Compass Therapeutics (CMPX) AI Stock Analysis

• Market Cap: $275.18M
• Dividend Yield: N/A
• Average Volume (3M): 862.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.73
• Revenue Growth: N/A
• EPS Growth: -7.93%
• Country: US
• Employees: 35
• Sector: Healthcare
• Sector Strength: 72
• Industry: Biotechnology
• EPS (TTM): -0.36
• Shares Outstanding: 138,282,500
• 10 Day Avg. Volume: 891,188
• 30 Day Avg. Volume: 862,786
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 375.80
• Price to Cash Flow (P/CF): -8.70
• 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: $9.33
• Price Target Upside: 368.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Compass Therapeutics' stock is moderately attractive, driven by strong market momentum and strategic leadership changes. However, significant operational losses, negative cash flows, and lack of current profitability weigh down the financial performance score. While technical indicators are positive, valuation remains a concern due to the negative P/E ratio.

Positive Factors

Clinical Trial Progress

The lead program, tovecimig, is set for a data readout from its pivotal Phase 2/3 trial, COMPANION-002, and prior data suggests the trial should report efficacy supporting regulatory approval.

Financial Stability

CMPX reported $127 million in cash and cash equivalents, expected to provide financial runway into the first quarter of 2027, suggesting a strong financial position.

Product Development

CMPX's lead product candidate, tovecimig, is in a potentially registrational Phase 2/3 study for biliary tract cancers, addressing a significant market opportunity.

Negative Factors

Clinical Uncertainty

There are a number of clinical and regulatory uncertainties around the tovecimig program, which may affect its future success.

Competitive Risks

Potential risks to the valuation include the emergence of new competitors, particularly in the PD-1 x VEGF space, which could impact market share.

Trial Dependency

The success of the tovecimig trial is critical, especially because tovecimig failed to meet the pre-specified threshold to advance as a monotherapy in colorectal cancer, highlighting dependency on trial outcomes.

Compass Therapeutics Business Overview & Revenue Model

Company Description

Compass Therapeutics, Inc., a clinical-stage oncology-focused biopharmaceutical company, engages in developing antibody-based therapeutics to treat various human diseases. The company's product candidates in the clinical stage of development include CTX-009, an investigational bispecific antibody that blocks Delta-like ligand 4/Notch and vascular endothelial growth factor A signaling pathways, which are critical to angiogenesis and tumor vascularization; and CTX-471, an IgG4 monoclonal antibody that is an agonist of CD137. Its product candidates also comprise CTX-8371, a bispecific inhibitor that targets PD-1 and PD-L1. The company was founded in 2014 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

Compass Therapeutics makes money primarily through the development and commercialization of its proprietary antibody therapeutics. The company generates revenue through partnerships and collaborations with other pharmaceutical companies, licensing agreements, and potential sales of developed therapies. Significant partnerships with larger biopharmaceutical firms may provide upfront payments, milestone payments, and royalties on sales, contributing to its earnings. Additionally, as its drug candidates progress through clinical trials and receive regulatory approval, Compass Therapeutics aims to commercialize these products, either independently or through strategic alliances, to drive revenue growth.

Compass Therapeutics Financial Statement Overview

Summary

Compass Therapeutics shows promising revenue growth but faces significant challenges with ongoing operational losses and negative cash flows. The strong balance sheet with a high equity ratio and low leverage indicates financial stability, yet the negative return on equity reflects the absence of profitability.

Income Statement

Compass Therapeutics has shown a significant increase in revenue to $3.69 million in the TTM (Trailing-Twelve-Months) from zero in previous years. However, the company is still grappling with substantial losses, as reflected in the negative net income and EBIT margins. The gross profit margin stands at 74.80% for TTM, indicating some operational efficiency. Yet, the net profit margin is significantly negative due to the high operational costs and losses, which are common in the biotechnology sector during the development phase.

Balance Sheet

The company maintains a strong equity position with a high equity ratio of 92.81% in the TTM, reflecting financial stability and low leverage. The debt-to-equity ratio is minimal at 0.05, showcasing prudent management of debt. However, the return on equity is negative due to ongoing losses, which indicates that the company is not yet generating returns on shareholders' investments.

Cash Flow

Compass Therapeutics has faced a decline in operating cash flow, highlighting challenges in generating cash from operations. The free cash flow is negative, though has shown some improvement compared to previous periods. The operating cash flow to net income ratio is close to 1, suggesting alignment between cash outflows and accounting losses. Despite this, the company relies heavily on financing activities to sustain its cash balance.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Mar 2020
Income Statement		Total Revenue
3.69M	0.00	0.00	0.00	0.00	0.00
	Gross Profit
2.76M	-1.89M	-1.90M	-1.62M	-2.40M	-2.12M
	EBIT
-55.45M	-50.36M	-41.66M	-81.88M	-27.81M	-34.05M
	EBITDA
-53.59M	-48.47M	-37.39M	-29.61M	-25.32M	-31.19M
	Net Income Common Stockholders
-47.76M	-42.49M	-36.80M	-82.55M	-29.50M	-34.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
57.51M	152.46M	186.61M	144.51M	47.08M	25.30M
	Total Assets
0.00	156.88M	199.65M	153.76M	51.91M	30.38M
	Total Debt
0.00	1.73M	2.94M	4.04M	9.33M	14.87M
	Net Debt
57.51M	-22.50M	-32.01M	-140.48M	-37.74M	-10.43M
	Total Liabilities
0.00	8.34M	18.01M	13.68M	11.97M	148.98M
	Stockholders Equity
45.10M	148.54M	181.64M	140.08M	39.95M	-118.60M
Cash Flow		Free Cash Flow
-48.10M	-40.65M	-34.34M	-21.23M	-26.91M	-32.21M
	Operating Cash Flow
-48.05M	-40.62M	-34.13M	-19.67M	-26.80M	-31.74M
	Investing Cash Flow
37.72M	26.96M	-151.20M	-1.77M	38.00K	-466.00K
	Financing Cash Flow
17.27M	2.94M	75.76M	118.61M	48.54M	37.63K

Compass Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMPX, the sentiment is Negative. The current price of 1.99 is below the 20-day moving average (MA) of 2.40, below the 50-day MA of 2.83, and above the 200-day MA of 1.79, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 32.36 is Neutral, neither overbought nor oversold. The STOCH value of 7.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMPX.

Compass Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMPX	60 Neutral	$275.18M	―	-36.07%	―	―	-7.93%
BPMC	52 Neutral	$5.67B	―	-31.26%	―	104.04%	87.80%
Sector *	49 Neutral	$6.85B	0.81	-52.91%	2.50%	17.48%	1.17%
FATE	42 Neutral	$97.33M	―	-54.21%	―	-78.55%	-0.92%
ADCT	41 Neutral	$147.63M	―	123.38%	―	1.84%	43.40%
ALLO	41 Neutral	$336.76M	―	-55.13%	―	-86.25%	36.10%
KPTI	40 Underperform	$35.01M	―	41.08%	―	-0.55%	49.85%

Compass Therapeutics Corporate Events

Compass Therapeutics Appoints New CFO Amid Strategic Moves

Compass Therapeutics has appointed Barry Shin as Chief Financial Officer, bringing over two decades of experience in finance and the biopharmaceutical industry. With past roles at Trevena, Inc. and investment banking firms, Shin’s expertise is expected to advance Compass’s clinical and pre-clinical assets, including the promising CTX-009. His appointment comes as the company anticipates key catalysts in 2025, aiming to deliver value to shareholders.