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Tectonic Therapeutic Inc (TECX)
:TECX
US Market

Tectonic Therapeutic (TECX) AI Stock Analysis

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Tectonic Therapeutic

(NASDAQ:TECX)

Rating:42Neutral
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 Success
Tectonic Therapeutic's TX45 showed sustained hemodynamic benefits following a single IV infusion, with improvements in right heart function lasting out to Day 29.
Financial Stability
Tectonic Therapeutic 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.

Tectonic Therapeutic (TECX) vs. SPDR S&P 500 ETF (SPY)

Tectonic Therapeutic Business Overview & Revenue Model

Company DescriptionTectonic Therapeutic (TECX) is a biotechnology company focused on discovering and developing novel therapeutics to treat complex diseases. The company operates primarily in the biopharmaceutical sector, leveraging cutting-edge technology and scientific research to create innovative drug candidates. Tectonic Therapeutic is committed to addressing unmet medical needs across various therapeutic areas, including oncology, immunology, and rare diseases.
How the Company Makes MoneyTectonic 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
10
Very Negative
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
45
Neutral
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
30
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit-264.00K-1.65M-617.00K-4.17M-1.40M-1.21M
EBITDA-57.02M-56.23M-43.17M-101.42M-117.50M-118.50M
Net Income-58.67M-57.98M-42.82M-105.89M-119.13M-119.71M
Balance Sheet
Total Assets314.83M152.91M39.40M103.95M203.84M271.23M
Cash, Cash Equivalents and Short-Term Investments306.25M141.24M28.77M92.85M189.57M259.68M
Total Debt2.63M3.30M4.34M16.46M14.95M0.00
Total Liabilities13.79M12.13M6.35M28.58M34.36M16.89M
Stockholders Equity301.04M140.78M-84.64M75.37M169.48M254.34M
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-2.09M-2.46M-1.18M
Financing Cash Flow349.81M171.71M33.75M37.63M30.37M172.62M

Tectonic Therapeutic Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price21.09
Price Trends
50DMA
21.26
Negative
100DMA
22.20
Negative
200DMA
31.19
Negative
Market Momentum
MACD
-0.44
Positive
RSI
50.46
Neutral
STOCH
69.03
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 21.09 is below the 20-day moving average (MA) of 21.38, below the 50-day MA of 21.26, and below the 200-day MA of 31.19, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 50.46 is Neutral, neither overbought nor oversold. The STOCH value of 69.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TECX.

Tectonic Therapeutic Risk Analysis

Tectonic Therapeutic disclosed 78 risk factors in its most recent earnings report. Tectonic Therapeutic reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Tectonic Therapeutic Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$269.85M8.807.22%5.74%24.45%
58
Neutral
$571.39M-83.24%-100.32%-197.69%
52
Neutral
$1.01B-34.26%271.44%26.65%
51
Neutral
$7.55B0.39-61.90%2.32%17.14%1.55%
IVIVA
45
Neutral
$424.49M344.74%-47.32%-26.67%
42
Neutral
$376.44M-30.10%-343.40%
42
Neutral
$382.36M-115.47%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TECX
Tectonic Therapeutic
21.09
5.41
34.50%
IVA
Inventiva
2.98
<0.01
0.34%
VERV
Verve Therapeutics
11.21
6.07
118.09%
TRDA
Entrada Therapeutics Inc
7.27
-6.92
-48.77%
AMLX
Amylyx Pharmaceuticals Inc
6.57
4.80
271.19%
ZBIO
Zenas BioPharma, Inc.
10.22
-7.75
-43.13%

Tectonic Therapeutic Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Tectonic Therapeutic Secures $185 Million in PIPE Deal
Positive
Feb 3, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 21, 2025