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Solid Biosciences (SLDB)
NASDAQ:SLDB
US Market
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Solid Biosciences (SLDB) AI Stock Analysis

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SLDB

Solid Biosciences

(NASDAQ:SLDB)

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Neutral 44 (OpenAI - 4o)
Rating:44Neutral
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
Strong Cash Position
A strong cash position relative to debt provides the company with a buffer to manage operations and invest in R&D, crucial for biotech firms.
Focus on Rare Diseases
Focusing on rare diseases like DMD offers potential for high-impact treatments and market exclusivity, enhancing long-term growth prospects.
Strategic Alliances
Strategic alliances can provide critical resources and expertise, enhancing development capabilities and potential market reach.
Negative Factors
Persistent Losses
Ongoing financial losses without revenue generation strain resources and may limit the company's ability to sustain operations long-term.
Negative Cash Flow
Negative cash flow highlights inefficiency in operations, increasing reliance on external funding and posing liquidity risks.
No Revenue Growth
Lack of revenue growth limits financial flexibility and raises concerns about the company's ability to achieve profitability.

Solid Biosciences (SLDB) vs. SPDR S&P 500 ETF (SPY)

Solid Biosciences Business Overview & Revenue Model

Company DescriptionSolid Biosciences Inc. is a biotechnology company dedicated to developing transformative treatments for patients with Duchenne muscular dystrophy (DMD), a severe genetic disorder characterized by progressive muscle degeneration and weakness. The company's leading program focuses on gene therapy and aims to address the underlying genetic cause of DMD. Headquartered in Charlestown, Massachusetts, Solid Biosciences is at the forefront of pioneering therapies in the field of rare genetic diseases.
How the Company Makes MoneySolid 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
20
Very Negative
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
35
Negative
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
30
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.12M0.000.008.09M13.62M0.00
Gross Profit-1.69M-2.46M-2.58M5.69M10.66M-3.92M
EBITDA-154.77M-121.90M-93.43M-96.87M-69.29M-84.37M
Net Income-154.08M-124.70M-96.02M-85.98M-72.19M-88.29M
Balance Sheet
Total Assets308.29M188.66M164.94M260.25M232.38M171.17M
Cash, Cash Equivalents and Short-Term Investments268.11M148.92M123.64M213.72M207.78M154.74M
Total Debt23.05M24.18M26.27M28.55M2.06M5.15M
Total Liabilities50.00M51.42M38.46M48.59M24.17M39.08M
Stockholders Equity258.29M137.25M126.48M211.67M208.21M132.09M
Cash Flow
Free Cash Flow-123.34M-100.67M-95.69M-100.99M-79.05M-57.50M
Operating Cash Flow-122.61M-100.01M-94.18M-97.98M-77.76M-56.60M
Investing Cash Flow-32.62M-16.09M9.69M59.16M-91.09M6.60M
Financing Cash Flow198.32M122.44M3.12M74.83M134.99M128.70M

Solid Biosciences Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price5.33
Price Trends
50DMA
5.95
Negative
100DMA
4.99
Positive
200DMA
4.53
Positive
Market Momentum
MACD
-0.15
Negative
RSI
45.20
Neutral
STOCH
30.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLDB, the sentiment is Neutral. The current price of 5.33 is below the 20-day moving average (MA) of 5.41, below the 50-day MA of 5.95, and above the 200-day MA of 4.53, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 45.20 is Neutral, neither overbought nor oversold. The STOCH value of 30.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SLDB.

Solid Biosciences Risk Analysis

Solid Biosciences disclosed 88 risk factors in its most recent earnings report. Solid Biosciences 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

Solid Biosciences Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
598.79M-7.510.00%-100.00%-25.75%
56
Neutral
434.10M-8.41-1865.63%33.39%-7.11%
52
Neutral
345.60M-2.05-31.51%0.00%0.00%
49
Neutral
448.68M-2.09-22.77%-100.00%-61.86%
44
Neutral
$398.69M-68.25%15.01%
44
Neutral
423.83M-3.670.00%0.00%11.81%
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
SLDB
Solid Biosciences
5.33
-2.35
-30.60%
OCGN
Ocugen
1.66
0.68
69.39%
ATXS
Astria Therapeutics
7.45
-5.05
-40.40%
ITOS
iTeos Therapeutics
10.15
0.02
0.20%
CMPX
Compass Therapeutics
3.38
1.67
97.66%
FDMT
4D Molecular Therapeutics
7.61
-3.88
-33.77%
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 03, 2025