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Salarius Pharmaceuticals Inc (SLRX)
NASDAQ:SLRX

Salarius Pharmaceuticals (SLRX) AI Stock Analysis

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Salarius Pharmaceuticals

(NASDAQ:SLRX)

Rating:30Underperform
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 (SLRX) vs. SPDR S&P 500 ETF (SPY)

Salarius Pharmaceuticals Business Overview & Revenue Model

Company DescriptionSalarius 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 MoneySalarius 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
15
Very Negative
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
30
Negative
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
20
Very Negative
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.000.000.001.84M5.23M
Gross Profit
-1.11K0.00-10.05K-6.68K1.82M5.23M
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 SheetCash, Cash Equivalents and Short-Term Investments
1.80M2.43M5.90M12.11M29.21M11.12M
Total Assets
2.34M3.02M6.59M14.65M40.83M24.93M
Total Debt
112.23K221.87K289.64K0.000.00477.03K
Net Debt
-1.69M-2.21M-5.61M-12.11M-29.21M-10.64M
Total Liabilities
2.28M1.51M1.30M4.27M2.11M2.77M
Stockholders Equity
61.87K1.51M5.29M10.38M38.72M22.16M
Cash FlowFree 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
0.000.000.00-1.50M0.00-2.60K
Financing Cash Flow
1.78M1.06M6.64M1.99M28.30M17.69M

Salarius Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.77
Price Trends
50DMA
0.77
Negative
100DMA
1.28
Negative
200DMA
1.44
Negative
Market Momentum
MACD
<0.01
Negative
RSI
48.37
Neutral
STOCH
10.15
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 Risk Analysis

Salarius Pharmaceuticals disclosed 44 risk factors in its most recent earnings report. Salarius Pharmaceuticals 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 1 New Risks
1.
Our common stock may be subject to delisting from Nasdaq. Q3, 2024

Salarius Pharmaceuticals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
53
Neutral
$5.14B3.23-45.01%2.85%17.55%-0.69%
38
Underperform
$2.23M-1023.93%83.04%
37
Underperform
$3.51M-120.16%-7.74%93.25%
31
Underperform
$285.78K-2364.82%60.26%
30
Underperform
$1.64M-300.16%79.57%
29
Underperform
$2.58M-91.39%99.39%
27
Underperform
$2.80M-512.79%-40.51%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SLRX
Salarius Pharmaceuticals
0.77
-2.94
-79.25%
APVO
Aptevo Therapeutics
0.28
-26.69
-98.96%
RSLS
ReShape Lifesciences
4.76
-296.55
-98.42%
VRPX
Virpax Pharmaceuticals
0.23
-17.55
-98.71%
PTIX
Protagenic Therapeutics
4.76
-16.87
-77.99%
ZVSA
ZyVersa Therapeutics
0.54
-3.71
-87.29%

Salarius Pharmaceuticals Corporate Events

M&A TransactionsShareholder Meetings
Salarius Pharmaceuticals Merges with Decoy Therapeutics
Neutral
Jan 13, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.