Applied Therapeutics (APLT) AI Stock Analysis

• Market Cap: $59.74M
• Dividend Yield: N/A
• Average Volume (3M): 2.52M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 25
• Sector: Healthcare
• Sector Strength: 77
• Industry: Biotechnology
• EPS (TTM): -1.32
• Shares Outstanding: 116,356,476
• 10 Day Avg. Volume: 1,865,966
• 30 Day Avg. Volume: 2,516,273
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.98
• Price to Cash Flow (P/CF): -0.60
• 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: $1.50
• Price Target Upside: 194.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

The overall stock score reflects the significant financial and operational challenges faced by Applied Therapeutics. The company's financial performance is weak, with negative revenue and high leverage. Technical analysis indicates strong bearish momentum, while valuation metrics highlight ongoing losses. Recent corporate events add further uncertainty, with leadership changes and regulatory challenges compounding risks. The earnings call provided little clarity, leaving the outlook uncertain.

Positive Factors

Leadership Change

APLT has announced John H. Johnson, an industry veteran with more than 40 years of experience, will serve as Executive Chairman, and Les Funtleyder, who is currently the CFO and has served on APLT's board, will serve as interim CEO.

Product Support

Govorestat still has a lot of support from the galactosemia KOL community and patient advocates, highlighting the unmet need.

Negative Factors

Regulatory Challenges

The FDA's warning letter has significantly affected management’s reputation, likely impacting near-term investor sentiment.

Applied Therapeutics Business Overview & Revenue Model

Company Description

Applied Therapeutics, Inc. is a clinical-stage biopharmaceutical company, which engages in developing a pipeline of novel product candidates against validated molecular targets in indications of high unmet medical need. The company was founded by Shoshana Shendelman on January 20, 2016 and is headquartered in New York, NY.

How the Company Makes Money

Applied Therapeutics generates revenue primarily through the development and potential commercialization of its pharmaceutical products. The company focuses on advancing its pipeline of drug candidates through clinical trials, aiming to achieve regulatory approval for these therapies. Revenue is expected to be derived from sales of approved drugs, licensing agreements, and strategic partnerships with other pharmaceutical entities. These collaborations may involve milestone payments, royalties, and co-development agreements, which contribute significantly to its earnings. Additionally, Applied Therapeutics may receive research and development funding or grants that support its ongoing projects.

Applied Therapeutics Financial Statement Overview

Summary

Applied Therapeutics faces significant financial hurdles characterized by negative revenue, persistent losses, and high leverage. The cash position offers some relief, but the overall financial health is challenged by ongoing operational inefficiencies and cash burn, necessitating strategic changes to achieve sustainable growth.

Income Statement

The company exhibits significant challenges in its income statement. The TTM (Trailing-Twelve-Months) shows negative revenue and a substantial net loss. Revenue growth has been negative, indicating a lack of revenue generation, while profit margins remain deeply negative. The EBIT and EBITDA margins are also unfavorable, reflecting continuous operating losses.

Balance Sheet

The balance sheet reveals high liabilities relative to equity, with a low stockholders' equity position. The debt-to-equity ratio is concerning, indicating financial leverage risk. However, the company maintains a relatively high level of cash and short-term investments compared to its total assets, providing some liquidity buffer.

Cash Flow

Cash flow analysis shows consistent negative operating and free cash flows, indicating cash burn. The operating cash flow to net income ratio suggests inefficiencies in converting income to cash, and the lack of positive free cash flow highlights the company's reliance on financing activities for cash generation.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
-211.00K	9.99M	0.00	0.00	0.00	0.00
	Gross Profit
-799.00K	9.64M	-441.00K	-415.00K	-380.00K	-23.00K
	EBIT
-92.28M	-64.53M	-82.95M	-105.62M	-94.47M	-45.58M
	EBITDA
-92.18M	-64.53M	-82.07M	-105.17M	-94.47M	-45.58M
	Net Income Common Stockholders
-187.31M	-119.76M	-81.69M	-104.61M	-93.02M	-45.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
49.90M	49.90M	30.58M	80.82M	96.83M	38.85M
	Total Assets
54.83M	54.83M	38.36M	89.89M	104.51M	48.39M
	Total Debt
777.00K	777.00K	891.00K	1.33M	1.74M	2.04M
	Net Debt
-49.12M	-49.12M	-15.77M	-52.55M	-55.73M	-16.81M
	Total Liabilities
71.98M	71.98M	34.30M	27.35M	22.57M	15.78M
	Stockholders Equity
-17.15M	-17.15M	4.06M	62.54M	81.94M	32.61M
Cash Flow		Free Cash Flow
-81.84M	-55.17M	-78.09M	-90.73M	-78.21M	-36.31M
	Operating Cash Flow
-81.84M	-55.17M	-78.09M	-90.73M	-78.21M	-36.31M
	Investing Cash Flow
0.00	13.87M	13.17M	12.43M	-19.47M	-20.01M
	Financing Cash Flow
143.25M	74.54M	27.69M	74.72M	136.29M	56.41M

Applied Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.51
• 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 APLT, the sentiment is Negative. The current price of 0.51 is below the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.61, and below the 200-day MA of 4.57, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 39.63 is Neutral, neither overbought nor oversold. The STOCH value of 43.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APLT.

Applied Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PTGX	61 Neutral	$3.36B	13.02	54.39%	―	624.05%	―
OCUL	54 Neutral	$1.23B	―	-95.21%	―	9.03%	-25.00%
Sector *	49 Neutral	$6.86B	0.03	-54.79%	2.48%	24.62%	-2.84%
XOMA	42 Neutral	$240.78M	―	-31.41%	―	389.82%	-22.66%
RDHL	41 Neutral	$3.26M	―	1155.92%	―	―	―
ANVS	38 Underperform	$33.32M	―	-596.70%	―	―	9.74%
APLT	21 Underperform	$59.74M	―	-3179.06%	―	―	―

Applied Therapeutics Corporate Events

Applied Therapeutics Faces Leadership Changes and Regulatory Hurdles

Applied Therapeutics, Inc. has appointed John H. Johnson as Executive Chairman and Les Funtleyder as interim CEO, following the resignation of Dr. Shoshana Shendelman. The company is navigating regulatory challenges, having received a Complete Response Letter from the FDA and withdrawing a European MAA for govorestat, while planning to submit a new NDA for Sorbitol Dehydrogenase deficiency after Q1 2025.

Applied Therapeutics Faces FDA Challenges with Govorestat

Applied Therapeutics, Inc. faces challenges with its New Drug Application for govorestat after the FDA issued a warning letter highlighting data capture issues and a dosing error in the AT-007-1002 study. The company has provided detailed records and intends to respond within 15 business days to address these issues. However, forward-looking statements regarding its operations and market prospects involve significant uncertainties, emphasizing the risks and challenges in achieving projected outcomes.