tiprankstipranks
Metagenomi, Inc. (MGX)
NASDAQ:MGX
US Market

Metagenomi, Inc. (MGX) AI Stock Analysis

Compare
879 Followers

Top Page

MG

Metagenomi, Inc.

(NASDAQ:MGX)

47Neutral
Metagenomi, Inc.'s overall stock score reflects its robust revenue growth but is offset by significant profitability and cash flow challenges. Technical analysis signals a bearish sentiment with some potential for reversal. Valuation is hindered by negative earnings and absence of dividends. Recent corporate events positively impact the outlook by potentially strengthening leadership and competitive positioning.
Positive Factors
Gene Editing Advances
MGX is developing SMART nucleases small enough to fit in an AAV vector as well as adenine base editors, CRISPR-associated transposases (CASTs) and RNA-mediated integration approaches.
Hemophilia A Program
Metagenomi reported 16-month data for its Hemophilia A program in non-human primates showing enhanced durability, which is particularly important given limitations of traditional episomal gene therapy approaches.
Negative Factors
Data Variability
There is variability from subject to subject in the dataset, with the three NHP subjects experiencing greatly variable levels of FVIII expression outcome.

Metagenomi, Inc. (MGX) vs. S&P 500 (SPY)

Metagenomi, Inc. Business Overview & Revenue Model

Company DescriptionAt Metageno­mi, we are cre­at­ing poten­tial­ly cura­tive ther­a­peu­tics using our metage­­nomics-pow­ered genome edit­ing toolbox.We believe tools with capa­bil­i­ties that go beyond the cur­rent tech­nol­o­gy land­scape will be required in order to reach the full ther­a­peu­tic poten­tial of genome edit­ing. By har­ness­ing the pow­er of metage­nomics, the study of genomes recov­ered from uncul­ti­vat­ed organ­isms in the nat­ur­al envi­ron­ment, we are dis­cov­er­ing and devel­op­ing asuite of nov­el genome edit­ing tools with the poten­tial to make any desired ther­a­peu­tic gene edit, any­where in the human genome.
How the Company Makes MoneyMetagenomi, Inc. generates revenue primarily through collaborations and partnerships with pharmaceutical and biotechnology companies. These partnerships typically involve the licensing of Metagenomi's gene-editing technology for the development of therapeutic products, allowing the company to earn milestone payments and royalties based on the success of the partners' development efforts. Additionally, Metagenomi may engage in service agreements where they provide tailored gene-editing solutions to clients, further contributing to their revenue stream. The company's income is significantly influenced by the success of its partnerships and the demand for innovative gene-editing technologies in various sectors.

Metagenomi, Inc. Financial Statement Overview

Summary
Metagenomi, Inc. exhibits strong revenue growth but faces challenges in profitability and cash flow. The balance sheet shows a solid equity base, though high liabilities relative to assets could pose future risks. Continued focus on improving operational efficiency and managing cash flow is crucial for financial stability.
Income Statement
45
Neutral
Metagenomi, Inc. has shown considerable revenue growth, increasing from $17.2M in 2022 to $55.08M in TTM. However, the company struggles with profitability as indicated by negative EBIT and net income margins, suggesting ongoing operational challenges in achieving profitability.
Balance Sheet
50
Neutral
The company maintains a strong equity position with a substantial stockholders' equity of $255.77M and a manageable debt-to-equity ratio of 0.18 as of TTM. However, the high total liabilities compared to total assets indicate potential leverage risks.
Cash Flow
40
Negative
Operating cash flow is negative, reflecting cash outflows from operations. The free cash flow has also deteriorated, pointing to potential liquidity challenges. Despite this, the company has managed to secure financing to support operations.
Breakdown
TTMDec 2023Dec 2022Dec 2021
Income StatementTotal Revenue
55.08M44.76M17.20M243.00K
Gross Profit
51.30M-49.65M15.47M-144.00K
EBIT
-88.47M-78.49M-44.64M-23.95M
EBITDA
-79.70M-56.02M-39.19M-20.75M
Net Income Common Stockholders
-73.95M-68.25M-43.59M-21.44M
Balance SheetCash, Cash Equivalents and Short-Term Investments
362.13M271.18M362.13M108.15M
Total Assets
414.49M364.84M414.49M141.99M
Total Debt
18.57M48.23M18.57M48.93M
Net Debt
-165.87M-92.37M-165.87M9.63M
Total Liabilities
488.91M500.43M488.91M174.54M
Stockholders Equity
-74.43M-135.58M-74.43M-32.54M
Cash FlowFree Cash Flow
-107.91M-101.22M15.75M21.35M
Operating Cash Flow
-103.39M-91.41M29.72M24.26M
Investing Cash Flow
-56.07M45.73M-122.20M-74.32M
Financing Cash Flow
82.68M1.01M239.59M39.92M

Metagenomi, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.05
Price Trends
50DMA
2.61
Negative
100DMA
2.54
Negative
200DMA
3.15
Negative
Market Momentum
MACD
-0.18
Negative
RSI
36.49
Neutral
STOCH
54.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGX, the sentiment is Negative. The current price of 2.05 is below the 20-day moving average (MA) of 2.17, below the 50-day MA of 2.61, and below the 200-day MA of 3.15, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 36.49 is Neutral, neither overbought nor oversold. The STOCH value of 54.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MGX.

Metagenomi, Inc. Risk Analysis

Metagenomi, Inc. disclosed 76 risk factors in its most recent earnings report. Metagenomi, Inc. reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Metagenomi, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
54
Neutral
$4.65B-15.03-11.66%5.00%31.72%-51.64%
50
Neutral
$2.64B-43.94%-83.18%-144.95%
MGMGX
47
Neutral
$76.72M-30.34%
46
Neutral
$3.63B-19.20%-89.95%-123.71%
42
Neutral
$206.96M-156.42%-74.04%48.16%
39
Underperform
$125.29M-98.10%-58.64%-40.05%
39
Underperform
$995.84M-54.00%59.55%3.09%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MGX
Metagenomi, Inc.
1.91
-8.81
-82.18%
SGMO
Sangamo Biosciences
0.92
0.14
17.95%
EDIT
Editas Medicine
1.37
-6.78
-83.19%
NTLA
Intellia Therapeutics
9.22
-18.30
-66.50%
CRSP
Crispr Therapeutics AG
41.99
-30.02
-41.69%
BEAM
Beam Therapeutics
25.06
-9.55
-27.59%

Metagenomi, Inc. Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Metagenomi Expands Leadership and Showcases Innovations
Positive
Jan 16, 2025

On January 13, 2025, Metagenomi, Inc. announced the expansion of its board of directors by appointing Eric Bjerkholt as a new director, effective January 27, 2025. This move is part of Metagenomi’s strategic efforts to strengthen its leadership team as it continues to advance its genetic medicine programs. Bjerkholt’s extensive experience in the biopharmaceutical sector is expected to significantly contribute to the company’s growth and operational strategies. Alongside, Metagenomi updated its presentation for the 43rd Annual J.P. Morgan Healthcare Conference, showcasing its developments in gene editing technologies, which may enhance its competitive standing in the biotechnology market.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.