Galecto (GLTO) AI Stock Analysis

• Market Cap: $4.52M
• Dividend Yield: N/A
• Average Volume (3M): 481.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.38
• Revenue Growth: N/A
• EPS Growth: 48.81%
• Country: US
• Employees: 5
• Sector: Healthcare
• Sector Strength: 72
• Industry: Biotechnology
• EPS (TTM): -18.59
• Shares Outstanding: 1,322,359
• 10 Day Avg. Volume: 1,410,261
• 30 Day Avg. Volume: 481,200
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -0.60
• 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: $10.00
• Price Target Upside: 192.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Galecto's stock score is low due to significant financial challenges and a lack of revenue generation. Technical indicators provide mixed signals, and valuation metrics highlight a lack of profitability. The absence of positive earnings call or corporate events leaves the stock vulnerable to market uncertainties.

Galecto Business Overview & Revenue Model

Company Description

Galecto, Inc., a clinical-stage biotechnology company, develops molecules for the treatment of fibrosis, cancer, inflammation, and other related diseases. The company's lead product candidate is GB2064, which is in Phase IIa for the treatment of myelofibrosis. It also develops GB0139, an inhaled inhibitor of galectin-3 that is in Phase IIb clinical trial for the treatment of severe fibrotic lung diseases, such as idiopathic pulmonary fibrosis, a life-threatening progressive fibrotic disease of the lung; and GB1211, a selective oral galectin-3 inhibitor that is in Phase IIa for the treatment of cancer, as well as in Phase Ib/IIa for fibrosis. Galecto, Inc. was founded in 2011 and is based in Boston, Massachusetts.

How the Company Makes Money

Galecto makes money primarily through the development and commercialization of its proprietary drug candidates. The company's revenue model hinges on advancing its pipeline of therapeutics through clinical trials, seeking regulatory approval, and subsequently partnering with pharmaceutical companies for commercialization or directly marketing their products. Key revenue streams include milestone payments and royalties from licensing agreements, collaborations with other biotech or pharmaceutical companies, and potential sales revenue from approved drugs. Significant partnerships with industry players can also contribute to research funding and development support, which are crucial for progressing their clinical programs.

Galecto Financial Statement Overview

Summary

Galecto faces substantial operational challenges with consistent losses, lack of revenue, and negative cash flows. Despite low debt levels, the absence of revenue generation poses significant long-term risks.

Income Statement

Galecto has reported no revenue over the years, indicating significant challenges in revenue generation or commercialization. The company consistently shows negative margins with a net profit margin of -100% due to zero revenue and persistent losses. This highlights ongoing operational difficulties and financial strain.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio, indicating limited leverage which can be a positive sign of financial stability. However, the equity ratio has decreased over the years, suggesting a reduction in equity relative to total assets, signaling potential risk if this trend continues.

Cash Flow

Cash flow analysis reveals consistent negative free cash flow, indicating operational cash burn without sufficient inflow to cover expenses. The absence of revenue generation pressures the company's cash reserves despite prior financing activities boosting cash positions.

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
-4.39M	-830.00K	-490.00K	-441.00K	-188.00K
	EBIT
-22.26M	-39.91M	-61.21M	-52.23M	-33.64M
	EBITDA
-22.26M	-37.52M	-61.13M	-51.31M	-34.65M
	Net Income Common Stockholders
-21.44M	-38.35M	-62.04M	-51.28M	-36.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.18M	33.15M	60.22M	100.19M	163.58M
	Total Assets
17.13M	38.23M	73.19M	122.22M	171.60M
	Total Debt
73.00K	249.00K	804.00K	847.00K	915.00K
	Net Debt
-14.10M	-21.22M	-31.98M	-61.72M	-162.67M
	Total Liabilities
1.30M	5.90M	11.44M	4.99M	6.11M
	Stockholders Equity
15.83M	32.33M	61.75M	117.22M	165.49M
Cash Flow		Free Cash Flow
-18.62M	-36.91M	-43.13M	-52.53M	-38.20M
	Operating Cash Flow
-18.62M	-36.91M	-42.93M	-52.31M	-38.20M
	Investing Cash Flow
11.65M	22.33M	12.38M	-48.05M	0.00
	Financing Cash Flow
0.00	2.88M	507.00K	0.00	187.39M

Galecto Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLTO, the sentiment is Negative. The current price of 3.42 is below the 20-day moving average (MA) of 4.25, below the 50-day MA of 4.61, and below the 200-day MA of 8.44, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 37.98 is Neutral, neither overbought nor oversold. The STOCH value of 4.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GLTO.

Galecto Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.85B	1.03	-53.01%	2.50%	16.84%	0.96%
ALLR	38 Underperform	$4.61M	―	-391.95%	―	―	99.72%
FOXO	36 Underperform	$3.92M	―	54.10%	―	-52.07%	91.91%
GLTO	34 Underperform	$4.52M	―	-91.62%	―	―	48.81%
KZIA	31 Underperform	$4.92M	―	-2639.52%	―	―	19.58%
OGEN	29 Underperform	$4.64M	―	-714.95%	―	-100.00%	76.55%