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Molecular Templates Inc (MTEM)
OTHER OTC:MTEM
US Market

Molecular Templates (MTEM) AI Stock Analysis

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Molecular Templates

(OTC:MTEM)

36Underperform
Molecular Templates is facing a challenging financial and operational environment. The company's high leverage, negative cash flow, and recent strategic decision to wind down operations heavily impact the overall score. While there are minor positive signs in revenue growth, the technical analysis, valuation concerns, and adverse corporate events contribute significantly to the low score.

Molecular Templates (MTEM) vs. S&P 500 (SPY)

Molecular Templates Business Overview & Revenue Model

Company DescriptionMolecular Templates, Inc. is a clinical stage biopharmaceutical company, which engages in the discovery, development, and commercialization of biologic therapeutics for the treatment of cancers and other serious diseases. The company utilizes its proprietary biologic drug platform to design and generate engineered toxin bodies, or ETBs. Molecular Templates was founded on October 17, 2001 and is headquartered in Austin, TX.
How the Company Makes MoneyMolecular Templates generates revenue primarily through collaborations and partnerships with larger pharmaceutical companies. These collaborations often involve upfront payments, milestone payments, and potential royalties on sales of successfully developed therapies. The company's proprietary platform technology is a key asset in forming these partnerships, offering unique treatment mechanisms that attract interest from industry leaders. Additionally, MTEM may receive funding from grants and government contracts to support its research and development activities, although these are not the primary sources of income.

Molecular Templates Financial Statement Overview

Summary
Molecular Templates exhibits growth in revenue but continues to face significant profitability and cash flow challenges. The company operates with high leverage, posing financial stability risks. While there are some positive signs of revenue and gross profit improvements, the financials indicate a need for strategic adjustments to achieve sustainable profitability and strengthen the balance sheet.
Income Statement
40
Negative
Molecular Templates has shown an improvement in its revenue over the years, with a notable increase from $19.75M in 2022 to $57.31M in 2023, indicating a positive revenue growth trend. However, despite the revenue growth, the company continues to face challenges in profitability as evidenced by negative net income and EBIT margins. The firm's gross profit margin has improved significantly, yet the net profit margin remains negative, highlighting ongoing operational challenges.
Balance Sheet
35
Negative
The company's financial structure reveals a low equity position with a debt-to-equity ratio of 2.90, indicating high leverage and potential financial risk. The equity ratio of 11.90% suggests a limited buffer against liabilities. The company has managed to reduce its total debt over the years, but the overall balance sheet remains weak due to low stockholders' equity.
Cash Flow
45
Neutral
Cash flow analysis shows a challenging scenario with negative operating and free cash flows, indicating cash burn. However, the operating cash flow to net income ratio is slightly improving, suggesting marginal improvements in cash flow efficiency. The free cash flow growth rate remains negative, underscoring the ongoing struggle to generate positive cash flow.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
25.47M57.31M19.75M38.70M15.63M19.50M
Gross Profit
16.14M50.40M11.95M32.00M-77.33M-31.02M
EBIT
-8.58M-10.47M-88.87M-80.07M-100.84M-70.45M
EBITDA
-11.16M1.43M-80.08M-72.94M-99.01M-66.02M
Net Income Common Stockholders
-7.32M-8.12M-92.72M-79.31M-104.92M-69.54M
Balance SheetCash, Cash Equivalents and Short-Term Investments
83.58M11.52M61.05M143.04M93.89M125.08M
Total Assets
140.60M35.38M97.55M192.36M139.88M174.20M
Total Debt
13.93M12.23M50.58M45.05M27.14M14.62M
Net Debt
-23.93M707.00K18.39M20.07M1.92M-70.83M
Total Liabilities
44.47M31.17M112.68M126.70M80.54M71.17M
Stockholders Equity
96.14M4.21M-15.13M65.66M59.34M103.03M
Cash FlowFree Cash Flow
-23.92M-42.02M-92.22M-34.38M-91.19M-34.89M
Operating Cash Flow
-23.92M-41.82M-89.02M-30.39M-83.80M-25.24M
Investing Cash Flow
8.00K29.09M95.32M-62.44M-34.66M-39.72M
Financing Cash Flow
27.00M-9.12M-265.00K92.59M58.90M65.70M

Molecular Templates Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.02
Price Trends
50DMA
0.29
Negative
100DMA
0.72
Negative
200DMA
1.09
Negative
Market Momentum
MACD
-0.09
Negative
RSI
29.11
Positive
STOCH
55.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTEM, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.29, and below the 200-day MA of 1.09, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 29.11 is Positive, neither overbought nor oversold. The STOCH value of 55.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MTEM.

Molecular Templates Risk Analysis

Molecular Templates disclosed 78 risk factors in its most recent earnings report. Molecular Templates 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

Molecular Templates Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
49
Neutral
$6.84B0.05-53.14%2.48%24.49%-3.26%
44
Neutral
$118.14M-53.54%145.37%57.01%
42
Neutral
$115.74M-54.21%-78.55%-0.92%
41
Neutral
$63.37M41.08%-0.55%49.85%
36
Underperform
$7.00-192.88%-49.41%78.46%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MTEM
Molecular Templates
0.02
-2.73
-99.27%
FATE
Fate Therapeutics
0.94
-6.55
-87.45%
KPTI
Karyopharm Therapeutics
6.94
-15.71
-69.36%
ADAP
Adaptimmune Therapeutics
0.45
-1.03
-69.59%

Molecular Templates Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Molecular Templates Announces Leadership Changes and Operational Wind Down
Negative
Jan 2, 2025

Molecular Templates announced significant changes in its leadership, with multiple resignations from its Board of Directors and the resignation of Dr. Eric E. Poma from several executive roles. These changes are part of a strategic decision to wind down the company’s operations, with Craig Jalbert appointed as the sole director to oversee this process. The company has cautioned stakeholders about the speculative nature of trading its securities, indicating that current trading prices may not reflect actual value and that investors are unlikely to realize returns on their investments.

Executive/Board Changes
Molecular Templates Announces Key Leadership Transition
Neutral
Dec 4, 2024

Jason Kim has resigned as the Company’s President, CFO, and Treasurer, effective December 8, 2024, with no disagreements or severance involved. Kim will continue to consult until year-end while his stock options vest. Eric Poma, the CEO and Chief Scientific Officer, steps in as Interim CFO, leveraging his extensive experience in biotechnology and company leadership to guide the financial helm during this transitional period.

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.