tiprankstipranks
Pliant Therapeutics (PLRX)
NASDAQ:PLRX

Pliant Therapeutics (PLRX) AI Stock Analysis

Compare
507 Followers

Top Page

PL

Pliant Therapeutics

(NASDAQ:PLRX)

25Underperform
Pliant Therapeutics is currently facing significant financial and technical challenges. Declining revenues and persistent losses weigh heavily on its financial performance. Negative technical momentum and a lack of valuation appeal further compound these issues. The company requires strategic improvements to revitalize its financial health and investor confidence.
Positive Factors
Financial Stability
Pliant had cash, cash equivalents, and short-term investments of $357M, which management expects can fund operations for at least the next 12 months.
Potential Future Development
Bexotegrast could re-enter the clinic for IPF or other diseases, as Pliant plans to analyze the collected data from BEACON-IPF to guide bexotegrast’s future development.
Negative Factors
Clinical Trial Discontinuation
The discontinuation of the IPF clinical program for bexotegrast was due to a higher rate of adverse events in the treatment group compared to the placebo group.
Reduced Sales Forecast
The analyst has zeroed out the IPF indication from the model, significantly reducing expected future sales.
Uncertainty in Stock Value
The discontinuation of the BEACON-IPF study creates uncertainty and makes it challenging to have conviction in the stock without more clarity.

Pliant Therapeutics (PLRX) vs. S&P 500 (SPY)

Pliant Therapeutics Business Overview & Revenue Model

Company DescriptionPliant Therapeutics Inc is a clinical stage biopharmaceutical company focused on discovering and developing novel therapies for the treatment of fibrosis. Its lead product candidate, PLN-74809, is an oral small-molecule dual that helps in the treatment of idiopathic pulmonary fibrosis.
How the Company Makes MoneyPliant Therapeutics makes money primarily through the development and potential commercialization of its drug candidates. The company generates revenue through strategic partnerships and collaborations with larger pharmaceutical companies. These partnerships may involve upfront payments, milestone payments based on the achievement of specific development goals, and royalties on future product sales. As a clinical-stage company, Pliant's revenue is also influenced by research grants or subsidies, but the majority of its future earnings potential lies in the successful approval and market introduction of its drug candidates.

Pliant Therapeutics Financial Statement Overview

Summary
Pliant Therapeutics is facing significant financial challenges with declining revenues and persistent losses. The balance sheet remains relatively stable with low leverage, but cash flows are under pressure, necessitating external funding to support operations. The company needs to improve revenue generation and cost management to achieve financial stability.
Income Statement
20
Very Negative
Pliant Therapeutics has shown a declining revenue trend from 2019 to 2024 with revenue dropping to zero in 2024. The company is experiencing persistent net losses, evident from the negative net profit margins, indicating challenges in achieving profitability. EBIT and EBITDA margins are also negative, reflecting high operating expenses relative to revenue.
Balance Sheet
40
Negative
The company's balance sheet shows a stable equity base despite consistent losses. The debt-to-equity ratio remains low due to minimal debt, signaling low leverage which reduces financial risk. However, the company's stockholders' equity has decreased over time, indicating financial pressure.
Cash Flow
30
Negative
Pliant Therapeutics has negative operating and free cash flows, indicating cash outflows from operations. The free cash flow has worsened over time, showing increasing capital strain. The cash flow from financing activities has been positive, suggesting reliance on external funding.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.001.58M9.69M7.57M41.82M
Gross Profit
0.001.58M6.00M4.37M41.82M
EBIT
-228.37M-184.15M-127.20M-19.99M-41.65M
EBITDA
-228.37M-158.23M-118.85M-95.73M-40.34M
Net Income Common Stockholders
-210.30M-161.34M-121.50M-17.91M-39.74M
Balance SheetCash, Cash Equivalents and Short-Term Investments
355.72M494.25M331.19M200.60M276.89M
Total Assets
396.95M512.15M350.61M221.22M295.53M
Total Debt
29.98M11.37M15.81M7.19M283.00K
Net Debt
-41.21M-51.86M-17.87M-44.47M-50.60M
Total Liabilities
92.87M38.58M37.27M22.16M12.46M
Stockholders Equity
304.08M473.58M313.34M199.06M283.06M
Cash FlowFree Cash Flow
-159.35M-117.28M-96.39M-77.40M-38.80M
Operating Cash Flow
-155.50M-116.36M-94.63M-75.44M-37.27M
Investing Cash Flow
140.34M-127.01M-150.20M73.70M-210.87M
Financing Cash Flow
23.12M274.40M226.85M2.53M213.21M

Pliant Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.58
Price Trends
50DMA
7.43
Negative
100DMA
10.73
Negative
200DMA
11.49
Negative
Market Momentum
MACD
-1.70
Negative
RSI
24.37
Positive
STOCH
13.74
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLRX, the sentiment is Negative. The current price of 1.58 is below the 20-day moving average (MA) of 2.40, below the 50-day MA of 7.43, and below the 200-day MA of 11.49, indicating a bearish trend. The MACD of -1.70 indicates Negative momentum. The RSI at 24.37 is Positive, neither overbought nor oversold. The STOCH value of 13.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLRX.

Pliant Therapeutics Risk Analysis

Pliant Therapeutics disclosed 81 risk factors in its most recent earnings report. Pliant Therapeutics 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

Pliant Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$125.40B-3.15%11.64%-114.72%
52
Neutral
$1.69B22.187.21%
52
Neutral
$5.61B-31.26%104.04%87.80%
49
Neutral
$6.84B0.05-53.14%2.48%24.49%-3.26%
47
Neutral
$2.07B-600.68%-98.62%-86.21%
47
Neutral
$151.11M-124.10%5.53%46.09%
25
Underperform
$96.75M-54.09%-100.00%-26.44%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PLRX
Pliant Therapeutics
1.52
-13.38
-89.80%
ARWR
Arrowhead Pharmaceuticals
15.07
-12.35
-45.04%
NKTR
Nektar Therapeutics
0.82
-0.04
-4.65%
VRTX
Vertex Pharmaceuticals
502.92
94.15
23.03%
BPMC
Blueprint Medicines
89.84
2.13
2.43%
GLPG
Galapagos
25.99
-8.16
-23.89%
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.