Tectonic Therapeutic (TECX) AI Stock Analysis

• Market Cap: $391.94M
• Dividend Yield: N/A
• Average Volume (3M): 213.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: N/A
• EPS Growth: -343.40%
• Country: US
• Employees: 51
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.93
• Shares Outstanding: 18,672,508
• 10 Day Avg. Volume: 176,343
• 30 Day Avg. Volume: 213,770
• PEG Ratio: -0.57
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.21
• Enterprise Value/Market Cap: 0.23
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -334.55
• Enterprise Value/Ebitda: -0.44
• 1Y Price Target: $82.75
• Price Target Upside: 253.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

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

Individual patient level data show remarkable consistency, with every CpcPH patient showing a marked decrease in PVR.

Financial Stability

TECX ended the quarter with a strong cash position of approximately $306M, providing financial stability and runway into future quarters.

Negative Factors

Competitive Pressure

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

Past Performance

Shares have been under pressure due to past failures in Group 2 PH, but none have shown comparable hemodynamic effects in this patient population, suggesting potential for significant stock appreciation.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-264.00K	-1.65M	-617.00K	-4.17M	-1.40M	-1.21M
	EBIT
-63.35M	-58.02M	-44.65M	-105.43M	-118.84M	-120.23M
	EBITDA
-57.02M	-56.23M	-43.17M	-101.42M	-117.50M	-118.50M
	Net Income Common Stockholders
-58.67M	-57.98M	-42.82M	-105.89M	-119.13M	-119.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
306.25M	141.24M	28.77M	92.85M	189.57M	259.68M
	Total Assets
314.83M	152.91M	39.40M	103.95M	203.84M	271.23M
	Total Debt
2.63M	3.30M	4.34M	16.46M	14.95M	0.00
	Net Debt
-303.61M	-137.94M	-24.43M	-76.38M	-174.62M	-259.68M
	Total Liabilities
13.79M	12.13M	6.35M	28.58M	34.36M	16.89M
	Stockholders Equity
301.04M	140.78M	-84.64M	75.37M	169.48M	254.34M
Cash Flow		Free Cash Flow
-63.07M	-59.24M	-40.96M	-97.47M	-100.49M	-99.98M
	Operating Cash Flow
-64.59M	-59.08M	-40.68M	-97.21M	-98.03M	-98.80M
	Investing Cash Flow
-183.00K	-156.00K	-279.00K	-267.00K	-2.46M	-1.18M
	Financing Cash Flow
349.81M	171.71M	33.75M	262.00K	30.37M	172.62M

Tectonic Therapeutic Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.41
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 23.41 is above the 20-day moving average (MA) of 20.56, above the 50-day MA of 19.84, and below the 200-day MA of 30.56, indicating a neutral trend. The MACD of 0.39 indicates Negative momentum. The RSI at 61.02 is Neutral, neither overbought nor oversold. The STOCH value of 82.43 is Negative, 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
TRDA	62 Neutral	$304.01M	9.91	7.22%	―	5.74%	24.45%
AMLX	57 Neutral	$477.80M	―	-83.24%	―	-100.32%	-197.69%
Sector *	52 Neutral	$5.19B	3.04	-44.64%	2.82%	16.45%	-0.53%
IVA	50 Neutral	$444.26M	―	344.74%	―	-47.32%	-26.67%
VERV	48 Neutral	$412.73M	―	-34.26%	―	271.44%	26.65%
TECX	42 Neutral	$391.94M	―	-30.10%	―	―	-343.40%
ZBIO	38 Underperform	$438.00M	―	-115.47%	―	―	―

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.