Springworks Therapeutics (SWTX) AI Stock Analysis

• Market Cap: $3.52B
• Dividend Yield: N/A
• Average Volume (3M): 4.60M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: 730.42%
• EPS Growth: 31.63%
• Country: US
• Employees: 368
• Sector: Healthcare
• Sector Strength: 55
• Industry: Biotechnology
• EPS (TTM): -0.93
• Shares Outstanding: 75,348,990
• 10 Day Avg. Volume: 4,025,903
• 30 Day Avg. Volume: 4,598,416
• PEG Ratio: -0.11
• Price to Book (P/B): -2.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.07
• Enterprise Value/Market Cap: 0.38
• Enterprise Value/Revenue: 2.07
• Enterprise Value/Gross Profit: 6.46
• Enterprise Value/Ebitda: -1.15
• 1Y Price Target: $53.17
• Price Target Upside: 13.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 54 Neutral
• Price Target: ―

Springworks Therapeutics holds potential due to its strong revenue growth and the strategic merger with Merck. However, ongoing profitability and cash flow challenges, coupled with a negative P/E ratio, weigh on the stock's attractiveness. Technical indicators show upward momentum, but caution is advised due to potential overbought conditions.

Positive Factors

Acquisition Impact

Merck KGaA's acquisition of SpringWorks is expected to strengthen their US presence and allow expansion into international markets.

Product Potential

Gomekli is poised to become the preferred agent for NF1-PN given strong data, improved compliance, broad approval in both adults and pediatrics, and ease of administration.

Negative Factors

Market Sentiment

The market for rare tumors like those targeted by SpringWorks is uncertain, affecting investor confidence and the valuation of the acquisition.

Valuation Concerns

A price of $3.4B EV is only 2x consensus peak sales of $1.7B, which is considered shockingly low for a company not in distress.

Springworks Therapeutics Business Overview & Revenue Model

Company Description

SpringWorks Therapeutics, Inc. acquires, develops, and commercializes medicines for underserved patient populations suffering from rare diseases and cancer. Its lead product candidate is nirogacestat, an oral small molecule gamma secretase inhibitor that is in Phase III clinical trial for the treatment of desmoid tumors. The company is also developing mirdametinib, an oral small molecule MEK inhibitor that is in Phase 2b clinical trials for the treatment of neurofibromatosis type 1-associated plexiform neurofibromas, as well as Phase 1/2a clinical trial for the treatment of NF1-PN; mirdametinib + lifirafenib, a combination therapy that is in Phase 1b/2 clinical trial in patients with advanced or refractory solid tumors; and mirdametinib in monotherapy and combination approaches to treat solid tumors. In addition, it develops BGB-3245, an oral selective small molecule inhibitor of monomeric and dimeric forms of activating BRAF mutations, which is in Phase I clinical trial. The company has collaborations with BeiGene, Ltd., GlaxoSmithKline LLC, and Allogene to develop combination approaches with nirogacestat and mirdametinib; and license agreements with Pfizer Inc. for nirogacestat and mirdametinib. It also has a license agreement with Katholieke Universiteit Leuven and the Flanders Institute for Biotechnology for a portfolio of novel small molecule inhibitors of the TEA Domain; and Dana-Farber Cancer Institute for a portfolio of novel small molecule inhibitors of Epidermal Growth Factor Receptor. In addition, the company has clinical collaboration agreement with Janssen Biotech, Inc., Precision BioSciences, Inc., Seagen Inc., and AbbVie, Inc. SpringWorks Therapeutics, Inc. was founded in 2017 and is headquartered in Stamford, Connecticut.

How the Company Makes Money

Springworks Therapeutics primarily generates revenue through strategic partnerships, licensing agreements, and potential future sales of its drug candidates. The company enters into collaborations with other pharmaceutical companies to co-develop or out-license its therapies, which can include upfront payments, milestone payments, and royalties on sales. Additionally, as its drug candidates progress through clinical trials and gain regulatory approval, Springworks anticipates generating revenue from product sales. The company is also involved in research collaborations that may provide additional funding and resources to support its development pipeline.

Springworks Therapeutics Financial Statement Overview

Summary

Springworks Therapeutics is experiencing strong revenue growth, but profitability challenges persist with negative EBIT and net income margins. The balance sheet shows a stable cash position but declining equity, and cash flow issues highlight the need for better operational efficiency.

Income Statement

Springworks Therapeutics has shown significant revenue growth with a TTM revenue of $219.67 million compared to earlier years. However, the company continues to face profitability challenges with negative EBIT and net income margins, reflecting high operational costs relative to revenue.

Balance Sheet

The balance sheet indicates a relatively stable cash position with significant cash reserves. However, the company's equity has been decreasing, and the debt-to-equity ratio is low due to minimal debt, which could be beneficial for future leverage. Yet, overall equity health remains a concern.

Cash Flow

The cash flow statement reveals negative operating and free cash flows, indicating cash burn typical of pre-profitability biotech firms. The cash flow to net income ratios indicate challenges in converting income into cash flow, but the recent improvement in investing cash flow is a positive sign.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
219.67M	191.59M	5.45M	6.15M	0.00	35.00M
	Gross Profit
204.79M	179.04M	5.03M	4.25M	-490.00K	34.65M
	EBIT
-264.74M	-278.13M	-343.01M	-280.67M	-173.47M	-46.32M
	EBITDA
-262.00M	-278.13M	-341.35M	-280.67M	-172.98M	-45.98M
	Net Income Common Stockholders
-253.93M	-258.13M	-325.10M	-274.16M	-173.21M	-44.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
287.87M	307.99M	479.20M	597.01M	373.50M	508.48M
	Total Assets
505.36M	587.28M	725.79M	630.24M	452.49M	576.19M
	Total Debt
7.39M	7.91M	7.06M	5.25M	1.29M	2.73M
	Net Debt
-56.38M	-61.84M	-169.00M	-62.24M	-102.67M	-144.35M
	Total Liabilities
87.96M	106.17M	99.57M	72.05M	30.10M	19.13M
	Stockholders Equity
417.39M	481.10M	626.22M	-569.93M	422.40M	557.06M
Cash Flow		Free Cash Flow
-174.33M	-180.05M	-230.18M	-171.76M	-129.89M	-32.83M
	Operating Cash Flow
-165.43M	-175.60M	-222.79M	-161.56M	-127.88M	-32.19M
	Investing Cash Flow
116.47M	64.55M	34.75M	-215.60M	83.59M	-418.83M
	Financing Cash Flow
-5.29M	4.76M	296.64M	340.70M	1.16M	270.49M

Springworks Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWTX, the sentiment is Positive. The current price of 46.76 is above the 20-day moving average (MA) of 46.55, above the 50-day MA of 44.01, and above the 200-day MA of 40.84, indicating a bullish trend. The MACD of 0.45 indicates Positive momentum. The RSI at 61.05 is Neutral, neither overbought nor oversold. The STOCH value of 56.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SWTX.

Springworks Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RYTM	65 Neutral	$4.13B	―	-418.97%	―	48.88%	39.30%
CRSP	60 Neutral	$3.59B	―	-19.71%	―	-86.13%	-67.29%
AKRO	60 Neutral	$4.22B	―	-27.92%	―	―	-31.37%
PTGX	60 Neutral	$3.43B	74.04	8.99%	―	-34.02%	-65.83%
SWTX	54 Neutral	$3.52B	―	-51.57%	―	730.42%	31.63%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
RARE	46 Neutral	$3.55B	―	-386.33%	―	33.46%	26.72%

Springworks Therapeutics Corporate Events

Springworks Therapeutics Holds Annual Stockholders Meeting

On May 14, 2025, SpringWorks Therapeutics held its annual stockholders meeting, during which key proposals were voted on. Stockholders elected Class III directors, ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025, and approved executive compensation on a non-binding advisory basis. These decisions are expected to influence the company’s governance and financial oversight, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (SWTX) stock is a Hold with a $47.00 price target. To see the full list of analyst forecasts on Springworks Therapeutics stock, see the SWTX Stock Forecast page.

SpringWorks Therapeutics Merges with Merck for $3.9 Billion

On April 27, 2025, SpringWorks Therapeutics entered into a merger agreement with Merck KGaA, Darmstadt, Germany, where SpringWorks will become a wholly owned subsidiary of Merck. The acquisition, valued at approximately $3.9 billion, aims to strengthen Merck’s presence in the U.S. healthcare market and expand the reach of SpringWorks’ therapies for rare tumors. The merger is expected to enhance Merck’s revenue and earnings growth, while providing SpringWorks with the opportunity to leverage Merck’s global resources and expand its market reach.