Forte Biosciences (FBRX) AI Stock Analysis

• Market Cap: $36.51M
• Dividend Yield: N/A
• Average Volume (3M): 23.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.77
• Revenue Growth: N/A
• EPS Growth: 37.42%
• Country: US
• Employees: 9
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -19.39
• Shares Outstanding: 6,393,323
• 10 Day Avg. Volume: 20,930
• 30 Day Avg. Volume: 23,690
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -0.30
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Forte Biosciences' overall score is low due to severe financial instability characterized by ongoing losses and cash burn. The technical indicators show some positive trends, but the valuation remains risky with a negative P/E ratio. The recent financing event is a positive development, providing necessary funds for future growth, but it doesn't offset the broader financial challenges.

Positive Factors

Product Development

FB102 is a proprietary mAb that targets CD122, the shared beta subunit of the IL-15 and IL-2 receptors, showing promise as a pipeline-in-a-product across autoimmune diseases.

Product Efficacy

FB102 shows greater NK cell reductions compared to competing IL-15 mAbs.

Negative Factors

Financial Performance

Forte Biosciences posted 2Q’24 financials including EPS of -$0.27 vs. consensus and our estimate of -$0.17.

Forte Biosciences Business Overview & Revenue Model

Company Description

Forte Biosciences, Inc. (FBRX) is a clinical-stage biopharmaceutical company focused on developing innovative therapies for dermatological diseases. The company's core product pipeline is centered around FB-401, a topical live biotherapeutic designed to address inflammatory skin conditions, including atopic dermatitis. Forte Biosciences aims to address unmet medical needs in dermatology by harnessing a microbiome-based approach.

How the Company Makes Money

Forte Biosciences primarily generates revenue through the development and potential commercialization of its therapeutic candidates, particularly FB-401. As a clinical-stage company, its revenue model is heavily reliant on advancing its product pipeline through clinical trials towards regulatory approval. The company may also engage in strategic partnerships or collaborations with larger pharmaceutical companies to co-develop or commercialize its products, which can provide milestone payments, licensing fees, and future royalty streams. However, as of the latest available data, the company does not report significant revenue from product sales and remains dependent on funding through equity offerings, grants, or partnerships to finance its operations and clinical development efforts.

Forte Biosciences Financial Statement Overview

Summary

Forte Biosciences is experiencing significant financial challenges with consistent net losses, negative cash flows, and no revenue growth. Despite being debt-free, diminishing cash reserves and equity highlight the need for external funding to maintain operations.

Income Statement

Forte Biosciences shows a concerning lack of revenue over multiple periods. The TTM period reports a slight revenue increase, but with a negative gross profit margin due to high costs. The net profit margin is also negative, indicating ongoing financial challenges. The lack of revenue growth and persistent losses signal significant financial instability.

Balance Sheet

The company maintains a positive stockholders' equity, suggesting some financial buffer. However, the balance sheet shows a significant deterioration in cash reserves and equity over time. The debt-to-equity ratio is zero due to no debt, but this is overshadowed by declining equity and assets, indicating potential financial risk.

Cash Flow

Operating and free cash flows are consistently negative, reflecting cash burn issues. The company has not demonstrated any improvement in cash flow generation, which could challenge sustainability without external funding. The reliance on financing cash flow highlights potential liquidity challenges.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
6.00K	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-19.00K	-9.00K	0.00	-36.00K	-54.00K	-11.00K
	EBIT
-35.63M	-32.49M	-13.90M	-21.49M	17.83M	-4.06M
	EBITDA
-35.60M	-32.48M	-13.90M	-21.45M	-46.43M	-4.05M
	Net Income Common Stockholders
-34.20M	-31.48M	-13.86M	-21.71M	-78.54M	-4.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
96.09M	37.13M	41.10M	42.04M	58.77M	6.94M
	Total Assets
103.08M	38.98M	42.00M	43.31M	61.24M	7.66M
	Total Debt
26.20M	0.00	0.00	0.00	0.00	8.77M
	Net Debt
-14.61M	-11.96M	-41.10M	-42.04M	-58.77M	1.83M
	Total Liabilities
44.94M	3.67M	3.18M	1.76M	2.26M	12.43M
	Stockholders Equity
58.15M	35.31M	38.82M	41.55M	58.98M	-4.77M
Cash Flow		Free Cash Flow
-29.73M	-28.79M	-8.19M	-16.68M	-18.42M	-2.93M
	Operating Cash Flow
-29.70M	-28.71M	-8.19M	-16.68M	-18.42M	-2.77M
	Investing Cash Flow
-22.00K	47.00K	0.00	0.00	3.58M	-161.60K
	Financing Cash Flow
-95.00K	24.68M	7.24M	-44.00K	66.67M	4.86M

Forte Biosciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBRX, the sentiment is Negative. The current price of 5.71 is below the 20-day moving average (MA) of 9.09, below the 50-day MA of 13.96, and below the 200-day MA of 11.97, indicating a bearish trend. The MACD of -2.15 indicates Positive momentum. The RSI at 21.20 is Positive, neither overbought nor oversold. The STOCH value of 0.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FBRX.

Forte Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	49 Neutral	$6.90B	-0.08	-53.01%	2.43%	24.84%	-3.06%
FBRX	44 Neutral	$36.51M	―	-137.40%	―	―	37.42%
AYTU	43 Neutral	$7.77M	―	-18.06%	―	-30.19%	75.92%
VTGN	42 Neutral	$76.63M	―	-46.28%	―	-33.00%	54.91%
OCGN	40 Underperform	$159.62M	―	-154.01%	―	187.79%	32.40%

Forte Biosciences Corporate Events

Forte Biosciences Secures $53M for FB102 Advancements

Forte Biosciences, Inc. has announced a successful $53 million private placement with key institutional investors to advance its lead candidate, FB102, in autoimmune indications. The oversubscribed financing demonstrates strong investor confidence, enabling Forte to further clinical trials and explore additional applications for FB102. With a celiac disease trial underway and other studies planned, Forte anticipates significant clinical milestones in 2025.