Summit Therapeutics (SMMT) AI Stock Analysis

• Market Cap: $14.03B
• Dividend Yield: N/A
• Average Volume (3M): 4.81M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.34
• Revenue Growth: N/A
• EPS Growth: -338.19%
• Country: US
• Employees: 159
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.76
• Shares Outstanding: 742,846,700
• 10 Day Avg. Volume: 7,953,840
• 30 Day Avg. Volume: 4,808,847
• PEG Ratio: 0.84
• Price to Book (P/B): 32.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -90.17
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -1.03K
• Enterprise Value/Ebitda: -20.87
• 1Y Price Target: $29.25
• Price Target Upside: 54.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 53 Neutral
• Price Target: ―

Summit Therapeutics' stock score reflects significant financial challenges, including lack of revenue and ongoing losses, balanced by a strong equity position. Technical indicators show positive momentum, supporting short-term interest. Valuation remains weak due to negative earnings and no dividend. Positive clinical developments from the earnings call bolster the score, highlighting potential for future growth.

Positive Factors

Regulatory Approval

Regulatory approval in China for ivonescimab marks a significant milestone, enhancing its market potential and validating its clinical efficacy, which could lead to increased adoption and future revenue streams.

Strong Cash Position

A robust cash position and lack of debt provide financial stability, enabling continued investment in R&D and strategic initiatives without immediate pressure to secure additional funding.

Clinical Trial Success

Success in clinical trials like HARMONi-6 strengthens the company's pipeline credibility, potentially accelerating future approvals and partnerships, which are critical for long-term growth in the biotech sector.

Negative Factors

Lack of Revenue

The absence of revenue generation poses a significant challenge, as it limits the company's ability to self-fund operations and increases reliance on external financing, impacting long-term sustainability.

Increased G&A Expenses

Rising general and administrative expenses can strain financial resources and reduce operational efficiency, potentially diverting funds from critical R&D activities necessary for future growth.

Negative Cash Flow

Persistent negative cash flow highlights operational inefficiencies and the need for strategic changes to improve cash generation, crucial for sustaining long-term operations without excessive external funding.

Summit Therapeutics Business Overview & Revenue Model

Company Description

Summit Therapeutics (SMMT) is a clinical-stage biopharmaceutical company focused on the discovery, development, and commercialization of novel antibiotics to combat infections caused by multi-drug resistant bacteria. The company operates in the healthcare sector, with a primary focus on developing new treatments for infectious diseases through its innovative pipeline of antibiotic candidates.

How the Company Makes Money

Summit Therapeutics generates revenue primarily through collaboration and licensing agreements with other pharmaceutical companies. These partnerships often involve upfront payments, milestone payments, and royalties based on the commercial success of the developed products. Additionally, the company may receive government grants and funding from nonprofit organizations that support research and development of new antibiotics. As a clinical-stage company, Summit Therapeutics does not yet generate revenue from product sales, as its products are still in the development phase.

Summit Therapeutics Financial Statement Overview

Summary

Summit Therapeutics faces significant financial hurdles, characterized by non-existent revenue streams and substantial losses. While the balance sheet is bolstered by strong equity levels, cash flow challenges persist, indicating a need for strategic shifts to improve operational cash generation and profitability.

Income Statement

Summit Therapeutics shows no revenue generation in recent years, leading to negative profit margins. The gross profit margin and net profit margin remain negative due to the lack of revenue and substantial losses, indicating significant challenges in achieving profitability and growth in the biotech sector.

Balance Sheet

The company's balance sheet demonstrates a strong equity position relative to liabilities, with a low debt-to-equity ratio and a high equity ratio. However, sustained net losses have eroded overall equity growth, posing a risk to future financial stability.

Cash Flow

Operating cash flows are consistently negative, reflecting ongoing challenges in operational efficiency and cash generation. Despite positive financing cash flows, reliance on external funding could pose risks. Free cash flow trends remain negative, further highlighting cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	704.29K	1.81M	860.00K
Gross Profit	-15.02M	-15.01M	-2.05M	-1.81M	1.81M	860.00K
EBITDA	-743.22M	-212.85M	1.00M	-73.12M	-85.91M	-50.65M
Net Income	-746.08M	-221.31M	-614.93M	-78.78M	-88.60M	-52.70M
Balance Sheet
Total Assets	324.04M	435.56M	202.95M	664.17M	113.37M	102.50M
Cash, Cash Equivalents and Short-Term Investments	297.87M	412.35M	186.24M	348.61M	71.79M	66.42M
Total Debt	5.55M	7.22M	106.10M	518.76M	2.78M	465.00K
Total Liabilities	64.60M	46.81M	125.26M	537.51M	30.09M	23.05M
Stockholders Equity	259.44M	388.75M	77.69M	126.65M	83.28M	79.45M
Cash Flow
Free Cash Flow	-207.38M	-142.25M	-76.89M	-42.21M	-72.89M	-48.53M
Operating Cash Flow	-206.88M	-142.11M	-76.76M	-41.58M	-72.59M	-48.11M
Investing Cash Flow	285.79M	-205.34M	-587.77M	-624.00K	-306.00K	-421.00K
Financing Cash Flow	190.43M	381.23M	86.51M	620.24M	77.92M	50.55M

Summit Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.89
• 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 SMMT, the sentiment is Negative. The current price of 18.89 is below the 20-day moving average (MA) of 21.81, below the 50-day MA of 24.91, and below the 200-day MA of 22.05, indicating a bearish trend. The MACD of -1.98 indicates Positive momentum. The RSI at 36.78 is Neutral, neither overbought nor oversold. The STOCH value of 44.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMMT.

Summit Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMAB	82 Outperform	17.48B	14.00	22.13%	―	23.25%	64.46%
INCY	80 Outperform	16.90B	19.67	20.88%	―	18.87%	1088.27%
EXEL	77 Outperform	10.80B	19.23	29.62%	―	10.73%	81.66%
UTHR	77 Outperform	18.89B	16.30	18.55%	―	17.62%	19.89%
BMRN	76 Outperform	10.44B	16.10	10.90%	―	17.38%	153.58%
SMMT	53 Neutral	$14.03B	―	-328.30%	―	―	-338.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Summit Therapeutics Corporate Events

Summit Therapeutics Reports Q1 2025 Financial Results

Summit Therapeutics reported its financial results and operational progress for the first quarter of 2025. The company highlighted significant advancements in its ivonescimab clinical trials, including the HARMONi-6 study conducted by Akeso in China, which showed statistically significant improvements in progression-free survival for NSCLC patients. Ivonescimab received approval in China for a second indication, and the company continues to expand its clinical collaborations globally. Financially, Summit reported increased R&D expenses due to the expansion of clinical studies, resulting in a higher net loss compared to the previous year.

Spark’s Take on SMMT Stock

According to Spark, TipRanks’ AI Analyst, SMMT is a Neutral.

Summit Therapeutics’ overall stock score is 56, reflecting considerable challenges in financial performance with no revenue generation and negative cash flow. However, positive technical indicators and a strong strategic outlook, including collaborations and financial stability, offer some promise. The lack of traditional valuation metrics and uncertainties around trial timelines and strategic reliance on external partnerships are notable concerns.

To see Spark’s full report on SMMT stock, click here.

Summit Therapeutics Highlights Q4 Results and FDA Fast Track

Summit Therapeutics reported its 2024 fourth-quarter financial results, highlighting advances in its clinical trials for ivonescimab, including a collaboration with Pfizer to explore novel treatments in solid tumor settings. The company also announced the completion of enrollment for its HARMONi trial and received Fast Track designation from the FDA, positioning itself as a key player in innovative oncology treatments. Financially, Summit recorded a significant decrease in operating expenses primarily due to reduced R&D costs, although it saw an increase in R&D spending linked to expanded clinical trials.