PureTech Health (PRTC) AI Stock Analysis

• Market Cap: $321.87M
• Dividend Yield: N/A
• Average Volume (3M): 6.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: -96.16%
• EPS Growth: -75.35%
• Country: US
• Employees: 90
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -3.02
• Shares Outstanding: 24,018,946
• 10 Day Avg. Volume: 16,430
• 30 Day Avg. Volume: 6,589
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 533.91
• Price to Cash Flow (P/CF): -2.50
• 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: $46.00
• Price Target Upside: 240.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

PureTech Health's overall stock score is low, driven primarily by financial instability marked by ongoing losses and negative cash flows. The technical analysis suggests bearish momentum with no clear reversal signals. Valuation concerns persist with a negative P/E ratio and no dividend yield. The lack of new insights from the earnings call further contributes to a cautious outlook.

Positive Factors

Business Model

The hybrid business model of Puretech Health Plc, combining drug development and company incubation, offers multiple ways to succeed over the long term.

Clinical Trials

Topline data from the ELEVATE study show that LYT-100 825mg has meaningfully improved efficacy compared to pirfenidone, addressing the unmet need for better efficacy.

Drug Development

LYT-100 is seen as the most promising wholly-owned program within Puretech Health Plc, demonstrating potential as a real drug in the high unmet need and large market opportunity in IPF.

Negative Factors

Liquidity Issues

PRTC stock continues to be dislocated due to investor base turnover and low liquidity for the ADRs.

Market Perception

PRTC stock has traded at a disconnect to what are seen as sound fundamentals, with the company flying under-the-radar for many investors due to its hub-and-spoke structure and low liquidity for the ADRs.

Stock Performance

PRTC stock continues to trade only modestly above cash levels as investors struggle with low liquidity for the ADRs and valuing the 'hub' of the 'hub-and-spoke' R&D model.

PureTech Health Business Overview & Revenue Model

Company Description

PureTech Health (PRTC) is a biopharmaceutical company focused on developing innovative medicines to address significant unmet medical needs. The company operates primarily in the healthcare and life sciences sectors, with a robust pipeline of therapeutics targeting areas such as immunology, oncology, and neuroscience. PureTech Health is known for its unique approach to creating and advancing novel therapies through its diversified portfolio of founded entities and strategic collaborations.

How the Company Makes Money

PureTech Health generates revenue through a combination of licensing agreements, milestone payments, and royalty streams from its portfolio of founded entities and partnerships with larger pharmaceutical companies. The company invests in early-stage biotech ventures and helps these entities develop their proprietary technologies and therapeutics. As these ventures progress, PureTech benefits financially through equity stakes, as well as through commercialization agreements that may include upfront payments, development milestones, and sales-based royalties. Additionally, PureTech may receive grant funding or research collaborations that contribute to its revenue streams.

PureTech Health Financial Statement Overview

Summary

The financial performance is challenged by a declining revenue trend and persistent negative net income, which reflect financial instability. The balance sheet shows a moderate position with more assets than liabilities, but declining equity is concerning. Negative cash flows further highlight the company's financial struggles.

Income Statement

The income statement shows a declining revenue trend with significant negative net income over the years. The gross profit margin is negative due to higher costs than revenue. The net profit margin remains negative, indicating ongoing losses. Despite some revenue growth in 2023, the overall trajectory indicates financial challenges, reflecting in a low score.

Balance Sheet

The balance sheet highlights a relatively strong equity position with more assets than liabilities, resulting in a moderate equity ratio. The debt-to-equity ratio remains manageable, but the consistent decrease in stockholders' equity over the years is concerning. Despite manageable leverage, declining equity affects the score.

Cash Flow

The cash flow analysis indicates negative free cash flow and operating cash flow, showing the company is spending more than it earns. Although there is some positive cash flow from financing activities, the negative operating cash flow to net income ratio reflects inefficiency in generating cash from operations.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
466.57K	3.33M	2.09M	9.98M	8.34M	8.69M
	Gross Profit
-40.32M	-1.60M	-150.34M	-100.49M	8.34M	-77.16M
	EBIT
-135.88M	-146.20M	-197.81M	-150.28M	-119.53M	-135.40M
	EBITDA
-98.86M	-11.63M	-52.19M	-46.95M	62.69M	458.45M
	Net Income Common Stockholders
-82.14M	-65.70M	-37.06M	-62.71M	4.57M	421.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.00M	327.14M	350.10M	465.71M	403.88M	162.45M
	Total Assets
16.77M	693.97M	702.65M	946.01M	989.99M	941.18M
	Total Debt
4.26M	25.34M	46.87M	52.02M	76.62M	39.30M
	Net Debt
-2.91M	-165.74M	-102.99M	-413.68M	-327.26M	-93.06M
	Total Liabilities
24.79M	235.74M	155.06M	361.86M	336.45M	290.78M
	Stockholders Equity
-884.00K	464.07M	542.22M	593.51M	669.75M	668.04M
Cash Flow		Free Cash Flow
-120.13M	-106.16M	-180.97M	-163.94M	-137.25M	-110.69M
	Operating Cash Flow
-119.96M	-105.92M	-178.79M	-158.27M	-131.83M	-98.16M
	Investing Cash Flow
367.58M	68.99M	-107.22M	197.38M	364.48M	63.66M
	Financing Cash Flow
-53.48M	78.14M	-29.83M	22.73M	38.87M	49.91M

PureTech Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRTC, the sentiment is Negative. The current price of 13.5 is below the 20-day moving average (MA) of 17.42, below the 50-day MA of 18.00, and below the 200-day MA of 20.32, indicating a bearish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 57.26 is Neutral, neither overbought nor oversold. The STOCH value of 93.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRTC.

PureTech Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NBIX	68 Neutral	$9.50B	27.57	14.16%	―	24.81%	33.67%
VRTX	64 Neutral	$123.99B	―	-3.15%	―	11.64%	-114.72%
IONS	49 Neutral	$4.41B	―	-93.03%	―	-10.48%	-18.79%
Sector *	48 Neutral	$6.36B	1.28	-45.04%	2.64%	19.24%	1.69%
SAGE	48 Neutral	$425.45M	―	-63.37%	―	-52.30%	27.13%
PRTC	39 Underperform	$321.87M	―	-19.80%	―	-96.16%	-75.35%
BHVN	25 Underperform	$1.91B	―	-198.83%	―	―	-65.63%