Tectonic Therapeutic (TECX) AI Stock Analysis

• Market Cap: $409.11M
• Dividend Yield: N/A
• Average Volume (3M): 227.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: N/A
• EPS Growth: -343.40%
• Country: US
• Employees: 51
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.93
• Shares Outstanding: 18,672,508
• 10 Day Avg. Volume: 216,287
• 30 Day Avg. Volume: 227,839
• PEG Ratio: -0.56
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.18
• Enterprise Value/Market Cap: 0.24
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -366.38
• Enterprise Value/Ebitda: -0.48
• 1Y Price Target: $79.71
• Price Target Upside: 263.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 42 Neutral
• Price Target: ―

Tectonic Therapeutic's stock score reflects significant financial risks due to lack of revenue and ongoing losses, offset by a strong equity position and recent positive corporate developments. The technical analysis suggests bearish market sentiment with potential for oversold conditions. The recent PIPE deal and positive trial results provide some optimism for future growth, but the company remains a high-risk investment due to its speculative nature and current financial instability.

Positive Factors

Clinical Trial Results

Phase 1b data surpassed expectations on all key hemodynamic measures, which experts believe should lead to increased exercise capacity.

Investment Rating

Analyst initiates coverage of TECX with a BUY rating due to asymmetric upside risk and a highly attractive risk/reward ratio.

Pipeline and Market Potential

Success in the ongoing Ph2 APEX trial could significantly expand TX45’s market potential.

Negative Factors

Competitive Landscape

Competitive datasets from other companies in the same field could impact the perception of TECX's developments.

Market Perception

Valuation disconnect is influenced by Eli Lilly's earlier discontinuation of a similar program, raising doubts on the relaxin class as a whole.

Tectonic Therapeutic Business Overview & Revenue Model

Company Description

Tectonic Therapeutic, Inc., a clinical stage biotechnology company focuses on the discovery and development of therapeutic proteins and antibodies to modulate the activity of G-protein coupled receptors(GPCRs). It offers GEODe technology platform to enable the discovery and development of GPCR-targeted biologic medicines. The company's pipeline products include RXFP1 agonist, which is in ongoing phase 1a and 1b for the indication of heart failure with preserved ejection fraction; GPCR antagonist for indication of hereditary hemorrhagic telangiectasia; bi-functional GPCR modulator for indication of fibrosis; and GPCR modulators. Tectonic Therapeutic, Inc. is based in Watertown, Massachusetts.

How the Company Makes Money

Tectonic Therapeutic makes money through the development and commercialization of its proprietary drug candidates. The company's revenue model includes income from product sales, licensing agreements, and strategic partnerships with other pharmaceutical companies. Key revenue streams involve upfront payments, milestone payments, and royalties from licensing its technology or drug candidates to larger pharmaceutical firms. Additionally, Tectonic may engage in collaborative research and development partnerships to further enhance its pipeline, leveraging external expertise while sharing costs and potential profits.

Tectonic Therapeutic Financial Statement Overview

Summary

Tectonic Therapeutic faces critical financial challenges with zero revenue and ongoing operational losses. While the balance sheet shows a strong equity position and low leverage, the negative cash flows and lack of profitability raise significant concerns. The company must focus on revenue generation and cost management to improve its financial health.

Income Statement

Tectonic Therapeutic has consistently reported zero revenue across all periods, indicating a lack of commercialized products or services. The gross profit, EBIT, and net income are all negative, reflecting continued operational losses. No revenue growth is present as there is no revenue to measure. The lack of profitability metrics such as EBIT and net profit margins underscores the financial challenges facing the company.

Balance Sheet

The company's balance sheet shows a strong equity position with a high equity ratio due to minimal liabilities. However, the negative stockholders' equity in some periods raises concerns about sustained losses. The debt-to-equity ratio is low, indicating low leverage, which is favorable. The consistent cash reserves suggest liquidity is maintained, but the lack of revenue generation remains a significant risk.

Cash Flow

Tectonic Therapeutic has negative operating and free cash flows, indicating cash outflows exceed inflows from operations. The cash flow to net income ratios are irrelevant due to negative net income. The decreasing trend in cash flow growth is concerning, although the company has been able to raise financing, which provides temporary relief.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	-1.65M	-617.00K	-4.17M	-1.40M	-1.21M
EBITDA	-56.23M	-43.17M	-101.42M	-117.50M	-118.50M
Net Income	-57.98M	-42.82M	-105.89M	-119.13M	-119.71M
Balance Sheet
Total Assets	152.91M	39.40M	103.95M	203.84M	271.23M
Cash, Cash Equivalents and Short-Term Investments	141.24M	28.77M	92.85M	189.57M	259.68M
Total Debt	3.30M	4.34M	16.46M	14.95M	0.00
Total Liabilities	12.13M	6.35M	28.58M	34.36M	16.89M
Stockholders Equity	140.78M	-84.64M	75.37M	169.48M	254.34M
Cash Flow
Free Cash Flow	-59.24M	-40.96M	-97.47M	-100.49M	-99.98M
Operating Cash Flow	-59.08M	-40.68M	-97.21M	-98.03M	-98.80M
Investing Cash Flow	-156.00K	-279.00K	-2.09M	-2.46M	-1.18M
Financing Cash Flow	171.71M	33.75M	37.63M	30.37M	172.62M

Tectonic Therapeutic Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TECX, the sentiment is Neutral. The current price of 21.92 is above the 20-day moving average (MA) of 21.16, above the 50-day MA of 21.63, and below the 200-day MA of 31.12, indicating a neutral trend. The MACD of 0.30 indicates Negative momentum. The RSI at 51.71 is Neutral, neither overbought nor oversold. The STOCH value of 51.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TECX.

Tectonic Therapeutic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZBIO	61 Neutral	$574.38M	―	-115.47%	―	―	―
TRDA	60 Neutral	$237.59M	7.60	7.22%	―	5.74%	24.45%
AMLX	57 Neutral	$743.44M	―	-83.24%	―	-100.32%	-197.69%
VERV	52 Neutral	$972.55M	―	-34.26%	―	271.44%	26.65%
Sector *	52 Neutral	$7.37B	-0.04	-63.81%	2.59%	16.40%	<0.01%
IVA	47 Neutral	$448.55M	―	344.74%	―	-47.32%	-26.67%
TECX	42 Neutral	$409.11M	―	-30.10%	―	―	-343.40%

Tectonic Therapeutic Corporate Events

Tectonic Therapeutic Secures $185 Million in PIPE Deal

On February 3, 2025, Tectonic Therapeutic, Inc. announced a $185 million private placement agreement with accredited investors to fund its development pipeline, working capital, and general corporate purposes. The private investment in public equity (PIPE) involves the sale of 3,689,465 shares of common stock, with the transaction expected to close on February 5, 2025. The financing will support the clinical development of TX45 and TX2100, as well as the company’s discovery platform. The shares are sold under Regulation D’s exemption and are not registered under the Securities Act of 1933. This move is expected to enhance Tectonic’s operational capacity and industry positioning by providing necessary capital for its ongoing and future projects.