Molecular Templates (MTEM) AI Stock Analysis

• Market Cap: $7.00
• Dividend Yield: N/A
• Average Volume (3M): 10.94K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.44
• Revenue Growth: -49.41%
• EPS Growth: 78.46%
• Country: US
• Employees: 62
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -2.70
• Shares Outstanding: 6,583,880
• 10 Day Avg. Volume: 12,306
• 30 Day Avg. Volume: 10,938
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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: N/A
• Number of Analyst Covering: 0

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 Business Overview & Revenue Model

Company Description

Molecular 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 Money

Molecular 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

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

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

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
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
25.47M	57.31M	19.75M	38.70M	15.63M	19.50M
	Gross Profit
16.14M	50.40M	11.95M	32.00M	-77.33M	-31.02M
	EBIT
-8.58M	-10.47M	-88.87M	-80.07M	-100.84M	-70.45M
	EBITDA
-11.16M	1.43M	-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 Sheet		Cash, Cash Equivalents and Short-Term Investments
83.58M	11.52M	61.05M	143.04M	93.89M	125.08M
	Total Assets
140.60M	35.38M	97.55M	192.36M	139.88M	174.20M
	Total Debt
13.93M	12.23M	50.58M	45.05M	27.14M	14.62M
	Net Debt
-23.93M	707.00K	18.39M	20.07M	1.92M	-70.83M
	Total Liabilities
44.47M	31.17M	112.68M	126.70M	80.54M	71.17M
	Stockholders Equity
96.14M	4.21M	-15.13M	65.66M	59.34M	103.03M
Cash Flow		Free 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
8.00K	29.09M	95.32M	-62.44M	-34.66M	-39.72M
	Financing Cash Flow
27.00M	-9.12M	-265.00K	92.59M	58.90M	65.70M

Molecular Templates Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	49 Neutral	$6.84B	0.05	-53.14%	2.48%	24.49%	-3.26%
ADAP	44 Neutral	$118.14M	―	-53.54%	―	145.37%	57.01%
FATE	42 Neutral	$115.74M	―	-54.21%	―	-78.55%	-0.92%
KPTI	41 Neutral	$63.37M	―	41.08%	―	-0.55%	49.85%
MTEM	36 Underperform	$7.00	―	-192.88%	―	-49.41%	78.46%

Molecular Templates Corporate Events

Molecular Templates Announces Leadership Changes and Operational Wind Down

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.

Molecular Templates Announces Key Leadership Transition

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.