Turnstone Biologics Corp. (TSBX) AI Stock Analysis

• Market Cap: $8.20M
• Dividend Yield: N/A
• Average Volume (3M): 453.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.06
• Revenue Growth: -100.00%
• EPS Growth: -27.44%
• Country: US
• Employees: 14
• Sector: Healthcare
• Sector Strength: 46
• Industry: Biotechnology
• EPS (TTM): -0.51
• Shares Outstanding: 23,140,348
• 10 Day Avg. Volume: 115,668
• 30 Day Avg. Volume: 453,352
• PEG Ratio: 0.04
• Price to Book (P/B): -2.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.20
• Enterprise Value/Market Cap: 26.16
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -429.02
• Enterprise Value/Ebitda: -0.75
• 1Y Price Target: $1.00
• Price Target Upside: 185.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 34 Underperform
• Price Target: ―

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

Financial Stability

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

Future Potential

The company’s pre-clinical, next-generation TIL program, TIDAL-02, could deliver value to whomever picks up Turnstone’s mantle.

Negative Factors

Cash Constraints

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

Price Target Reduction

With the removal of TIDAL-01 from estimates, the price target has been reduced to $1 from $3 and the MP rating is reiterated.

Program Discontinuation

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

Turnstone Biologics Corp. Business Overview & Revenue Model

Company Description

Turnstone 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 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.'s financial statements point to significant challenges, including declining revenues, persistent losses, and cash flow issues. While there are some improvements in equity and investing cash flow in 2024, the overarching trend indicates financial instability and the need for strategic intervention to reverse the negative trends.

Income Statement

The income statement reveals a concerning decline in revenue from 2021 to 2024, with the latest report showing no revenue at all. There's a consistent negative net income, indicating persistent losses. The EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The balance sheet shows a reduction in total assets and cash reserves over the years, with a positive stockholder equity in 2024, a significant improvement from 2021's negative equity. However, the high debt-to-equity ratio in prior years and fluctuating equity levels highlight financial instability.

Cash Flow

The cash flow statement indicates a negative free cash flow throughout the years, with significant operating cash outflows. The operating cash flow to net income ratio is negative, suggesting cash flow issues despite some improvement in investing cash flow in 2024.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
0.00	0.00	19.31M	73.30M	101.29M
	Gross Profit
-500.00K	0.00	16.51M	71.10M	99.28M
	EBIT
-60.97M	-72.49M	-59.03M	-31.63M	32.99M
	EBITDA
-59.64M	-68.97M	-56.23M	-28.49M	35.71M
	Net Income Common Stockholders
-63.01M	-70.84M	-55.20M	-30.83M	33.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.85M	28.93M	94.78M	82.06M	161.02M
	Total Assets
27.61M	40.14M	112.81M	114.94M	187.24M
	Total Debt
690.00K	1.19M	3.21M	5.17M	2.68M
	Net Debt
-21.16M	-27.74M	-14.58M	-29.57M	-120.70M
	Total Liabilities
7.63M	8.67M	14.15M	216.41M	269.10M
	Stockholders Equity
19.99M	31.47M	98.67M	-101.47M	-81.85M
Cash Flow		Free Cash Flow
-57.15M	-67.67M	-67.40M	-76.23M	-49.03M
	Operating Cash Flow
-57.07M	-67.44M	-66.15M	-71.06M	-45.63M
	Investing Cash Flow
64.47M	78.56M	-28.09M	-14.93M	-3.35M
	Financing Cash Flow
-81.00K	11.00K	77.05M	-2.66M	79.95M

Turnstone Biologics Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.35
• 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 TSBX, the sentiment is Negative. The current price of 0.35 is above the 20-day moving average (MA) of 0.34, above the 50-day MA of 0.35, and below the 200-day MA of 0.45, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.62 is Neutral, neither overbought nor oversold. The STOCH value of 58.80 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 *	54 Neutral	$5.24B	3.26	-44.35%	6.48%	16.78%	-0.10%
CARM	49 Neutral	$20.99M	―	-362.79%	―	32.45%	39.31%
DWTX	49 Neutral	$9.14M	―	-451.34%	―	―	-57.84%
CYCN	47 Neutral	$10.11M	―	-31.48%	―	―	86.52%
HCWB	43 Neutral	$11.73M	―	-9999.00%	―	-63.20%	15.71%
APRE	40 Underperform	$9.78M	―	-59.80%	―	157.63%	40.52%
TSBX	34 Underperform	$8.20M	―	-126.03%	―	-100.00%	-27.44%

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.