Sol-Gel Technologies (SLGL) AI Stock Analysis

• Market Cap: $190.30M
• Dividend Yield: N/A
• Average Volume (3M): 16.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: 62.04%
• EPS Growth: 6.10%
• Country: US
• Employees: 34
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -2.13
• Shares Outstanding: 2,785,787
• 10 Day Avg. Volume: 26,975
• 30 Day Avg. Volume: 16,656
• PEG Ratio: 0.39
• Price to Book (P/B): 8.98
• Price to Sales (P/S): 22.45
• P/FCF Ratio: -18.65
• Enterprise Value/Market Cap: 0.32
• Enterprise Value/Revenue: 9.37
• Enterprise Value/Gross Profit: -6.10
• Enterprise Value/Ebitda: -3.74
• 1Y Price Target: $50.00
• Price Target Upside: -28.06% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $69.00 ▼(-0.72% Downside)

The score is held back primarily by weak financial fundamentals—ongoing losses and significant cash burn—despite improved revenue and a low-debt balance sheet. Technicals are a major positive with a strong uptrend, but overbought momentum indicators add near-term risk. Valuation remains pressured given the negative P/E.

Positive Factors

High gross margin and revenue rebound

Sustained very high gross margins with strong top-line recovery indicate the core sol-gel delivery platform can command favorable product economics. Durable margin structure supports long-term gross profit scalability as revenues grow, reducing need for margin-reliant financing.

Low financial leverage

Minimal debt provides balance-sheet flexibility to fund pivotal Phase 3 programs and commercial launches without heavy interest burdens. Low leverage reduces refinancing risk and preserves optionality for licensing, partnerships, or targeted non-dilutive milestone receipts.

Partnership-led commercialization and regulatory milestone

Successful regulatory approval via a licensee demonstrates the company can realize non-dilutive milestone and royalty streams from partnerships. This validation de-risks commercialization execution in markets where partners manage launch and supports recurring revenue potential.

Negative Factors

Persistent cash burn

Consistent negative operating and free cash flow means the company requires ongoing external funding to advance late-stage trials and commercialization. This structural cash need can dilute equity or constrain program financing if non-dilutive partner payments are delayed or insufficient.

Large net losses and weak profitability

Substantial net losses and deeply negative margins reflect that high gross margins have not yet translated to operating profitability. Persistent negative returns erode equity value over time and may limit reinvestment capacity unless structural cost or revenue improvements occur.

Clinical program setback for SGT-210

Failure to demonstrate efficacy in a proof-of-concept study reduces pipeline optionality and forces reallocation of limited R&D resources. Pipeline narrowing increases reliance on remaining late-stage SGT-610; a smaller diversified pipeline raises long-term execution and revenue concentration risk.

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 makes money primarily through the development and commercialization of proprietary dermatological drugs. The company's revenue model is based on partnerships and collaborations with larger pharmaceutical companies for the co-development and commercialization of its drug candidates. These partnerships often involve upfront payments, milestone payments based on the achievement of certain clinical, regulatory, or sales milestones, and royalties on net sales of products that reach the market. Additionally, Sol-Gel Technologies may generate revenue from licensing agreements by allowing other companies to use its sol-gel technology platform for their own product development.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.56M	11.54M	1.55M	3.88M	31.27M	8.77M
Gross Profit	-10.07M	11.30M	-21.99M	-8.80M	10.89M	-19.14M
EBITDA	-16.43M	-10.35M	-28.96M	-15.68M	3.84M	-29.29M
Net Income	-14.91M	-10.58M	-27.24M	-14.92M	3.22M	-29.29M
Balance Sheet
Total Assets	42.01M	35.85M	45.29M	46.63M	69.19M	59.16M
Cash, Cash Equivalents and Short-Term Investments	30.47M	23.93M	38.00M	33.63M	43.24M	50.17M
Total Debt	1.39M	1.31M	1.65M	772.00K	1.59M	1.97M
Total Liabilities	7.10M	7.00M	6.64M	4.42M	13.60M	8.31M
Stockholders Equity	34.90M	28.85M	38.64M	42.21M	55.59M	50.85M
Cash Flow
Free Cash Flow	0.00	-13.89M	-17.86M	-9.65M	-7.83M	-25.69M
Operating Cash Flow	0.00	-13.89M	-17.73M	-9.48M	-7.69M	-25.24M
Investing Cash Flow	0.00	26.69M	-9.74M	1.70M	19.87M	-2.69M
Financing Cash Flow	0.00	0.00	21.81M	15.00K	837.00K	26.46M

Sol-Gel Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLGL, the sentiment is Positive. The current price of 69.5 is above the 20-day moving average (MA) of 50.78, above the 50-day MA of 43.03, and above the 200-day MA of 23.25, indicating a bullish trend. The MACD of 7.14 indicates Negative momentum. The RSI at 85.57 is Negative, neither overbought nor oversold. The STOCH value of 92.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLGL.

Sol-Gel Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLGL	53 Neutral	$190.30M	-21.55	-29.59%	―	62.04%	6.10%
STTK	53 Neutral	$282.86M	-4.55	-57.84%	―	-84.46%	33.32%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IMDX	51 Neutral	$189.76M	-2.34	-9999.00%	―	520.87%	36.11%
OVID	51 Neutral	$113.23M	-3.07	-60.06%	―	946.61%	-11.30%
SRZN	50 Neutral	$171.43M	-0.92	―	―	-63.96%	-28.50%
MGX	49 Neutral	$63.45M	-0.70	-40.87%	―	-43.88%	4.73%

Sol-Gel Technologies Corporate Events

Sol-Gel Technologies Updates Clinical Pipeline Following Phase 1b Results

On December 17, 2025, Sol-Gel Technologies announced that its Phase 1b study for SGT-210 in Darier Disease did not demonstrate efficacy compared to the vehicle. As a result, the company decided not to continue development for this indication, shifting focus to other small-scale studies for unmet medical needs and prioritizing the Phase 3 program of SGT-610 for Gorlin Syndrome. This decision impacts Sol-Gel’s pipeline by redirecting resources to promising programs, reinforcing its position in rare skin disorder treatments, and shaping expectations for key stakeholders.

The most recent analyst rating on (SLGL) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Sol-Gel Technologies stock, see the SLGL Stock Forecast page.

Sol-Gel Technologies Announces Q3 2025 Financial Results and Strategic Developments

On November 20, 2025, Sol-Gel Technologies announced its financial results for the third quarter ending September 30, 2025, alongside significant corporate updates. The company is advancing its lead drug candidate SGT-610 for Gorlin syndrome and exploring its potential for treating high-frequency basal cell carcinoma, which could significantly increase its commercial potential. Sol-Gel also reported Health Canada’s approval of EPSOLAY and signed a new agreement with Viatris for its commercialization in Australia and New Zealand. Despite a net loss of $5.9 million for the quarter, Sol-Gel is optimistic about its strategic partnerships and future revenue streams, aiming for substantial growth by 2031.

The most recent analyst rating on (SLGL) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Sol-Gel Technologies stock, see the SLGL Stock Forecast page.

Sol-Gel Technologies Announces Key Leadership and Auditor Appointments

At the Annual Meeting of Shareholders held on November 11, 2025, Sol-Gel Technologies Ltd. announced the appointment of Kesselman & Kesselman as its independent auditors for 2025 and the re-election of key board members, including Mr. Moshe Arkin as interim CEO for another term starting January 1, 2026. These decisions are expected to provide continuity in leadership and financial oversight, reinforcing the company’s strategic direction and stability in the competitive dermatology sector.

The most recent analyst rating on (SLGL) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Sol-Gel Technologies stock, see the SLGL Stock Forecast page.