Solid Biosciences (SLDB) AI Stock Analysis

• Market Cap: $329.44M
• Dividend Yield: N/A
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.80
• Revenue Growth: N/A
• EPS Growth: 37.17%
• Country: US
• Employees: 100
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.59
• Shares Outstanding: 77,515,370
• 10 Day Avg. Volume: 1,303,138
• 30 Day Avg. Volume: 1,726,853
• PEG Ratio: -0.04
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.00
• Enterprise Value/Market Cap: 0.11
• Enterprise Value/Revenue: 3.99
• Enterprise Value/Gross Profit: -30.60
• Enterprise Value/Ebitda: -0.08
• 1Y Price Target: $16.25
• Price Target Upside: 257.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 44 Neutral
• Price Target: ―

Solid Biosciences' stock score reflects significant financial struggles, with no revenue generation and ongoing losses. The technical analysis presents a mixed view, with indicators suggesting potential overbought conditions despite limited momentum. The valuation is unattractive due to negative earnings and lack of investor returns. Overall, the company's financial challenges are the most significant factor impacting its stock performance.

Positive Factors

Financial Position

Solid Bio had cash and cash equivalents of approximately $307M, which is believed to be sufficient to fund operations into 2027.

Regulatory Environment

SLDB shares are well positioned with initial SGT-003 data on the horizon and favorable gene therapy / rare disease regulatory environment in the U.S.

Safety Profile

SGT-003 has been well-tolerated in all patients dosed to date, including no treatment emergent serious adverse events or adverse events of acute liver injury.

Negative Factors

Conflict of Interest

The report highlights a conflict of interest, suggesting potential bias in the analyst recommendations.

Financial Adjustments

Key changes to the model include expenses and share count, indicating potential financial adjustments.

Regulatory Uncertainty

Recent leadership changes at the FDA could lead to a near-term overhang on the stock until it becomes clear if the FDA still intends to use regulatory flexibility and accelerated approval pathways for rare diseases.

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 persistent losses and an inability to generate revenue. The company's reliance on equity financing is evident, which provides some short-term stability but is unsustainable in the long run without revenue generation. The overall financial health requires strategic shifts to achieve revenue growth and operational efficiency to ensure long-term viability.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	8.09M	13.62M	0.00
	Gross Profit
-1.24M	0.00	-76.56M	5.69M	-45.12M	-3.92M
	EBIT
-142.92M	-129.73M	-104.31M	-106.45M	-72.25M	-88.41M
	EBITDA
-141.02M	-121.90M	-93.43M	-96.87M	-69.29M	-84.37M
	Net Income Common Stockholders
-139.68M	-124.70M	-96.02M	-65.51M	-72.12M	-90.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
306.92M	148.92M	123.64M	213.72M	207.78M	154.74M
	Total Assets
343.90M	188.66M	164.94M	260.25M	232.38M	171.17M
	Total Debt
23.63M	24.18M	26.27M	28.55M	2.06M	5.15M
	Net Debt
-187.00M	-56.06M	-47.75M	-126.84M	-117.07M	-149.59M
	Total Liabilities
49.44M	51.42M	38.46M	48.59M	24.17M	39.08M
	Stockholders Equity
294.46M	137.25M	126.48M	211.67M	208.21M	132.09M
Cash Flow		Free Cash Flow
-107.30M	-100.67M	-95.69M	-100.99M	-79.05M	-57.50M
	Operating Cash Flow
-106.67M	-100.01M	-94.18M	-97.98M	-77.76M	-56.60M
	Investing Cash Flow
-5.06M	-16.09M	9.69M	59.16M	-91.09M	6.60M
	Financing Cash Flow
204.92M	122.44M	3.12M	74.83M	134.99M	128.70M

Solid Biosciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLDB, the sentiment is Positive. The current price of 4.54 is above the 20-day moving average (MA) of 3.15, above the 50-day MA of 3.22, and below the 200-day MA of 4.98, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 70.27 is Negative, neither overbought nor oversold. The STOCH value of 93.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLDB.

Solid Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMPX	60 Neutral	$326.35M	―	-41.31%	―	―	-7.93%
FDMT	56 Neutral	$181.13M	―	-32.97%	―	―	―
OCGN	56 Neutral	$278.28M	―	-248.97%	―	86.63%	22.29%
Sector *	54 Neutral	$5.24B	3.27	-45.39%	2.80%	16.77%	-0.07%
SLDB	44 Neutral	$329.44M	―	-55.30%	―	―	37.17%
ATXS	44 Neutral	$294.59M	―	-32.89%	―	―	27.92%
ITOS	41 Neutral	$389.63M	―	-23.68%	―	―	14.60%