Sol-Gel Technologies (SLGL) AI Stock Analysis

• Market Cap: $12.97M
• Dividend Yield: N/A
• Average Volume (3M): 34.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.90
• Revenue Growth: 603.12%
• EPS Growth: 68.27%
• Country: US
• Employees: 36
• Sector: Healthcare
• Sector Strength: 76
• Industry: Biotechnology
• EPS (TTM): -0.34
• Shares Outstanding: 27,857,620
• 10 Day Avg. Volume: 28,711
• 30 Day Avg. Volume: 34,330
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 9.32
• Price to Cash Flow (P/CF): N/A
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Sol-Gel Technologies' stock score reflects significant financial performance challenges due to negative profitability and cash flow issues. Positive technical indicators offer some short-term optimism, but the lack of valuation appeal and guidance from earnings calls creates uncertainty. Strategic financial improvements and clearer future guidance would be needed to enhance the stock's attractiveness.

Sol-Gel Technologies Business Overview & Revenue Model

Company Description

Sol-Gel Technologies Ltd., a clinical stage specialty pharmaceutical company, focuses on developing and commercializing topical dermatological drug products based on its proprietary microencapsulation delivery system in Israel. The company's lead product candidates include Twyneo, a novel, once-daily, non-antibiotic topical cream which has completed Phase III clinical trials for the treatment of acne vulgaris; Epsolay, a once-daily topical cream that has completed Phase III clinical trials for the treatment of papulopustular rosacea; SGT-210, which is in Phase I clinical trial for the treatment of palmoplantar keratoderma; and Erlotinib, Tapinarof, and roflumilast to treat psoriasis and other medical conditions. It is also involved in the development of generic topical dermatological drug products. The company has collaboration with Perrigo. Sol-Gel Technologies Ltd. was incorporated in 1997 and is headquartered in Ness Ziona, Israel.

How the Company Makes Money

Sol-Gel Technologies generates revenue through the development, manufacture, and commercialization of dermatological drug products. Its primary revenue streams include product sales, licensing agreements, and collaboration with other pharmaceutical companies. Sol-Gel's business model involves partnering with larger pharmaceutical firms to co-develop and market its products, which helps in expanding its market reach and distribution capabilities. Additionally, the company may receive milestone payments and royalties from these partnerships, contributing to its revenue. The use of its proprietary sol-gel technology platform allows Sol-Gel to create differentiated products, adding value to its offerings and supporting its revenue generation strategies.

Sol-Gel Technologies Financial Statement Overview

Summary

Sol-Gel Technologies is facing financial challenges characterized by negative margins and inconsistent revenue growth. The company's cash position provides some stability, but negative cash flows and profitability issues signal significant financial risks.

Income Statement

Sol-Gel Technologies has faced a challenging period with declining revenues and negative profit margins. The gross profit margin is negative, indicating cost inefficiencies or pricing challenges. The net profit margin is also negative, with net losses increasing over the years. This suggests the company is struggling to control costs relative to revenue. Revenue growth has been inconsistent, showing a decline in recent years which further impacts profitability.

Balance Sheet

The company's balance sheet shows a relatively low debt-to-equity ratio, indicating conservative use of leverage. However, the equity ratio has declined, reflecting a reduction in stockholders' equity. Return on equity is negative due to consistent net losses, suggesting poor returns for shareholders. Despite these issues, the company maintains a cash position that exceeds its total debt, indicating some financial stability.

Cash Flow

Sol-Gel Technologies has experienced negative operating cash flows, which is a concern as it suggests ongoing operational challenges. Free cash flow is also negative, highlighting limited cash available for reinvestment or debt reduction. The company has not demonstrated consistent free cash flow growth, impacting its ability to fund growth internally.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
6.56M	1.55M	3.88M	31.27M	8.77M	22.90M
	Gross Profit
-10.07M	-21.99M	-8.80M	10.89M	-19.14M	-17.67M
	EBIT
-16.84M	-29.30M	-16.24M	2.08M	-30.23M	25.95M
	EBITDA
-16.14M	-28.96M	-15.68M	3.84M	-29.29M	-25.06M
	Net Income Common Stockholders
-14.91M	-27.24M	-13.60M	4.36M	-27.40M	-24.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.89M	38.00M	33.63M	43.24M	50.17M	50.38M
	Total Assets
0.00	45.29M	46.63M	69.19M	59.16M	61.30M
	Total Debt
0.00	1.65M	772.00K	1.59M	1.97M	2.04M
	Net Debt
5.89M	-5.86M	-11.68M	-18.49M	-5.15M	-7.37M
	Total Liabilities
0.00	6.64M	4.42M	13.60M	8.31M	8.84M
	Stockholders Equity
-11.52M	38.64M	42.21M	55.59M	50.85M	52.47M
Cash Flow		Free Cash Flow
0.00	-17.86M	-9.65M	-7.83M	-25.69M	-23.10M
	Operating Cash Flow
0.00	-17.73M	-9.48M	-7.69M	-25.24M	-22.50M
	Investing Cash Flow
0.00	-9.74M	1.70M	19.87M	-2.69M	16.02M
	Financing Cash Flow
0.00	21.81M	15.00K	837.00K	26.46M	10.61M

Sol-Gel Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLGL, the sentiment is Negative. The current price of 0.46 is below the 20-day moving average (MA) of 0.55, below the 50-day MA of 0.62, and below the 200-day MA of 0.67, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 36.24 is Neutral, neither overbought nor oversold. The STOCH value of 21.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLGL.

Sol-Gel Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DERM	57 Neutral	$166.12M	―	-72.60%	―	-29.11%	-219.44%
ARQT	56 Neutral	$1.75B	―	-113.76%	―	229.74%	70.23%
SLGL	51 Neutral	$12.97M	―	-24.59%	―	603.12%	68.27%
ACRS	49 Neutral	$151.09M	―	-84.46%	―	-40.09%	-18.67%
Sector *	48 Neutral	$6.36B	1.09	-49.92%	2.63%	17.17%	0.95%
VTYX	36 Underperform	$66.85M	―	-54.27%	―	―	39.58%