Palisade Bio (PALI) AI Stock Analysis

• Market Cap: $2.94M
• Dividend Yield: N/A
• Average Volume (3M): 498.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.90
• Revenue Growth: -100.00%
• EPS Growth: 53.88%
• Country: US
• Employees: 8
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -13.03
• Shares Outstanding: 4,396,646
• 10 Day Avg. Volume: 95,282
• 30 Day Avg. Volume: 498,641
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.78
• Price to Cash Flow (P/CF): -0.10
• 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: $2.00
• Price Target Upside: 212.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Palisade Bio's overall stock score is very low, primarily driven by its poor financial performance characterized by consistent losses and negative cash flows. The technical indicators reflect a bearish trend with the stock trading well below key moving averages. Valuation metrics are weak due to a negative P/E ratio and lack of dividends, making the stock unattractive for investors seeking growth or income.

Positive Factors

Clinical Advancement

Analysts reiterate a buy recommendation based on the market opportunity in ulcerative colitis and the advancement of the PALI-2108 phase 1 trial.

Market Opportunity

The global inflammatory bowel disease market is estimated at over $20 billion, presenting a significant market opportunity for PALI-2108 if successful.

Safety Data

Positive preliminary safety data seen in Phase 1a/b study and first ulcerative colitis (UC) patient enrolled.

Negative Factors

Financial Performance

Palisade reported 3Q24 results with a net loss of ($3.5M) and ended the period with $8.0M in cash, which should provide sufficient funding into 2Q25.

Financing Needs

The analyst's recommendation includes a lower 12-month price target due to expected dilution from future financing needs.

Stock Performance

PALI shares have traded down since the spring and the company will have to conduct another financing in the near-term, which can occur in various forms.

Palisade Bio Business Overview & Revenue Model

Company Description

Palisade Bio, Inc., a clinical-stage biopharmaceutical company, focuses on discovering, developing, and commercializing oral therapies that target serious diseases associated with the breakdown of the mucosal barrier protecting the gastrointestinal tract. Its lead therapeutic candidate is LB1148, an oral liquid formulation of the digestive enzyme inhibitor that is intended to inhibit digestive enzyme activity and preserve gut integrity during intestinal stress resulting from reduced blood flow to the intestine, infections, or due to surgery. The company was founded in 2005 and is headquartered in Carlsbad, California.

How the Company Makes Money

Palisade Bio makes money primarily through the development and commercialization of its drug candidates. The company seeks to generate revenue by bringing its therapeutics to market, either independently or through strategic partnerships with larger pharmaceutical companies. These partnerships may involve licensing agreements, co-development deals, or milestone payments, which provide Palisade Bio with funding and shared resources. The company's revenue streams are heavily reliant on successful clinical trials, regulatory approvals, and the ability to effectively market its products to healthcare providers and patients. Additionally, Palisade Bio may secure funding through grants or investments to support its research and development efforts.

Palisade Bio Financial Statement Overview

Summary

Overall, Palisade Bio is struggling financially with consistent losses and negative cash flow. The balance sheet shows some stability due to low leverage, but the lack of revenue growth and profitability are significant concerns. The company heavily relies on external financing, which may not be sustainable long-term.

Income Statement

Palisade Bio shows no revenue growth and has been operating at a loss consistently. The gross profit margin is null due to no revenues, and the company faces a significant negative net profit margin, indicating poor profitability. EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges.

Balance Sheet

The company has maintained a relatively low debt-to-equity ratio, suggesting conservative leverage. However, the equity ratio has been fluctuating, with a recent decline in stockholders' equity. Despite this, Palisade Bio maintains more equity than debt, providing some stability.

Cash Flow

Palisade Bio's cash flow situation is concerning with negative free cash flow and operating cash flow. The company has been relying on financing activities to cover its negative cash flows, which poses sustainability risks. The free cash flow to net income ratio is negative, indicating cash flow issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	250.00K	0.00	0.00	13.52K
	Gross Profit
0.00	250.00K	-167.00K	-168.00K	-132.48K
	EBIT
-14.86M	-13.07M	-15.72M	-41.85M	-9.30M
	EBITDA
-14.86M	-12.28M	-15.31M	-24.05M	-9.94M
	Net Income Common Stockholders
-14.44M	-12.30M	-12.80M	-27.27M	-10.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.82M	12.43M	12.38M	10.49M	713.00K
	Total Assets
10.88M	14.05M	15.76M	12.51M	3.02M
	Total Debt
90.00K	369.00K	404.00K	199.00K	1.42M
	Net Debt
-9.73M	-12.06M	-11.98M	-10.30M	708.00K
	Total Liabilities
3.39M	2.74M	3.28M	5.15M	19.62M
	Stockholders Equity
7.49M	11.31M	12.48M	7.37M	-16.60M
Cash Flow		Free Cash Flow
-12.19M	-11.14M	-13.37M	-14.77M	-4.77M
	Operating Cash Flow
-12.19M	-11.13M	-13.36M	-14.77M	-4.77M
	Investing Cash Flow
0.00	-4.00K	-10.00K	-54.00K	-6.00K
	Financing Cash Flow
9.58M	11.19M	15.26M	24.61M	1.89M

Palisade Bio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PALI, the sentiment is Negative. The current price of 0.64 is below the 20-day moving average (MA) of 0.78, below the 50-day MA of 0.99, and below the 200-day MA of 2.65, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 32.22 is Neutral, neither overbought nor oversold. The STOCH value of 19.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PALI.

Palisade Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARDX	60 Neutral	$1.17B	―	-23.01%	―	168.06%	44.66%
VYGR	58 Neutral	$186.05M	5.05	-24.25%	―	-68.00%	-134.79%
ASND	53 Neutral	$8.98B	―	357.68%	―	36.09%	22.96%
Sector *	48 Neutral	$6.86B	1.11	-50.22%	2.47%	16.71%	1.53%
MIRM	48 Neutral	$2.16B	―	-37.08%	―	80.76%	53.98%
BTAI	39 Underperform	$10.53M	―	82.91%	―	64.20%	73.71%
PALI	38 Underperform	$2.94M	―	-153.55%	―	-100.00%	53.88%