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COMPASS Pathways (CMPS)
NASDAQ:CMPS
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COMPASS Pathways
(NASDAQ:CMPS)
43Neutral
Positive Factors
Analyst Recommendation
Analyst recommends buying Compass Pathways plc stock, reflecting confidence in its future potential.
Financial Health
CMPS finished with $165.1M in cash and cash equivalents, indicating strong financial health.
Market Potential
COMP360’s differentiated profile—demonstrated rapid efficacy, potential durability, and scalability versus SPRAVATO (esketamine)—positions it as a transformative treatment in treatment-resistant depression (TRD).
Negative Factors
Stock Dilution
The stock price target has been adjusted from $23 to $15 primarily due to dilution from a recent offering.
Stock Upside Limitation
Outstanding warrants exercisable on the release of the 26-week data from the COMP005 study have the potential to limit the stock's upside.
Trial Concerns
The decision was influenced by the negative Lykos AdComm and CRL, raising concerns about trial design and management.
COMPASS Pathways (CMPS) vs. S&P 500 (SPY)
Market Cap
$195.37M
Dividend YieldN/A
Average Volume (3M)1.06M
Price to Earnings (P/E)―
Beta (1Y)1.57
Revenue GrowthN/A
EPS Growth3.88%
CountryUS
Employees166
SectorHealthcare
Sector Strength70
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-2.30
Shares Outstanding92,673,134
10 Day Avg. Volume1,104,809
30 Day Avg. Volume1,062,794
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.67Price Target Upside520.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
COMPASS Pathways Business Overview & Revenue Model
Company DescriptionCOMPASS Pathways plc operates as a mental health care company primarily in the United Kingdom and the United States. It develops COMP360, a psilocybin therapy that has completed Phase IIb clinical trials for the treatment of treatment-resistant depression; and is in Phase II clinical trials for the treatment of post-traumatic stress disorder. The company was formerly known as COMPASS Rx Limited and changed its name to COMPASS Pathways plc in August 2020. COMPASS Pathways plc was incorporated in 2020 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyCOMPASS Pathways makes money primarily through the development and commercialization of its proprietary psilocybin therapy. The company generates revenue by conducting clinical trials and eventually getting regulatory approval to market its therapies. Once approved, COMPASS can license its therapies to healthcare providers or sell them directly to institutions and clinics specializing in mental health treatments. Key revenue streams include potential partnerships with pharmaceutical companies, research grants, and future sales of approved treatments. Strategic collaborations with academic institutions and mental health organizations also play a significant role in advancing their clinical programs and expanding market reach.
COMPASS Pathways Financial Statement Overview
Summary
Compass Pathways is in a typical biotechnology growth phase, characterized by high R&D expenses, no revenue, and reliance on financing. While the balance sheet indicates strong equity and manageable debt, the lack of revenue and significant losses in net income and cash flow highlight the company's ongoing development stage and associated financial risks.Income Statement
Compass Pathways has consistently reported no revenue, highlighting its early-stage nature in the biotechnology sector. The company has faced widening losses with net income decreasing year-over-year, indicating increasing operational costs without revenue offset. The EBIT and EBITDA margins are negative, reflecting ongoing challenges in reaching profitability.15
Very Negative
Balance Sheet
The balance sheet shows a strong equity position, with stockholders' equity covering total liabilities significantly, leading to a healthy equity ratio. However, the company's negative net income impacts the return on equity, and the presence of debt, although minor, adds to financial leverage. Overall, the balance sheet exhibits stability, but profitability remains a concern.45
Neutral
Cash Flow
The cash flow situation reflects high operational cash outflows, which is typical for a biotech firm in the R&D phase. The free cash flow is negative, and financing activities significantly contribute to cash reserves. While the company succeeds in securing financing, the reliance on financing for cash flow stability presents a potential risk.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Gross Profit |
| 0.00 | -242.94K | -329.80K | -174.98K | -112.00K | EBIT |
| -178.21M | -136.92M | -110.40M | -83.22M | -51.39M | EBITDA |
| -178.21M | -123.80M | -110.40M | -83.22M | -47.04M | Net Income Common Stockholders |
| -155.12M | -118.46M | -91.50M | -71.74M | -60.33M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 165.08M | 220.20M | 143.21M | 273.24M | 190.33M | Total Assets |
| 213.67M | 275.99M | 197.29M | 300.90M | 203.46M | Total Debt |
| 7.54M | 33.05M | 1.93M | 3.61M | 0.00 | Net Debt |
| -157.54M | -187.15M | -141.28M | -269.63M | -190.33M | Total Liabilities |
| 58.97M | 50.24M | 16.01M | 16.49M | 6.89M | Stockholders Equity |
| 154.69M | 225.74M | 181.28M | 284.41M | 196.56M |
| Cash Flow | Free Cash Flow | |||
| -119.19M | -97.44M | -106.05M | -68.08M | -41.51M | Operating Cash Flow |
| -119.19M | -97.38M | -105.45M | -67.75M | -41.38M | Investing Cash Flow |
| 0.00 | -64.00K | -596.00K | -334.00K | -628.00K | Financing Cash Flow |
| 63.82M | 173.83M | 1.04M | 156.65M | 194.16M |
COMPASS Pathways Technical Analysis
Negative
2.85
Price Trends
3.64
Negative
3.90
Negative
5.25
Negative
Market Momentum
-0.24
Negative
42.33
Neutral
49.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMPS, the sentiment is Negative. The current price of 2.85 is below the 20-day moving average (MA) of 2.95, below the 50-day MA of 3.64, and below the 200-day MA of 5.25, indicating a bearish trend. The MACD of -0.24 indicates Negative momentum. The RSI at 42.33 is Neutral, neither overbought nor oversold. The STOCH value of 49.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMPS.
COMPASS Pathways Risk Analysis
COMPASS Pathways disclosed 98 risk factors in its most recent earnings report. COMPASS Pathways 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
COMPASS Pathways Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $202.86M | 13.44 | 7.22% | ― | 12.78% | ― | |
61 Neutral | $243.74M | 12.95 | 6.43% | ― | -1.24% | 196.79% | |
58 Neutral | $199.69M | 20.27 | -7.92% | ― | 6.38% | ― | |
54 Neutral | $135.60M | ― | -174.88% | ― | 21.33% | 23.37% | |
48 Neutral | $6.35B | 1.18 | -46.25% | 2.67% | 19.35% | 1.28% | |
43 Neutral | $195.37M | ― | -81.56% | ― | ― | 3.88% | |
43 Neutral | $54.44M | ― | -124.59% | ― | 18.48% | -37.43% |
* Healthcare Sector Average
Performance Comparison
CMPS
COMPASS Pathways
2.85
-5.47
-65.75%
TOI
Oncology Institute, Inc.
1.79
0.60
50.42%
DCGO
DocGo
2.39
-0.86
-26.46%
PIII
P3 Health Partners
0.15
-0.34
-69.39%
BTMD
biote
3.65
-2.24
-38.03%
AUNA
Auna S.A. Class A
6.75
-0.76
-10.12%
COMPASS Pathways Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -22.97% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlights COMPASS Pathways' solid financial position and progress in clinical trials, particularly for TRD and PTSD, with strategic collaborations enhancing market insights. However, increased net loss and operational costs present financial challenges.Highlights
Strong Financial Position
COMPASS Pathways completed a financing round in January, resulting in approximately $140 million in net proceeds. Combined with the $165.1 million in cash at year-end 2024, this provides substantial runway to fund operations through the 26-week data readout from the COMP006 study expected in the second half of 2026.
Progress in Clinical Trials
The company has recruited over 90% of patients for the COMP005 trial, with top line results expected in the next quarter. The COMP006 trial is also enrolling well, with results expected in the second half of 2026.
Expansion into PTSD Treatment
Following recent financing, COMPASS Pathways is resuming development of COMP360 for PTSD, building on encouraging results from a Phase 2a study.
Strategic Collaborations for Market Insights
Collaborations with healthcare delivery organizations are providing insights into various care settings, aiding strategic planning for potential launch and scale-up.
Lowlights
Increased Net Loss
Net loss for 2024 was $155.1 million, up from $118.5 million in 2023, reflecting increased R&D and G&A expenses.
Higher Operational Costs
Cash used in operations for 2024 was $119.2 million, compared to $87.5 million in the prior year, indicating increased operational expenditures.
Company Guidance
In the recent COMPASS Pathways' investor call, several key metrics were highlighted regarding their financial and clinical progress. For the fiscal year 2024, the company reported a net loss of $155.1 million, or $2.3 per share, compared to the previous year's net loss of $118.5 million. Research and development expenses rose to $119 million from $87.5 million in 2023, while general and administrative expenses increased to $59.2 million. The company ended 2024 with $165.1 million in cash and cash equivalents and secured an additional $140 million in January through financing, providing runway through the second half of 2026. The upcoming COMP360 trials in treatment-resistant depression (TRD) have reached over 90% recruitment, and critical efficacy results, including MADRS effect size, p-value, and confidence intervals, are anticipated in the second quarter of 2025. The company also plans to resume development of COMP360 for PTSD, aiming to maximize success probability and expedite availability to patients.COMPASS Pathways Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
COMPASS Pathways Boosts Funds for Mental Health Trials
Positive
Jan 10, 2025
Compass Pathways announced an underwritten offering of American Depositary Shares (ADSs) and pre-funded warrants, expected to raise approximately $150 million, with the potential to reach $353 million if warrants are exercised. The proceeds will support ongoing Phase 3 trials for treatment-resistant depression and a late-stage PTSD program. The offering enhances Compass’s financial position to advance its mental health treatment innovations.
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.