Solid Biosciences (SLDB) AI Stock Analysis

• Market Cap: $370.42M
• Dividend Yield: N/A
• Average Volume (3M): 4.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.85
• Revenue Growth: N/A
• EPS Growth: 37.17%
• Country: US
• Employees: 100
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -3.04
• Shares Outstanding: 77,492,960
• 10 Day Avg. Volume: 1,235,365
• 30 Day Avg. Volume: 4,239,017
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 370.16
• Price to Cash Flow (P/CF): -3.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $17.13
• Price Target Upside: 281.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

Solid Biosciences is struggling with significant financial challenges, most notably a lack of revenue and persistent losses. While the technical indicators suggest some short-term momentum, the company's valuation remains unattractive due to its negative earnings. The overall outlook is cautious given the financial instability and lack of clear path to profitability.

Positive Factors

Clinical Trial Success

SGT-003 achieved a mean 90-day micro-dystrophin expression of 110% of normal measured by Western Blot, demonstrating the most robust micro-dystrophin expression among current DMD gene therapies.

Regulatory Progress

SLDB expects to dose more than 10 participants and plans to request meetings with the FDA to discuss potential accelerated approval pathways for SGT-003.

Negative Factors

Competitor Challenges

Despite both assets demonstrating a reliably safer side effect profile, RGX-202, but not SGT-003, requires the use of prophylactic eculizumab, which carries black box warnings and requires patient observation, further complicating gene therapy administration.

Financial Outlook

The price target for SLDB has been adjusted from $28.00 to $20.00.

Solid Biosciences Business Overview & Revenue Model

Company Description

Solid Biosciences Inc. engages in developing therapies for duchenne muscular dystrophy in the United States. The company's lead product candidate is SGT-001, a gene transfer candidate, which is in a Phase I/II clinical trial to drive functional dystrophin protein expression in patients' muscles; and SGT-003, a ext-generation gene transfer candidate for the treatment of duchenne muscular dystrophy. It also engages in developing of platform technologies, including dual gene expression, a technology for packaging multiple transgenes into one vector, as well as novel capsids. The company has collaboration and license agreement with Ultragenyx Pharmaceutical Inc. to develop and commercialize new gene therapies for Duchenne Muscular Dystrophy. Solid Biosciences Inc. was incorporated in 2013 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Solid Biosciences generates revenue primarily through the development and potential commercialization of its gene therapy programs targeting Duchenne muscular dystrophy. The company's revenue streams include collaborations and partnerships with other biotechnology and pharmaceutical companies, grants, and potential milestone and royalty payments from licensing agreements. Additionally, Solid Biosciences may derive future revenues from the successful approval and commercialization of its proprietary therapies, which would include sales revenue from products reaching the market. The company's focus on innovative treatments and strategic alliances are key factors contributing to its financial prospects.

Solid Biosciences Financial Statement Overview

Summary

Solid Biosciences is facing significant financial challenges with no revenue generation, persistent losses, and reliance on equity financing. The financial position is weak with an urgent need for strategic shifts to improve revenue growth and operational efficiency.

Income Statement

Solid Biosciences has shown consistent challenges in generating revenue, with no revenue reported for the last two years. The lack of revenue growth and persistent negative EBIT and net income margins highlight ongoing operational struggles. The company’s gross profit margin is non-existent due to zero revenue, and the net profit margin is significantly negative, reflecting substantial losses. Overall, the income statement presents a challenging financial position with no clear path to profitability in the near term.

Balance Sheet

The balance sheet shows a moderate level of financial stability with a strong cash position relative to debt, resulting in negative net debt, which is a positive aspect. However, the debt-to-equity ratio remains low, indicating limited leverage, which might restrict growth opportunities. The equity ratio is healthy, suggesting that the company is primarily financed through equity, reducing financial risk. However, the continuous erosion of equity due to losses is a concern for long-term sustainability.

Cash Flow

The cash flow statement indicates challenges in generating positive cash flow, with negative operating and free cash flows. Despite some cash inflows from financing activities, the company is heavily reliant on external funding to sustain operations. The free cash flow to net income ratio is unfavorable, highlighting inefficiency in converting operations into cash. There is a consistent negative trend in cash flow metrics, posing liquidity risks.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	8.09M	13.62M	0.00
	Gross Profit
0.00	-76.56M	5.69M	-45.12M	-3.92M
	EBIT
-129.73M	-104.31M	-106.45M	-72.25M	-88.41M
	EBITDA
-129.73M	-93.43M	-96.87M	-69.29M	-84.37M
	Net Income Common Stockholders
-124.70M	-96.02M	-65.51M	-72.12M	-90.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
148.92M	123.64M	213.72M	207.78M	154.74M
	Total Assets
188.66M	164.94M	260.25M	232.38M	171.17M
	Total Debt
24.18M	26.27M	28.55M	2.06M	5.15M
	Net Debt
-56.06M	-47.75M	-126.84M	-117.07M	-149.59M
	Total Liabilities
51.42M	38.46M	48.59M	24.17M	39.08M
	Stockholders Equity
137.25M	126.48M	211.67M	208.21M	132.09M
Cash Flow		Free Cash Flow
-100.67M	-95.69M	-100.99M	-79.05M	-57.50M
	Operating Cash Flow
-100.01M	-94.18M	-97.98M	-77.76M	-56.60M
	Investing Cash Flow
-16.09M	9.69M	59.16M	-91.09M	6.60M
	Financing Cash Flow
122.44M	3.12M	74.83M	134.99M	128.70M

Solid Biosciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.49
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLDB, the sentiment is Negative. The current price of 4.49 is below the 20-day moving average (MA) of 5.18, above the 50-day MA of 4.33, and below the 200-day MA of 6.11, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 43.92 is Neutral, neither overbought nor oversold. The STOCH value of 10.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLDB.

Solid Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXEL	80 Outperform	$10.56B	21.28	23.13%	―	18.49%	176.71%
BMRN	78 Outperform	$13.59B	32.73	8.05%	―	17.35%	151.40%
SRPT	67 Neutral	$7.41B	32.02	19.71%	―	52.97%	―
PTCT	56 Neutral	$4.51B	―	33.08%	―	-13.97%	43.51%
IONS	49 Neutral	$5.23B	―	-93.03%	―	-10.48%	-18.79%
Sector *	49 Neutral	$6.94B	0.66	-52.58%	2.47%	22.65%	0.94%
SLDB	40 Underperform	$370.42M	―	-94.57%	―	―	37.17%