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Turnstone Biologics Corp. (TSBX)
:TSBX
US Market

Turnstone Biologics Corp. (TSBX) AI Stock Analysis

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Turnstone Biologics Corp.

(NASDAQ:TSBX)

29Underperform
The overall score for Turnstone Biologics Corp.'s stock is low due to significant financial challenges, including declining revenues and persistent losses. The recent halting of TIDAL-01 studies and exploration of strategic alternatives add further uncertainty. While technical analysis shows some short-term positive momentum, the negative P/E ratio and absence of dividend yield highlight valuation concerns.
Positive Factors
Financial Stability
The company guides to a cash runway into the second quarter of 2026, providing a degree of financial stability.
Pipeline Potential
The evidence that selecting a specific 12-genome signature meaningfully increases TIL yield and potency is encouraging for Turnstone Biologics.
Negative Factors
Clinical Program Discontinuation
Turnstone Biologics announced the discontinuation of their lead (and sole) clinical program, TIDAL-01.
Market Performance
With the removal of TIDAL-01 from estimates, the price target has been reduced to $1 from $3 and the MP rating is reiterated.
Workforce Reduction
A workforce reduction by 60% was recently implemented, indicating potential challenges within the company.

Turnstone Biologics Corp. (TSBX) vs. S&P 500 (SPY)

Turnstone Biologics Corp. Business Overview & Revenue Model

Company DescriptionTurnstone Biologics Corp., a clinical stage biotechnology company, focuses on developing medicines to treat and cure patients with solid tumors. The company's lead product includes TIDAL-01 that is in Phase 1 clinical trials for the treatment of breast cancer, colorectal cancer, and uveal melanoma, as well as an investigator sponsored trial to treat cutaneous and non-cutaneous melanomas. It is also developing TIDAL-02, which is in preclinical development for the treatment of solid tumors. The company was founded in 2014 and is based in LA Jolla, California.
How the Company Makes MoneyTurnstone 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
25
Negative
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
40
Negative
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
30
Negative
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
TTMDec 2023Dec 2022Dec 2021
Income StatementTotal Revenue
0.0019.31M73.30M101.29M
Gross Profit
-1.67M16.51M71.10M99.28M
EBIT
-78.97M-59.03M-31.63M32.99M
EBITDA
-77.80M-56.23M-28.49M35.71M
Net Income Common Stockholders
-74.42M-55.20M-30.83M33.27M
Balance SheetCash, Cash Equivalents and Short-Term Investments
82.06M94.78M82.06M161.02M
Total Assets
114.94M112.81M114.94M187.24M
Total Debt
5.17M3.21M5.17M2.68M
Net Debt
-29.57M-14.58M-29.57M-120.70M
Total Liabilities
216.41M14.15M216.41M269.10M
Stockholders Equity
-101.47M98.67M-101.47M-81.85M
Cash FlowFree 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
-250.00K77.05M-2.66M79.95M

Turnstone Biologics Corp. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.38
Price Trends
50DMA
0.40
Negative
100DMA
0.45
Negative
200DMA
0.90
Negative
Market Momentum
MACD
<0.01
Negative
RSI
44.20
Neutral
STOCH
52.53
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 0.38 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.40, and below the 200-day MA of 0.90, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 44.20 is Neutral, neither overbought nor oversold. The STOCH value of 52.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSBX.

Turnstone Biologics Corp. Risk Analysis

Turnstone Biologics Corp. disclosed 84 risk factors in its most recent earnings report. Turnstone Biologics Corp. 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

Turnstone Biologics Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
48
Neutral
$6.36B1.14-49.01%2.63%17.12%1.49%
48
Neutral
$48.32M2.4319.05%40.98%
46
Neutral
$66.06M-273.36%194.23%45.50%
45
Neutral
$475.65M-42.91%2.90%
42
Neutral
$86.28M-54.21%-78.55%-0.92%
41
Neutral
$312.86M-55.13%-86.25%36.10%
29
Underperform
$8.77M-108.87%-100.00%-27.44%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSBX
Turnstone Biologics Corp.
0.38
-2.70
-87.66%
FATE
Fate Therapeutics
0.75
-5.96
-88.82%
ADAP
Adaptimmune Therapeutics
0.26
-1.10
-80.88%
KURA
Kura Oncology
5.89
-14.53
-71.16%
ALLO
Allogene Therapeutics
1.44
-2.54
-63.82%
DTIL
Precision BioSciences
4.61
-8.92
-65.93%

Turnstone Biologics Corp. Corporate Events

Product-Related AnnouncementsM&A TransactionsBusiness Operations and Strategy
Turnstone Biologics Halts TIDAL-01 Studies Amid Market Woes
Negative
Feb 4, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.