Equillium (EQ) AI Stock Analysis

• Market Cap: $16.79M
• Dividend Yield: N/A
• Average Volume (3M): 130.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: 13.89%
• EPS Growth: 40.73%
• Country: US
• Employees: 35
• Sector: Healthcare
• Sector Strength: 65
• Industry: Biotechnology
• EPS (TTM): -0.23
• Shares Outstanding: 35,719,320
• 10 Day Avg. Volume: 71,063
• 30 Day Avg. Volume: 130,639
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.60
• Price to Cash Flow (P/CF): -0.90
• 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: $1.00
• Price Target Upside: 112.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Equillium's stock score is weighed down by its ongoing lack of profitability and bearish technical indicators. The financial performance is mixed, with significant revenue growth overshadowed by operational inefficiencies and negative cash flows. Valuation remains a concern due to a negative P/E ratio and no dividend yield. The stock lacks positive momentum, contributing to a low overall score.

Positive Factors

Market valuation

The modest valuation for EQ at current levels, combined with positive data, successful regulatory interaction, and additional capital, could drive meaningful upside to EQ shares.

Phase 2 study results

EQ reported positive topline results from a Phase 2 study of lead asset itolizumab in ulcerative colitis, demonstrating encouraging activity and being well tolerated with no notable safety signals.

Negative Factors

Financing overhang

A financing solution remains a significant near-term overhang for EQ shares.

Phase 3 EQUATOR study results

EQ reported disappointing topline results from the Phase 3 EQUATOR study of lead asset itolizumab in front-line acute Graft-versus-Host Disease.

Regulatory uncertainty

There remains significant uncertainty regarding FDA's willingness to accept these results for the basis of an accelerated approval.

Equillium Business Overview & Revenue Model

Company Description

Equillium, Inc., a clinical-stage biotechnology company, develops and sells products to treat severe autoimmune and inflammatory, or immuno-inflammatory disorders with unmet medical need. The company's lead product candidate is itolizumab (EQ001), a clinical-stage monoclonal antibody that targets the novel immune checkpoint receptor CD6, which is in Phase III clinical trials for the treatment of acute graft-versus-host disease; completed Phase Ib clinical trial for the treatment of asthma disease; and Phase Ib clinical trial for the treatment of and lupus nephritis. It also develops EQ101 for treatment of cutaneous T cell lymphoma and alopecia areata; and EQ102 to treat various gastrointestinal diseases. The company was formerly known as Attenuate Biopharmaceuticals, Inc. and changed its name to Equillium, Inc. in May 2017. Equillium, Inc. was incorporated in 2017 and is headquartered in La Jolla, California.

How the Company Makes Money

Equillium generates revenue primarily through strategic collaborations, partnerships, and potential licensing agreements. The company focuses on advancing its clinical-stage product candidates towards regulatory approval and commercialization, which could lead to milestone payments and royalties from partners. Equillium's revenue model is heavily reliant on the successful development and commercialization of its lead asset, itolizumab, and securing strategic alliances with larger pharmaceutical companies to support its pipeline and financial sustainability.

Equillium Financial Statement Overview

Summary

Equillium presents a mixed financial picture. The company shows strong revenue growth but struggles with profitability and operational cash flows. The balance sheet remains relatively stable, supported by low leverage. While there are positive trends in free cash flow, the company needs to address its operational inefficiencies to ensure long-term sustainability in the competitive biotechnology industry.

Income Statement

Equillium has shown a consistent increase in revenue from 2020 to 2024, with significant growth from 2022 to 2023. However, despite the revenue growth, the company remains unprofitable with negative net income and EBIT margins, indicating ongoing operational challenges. The gross profit margin is stable at 100%, as all revenue translates to gross profit, an indication of low variable costs.

Balance Sheet

The balance sheet shows moderate strength with positive stockholders' equity and a low debt-to-equity ratio, indicating relatively low leverage. However, the declining equity ratio over the years suggests increasing liabilities relative to assets. The company maintains a solid cash position, although total assets have been decreasing.

Cash Flow

Operating cash flow has been negative, indicating cash outflows from core operations, which is concerning. However, the company has managed free cash flow relatively well, with improvements in free cash flow growth in the recent year. The reliance on financing activities in earlier years has decreased, suggesting a move towards more self-sustained cash operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
41.09M	36.08M	15.76M	0.00	0.00
	Gross Profit
41.09M	35.96M	15.64M	-72.00K	-45.00K
	EBIT
-8.27M	-14.52M	-62.08M	-37.79M	-29.55M
	EBITDA
-8.27M	-12.14M	-61.26M	-37.91M	-28.67M
	Net Income Common Stockholders
-8.07M	-13.34M	-107.71M	-38.98M	-29.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.57M	40.87M	71.02M	80.71M	82.16M
	Total Assets
25.60M	50.53M	78.42M	85.41M	85.43M
	Total Debt
384.00K	824.00K	10.19M	9.98M	8.28M
	Net Debt
-17.70M	-22.39M	-48.92M	-40.38M	-15.71M
	Total Liabilities
6.54M	27.96M	46.48M	18.90M	15.57M
	Stockholders Equity
19.06M	22.57M	31.94M	66.50M	69.85M
Cash Flow		Free Cash Flow
-19.11M	-21.83M	-9.01M	-32.14M	-24.83M
	Operating Cash Flow
-19.03M	-21.78M	-8.73M	-32.08M	-24.62M
	Investing Cash Flow
13.81M	-4.76M	18.68M	27.41M	-18.59M
	Financing Cash Flow
164.00K	-9.23M	-1.22M	31.06M	53.95M

Equillium Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.47
• 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 EQ, the sentiment is Negative. The current price of 0.47 is above the 20-day moving average (MA) of 0.46, below the 50-day MA of 0.67, and below the 200-day MA of 0.78, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 39.80 is Neutral, neither overbought nor oversold. The STOCH value of 71.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EQ.

Equillium Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.31B	3.33	-39.82%	2.92%	17.95%	1.84%
CING	47 Neutral	$17.11M	―	-5305.02%	―	―	95.52%
CLDI	37 Underperform	$16.71M	―	354.78%	―	―	64.19%
EQ	37 Underperform	$16.79M	―	-38.75%	―	13.89%	40.73%
EDSA	36 Underperform	$16.50M	―	-150.67%	―	―	-126.54%
LPTX	34 Underperform	$15.93M	―	-141.94%	―	―	64.01%
UBX	31 Underperform	$16.90M	―	-231.27%	―	―	35.08%

Equillium Corporate Events

Equillium Announces Board and Audit Committee Changes

Equillium, Inc. announced changes in its Board of Directors with the resignation of Yu (Katherine) Xu, Ph.D., from the Board and Audit Committee, and the appointment of Barbara Troupin, M.D., to the Audit Committee. Additionally, Peter Colabuono was appointed as a Class II director with a term until 2026, receiving an annual cash retainer and stock options under the company’s Non-Employee Director Compensation Policy.