Tango Therapeutics (TNGX) AI Stock Analysis

• Market Cap: $199.45M
• Dividend Yield: N/A
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 10.10%
• EPS Growth: -7.25%
• Country: US
• Employees: 155
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.36
• Shares Outstanding: 108,394,190
• 10 Day Avg. Volume: 5,076,870
• 30 Day Avg. Volume: 2,056,617
• PEG Ratio: 0.92
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.00
• Price Target Upside: 485.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 45 Neutral
• Price Target: $2.00 ▼(-2.44%Downside)

Tango Therapeutics' overall stock score is primarily impacted by significant financial challenges and valuation concerns. While some technical indicators offer a neutral outlook, the lack of profitability and cash flow issues are major risks. The market's uncertainty is reflected in the stock's valuation, emphasizing the need for strategic improvements in financial management and operational efficiency.

Positive Factors

Efficacy Update

The company provided an initial efficacy update for TNG462 with a confirmed ORR of 43% in cholangiocarcinoma.

Financial Stability

Tango ended 2024 with $257.9M in cash, which should provide an operational runway into 3Q26.

Negative Factors

Clinical Risks

Risks include negative clinical results with the lead asset, TNG462, and delays in advancing pipeline candidates.

Investor Sentiment

Investors were disappointed this update contained no numerical TNG462 efficacy data for the remaining evaluable patients, particularly pancreatic and lung which represent larger commercial opportunities.

Tango Therapeutics Business Overview & Revenue Model

Company Description

Tango Therapeutics, Inc., a biotechnology company, discovers and develops drugs for the treatment of cancer. Its lead program is TNG908, a synthetic lethal small molecule inhibitor of protein arginine methyltransferase 5 that is being developed as a treatment for cancers with methylthioadenosine phosphorylase deletions. The company also develops Ubiquitin-specific protease 1, an inhibitor to treat patients with BRCA1 or BRCA2-mutant cancers; and Target 3 for STK11-mutant cancers. Tango Therapeutics, Inc. has a strategic collaboration with Gilead Sciences, Inc. for the discovery, development, and commercialization of a pipeline of therapies for patients with cancer. The company was founded in 2017 and is based in Cambridge, Massachusetts.

How the Company Makes Money

Tango Therapeutics makes money primarily through the development and commercialization of targeted cancer therapies. The company generates revenue through partnerships and collaborations with larger pharmaceutical companies, research grants, and potentially through the sale of its proprietary drugs once they receive regulatory approval. Tango may also earn milestone payments and royalties from these partnerships, particularly if their drug candidates progress through clinical trials and reach the market. The company's earnings are significantly influenced by its ability to successfully bring its therapies from the research stage to commercial availability.

Tango Therapeutics Financial Statement Overview

Summary

Tango Therapeutics faces significant financial challenges with consistent losses, negative cash flows, and declining asset and equity levels. Despite revenue growth, high operating expenses lead to negative margins, indicating operational inefficiencies and potential financial instability.

Income Statement

The income statement reveals a concerning trajectory with consistent losses over the years. Despite a growth in revenue from $36.53M in 2023 to $42.07M in 2024, net income remained negative at -$130.30M for 2024, indicating profitability challenges. The gross profit margin remains 100% due to no cost of goods sold; however, the net profit margin is negative due to high operating expenses. Continued negative EBIT and EBITDA margins highlight ongoing operational inefficiencies.

Balance Sheet

The balance sheet shows moderate stability with a debt-to-equity ratio of 0.18, indicating manageable leverage. However, total assets have declined, and stockholders' equity has decreased from $253.11M in 2023 to $199.52M in 2024. The equity ratio stands at 63.06%, suggesting a strong equity base, though the shrinking equity base and continual losses are concerning.

Cash Flow

Free cash flow has worsened, moving from -$119.51M in 2023 to -$131.50M in 2024, indicating increased cash burn. The operating cash flow to net income ratio is approximately 1.01, highlighting a close alignment between cash flow and net losses. Limited cash flow from operations raises concerns about liquidity and long-term sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
42.07M	36.53M	24.86M	37.04M	7.66M
	Gross Profit
42.07M	-78.67M	20.83M	35.08M	6.03M
	EBIT
-145.59M	-114.17M	-111.07M	-58.19M	-52.20M
	EBITDA
-145.59M	-111.76M	-109.46M	-57.29M	-51.48M
	Net Income Common Stockholders
-130.30M	-101.74M	-108.18M	-58.23M	-51.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
257.92M	336.88M	366.13M	485.25M	190.32M
	Total Assets
316.49M	402.57M	436.47M	500.15M	207.25M
	Total Debt
36.49M	38.92M	41.13M	1.50M	7.88M
	Net Debt
-33.04M	-27.46M	-18.84M	-141.24M	-20.50M
	Total Liabilities
116.97M	149.46M	186.99M	155.41M	168.65M
	Stockholders Equity
199.52M	253.11M	249.48M	344.75M	38.60M
Cash Flow		Free Cash Flow
-131.50M	-119.51M	-116.77M	-61.36M	68.97M
	Operating Cash Flow
-131.50M	-117.98M	-109.08M	-59.53M	70.07M
	Investing Cash Flow
86.13M	41.43M	26.40M	-183.43M	-145.47M
	Financing Cash Flow
47.66M	82.41M	1.61M	357.32M	80.88M

Tango Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.05
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNGX, the sentiment is Positive. The current price of 2.05 is above the 20-day moving average (MA) of 1.54, above the 50-day MA of 1.50, and below the 200-day MA of 4.29, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 62.30 is Neutral, neither overbought nor oversold. The STOCH value of 40.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TNGX.

Tango Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FULC	66 Neutral	$342.77M	―	-0.23%	―	3087.25%	97.11%
RZLT	53 Neutral	$327.54M	―	-95.15%	―	―	-10.43%
Sector *	53 Neutral	$5.14B	3.23	-45.01%	2.85%	17.55%	-0.69%
IKT	46 Neutral	$131.58M	―	-79.02%	―	-100.00%	38.72%
TNGX	45 Neutral	$199.45M	―	-61.35%	―	10.10%	-7.25%
ACIU	45 Neutral	$167.21M	―	-43.31%	―	95.23%	15.55%
DMAC	42 Neutral	$174.11M	―	-67.25%	―	―	2.53%

Tango Therapeutics Corporate Events

Tango Therapeutics Highlights Breakthroughs in Cancer Treatment

Tango Therapeutics has updated its corporate presentation, highlighting potential breakthroughs in its product pipeline, including best-in-class oral PRMT5 inhibitors and first-in-class oral CoREST inhibitors. These advancements are part of Tango’s strategy to treat a wide range of cancers, with ongoing and planned clinical trials that might significantly impact its market positioning and potential success in cancer therapeutics.