from deliveries of oral and IV TPOXX to the U.S. strategic national stockpile and the Department of Defense, as well as an $11 million sale in East Asia. The company reported a pretax operating income of $57 million for the fourth quarter and $70 million for the full year, with net income at $46 million and $59 million, respectively. The diluted earnings per share were $0.63 for the fourth quarter and $0.82 for the full year. SIGA maintained a robust cash position with $155 million in cash and no debt at year-end, and a $70 million outstanding order balance expected to be delivered in 2025. The company also advanced its international presence with a regulatory approval in Japan and assumed responsibility for promoting TPOXX outside the U.S., while continuing to explore strategic partnerships and pipeline diversification, including a collaboration on monoclonal antibodies with Vanderbilt University.

SIGA Technologies Corporate Events

Executive/Board Changes

SIGA Technologies Appoints Gen. Keane as New Director

Positive

Mar 18, 2025

On March 17, 2025, SIGA Technologies appointed General John M. ‘Jack’ Keane (Ret.) as a director, effective immediately. Gen. Keane received stock options and an annual retainer, with his appointment aligning with Nasdaq’s independence requirements, potentially strengthening the company’s governance and strategic direction.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.