Turnstone Biologics Corp. (TSBX) AI Stock Analysis

• Market Cap: $8.10M
• Dividend Yield: N/A
• Average Volume (3M): 90.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.23
• Revenue Growth: -100.00%
• EPS Growth: -27.44%
• Country: US
• Employees: 14
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -3.08
• Shares Outstanding: 23,138,897
• 10 Day Avg. Volume: 56,024
• 30 Day Avg. Volume: 90,217
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 70.22
• Price to Cash Flow (P/CF): -0.10
• P/FCF Ratio: 0.00
• 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: $0.70
• Price Target Upside: 100.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

TSBX is facing severe financial and operational challenges, as evidenced by declining revenues, persistent losses, and halted clinical studies. The technical indicators show a bearish trend, while the valuation suggests potential undervaluation offset by high risk. The company's exploration of strategic alternatives may offer future opportunities but currently reflects uncertainty and instability.

Positive Factors

External Validation

External presentations at the Society for the Immunotherapy of Cancer meeting were considered positive for Turnstone's approach.

Financial Stability

The company holds $28.9 M in cash, equivalents, and short-term investments, expected to fund operations through mid-2026.

Scientific Advancements

The evidence that selecting a specific 12-genome signature meaningfully increases TIL yield and potency is encouraging for Turnstone Biologics.

Negative Factors

Financial Concerns

Based on estimated 1Q25 cash balance of ~$11M, the price target is being lowered to $0.40 from $3.75.

Program Discontinuation

Turnstone Biologics announced the discontinuation of their lead (and sole) clinical program, TIDAL-01.

Workforce Reduction

A workforce reduction by 60% was recently implemented, indicating potential challenges within the company.

Turnstone Biologics Corp. Business Overview & Revenue Model

Company Description

Turnstone Biologics Corp. (TSBX) is a biotechnology company focused on developing innovative cancer immunotherapies. Operating in the biopharmaceutical sector, the company is dedicated to harnessing the power of the immune system to treat solid tumors through its proprietary viral immunotherapy platforms.

How the Company Makes Money

Turnstone Biologics Corp. generates revenue primarily through partnerships and collaborations with larger pharmaceutical companies, which may involve upfront payments, milestone payments, and royalties based on successful development and commercialization of its therapies. Additionally, the company may receive funding through grants and research collaborations. However, as a company in the biotechnology industry, Turnstone Biologics may still be in pre-commercial stages with significant investments in research and development, potentially relying on venture capital and private equity funding to support its operations.

Turnstone Biologics Corp. Financial Statement Overview

Summary

Turnstone Biologics Corp. faces significant financial challenges, including declining revenues, negative profitability, and poor cash flow performance. While the balance sheet shows some improvement in equity, the overall financial health is weak, requiring urgent action to stabilize revenue and cash flow.

Income Statement

Turnstone Biologics Corp. has experienced a significant decline in revenue from 2022 to 2023, followed by zero revenue in TTM. This drastic fall impacts all profitability margins, with negative gross profit and net income margins. Revenue growth is non-existent in TTM, highlighting a concerning trend for the company's income generation ability.

Balance Sheet

The company shows a solid equity position with a positive stockholders' equity in TTM after a period of negative equity. However, the high volatility in equity and liabilities suggests financial instability. The debt-to-equity ratio is low, indicating minimal leverage risk. Overall, the balance sheet reflects moderate improvement but still shows potential risks.

Cash Flow

Turnstone's cash flow situation shows a negative trend with declining free cash flow and operating cash flow over the periods. The company struggles to generate positive cash flows, reflecting financial stress. The ratios between cash flows and net income are unfavorable, indicating cash management issues.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
0.00	19.31M	73.30M	101.29M
	Gross Profit
-1.67M	16.51M	71.10M	99.28M
	EBIT
-78.97M	-59.03M	-31.63M	32.99M
	EBITDA
-77.80M	-56.23M	-28.49M	35.71M
	Net Income Common Stockholders
-74.42M	-55.20M	-30.83M	33.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
82.06M	94.78M	82.06M	161.02M
	Total Assets
114.94M	112.81M	114.94M	187.24M
	Total Debt
5.17M	3.21M	5.17M	2.68M
	Net Debt
-29.57M	-14.58M	-29.57M	-120.70M
	Total Liabilities
216.41M	14.15M	216.41M	269.10M
	Stockholders Equity
-101.47M	98.67M	-101.47M	-81.85M
Cash Flow		Free Cash Flow
-66.71M	-67.40M	-76.23M	-49.03M
	Operating Cash Flow
-66.47M	-66.15M	-71.06M	-45.63M
	Investing Cash Flow
51.98M	-28.09M	-14.93M	-3.35M
	Financing Cash Flow
-250.00K	77.05M	-2.66M	79.95M

Turnstone Biologics Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSBX, the sentiment is Negative. The current price of 0.35 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.38, and below the 200-day MA of 0.74, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.98 is Neutral, neither overbought nor oversold. The STOCH value of 36.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSBX.

Turnstone Biologics Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.32B	3.41	-40.36%	2.89%	17.93%	2.52%
CYCN	47 Neutral	$8.81M	―	-30.36%	―	―	86.52%
DWTX	43 Neutral	$10.57M	―	-200.48%	―	―	-57.84%
APRE	38 Underperform	$8.79M	―	-66.65%	―	157.63%	40.52%
HCWB	36 Underperform	$7.75M	―	-897.37%	―	-9.68%	-13.26%
TSBX	34 Underperform	$8.10M	―	-108.87%	―	-100.00%	-27.44%
CARM	15 Underperform	$9.44M	―	-362.79%	―	31.59%	57.94%

Turnstone Biologics Corp. Corporate Events

Turnstone Biologics Halts TIDAL-01 Studies Amid Market Woes

On January 30, 2025, Turnstone Biologics decided to halt all clinical studies for TIDAL-01, a program targeting solid tumors, due to the high financial requirements and current market conditions. The company is now exploring strategic alternatives, such as mergers or sales, to maximize shareholder value while implementing cost-reduction measures, including workforce downsizing.