T2 Biosystems (TTOO) AI Stock Analysis

• Market Cap: $2.97M
• Dividend Yield: N/A
• Average Volume (3M): 105.27K
• Price to Earnings (P/E): ―
• Beta (1Y): -2.34
• Revenue Growth: -30.19%
• EPS Growth: 97.74%
• Country: US
• Employees: 113
• Sector: Healthcare
• Sector Strength: 66
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -6.41
• Shares Outstanding: 28,045,418
• 10 Day Avg. Volume: 126,012
• 30 Day Avg. Volume: 105,269
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.43
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

T2 Biosystems' overall score reflects significant financial instability, with negative profitability and high leverage posing substantial risks. Technical indicators suggest bearish sentiment, although the stock is oversold, which might offer a short-term opportunity. Despite promising strategic partnerships and product developments, the company's valuation remains unattractive due to ongoing losses and market compliance challenges. The recent corporate events and positive earnings call highlights indicate potential for improvement, but the financial health remains a critical concern.

T2 Biosystems Business Overview & Revenue Model

Company Description

T2 Biosystems, Inc., an in vitro diagnostics company, develops diagnostic products and product candidates in the United States and internationally. Its technology enables detection of pathogens, biomarkers, and other abnormalities in various unpurified patient sample types, including whole blood, plasma, serum, saliva, sputum, cerebral spinal fluid, and urine. The company also offers T2Dx Instrument, a bench-top instrument that runs various diagnostic tests from patient samples; T2Candida, a direct-from-blood test that identifies blood stream infections that causes sepsis and candidemia; T2Bacteria, a direct-from-blood test, which detects bacterial pathogens associated with sepsis; T2Resistance to identify carbapenem resistance genes; and T2SARS-CoV-2 panel to detect SARS-CoV-2 virus. In addition, it is developing T2Biothreat for detection of biothreat pathogens; comprehensive sepsis panel to detect bloodstream infections caused by bacterial and Candida species, and antibiotic resistant markers; T2Cauris to provide direct detection of the emerging superbug Candida auris in patient skin, patient blood, and hospital environmental samples; and T2Lyme, a direct-from-blood test panel designed to run on the T2Dx Instrument to identify the bacteria that cause Lyme disease. The company has collaboration agreements with Canon U.S. Life Sciences, Inc. to develop a diagnostic test panel to detect Lyme disease. T2 Biosystems, Inc. was incorporated in 2006 and is headquartered in Lexington, Massachusetts.

How the Company Makes Money

T2 Biosystems generates revenue primarily through the sale of its diagnostic instruments and related consumable products. The company's core revenue stream comes from the sale and leasing of the T2Dx Instrument, along with the sales of test panels like T2Bacteria and T2Candida, which are used with the instrument. Additionally, T2 Biosystems may enter into partnerships and collaborations with other companies and healthcare institutions to expand its market reach and enhance its product offerings. These collaborations can include co-development agreements, licensing deals, and research funding, which can also contribute to the company's earnings.

T2 Biosystems Financial Statement Overview

Summary

T2 Biosystems faces significant financial challenges with negative profitability metrics and high leverage. The company's declining revenue and negative margins indicate operational struggles, while the balance sheet's negative equity and high debt levels highlight financial instability. Cash flow is heavily reliant on external financing, raising sustainability concerns. Overall, the company's financial health is weak, with substantial risks associated with its current trajectory.

Income Statement

The company has shown declining revenue over recent periods, with the TTM revenue decreasing significantly from prior years. Gross profit margin has consistently been negative, indicating cost of goods sold exceeds revenue, which is unsustainable. Net profit margin is also deeply negative, reflecting consistent losses. The EBIT and EBITDA margins are substantially negative, showing operational inefficiencies.

Balance Sheet

The balance sheet indicates a precarious financial position with negative stockholders' equity, implying liabilities exceed assets. The debt-to-equity ratio is not meaningful due to negative equity, but high total debt suggests significant leverage risk. Return on equity is negative, consistent with net losses. Overall, the balance sheet shows significant financial instability.

Cash Flow

Cash flow analysis indicates ongoing operational cash outflows with negative free cash flow. There is a slight improvement in free cash flow growth rate in TTM compared to previous periods, but it remains negative. Financing cash flow is positive, suggesting reliance on external financing, which may not be sustainable long-term.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
7.68M	7.19M	22.30M	28.06M	18.13M	8.34M
	Gross Profit
-5.97M	-8.17M	1.17M	7.36M	-3.15M	-8.43M
	EBIT
-41.66M	-49.66M	-55.51M	-42.97M	-41.36M	-52.06M
	EBITDA
-39.51M	-43.88M	-55.20M	-41.13M	-38.49M	-48.30M
	Net Income Common Stockholders
-42.95M	-50.08M	-63.37M	-53.49M	-49.21M	-63.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.71M	15.69M	10.33M	32.24M	42.19M	11.03M
	Total Assets
0.00	34.80M	34.39M	60.54M	79.08M	28.49M
	Total Debt
0.00	49.50M	59.22M	57.15M	55.77M	44.77M
	Net Debt
9.71M	33.81M	48.89M	34.90M	38.98M	33.74M
	Total Liabilities
0.00	62.83M	74.36M	73.44M	70.35M	62.49M
	Stockholders Equity
4.17M	-28.04M	-39.97M	-12.90M	8.73M	-34.01M
Cash Flow		Free Cash Flow
-36.62M	-48.33M	-50.97M	-39.33M	-44.02M	-46.12M
	Operating Cash Flow
-36.59M	-48.14M	-50.63M	-38.87M	-43.22M	-45.36M
	Investing Cash Flow
-26.00K	-192.00K	9.66M	24.79M	-36.26M	-761.00K
	Financing Cash Flow
14.38M	52.69M	29.05M	20.54M	85.61M	6.35M

T2 Biosystems Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.12
• 50DMA: Negative
• 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 TTOO, the sentiment is Neutral. The current price of 0.12 is above the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.12, and below the 200-day MA of 1.49, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.44 is Neutral, neither overbought nor oversold. The STOCH value of 73.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TTOO.

T2 Biosystems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.19B	3.13	-40.94%	2.95%	17.94%	2.00%
TOVX	41 Neutral	$3.77M	―	-87.31%	―	―	6.87%
HSCS	41 Neutral	$3.57M	―	-163.47%	―	-100.00%	78.91%
PALI	37 Underperform	$3.17M	―	-153.55%	―	-100.00%	53.88%
TTOO	35 Underperform	$2.97M	―	366.81%	―	-30.19%	97.74%
ARTL	34 Underperform	$3.13M	―	-134.52%	―	―	14.28%

T2 Biosystems Corporate Events

T2 Biosystems Enhances Governance and Leadership Stability

T2 Biosystems, Inc. held its annual meeting of stockholders, where key corporate governance matters were addressed, including the approval of an amendment to the 2014 Incentive Award Plan. The company’s board adopted the amendment, which became effective following stockholder approval, highlighting a strategic move to enhance its incentive structures. Additionally, the letter agreements with key executives were amended to increase retention bonuses, reflecting an effort to secure continued leadership stability. The election of directors and the ratification of the company’s auditors were also confirmed, ensuring continuity in governance and financial oversight.

T2 Biosystems Advances Sepsis Detection Technology Licensing

T2 Biosystems is set to expand its market leadership by licensing its cutting-edge technology for detecting sepsis-causing pathogens directly from whole blood. This strategy aims to attract non-dilutive capital, create a new royalty revenue stream, and enable broader adoption of its diagnostics. With its FDA-cleared products, such as the T2Dx Instrument and T2Bacteria Panel, T2 Biosystems is poised to transform sepsis and antibiotic resistance detection, potentially integrating these capabilities into other commercial platforms.