Protagonist Therapeutics (PTGX) AI Stock Analysis

• Market Cap: $3.36B
• Dividend Yield: N/A
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.97
• Revenue Growth: 624.05%
• EPS Growth: N/A
• Country: US
• Employees: 126
• Sector: Healthcare
• Sector Strength: 77
• Industry: Biotechnology
• EPS (TTM): 4.21
• Shares Outstanding: 61,384,290
• 10 Day Avg. Volume: 2,089,552
• 30 Day Avg. Volume: 1,160,786
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.74
• Price to Cash Flow (P/CF): -28.80
• 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: $68.40
• Price Target Upside: 24.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

Protagonist Therapeutics exhibits strong technical momentum and a reasonable valuation, but its financial performance reflects significant risks, such as inconsistent revenue and historical financial instability. The stock's upward trajectory is promising; however, potential overbought conditions and the need for more stable revenue streams could temper enthusiasm.

Positive Factors

Clinical Data

PTGX and partner JNJ announced positive data from the two Ph3 studies that demonstrated statistically significant improvements in key endpoints compared to placebo.

Efficacy and Safety

Encouraging results from a presentation showed complete skin clearance from JNJ-2113 treatment with a good safety profile, supporting potential adoption upon approval.

Financial Position

The $25M milestone payment on this positive data will further strengthen the balance sheet to support a runway through at least YE28 based on management's guidance.

Negative Factors

Protagonist Therapeutics Business Overview & Revenue Model

Company Description

Protagonist Therapeutics, Inc. (PTGX) is a biopharmaceutical company that focuses on the development and commercialization of peptide-based therapeutic drugs. The company operates within the healthcare and biotechnology sectors, leveraging its proprietary technology platform to create novel treatments for diseases with significant unmet medical needs. Core areas of focus include inflammatory bowel disease (IBD), hematological disorders, and other immune-mediated conditions.

How the Company Makes Money

Protagonist Therapeutics primarily generates revenue through strategic collaborations and licensing agreements with larger pharmaceutical companies. These partnerships often involve milestone payments, upfront licensing fees, and potential royalty streams based on the successful development and commercialization of their pipeline products. Protagonist's collaboration with companies like Janssen Biotech, a subsidiary of Johnson & Johnson, exemplifies such partnerships. Additionally, the company may receive funding through government grants and research funding, which supports their ongoing research and development activities.

Protagonist Therapeutics Financial Statement Overview

Summary

Protagonist Therapeutics shows a mixed financial picture with positive strides in profitability and cash flow management. The balance sheet is strong, but past financial instability and current lack of revenue growth are concerning. The company should focus on stabilizing revenue streams and maintaining financial discipline in managing liabilities to ensure long-term sustainability.

Income Statement

Protagonist Therapeutics has experienced significant fluctuations in its revenue, with a notable decline to zero in the most recent year, indicating potential instability in its business operations. The net profit margin is currently positive due to a reversal in earnings, but the lack of consistent revenue growth is a concern. EBIT and EBITDA margins have improved significantly, suggesting better cost management.

Balance Sheet

The company has a strong equity position with a positive stockholders' equity and a low debt-to-equity ratio, indicating financial stability. The equity ratio suggests a healthy proportion of assets funded by equity rather than debt. However, the industry-standard high liabilities in previous years suggest a history of financial risk.

Cash Flow

Protagonist Therapeutics shows positive free cash flow and an improved operating cash flow, indicating better cash management. However, the volatility in free cash flow growth suggests potential cash flow instability. The operating cash flow to net income ratio is favorable, indicating effective conversion of earnings to cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
434.43M	60.00M	26.58M	27.36M	28.63M
	Gross Profit
434.43M	60.00M	25.55M	24.58M	28.63M
	EBIT
252.84M	-93.65M	-131.37M	-125.84M	-64.52M
	EBITDA
252.84M	-90.34M	-131.37M	-123.07M	-63.66M
	Net Income Common Stockholders
275.19M	-78.95M	-123.41M	-122.63M	-66.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
418.91M	341.62M	237.35M	326.90M	307.81M
	Total Assets
744.73M	357.95M	247.93M	347.69M	324.47M
	Total Debt
10.87M	1.14M	3.66M	5.86M	5.96M
	Net Debt
-86.38M	-185.59M	-122.09M	-117.81M	-111.40M
	Total Liabilities
69.43M	21.27M	784.68M	47.67M	44.86M
	Stockholders Equity
675.29M	336.68M	-536.75M	-409.36M	-283.81M
Cash Flow		Free Cash Flow
182.80M	-70.84M	-108.93M	-108.97M	-72.95M
	Operating Cash Flow
184.15M	-70.24M	-108.14M	-107.86M	-72.48M
	Investing Cash Flow
-299.48M	-39.26M	91.47M	-15.86M	-90.97M
	Financing Cash Flow
25.85M	170.48M	18.84M	129.92M	247.63M

Protagonist Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTGX, the sentiment is Positive. The current price of 54.78 is above the 20-day moving average (MA) of 42.47, above the 50-day MA of 39.71, and above the 200-day MA of 40.29, indicating a bullish trend. The MACD of 4.51 indicates Negative momentum. The RSI at 71.46 is Negative, neither overbought nor oversold. The STOCH value of 79.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PTGX.

Protagonist Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXEL	80 Outperform	$10.26B	20.68	23.13%	―	18.49%	176.71%
SRPT	69 Neutral	$9.43B	40.78	19.71%	―	52.97%	―
PTGX	61 Neutral	$3.36B	13.02	54.39%	―	624.05%	―
ENTA	53 Neutral	$141.86M	―	-69.10%	―	-9.55%	24.57%
IONS	49 Neutral	$5.24B	―	-93.03%	―	-10.48%	-18.79%
Sector *	49 Neutral	$6.86B	0.03	-55.16%	2.48%	24.39%	-2.90%
ARWR	47 Neutral	$2.11B	―	-600.68%	―	-98.62%	-86.21%