Tectonic Therapeutic (TECX) AI Stock Analysis

• Market Cap: $417.00M
• Dividend Yield: N/A
• Average Volume (3M): 432.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: N/A
• EPS Growth: 60.40%
• Country: US
• Employees: 51
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.02
• Shares Outstanding: 18,716,280
• 10 Day Avg. Volume: 853,222
• 30 Day Avg. Volume: 432,201
• PEG Ratio: 0.18
• Price to Book (P/B): 4.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.51
• Enterprise Value/Market Cap: 0.36
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -2.30
• 1Y Price Target: $91.33
• Price Target Upside: 267.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -4.83
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $19.50 ▼(-21.47% Downside)

The score is driven primarily by weak financial performance (pre-revenue, widening losses, and sustained cash burn), partially offset by a strong, low-debt balance sheet. Technicals are supportive with price above major moving averages and moderate momentum, while valuation remains challenged due to negative earnings. A recent positive Phase 1b clinical update provides an additional near-term boost.

Positive Factors

Strong Capital Position

The significant capital infusion from the PIPE deal enhances Tectonic Therapeutic's ability to fund development projects, supporting long-term growth and innovation.

Positive Trial Results

Successful trial results for TX45 suggest promising advancements in addressing unmet medical needs, potentially leading to future revenue streams and market expansion.

Low Leverage

Low leverage provides Tectonic Therapeutic with financial flexibility and reduces risk, allowing the company to invest in R&D without significant debt burden.

Negative Factors

Zero Revenue

The absence of revenue highlights the company's reliance on external funding and underscores the challenge of achieving profitability, impacting long-term financial sustainability.

Negative Cash Flow

Persistent negative cash flow reflects operational inefficiencies and the need for continuous financing, posing risks to the company's financial health and growth prospects.

Ongoing Operational Losses

Sustained operational losses indicate challenges in cost management and profitability, necessitating strategic adjustments to improve financial performance and ensure long-term viability.

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

Operating fundamentals are weak with no revenue, widening TTM net losses (~$67.3M vs. ~$58.0M prior annual), and large ongoing cash burn (TTM FCF about -$62.7M). Offsetting this, the balance sheet is a clear strength with very low leverage (~$1.2M debt vs. ~$267.5M equity), providing near-term funding flexibility.

Income Statement

The company remains pre-revenue across both annual periods and TTM (Trailing-Twelve-Months), with continued operating losses. Losses have widened in TTM (Trailing-Twelve-Months) versus the latest annual period (net loss of about $67.3M vs. $58.0M), indicating higher spend and a heavier burn profile. The main positive is that losses are not at the extreme level seen in 2020, but the lack of revenue and the recent acceleration in losses keep earnings quality and visibility weak.

Balance Sheet

The balance sheet is a relative strength: leverage is very low in TTM (Trailing-Twelve-Months) with debt of ~$1.2M against equity of ~$267.5M (very small debt load). Total assets (~$277.0M) and equity are meaningfully higher than the prior annual period, suggesting improved capitalization. The key weakness is returns: profitability is negative, leading to negative returns on equity in the most recent periods, so the balance sheet strength depends on continued funding and disciplined spending.

Cash Flow

Cash generation is weak with ongoing cash burn: TTM (Trailing-Twelve-Months) operating cash flow is about -$62.4M and free cash flow about -$62.7M. Free cash flow deterioration versus the last annual period is notable (growth is negative), pointing to a rising cash usage trajectory. A positive offset is that cash burn broadly tracks reported losses (free cash flow roughly in line with net loss), but the company still appears reliant on external capital to fund operations.

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	0.00	0.00	0.00	0.00	0.00	-1.21M
EBITDA	-65.04M	-56.23M	-41.19M	-31.03M	-8.12M	-118.50M
Net Income	-67.30M	-57.98M	-42.82M	-32.18M	-8.93M	-119.71M
Balance Sheet
Total Assets	277.00M	152.91M	39.40M	47.21M	32.88M	271.23M
Cash, Cash Equivalents and Short-Term Investments	268.44M	141.24M	28.77M	35.97M	28.06M	259.68M
Total Debt	1.24M	3.30M	4.34M	5.79M	1.05M	0.00
Total Liabilities	9.47M	12.13M	124.03M	92.86M	47.84M	16.89M
Stockholders Equity	267.53M	140.78M	-84.64M	-45.65M	-14.96M	254.34M
Cash Flow
Free Cash Flow	-62.68M	-59.24M	-40.96M	-97.47M	-14.58M	-99.98M
Operating Cash Flow	-62.44M	-59.08M	-40.68M	-97.21M	-12.45M	-98.80M
Investing Cash Flow	-141.00K	-156.00K	-279.00K	-267.00K	-2.12M	-1.18M
Financing Cash Flow	172.43M	171.71M	33.75M	262.00K	41.42M	172.62M

Tectonic Therapeutic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 24.83 is above the 20-day moving average (MA) of 21.24, above the 50-day MA of 20.59, and above the 200-day MA of 20.19, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 53.66 is Neutral, neither overbought nor oversold. The STOCH value of 60.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TECX.

Tectonic Therapeutic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABEO	60 Neutral	$271.50M	4.30	75.90%	―	―	―
TECX	55 Neutral	$417.00M	-5.79	-32.21%	―	―	60.40%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OMER	50 Neutral	$828.83M	-5.79	―	―	―	12.32%
FHTX	49 Neutral	$325.13M	-4.68	―	―	-3.91%	37.89%
LXEO	46 Neutral	$460.55M	-2.34	-80.69%	―	―	4.97%
MREO	45 Neutral	$59.17M	―	-69.98%	―	―	―

Tectonic Therapeutic Corporate Events

Tectonic Therapeutic Reports Positive Phase 1b Trial Results

On October 29, 2025, Tectonic Therapeutic announced positive topline data from its Phase 1b Part B clinical trial for TX45, aimed at treating patients with Group 2 Pulmonary Hypertension in Heart Failure with Reduced Ejection Fraction (HFrEF). The trial results showed that TX45 was well tolerated and demonstrated improvements in left ventricular function and pulmonary hemodynamics, consistent with previous studies. These findings support further clinical investigation of TX45, potentially expanding its market opportunity and addressing an unmet need in the treatment of PH-HFrEF, which currently lacks approved therapeutic options.

The most recent analyst rating on (TECX) stock is a Buy with a $87.00 price target. To see the full list of analyst forecasts on Tectonic Therapeutic stock, see the TECX Stock Forecast page.