Springworks Therapeutics (SWTX) AI Stock Analysis

• Market Cap: $3.54B
• Dividend Yield: N/A
• Average Volume (3M): 4.39M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: 730.42%
• EPS Growth: 31.63%
• Country: US
• Employees: 368
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -0.93
• Shares Outstanding: 75,349,000
• 10 Day Avg. Volume: 5,256,243
• 30 Day Avg. Volume: 4,391,729
• 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: 0.37
• Enterprise Value/Revenue: 2.07
• Enterprise Value/Gross Profit: 6.46
• Enterprise Value/Ebitda: -1.15
• 1Y Price Target: $54.40
• Price Target Upside: 15.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: $50.00 ▲(6.41%Upside)

The stock's score is primarily driven by the positive impact of the merger with Merck, which offers strategic advantages and market expansion opportunities. While technical indicators show bullish trends, the company's financial performance and valuation reflect current profitability challenges.

Positive Factors

Acquisition Strategy

The acquisition by Merck KGaA is expected to strengthen their US presence and allow expansion into international markets.

Product Portfolio

SpringWorks is now a 2-product commercial company with best-in-class assets for two rare oncology indications with approximately $1.5 billion in peak sales potential.

Negative Factors

Investor Sentiment

A higher bid for SpringWorks Therapeutics is unlikely, indicating limited upside potential for shareholders.

Market Valuation

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 (SWTX) is a clinical-stage biopharmaceutical company focused on developing life-changing medicines for patients with severe rare diseases and cancer. The company leverages its deep understanding of disease biology and innovative approaches to drug development to create targeted therapies. Its lead product candidates include nirogacestat and mirdametinib, which are in various stages of clinical trials for treating desmoid tumors and neurofibromatosis type 1, respectively.

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
EBITDA	-262.00M	-278.13M	-341.35M	-280.67M	-172.98M	-45.98M
Net Income	-253.93M	-258.13M	-325.10M	-274.16M	-173.21M	-44.24M
Balance Sheet
Total Assets	505.36M	587.28M	725.79M	630.24M	452.49M	576.19M
Cash, Cash Equivalents and Short-Term Investments	287.87M	307.99M	479.20M	597.01M	373.50M	508.48M
Total Debt	7.39M	7.91M	7.06M	5.25M	1.29M	2.73M
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: 46.99
• 50DMA: Positive
• 100DMA: Negative
• 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 46.99 is above the 20-day moving average (MA) of 46.88, above the 50-day MA of 46.39, and above the 200-day MA of 41.34, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 63.71 is Neutral, neither overbought nor oversold. The STOCH value of 77.05 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
CRSP	64 Neutral	$5.88B	―	-19.71%	―	-86.13%	-67.29%
RYTM	62 Neutral	$5.73B	―	-418.97%	―	48.88%	39.30%
SWTX	61 Neutral	$3.54B	―	-51.57%	―	730.42%	31.63%
AKRO	60 Neutral	$4.03B	―	-27.92%	―	―	-31.37%
PTGX	60 Neutral	$3.36B	71.24	8.99%	―	-34.02%	-65.83%
Sector *	52 Neutral	$7.61B	0.10	-63.03%	2.08%	16.34%	0.32%
RARE	44 Neutral	$2.58B	―	-386.33%	―	33.46%	26.72%

Springworks Therapeutics Corporate Events

SpringWorks Therapeutics Completes Merger and Delisting

SpringWorks Therapeutics has completed a merger resulting in significant changes to its corporate structure and stockholder rights. As of the effective time of the merger, all shares of the company’s common stock were converted into cash, and stock options and restricted stock units were similarly adjusted. The merger led to the resignation of the company’s board of directors and officers, who were replaced by new appointees. Additionally, SpringWorks has initiated steps to delist from Nasdaq and deregister its common stock, halting trading prior to the merger’s closing date.

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 Merger with Merck Approved by Shareholders

On June 26, 2025, SpringWorks Therapeutics held a special meeting where stockholders approved a merger agreement, allowing the company to become a wholly owned subsidiary of Merck KGaA, Darmstadt, Germany. Additionally, a proposal regarding executive compensation related to the merger was also approved, indicating strong shareholder support for the merger’s terms.

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 Announces Merger with Merck KGaA

On April 27, 2025, SpringWorks Therapeutics entered into a Merger Agreement with Merck KGaA, Darmstadt, Germany, and EMD Holdings Merger Sub, Inc., which will result in SpringWorks becoming a wholly owned subsidiary of Merck KGaA. The merger has received necessary approvals from the Bundeskartellamt and the expiration of the waiting period under the HSR Act, with the finalization expected in the second half of 2025, pending satisfaction of remaining conditions including stockholder approval.

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 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.