Fortress Biotech (FBIO) AI Stock Analysis

• Market Cap: $45.19M
• Dividend Yield: N/A
• Average Volume (3M): 320.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: -31.76%
• EPS Growth: 86.19%
• Country: US
• Employees: 101
• Sector: Healthcare
• Sector Strength: 64
• Industry: Biotechnology
• EPS (TTM): -2.99
• Shares Outstanding: 29,533,840
• 10 Day Avg. Volume: 203,101
• 30 Day Avg. Volume: 320,188
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.58
• 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: $16.00
• Price Target Upside: 912.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Fortress Biotech's overall stock score reflects significant financial challenges, including declining revenues, high leverage, and negative cash flows. Technical indicators suggest a bearish trend, while valuation metrics are unfavorable due to negative earnings. Despite some positive developments highlighted in the earnings call, such as the launch of Emrosi, the company faces substantial hurdles, particularly in achieving profitability and addressing initial market adoption challenges.

Fortress Biotech Business Overview & Revenue Model

Company Description

Fortress Biotech, Inc., a biopharmaceutical company, develops and commercializes pharmaceutical and biotechnology products. The company markets dermatology products, such as Ximino capsules to treat only inflammatory lesions of non-nodular moderate to severe acne vulgaris; Targadox for severe acne; Exelderm cream for ringworm and jock itch symptoms; Ceracade for dry skin conditions; Luxamend for dressing and managing wounds; and Accutane capsules for severe recalcitrant nodular acne. It also develops late stage product candidates, such as intravenous Tramadol for the treatment of post-operative acute pain; CUTX-101, an injection for the treatment of Menkes disease; MB-107 and MB-207 for the treatment of X-linked severe combined immunodeficiency; Cosibelimab for metastatic cancers; CK-101 for the treatment of patients with EGFR mutation-positive NSCLC; CAEL-101 for the treatment of amyloid light chain amyloidosis; Triplex vaccine for cytomegalovirus; and CEVA101 for the treatment of severe traumatic brain injury in adults and children. The company's early stage product candidates include MB-102 for blastic plasmacytoid dendritic cell neoplasm; MB-101 for glioblastoma; MB-104 for multiple myeloma and light chain amyloidosis; MB-106 for B-cell non-hodgkin lymphoma; MB-103 for GBM & metastatic breast cancer to brain; MB-108; MB-105 for prostate and pancreatic cancers; and BAER-101. Its preclinical product candidates comprise AAV-ATP7A gene therapy; AVTS-001 gene therapy; CK-103 BET inhibitor; CEVA-D and CEVA-102; CK-302, an anti-GITR; CK-303, an anti-CAIX; ConVax; and ONCOlogues, and oligonucleotide platform. It has collaboration arrangements with universities, research institutes, and pharmaceutical companies. The company was formerly known as Coronado Biosciences, Inc. and changed its name to Fortress Biotech, Inc. in April 2015. Fortress Biotech, Inc. was incorporated in 2006 and is based in Bay Harbor Island, New York.

How the Company Makes Money

Fortress Biotech generates revenue through a combination of product sales, royalties, and milestone payments. The company collaborates with a number of subsidiary and partner companies to advance its drug candidates. Revenue is primarily derived from the commercialization of approved products, which are marketed and sold either directly by Fortress or through its subsidiaries and partners. Additionally, Fortress earns milestone payments and royalties from its strategic partnerships and licensing agreements with other biopharmaceutical companies. These partnerships often involve co-development and commercialization arrangements where Fortress leverages its expertise and resources to bring innovative therapies to market.

Fortress Biotech Financial Statement Overview

Summary

Fortress Biotech faces significant financial challenges, with consistent losses and high leverage. Despite some revenue growth, the company's profitability and cash flow generation remain weak, posing risks to its financial health. Continued focus on improving operational efficiency and managing debt is crucial for future stability.

Income Statement

Fortress Biotech has shown some revenue growth over the years, but continues to struggle with profitability. The TTM (Trailing-Twelve-Months) data reveals negative EBIT and net income margins, indicating ongoing challenges in achieving operational efficiency and profitability. The revenue growth rate from 2022 to 2023 was negative, suggesting a downturn in sales performance.

Balance Sheet

The company's balance sheet shows high leverage with a debt-to-equity ratio indicating significant reliance on debt financing. The declining equity ratio over the years reflects a weakening financial position. Return on equity is negative, pointing to profitability issues. Despite maintaining some cash reserves, the reduction in total assets and stockholders' equity suggests financial instability.

Cash Flow

Cash flow analysis shows consistent negative operating and free cash flows, indicating substantial cash outflows from operations. However, there has been some improvement in free cash flow growth rate, supported by financing activities. The operating cash flow to net income ratio is unfavorable, reflecting the company's struggle to convert income into cash.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
62.50M	84.51M	75.74M	68.79M	45.60M	36.63M
	Gross Profit
37.47M	57.85M	44.97M	36.71M	31.00M	26.10M
	EBIT
-106.11M	-142.34M	-202.26M	-179.00M	-94.27M	-110.82M
	EBITDA
-107.42M	-133.64M	-190.47M	-142.25M	-87.82M	-85.16M
	Net Income Common Stockholders
-50.83M	-60.64M	-213.91M	-164.83M	-102.98M	-51.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.73M	80.93M	178.27M	305.74M	233.35M	136.86M
	Total Assets
18.04M	167.53M	294.30M	396.50M	328.83M	226.42M
	Total Debt
750.00K	88.59M	127.34M	74.98M	89.08M	115.14M
	Net Debt
-16.98M	7.67M	-50.92M	-230.77M	-144.28M	-21.72M
	Total Liabilities
4.59M	165.94M	244.28M	170.63M	131.84M	153.89M
	Stockholders Equity
13.45M	22.54M	41.72M	108.67M	100.34M	26.21M
Cash Flow		Free Cash Flow
-102.28M	-136.32M	-182.46M	-132.89M	-90.85M	-104.36M
	Operating Cash Flow
-102.22M	-128.22M	-179.40M	-116.54M	-83.68M	-94.96M
	Investing Cash Flow
-63.00K	-2.10M	-22.93M	40.51M	-7.16M	20.10M
	Financing Cash Flow
88.45M	32.74M	75.32M	148.99M	172.41M	146.71M

Fortress Biotech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.58
• 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 FBIO, the sentiment is Negative. The current price of 1.58 is above the 20-day moving average (MA) of 1.54, below the 50-day MA of 1.61, and below the 200-day MA of 1.80, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 47.18 is Neutral, neither overbought nor oversold. The STOCH value of 62.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FBIO.

Fortress Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAIA	57 Neutral	$55.33M	―	-1131.02%	―	―	23.55%
DTIL	56 Neutral	$55.76M	2.81	19.05%	―	40.98%	―
Sector *	51 Neutral	$5.20B	3.26	-40.34%	2.93%	17.68%	1.94%
FBIO	41 Neutral	$45.19M	―	-203.16%	―	-31.76%	86.19%
BLUE	37 Underperform	$42.49M	―	-295.35%	―	184.12%	31.92%
CYCC	36 Underperform	$46.78M	―	-807.39%	―	-89.76%	80.28%
IMRX	24 Underperform	$49.66M	―	-92.51%	―	―	-7.78%

Fortress Biotech Corporate Events

Fortress Biotech Board Member Resigns for New Role

On April 15, 2025, Lucy Lu, M.D., resigned from the Board of Directors of Fortress Biotech, Inc. to assume the role of Chief Strategy Officer starting April 21, 2025. Her resignation was not due to any disagreements with the company’s operations, policies, or practices.

Spark’s Take on FBIO Stock

According to Spark, TipRanks’ AI Analyst, FBIO is a Neutral.

Fortress Biotech faces significant financial and operational challenges, reflected in its low financial performance score. While the earnings call highlighted key achievements like the launch of Emrosi and a decent cash position, these were offset by declining revenues and increased losses. Technical analysis shows bearish trends, and the valuation is unattractive due to negative earnings. Strategic improvements and successful commercialization of Emrosi are crucial for future growth.

To see Spark’s full report on FBIO stock, click here.