T2 Biosystems (TTOO) AI Stock Analysis

• Market Cap: $84.14K
• Dividend Yield: N/A
• Average Volume (3M): 18.99K
• Price to Earnings (P/E): ―
• Beta (1Y): -5.35
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 113
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): N/A
• Shares Outstanding: 28,045,418
• 10 Day Avg. Volume: 30,842
• 30 Day Avg. Volume: 18,993
• PEG Ratio: <0.01
• Price to Book (P/B): -0.58
• Price to Sales (P/S): 2.28
• P/FCF Ratio: -0.34
• Enterprise Value/Market Cap: 619.35
• Enterprise Value/Revenue: 6.79
• Enterprise Value/Gross Profit: -8.73
• Enterprise Value/Ebitda: -1.32
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 35 Underperform
• Price Target: ―

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.

Positive Factors

Revenue Growth

The 34% revenue growth indicates strong demand for T2 Biosystems' products, suggesting effective market penetration and potential for sustained growth.

Strategic Partnerships

The partnership with Cardinal Health expands market access to over 6,000 U.S. hospitals, enhancing distribution capabilities and long-term sales potential.

Product Pipeline Developments

Advancements in the product pipeline, including FDA designations, position T2 Biosystems for future growth and market leadership in diagnostics.

Negative Factors

Financial Instability

Negative equity and high leverage highlight financial instability, posing risks to operational sustainability and limiting strategic flexibility.

Cash Flow Challenges

Negative cash flow and reliance on external financing threaten long-term viability, potentially impacting the company's ability to fund operations and growth.

NASDAQ Compliance Issues

Non-compliance with NASDAQ listing requirements could lead to delisting, affecting investor confidence and access to capital markets.

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
EBITDA	-39.51M	-43.88M	-54.87M	-41.13M	-36.71M	-48.30M
Net Income	-42.95M	-50.08M	-62.00M	-49.24M	-46.80M	-59.01M
Balance Sheet
Total Assets	18.08M	34.80M	34.39M	60.54M	79.08M	28.49M
Cash, Cash Equivalents and Short-Term Investments	2.08M	15.69M	10.33M	32.24M	42.19M	11.03M
Total Debt	18.94M	49.50M	59.22M	58.32M	56.92M	44.77M
Total Liabilities	29.79M	62.83M	74.36M	73.44M	70.35M	62.49M
Stockholders Equity	-11.71M	-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: Negative
• Last Price: 0.01
• 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 TTOO, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.08, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 46.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTOO.

T2 Biosystems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRPO	57 Neutral	$40.45M	-27.66	-9.76%	―	30.95%	59.67%
INBS	53 Neutral	$13.73M	-8.38	-223.45%	―	3.26%	65.96%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VNRX	49 Neutral	$43.57M	-1.56	―	―	14.48%	36.83%
BDSX	44 Neutral	$44.39M	-1.04	-302.55%	―	22.29%	31.93%
NDRA	42 Neutral	$5.39M	-0.34	-236.34%	―	―	98.86%
TTOO	35 Underperform	$84.14K	>-0.01	―	―	―	―