Surrozen (SRZN) AI Stock Analysis

• Market Cap: $89.02M
• Dividend Yield: N/A
• Average Volume (3M): 13.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: N/A
• EPS Growth: 0.13%
• Country: US
• Employees: 40
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -21.27
• Shares Outstanding: 8,494,584
• 10 Day Avg. Volume: 6,316
• 30 Day Avg. Volume: 13,982
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.23
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -0.76
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $32.00
• Price Target Upside: 205.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Surrozen's overall stock score reflects its challenging financial performance, with significant ongoing losses and cash burn issues. The technical analysis shows mixed signals, with some recent positive momentum but overall bearish trends. Valuation remains unattractive due to negative earnings. However, the recent private placement deal provides a positive outlook for financial stability, while the new director brings valuable expertise. These factors contribute to a stock score that suggests caution while recognizing potential for improvement.

Positive Factors

Analyst Recommendation

Analyst recommendation is to initiate coverage with a Buy rating and $32 price target.

Industry Validation

The recent validation of the Wnt pathway by major acquisitions in the industry, like Merck acquiring EyeBio and Roche acquiring AntlerA, supports the potential of the Wnt mechanism.

Strategic Partnerships

The strategic partnership with Boehringer Ingelheim for developing candidate SZN-413 in retinal vascular-associated diseases provides important validation for Wnt modulation.

Negative Factors

Dependency on Partnerships

The collaboration and licensing agreement with Boehringer Ingelheim for bi-specific antibody SZN-413, targeting Fzd4-mediated Wnt signaling in retinopathies, provides upside beyond the internal Wnt pipeline for vascular pathology.

Surrozen Business Overview & Revenue Model

Company Description

Surrozen, Inc., a biotechnology company, discovers and develops drug candidates to selectively modulate the Wnt pathway for tissue repair and regeneration. It is developing tissue-specific antibodies with application across various disease areas, including diseases of the intestine, liver, retina, cornea, lung, kidney, cochlea, skin, pancreas, and central nervous system. Its products in pipeline include SZN-043 a tissue-specific R-spondin mimetic for the treatment of severe liver disease; and SZN-1326, a bi-specific full-length human antibody that directly modulates Wnt signaling in target tissue by binding to particular Frizzled and LRP receptors that are expressed in intestinal crypts. Surrozen, Inc. was founded in 2015 and is headquartered in South San Francisco, California.

How the Company Makes Money

Surrozen makes money primarily through the development and commercialization of its proprietary therapeutic candidates. The company's revenue model includes potential income from licensing agreements, collaborations, and partnerships with other pharmaceutical companies. These partnerships can provide upfront payments, milestone payments based on the achievement of specific development goals, and royalties from product sales if the therapeutics are successfully brought to market. Additionally, Surrozen may secure funding through grants and research collaborations that support its ongoing research and development efforts.

Surrozen Financial Statement Overview

Summary

Surrozen is facing significant financial challenges with negative net income and cash flow issues despite some revenue growth. The balance sheet shows moderate leverage but declining equity. Overall, profitability and cash flow stability need substantial improvement.

Income Statement

Surrozen's income statement reveals significant challenges, highlighted by negative net income and EBIT figures. The company has shown some revenue growth, with TTM revenue reaching $14.15 million compared to $12.5 million in 2022. However, profitability remains a concern, with a net profit margin of -314.1% in TTM. The gross profit margin has improved to 91.3% in TTM, indicating some operational efficiency, but overall profitability is still a major issue due to high operational costs.

Balance Sheet

The balance sheet presents a mixed picture. The company's debt-to-equity ratio has improved to 0.27 in TTM from 0.07 in 2022, indicating moderate financial leverage. Stockholders' equity has decreased significantly to $5.67 million in TTM, reducing the equity ratio to 11.8%. Despite these concerns, Surrozen maintains a cash position higher than its total debt, which provides some financial stability.

Cash Flow

Cash flow figures indicate a challenging environment. The operating cash flow to net income ratio stands at 0.64 in TTM, suggesting some cash flow efficiency. However, free cash flow remains negative at -$28.43 million, with no indication of improvement from the previous period. The absence of free cash flow growth highlights persistent liquidity issues.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	12.50M	0.00	0.00	0.00
	Gross Profit
-27.23M	9.23M	-3.30M	-2.93M	0.00
	EBIT
-45.78M	-44.34M	-54.39M	-32.81M	-25.11M
	EBITDA
-41.13M	-42.38M	-51.35M	-31.37M	-22.82M
	Net Income Common Stockholders
-43.04M	-27.67M	-52.51M	-32.63M	-24.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
36.04M	75.84M	101.85M	49.18M	29.10M
	Total Assets
46.08M	89.44M	137.17M	62.06M	42.48M
	Total Debt
3.38M	5.60M	7.79M	9.60M	9.20M
	Net Debt
-32.66M	-19.09M	-25.30M	-25.39M	-19.91M
	Total Liabilities
8.14M	13.43M	27.47M	14.77M	13.10M
	Stockholders Equity
37.94M	76.00M	109.70M	47.29M	29.39M
Cash Flow		Free Cash Flow
-40.76M	-44.87M	-50.08M	-29.97M	-22.62M
	Operating Cash Flow
-40.36M	-44.15M	-48.81M	-29.10M	-21.06M
	Investing Cash Flow
51.72M	38.31M	-77.71M	-15.07M	-1.56M
	Financing Cash Flow
276.00K	-2.56M	124.63M	50.05M	28.90M

Surrozen Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRZN, the sentiment is Positive. The current price of 10.48 is above the 20-day moving average (MA) of 10.00, below the 50-day MA of 10.90, and above the 200-day MA of 10.32, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 69.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRZN.

Surrozen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.28B	3.75	-42.72%	2.86%	17.70%	2.03%
MGNX	50 Neutral	$105.99M	―	-49.85%	―	155.26%	-640.36%
WHWK	46 Neutral	$69.24M	―	-80.79%	―	6.69%	3.57%
VERU	44 Neutral	$79.30M	―	-80.11%	―	-7.43%	69.03%
ELUT	44 Neutral	$90.31M	―	149.62%	―	-31.04%	11.34%
SRZN	43 Neutral	$89.02M	―	-767.91%	―	―	0.13%
BDTX	33 Underperform	$96.35M	―	-69.67%	―	―	33.97%

Surrozen Corporate Events

Surrozen Secures $76.4M in Private Placement Deal

On March 24, 2025, Surrozen, Inc. entered into a Securities Purchase Agreement with institutional and accredited investors for a two-tranche private placement of shares and warrants, raising approximately $76.4 million in the first tranche. The second tranche, contingent on FDA clearance of an Investigational New Drug Application by October 31, 2026, could bring an additional $98.6 million. Additionally, Tim Kutzkey was appointed as a Class I director on March 26, 2025, bringing extensive experience in biotechnology and venture capital.