Syndax Pharmaceuticals (SNDX) AI Stock Analysis

• Market Cap: $1.33B
• Dividend Yield: N/A
• Average Volume (3M): 3.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: 597.19%
• EPS Growth: 0.45%
• Country: US
• Employees: 270
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.70
• Shares Outstanding: 86,914,840
• 10 Day Avg. Volume: 4,803,867
• 30 Day Avg. Volume: 3,232,275
• PEG Ratio: -0.14
• Price to Book (P/B): 3.93
• Price to Sales (P/S): 47.80
• P/FCF Ratio: -4.12
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 11.13
• Enterprise Value/Gross Profit: 11.67
• Enterprise Value/Ebitda: -4.22
• 1Y Price Target: $35.33
• Price Target Upside: 140.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ―

Syndax Pharmaceuticals faces significant risks due to declining revenues, persistent losses, and negative cash flows, which weigh heavily on its overall score. While the balance sheet remains strong with low leverage, the technical indicators suggest a bearish trend. The valuation is unattractive due to negative earnings. Despite these challenges, the recent earnings call provided some positive news with product launches and a strengthened financial position, partially offsetting the negative aspects. Overall, the company's ability to improve financial performance and achieve market penetration in the face of competition will be crucial for future stock performance.

Positive Factors

Product Launch Success

The successful launch of Revuforj indicates strong market demand and effective commercialization, which can drive future revenue growth and enhance market position in oncology.

Strong Financial Position

The substantial upfront payment from Royalty Pharma bolsters Syndax's financial stability, providing resources to fund operations and support R&D, crucial for sustaining long-term growth.

FDA Approvals

FDA approvals for two first-in-class medicines enhance Syndax's competitive edge, enabling entry into new markets and potential revenue streams, critical for long-term success in the biotech industry.

Negative Factors

Declining Revenue

The significant decline in revenue highlights challenges in sustaining growth and profitability, necessitating strategic adjustments to stabilize financial performance and ensure long-term viability.

Negative Cash Flow

Persistent negative cash flow indicates financial strain, limiting Syndax's ability to fund operations internally, which could hinder growth initiatives and require external financing.

Market Penetration Challenges

Limited market penetration for Revuforj suggests difficulties in scaling sales and achieving widespread adoption, which may impact revenue potential and competitive positioning.

Syndax Pharmaceuticals Business Overview & Revenue Model

Company Description

Syndax Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapies for cancer treatment. The company operates primarily in the biotechnology sector, with a commitment to discovering, developing, and delivering novel therapies that address unmet needs in oncology. Its core products include a pipeline of drug candidates designed to enhance the effectiveness of existing cancer treatments and improve patient outcomes.

How the Company Makes Money

Syndax Pharmaceuticals makes money through the development and commercialization of its drug candidates, primarily focusing on oncology treatments. The company's revenue model is centered around advancing its pipeline products through clinical trials, gaining regulatory approval, and eventually marketing these therapies to healthcare providers and patients. Revenue is generated from product sales, potential licensing agreements, and strategic partnerships with other pharmaceutical companies. These partnerships often provide upfront payments, milestone payments, and royalties as the products progress through development and reach the market. Significant factors contributing to its earnings include successful clinical trial results, regulatory approvals, and effective commercialization strategies.

Syndax Pharmaceuticals Financial Statement Overview

Summary

Syndax Pharmaceuticals is facing significant financial challenges. Revenue has sharply declined, and there are persistent net losses and negative cash flows, which highlight the company's profitability issues. The balance sheet remains relatively strong with low leverage, but the decline in equity and continuous losses could pose risks if not addressed. Improvements in revenue generation and operational efficiency are necessary to stabilize the company's financial position.

Income Statement

Syndax Pharmaceuticals has faced declining revenue, with a significant drop from $139.7 million in 2021 to $23.68 million in 2024. Margins are under pressure, with a consistent negative net profit margin due to high operating losses. The company's gross profit margin remains high at 96.52% in 2024, indicating efficient cost management. However, the sustained net losses and negative EBIT margins highlight profitability challenges.

Balance Sheet

The balance sheet shows a strong equity base with stockholders' equity at $288 million in 2024, though it has decreased from $554 million in 2023. The equity ratio is robust at 39.75%. Debt levels are low with a debt-to-equity ratio of 0.04, indicating low financial leverage. The decline in equity and assets suggests potential risks if losses continue.

Cash Flow

Operating cash flow is negative, showing significant cash outflow from operations in 2024 at -$274.9 million. Free cash flow has also deteriorated, reflecting a challenging cash flow situation. The company's ability to generate cash is compromised, with a negative operating cash flow to net income ratio, raising concerns on sustainability without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	111.55M	23.68M	0.00	0.00	139.71M	1.52M
Gross Profit	106.46M	22.85M	-12.00K	-454.00K	139.25M	1.52M
EBITDA	-294.54M	-313.82M	-229.94M	-151.76M	27.28M	-70.29M
Net Income	-311.58M	-318.76M	-209.36M	-143.75M	24.93M	-73.07M
Balance Sheet
Total Assets	551.79M	724.82M	612.88M	497.24M	449.66M	300.61M
Cash, Cash Equivalents and Short-Term Investments	435.98M	582.91M	577.58M	481.27M	439.94M	293.06M
Total Debt	345.43M	345.74M	1.64M	1.16M	20.97M	20.54M
Total Liabilities	436.36M	436.69M	58.68M	29.79M	41.29M	48.42M
Stockholders Equity	115.43M	288.12M	554.20M	467.45M	408.37M	252.19M
Cash Flow
Free Cash Flow	-311.01M	-274.90M	-160.60M	-133.90M	29.00M	-71.26M
Operating Cash Flow	-310.88M	-274.90M	-160.60M	-133.68M	29.13M	-71.26M
Investing Cash Flow	-60.52M	-219.78M	117.61M	-186.19M	-40.87M	-142.53M
Financing Cash Flow	355.18M	353.37M	264.13M	172.25M	118.46M	304.42M

Syndax Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.69
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNDX, the sentiment is Positive. The current price of 14.69 is above the 20-day moving average (MA) of 14.54, below the 50-day MA of 15.27, and above the 200-day MA of 12.97, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 50.30 is Neutral, neither overbought nor oversold. The STOCH value of 73.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNDX.

Syndax Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANAB	55 Neutral	$961.90M	―	-308.02%	―	196.42%	53.92%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SNDX	48 Neutral	$1.33B	―	-129.32%	―	597.19%	0.45%
GERN	46 Neutral	$733.72M	―	-29.57%	―	522.13%	62.68%
KALV	45 Neutral	$543.63M	―	-190.18%	―	―	-13.14%
NUVB	45 Neutral	$1.66B	―	-52.49%	―	1137.19%	70.51%
QURE	43 Neutral	$1.88B	―	-427.47%	―	-48.25%	33.77%

Syndax Pharmaceuticals Corporate Events

Syndax Pharmaceuticals Restructures Leadership Team

Syndax Pharmaceuticals has announced the elimination of the Chief Medical Officer position, resulting in Catherine Madigan, M.D. departing from the company. This organizational change may impact Syndax’s operational dynamics, signaling potential shifts in their strategic focus or cost management efforts.