Sol-Gel Technologies (SLGL) AI Stock Analysis

• Market Cap: $116.33M
• Dividend Yield: N/A
• Average Volume (3M): 16.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• 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: 2,785,762
• 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: 0.53
• Enterprise Value/Revenue: 9.37
• Enterprise Value/Gross Profit: -6.10
• Enterprise Value/Ebitda: -3.74
• 1Y Price Target: $50.00
• Price Target Upside: 17.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: ―

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.

Positive Factors

Proprietary Technology

Sol-Gel's proprietary technology offers a competitive edge in dermatological drug delivery, potentially leading to innovative products and partnerships.

Strategic Partnerships

Strategic partnerships with larger pharmaceutical companies provide Sol-Gel with financial resources and market access, enhancing its commercial potential.

Revenue Growth

Strong revenue growth indicates successful product development and market penetration, supporting long-term business sustainability.

Negative Factors

Negative Profit Margins

Negative profit margins highlight cost inefficiencies and pricing challenges, which could hinder long-term profitability and financial health.

Negative Cash Flows

Ongoing negative cash flows suggest operational challenges, limiting Sol-Gel's ability to reinvest in growth or reduce debt sustainably.

Inconsistent Revenue Growth

Inconsistent revenue growth reflects potential market volatility or product demand issues, impacting long-term strategic planning and stability.

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: 42.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 42.42 is above the 20-day moving average (MA) of 35.47, above the 50-day MA of 35.72, and above the 200-day MA of 16.47, indicating a bullish trend. The MACD of 1.54 indicates Negative momentum. The RSI at 65.97 is Neutral, neither overbought nor oversold. The STOCH value of 83.46 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
OVID	55 Neutral	$99.70M	―	-60.06%	―	946.61%	-11.30%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SLGL	51 Neutral	$116.33M	―	-29.59%	―	62.04%	6.10%
IMDX	51 Neutral	$175.44M	-1.76	-9999.00%	―	520.87%	36.11%
STTK	49 Neutral	$121.88M	-1.60	-57.84%	―	-84.46%	33.32%
SRZN	43 Neutral	$107.90M	-0.90	―	―	-63.96%	-28.50%
MGX	41 Neutral	$85.95M	-0.98	-40.87%	―	-43.88%	4.73%