Salarius Pharmaceuticals (SLRX) AI Stock Analysis

• Market Cap: $1.64M
• Dividend Yield: N/A
• Average Volume (3M): 35.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: N/A
• EPS Growth: 79.57%
• Country: US
• Employees: 2
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -1.03
• Shares Outstanding: 2,127,286
• 10 Day Avg. Volume: 23,154
• 30 Day Avg. Volume: 35,772
• PEG Ratio: >-0.01
• Price to Book (P/B): 22.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.41
• Enterprise Value/Market Cap: 0.05
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: -72.84
• Enterprise Value/Ebitda: >-0.01
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 30 Underperform
• Price Target: ―

Salarius Pharmaceuticals exhibits significant financial instability, characterized by declining revenues and persistent losses, which severely impacts its stock score. Technically, the stock is on a bearish trend, trading below major moving averages, with negative momentum indicators. The valuation is further weakened by a negative P/E ratio and absence of dividend, making it unattractive to value or income investors. Overall, the stock is highly risky and requires cautious consideration.

Salarius Pharmaceuticals Business Overview & Revenue Model

Company Description

Salarius Pharmaceuticals, Inc., a clinical-stage biotechnology company, focuses on developing epigenetic-based cancer treatments. Its lead candidate is Seclidemstat (SP-2577), a small molecular inhibitor which is in Phase I/II clinical trial for the treatment of advanced solid tumors, as well as Ewing sarcoma. The company also offers SP-3164, a small molecular protein degrader for the treatment of hematological and solid tumors. It has a strategic partnership with The University of Utah Research Foundation for the exclusive license with respect to patent rights protecting SP-2577 and related compounds; HLB Life Sciences to develop, produce, manufacture, use, and sell the drug in South Korea; and Cancer Prevention and Research Institute of Texas for product development activities, as well as a research partnership with the Cancer Epigenetics Institute at Fox Chase Cancer Center to identify new indications and biomarkers for SP-2577. The company is headquartered in Houston, Texas.

How the Company Makes Money

Salarius Pharmaceuticals generates revenue through a combination of strategic partnerships, licensing agreements, and government or private grants. The company's revenue model heavily relies on collaboration with larger pharmaceutical companies for the development and commercialization of its proprietary drug candidates. These partnerships often involve upfront payments, milestone payments based on the achievement of specific development or regulatory milestones, and potential royalties on net sales of successfully commercialized products. Additionally, Salarius may secure funding through research grants and subsidies aimed at supporting innovative cancer treatments. As of now, the company is largely in the clinical development phase, and its revenue streams are primarily associated with these developmental and collaborative efforts rather than direct product sales.

Salarius Pharmaceuticals Financial Statement Overview

Summary

Salarius Pharmaceuticals is facing significant financial challenges with declining revenues, persistent losses, and negative cash flows. The company exhibits limited leverage, which is a minor positive, but the decreasing equity and ongoing cash burn highlight substantial financial instability. Immediate strategic changes are necessary to improve financial health.

Income Statement

Salarius Pharmaceuticals has faced declining revenues from $5.23 million in 2020 to $0 in 2024, indicating a severe downturn. The net profit margin is negative due to consistent net losses, reflecting ongoing operational challenges. The absence of EBIT and EBITDA in recent years further highlights operational inefficiencies.

Balance Sheet

The balance sheet shows a declining trend in stockholders' equity, falling from $22.16 million in 2020 to $1.51 million in 2024, driven by accumulated losses. The debt-to-equity ratio remains low, indicating limited leverage, which is a positive aspect. However, the equity ratio has significantly decreased, indicating potential financial instability.

Cash Flow

Free cash flow is consistently negative, reflecting substantial cash outflows. The operating cash flow to net income ratio is unfavorable due to persistent negative cash flows, presenting a liquidity concern. Financing activities have occasionally bolstered cash reserves, but this is unsustainable long-term.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	1.84M	5.23M
	Gross Profit
-1.11K	0.00	-10.05K	-6.68K	1.82M	5.23M
	EBIT
-5.67M	-5.73M	―	-31.84M	-12.81M	-7.79M
	EBITDA
-4.20M	-5.57M	―	-31.60M	-12.75M	-7.33M
	Net Income Common Stockholders
-5.57M	-5.58M	―	-31.37M	-12.70M	-7.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.80M	2.43M	5.90M	12.11M	29.21M	11.12M
	Total Assets
2.34M	3.02M	6.59M	14.65M	40.83M	24.93M
	Total Debt
112.23K	221.87K	289.64K	0.00	0.00	477.03K
	Net Debt
-1.69M	-2.21M	-5.61M	-12.11M	-29.21M	-10.64M
	Total Liabilities
2.28M	1.51M	1.30M	4.27M	2.11M	2.77M
	Stockholders Equity
61.87K	1.51M	5.29M	10.38M	38.72M	22.16M
Cash Flow		Free Cash Flow
-4.35M	-4.53M	-12.85M	-19.10M	-10.20M	-10.31M
	Operating Cash Flow
-4.35M	-4.53M	-12.85M	-17.60M	-10.20M	-10.31M
	Investing Cash Flow
0.00	0.00	0.00	-1.50M	0.00	-2.60K
	Financing Cash Flow
1.78M	1.06M	6.64M	1.99M	28.30M	17.69M

Salarius Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLRX, the sentiment is Negative. The current price of 0.77 is above the 20-day moving average (MA) of 0.76, below the 50-day MA of 0.77, and below the 200-day MA of 1.44, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.37 is Neutral, neither overbought nor oversold. The STOCH value of 10.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLRX.

Salarius Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	53 Neutral	$5.14B	3.23	-45.01%	2.85%	17.55%	-0.69%
APVO	38 Underperform	$2.23M	―	-1023.93%	―	―	83.04%
RSLS	37 Underperform	$3.51M	―	-120.16%	―	-7.74%	93.25%
VRPX	31 Underperform	$285.78K	―	-2364.82%	―	―	60.26%
SLRX	30 Underperform	$1.64M	―	-300.16%	―	―	79.57%
ZVSA	29 Underperform	$2.58M	―	-91.39%	―	―	99.39%
PTIX	27 Underperform	$2.80M	―	-512.79%	―	―	-40.51%

Salarius Pharmaceuticals Corporate Events

Salarius Pharmaceuticals Merges with Decoy Therapeutics

Salarius Pharmaceuticals has entered into a merger agreement with Decoy Therapeutics, resulting in a stock-for-stock transaction where Decoy stockholders will own approximately 85.9% of Salarius. The merger aims to combine Salarius and Decoy’s operations, with Decoy becoming a wholly-owned subsidiary. This merger is expected to significantly impact Salarius’ operations and industry positioning, as Decoy’s significant operations will contribute to the future of the combined company. The merger was approved by both companies’ board of directors and involves a special stockholder meeting to address various proposals related to the merger.