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Tempest Therapeutics (TPST)
NASDAQ:TPST

Tempest Therapeutics (TPST) AI Stock Analysis

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Tempest Therapeutics

(NASDAQ:TPST)

Rating:39Underperform
Price Target:
Tempest Therapeutics scores low primarily due to its financial performance, marked by a lack of revenues and high expenditures, leading to ongoing losses. The technical analysis indicates a bearish trend, further impacting the score. Valuation metrics are challenging to apply due to the negative earnings, typical for its growth stage. Overall, the stock presents high risk with potential for high reward contingent on future developments.
Positive Factors
Clinical Development
Tempest recently held a successful EOP2 meeting with the FDA, reaching a broad agreement on the Phase 3 study plan, including dose schedule and primary endpoint.
Earnings
Tempest posted EPS of ($3.16), which was better than both the analyst's estimate and the consensus estimate.
Partnerships
Roche support provides crucial savings ahead of Phase 3, supplying atezolizumab globally and Tempest leading the pivotal study of amezalpat in 1L HCC.
Negative Factors
Financial Requirements
Tempest will still require a sizable cash infusion to fully support Phase 3 development, with management indicating it would cost approximately $100 million.
Funding Challenges
Very deep frustration with Tempest's position due to the timing of data from Roche's MORPHEUS-Liver study and unprecedented conditions of the financial markets for healthcare funding.
Strategic Uncertainty
Tempest is seeking to explore strategic alternatives to advance its pipeline of clinical stage oncology assets due to a dire funding environment and regulatory uncertainty.

Tempest Therapeutics (TPST) vs. SPDR S&P 500 ETF (SPY)

Tempest Therapeutics Business Overview & Revenue Model

Company DescriptionTempest Therapeutics Inc., a clinical-stage oncology company, engages in developing small molecule therapeutics to treat cancer. The company's two clinical programs are TPST-1495, a dual antagonist of EP2 and EP4, receptors of prostaglandin E2, and is currently in a Phase 1 trial in solid tumors; and TPST-1120, a selective antagonist of peroxisome proliferator-activated receptor alpha that is in a Phase 1 trial in solid tumors. It also develops TREX-1, a key cellular enzyme that regulates the innate immune response in tumors. The company was founded in 2011 and is headquartered in South San Francisco, California. Tempest Therapeutics Inc. was formerly a subsidiary of Inception Sciences, Inc.
How the Company Makes MoneyTempest Therapeutics makes money primarily through the development and potential commercialization of its therapeutic candidates. The company typically earns revenue through licensing agreements, collaboration partnerships, and milestone payments from larger pharmaceutical companies. These partnerships often involve joint development and commercialization efforts, where Tempest may receive upfront payments, research funding, and royalties from future sales of successfully developed drugs. Additionally, the company may secure funding from grants and public or private investments to support its research and clinical trials.

Tempest Therapeutics Financial Statement Overview

Summary
Tempest Therapeutics is in the growth stage typical for a biotech company, with no revenues and high expenditures leading to losses. Financial stability shows some signs of improvement, but heavy reliance on external financing and lack of operational cash flow remain significant risks.
Income Statement
30
Negative
Tempest Therapeutics has consistently recorded no revenue over the years, which is typical for many early-stage biotechnology companies. Although gross profit and net income are negative, showing the company is not yet profitable, it's important to note that this aligns with the industry's norm where R&D expenditures often outweigh revenues in initial phases.
Balance Sheet
45
Neutral
The company's debt-to-equity ratio is somewhat high, indicating a reliance on debt financing. However, the equity ratio is improving, signaling potential strengthening of the financial position. Stockholders' equity has fluctuated over the years, with recent improvements, which is positive, but the overall financial stability remains a concern.
Cash Flow
40
Negative
Operating and free cash flows remain negative, reflecting ongoing cash burn typical for the sector. The company has managed to secure financing consistently, which has supported cash flow but highlights reliance on external funding. The lack of any significant positive cash flow from operations poses a risk.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit-155.00K0.00-381.00K-1.81M-1.27M-815.00K
EBITDA-43.63M-40.14M-28.78M-32.28M-25.72M-18.39M
Net Income-44.80M-41.84M-29.49M-36.78M-29.55M-19.12M
Balance Sheet
Total Assets32.16M41.49M51.60M46.09M73.24M22.86M
Cash, Cash Equivalents and Short-Term Investments21.51M30.27M39.23M31.23M51.83M18.82M
Total Debt13.11M15.37M20.66M22.11M18.54M2.44M
Total Liabilities21.03M22.36M24.84M27.98M37.12M91.66M
Stockholders Equity11.13M19.13M26.77M18.11M36.12M-68.79M
Cash Flow
Free Cash Flow-26.11M-33.46M-27.53M-31.63M-26.09M-19.07M
Operating Cash Flow-25.84M-33.03M-27.36M-31.07M-25.96M-19.02M
Investing Cash Flow-267.00K-435.00K-170.00K-562.00K-97.00K-6.00K
Financing Cash Flow23.33M24.50M35.60M11.40M59.06M34.60M

Tempest Therapeutics Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price7.44
Price Trends
50DMA
6.96
Positive
100DMA
8.35
Negative
200DMA
10.70
Negative
Market Momentum
MACD
0.01
Negative
RSI
56.13
Neutral
STOCH
80.07
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TPST, the sentiment is Neutral. The current price of 7.44 is above the 20-day moving average (MA) of 7.20, above the 50-day MA of 6.96, and below the 200-day MA of 10.70, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 56.13 is Neutral, neither overbought nor oversold. The STOCH value of 80.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TPST.

Tempest Therapeutics Risk Analysis

Tempest Therapeutics disclosed 66 risk factors in its most recent earnings report. Tempest Therapeutics 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

Tempest Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
$7.45B0.27-61.87%2.30%16.62%1.04%
44
Neutral
$26.91M-83.73%42.39%
42
Neutral
$22.12M-70.06%146.47%57.85%
41
Neutral
$16.59M-267.20%-100.00%91.45%
41
Neutral
$35.16M-853.05%34.97%
39
Underperform
$28.94M-282.07%-220.54%
35
Underperform
$45.99M-280.78%68.75%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TPST
Tempest Therapeutics
7.44
-20.51
-73.38%
QTTB
Q32 Bio
1.39
-19.30
-93.28%
ANVS
Annovis Bio
2.53
-9.55
-79.06%
PASG
Passage Bio
0.41
-0.41
-50.00%
GBIO
Generation Bio
0.35
-1.98
-84.98%
PYPD
PolyPid
3.43
-0.59
-14.68%

Tempest Therapeutics Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Tempest Therapeutics Terminates Loan Agreement with Oxford
Neutral
Apr 9, 2025

On August 8, 2025, Tempest Therapeutics, Inc. repaid $3.5 million to fully satisfy its obligations under a Loan and Security Agreement with Oxford Finance LLC, effectively terminating the agreement and releasing all associated liens and security interests. Earlier, on April 9, 2025, the company announced plans to explore strategic alternatives, including potential mergers or partnerships, to advance its clinical-stage programs and enhance stockholder value, particularly focusing on its promising oncology assets such as amezalpat and TPST-1495.

Spark’s Take on TPST Stock

According to Spark, TipRanks’ AI Analyst, TPST is a Underperform.

Tempest Therapeutics faces typical challenges for a biotech firm in its early stages, with no revenue and high R&D expenses leading to financial losses. While there are signs of financial improvement, the stock’s bearish trend and high volatility pose risks. The negative P/E ratio highlights unprofitability, with no dividend yield as the company focuses on growth.

To see Spark’s full report on TPST stock, click here.

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 22, 2025