Silence Therapeutics (SLN) AI Stock Analysis

• Market Cap: $142.31M
• Dividend Yield: N/A
• Average Volume (3M): 263.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: -40.10%
• EPS Growth: -16.60%
• Country: US
• Employees: 116
• Sector: Healthcare
• Sector Strength: 64
• Industry: Biotechnology
• EPS (TTM): -1.67
• Shares Outstanding: 46,659,940
• 10 Day Avg. Volume: 337,131
• 30 Day Avg. Volume: 263,193
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.19
• Price to Cash Flow (P/CF): -5.20
• 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: $35.80
• Price Target Upside: 1073.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Silence Therapeutics' stock score reflects significant revenue growth and positive clinical results, which are strengths. However, profitability challenges and financial instability weigh heavily on the score. The negative technical indicators and valuation further contribute to a cautious outlook. Despite the positive sentiment from the earnings call, strategic financial improvements and successful partnerships are crucial for future stock performance.

Positive Factors

Commercial Opportunities

Zerlasiran's ~100% Lp(a) reduction in clinic, coupled with low dosing frequency and clean safety profile can render a significant commercial opportunity.

Financial Flexibility

Silence's cash runway now extends into 2027, providing financial flexibility to advance its RNAi pipeline in rare diseases.

Strategic Partnerships

Multiple Zerlasiran PhII readouts can provide near-term upside and potentiate partnership announcements.

Negative Factors

Program Delays

Initiating the CVOT for zerlasiran is dependent on securing a development partner.

Stock Weakness

The lack of a clear registrational trial design and the delay of a competitor catalyst from NVS/IONS have contributed to the stock weakness.

Trial Delays

The PhIII start for the Lp(a) program is now paused until a partner is secured.

Silence Therapeutics Business Overview & Revenue Model

Company Description

Silence Therapeutics plc (SLN) is a biotechnology company focused on developing innovative therapies using its proprietary RNA interference (RNAi) platform. Based in the United Kingdom, the company aims to harness the natural pathways of gene silencing to develop treatments for a wide range of diseases, particularly in areas with high unmet medical needs. Silence Therapeutics is committed to advancing the field of precision medicine by targeting specific genes implicated in the pathology of diseases.

How the Company Makes Money

Silence Therapeutics generates revenue primarily through collaborative agreements, licensing deals, and milestone payments associated with its RNAi platform. The company partners with pharmaceutical and biotechnology firms to co-develop therapies, leveraging its expertise in RNA interference technology. These partnerships often involve upfront payments, research funding, and potential milestone and royalty payments contingent upon the successful development and commercialization of new therapies. Additionally, Silence Therapeutics may receive revenue from licensing its technology to third parties, enabling them to use its RNAi platform for their own therapeutic developments.

Silence Therapeutics Financial Statement Overview

Summary

Silence Therapeutics is experiencing revenue growth, but profitability challenges persist due to negative EBIT and net income margins. The negative stockholders' equity and high liabilities signal financial instability, although substantial cash reserves provide some comfort. The negative free cash flow highlights ongoing cash challenges, despite the ability to secure financing.

Income Statement

Silence Therapeutics has demonstrated significant revenue growth over the years, with a notable increase from 2023 to 2024. However, the company continues to face challenges with profitability, as evidenced by negative EBIT and net income margins. The consistent negative profit margins highlight a need for enhanced cost management or increased revenue to achieve profitability.

Balance Sheet

The company's balance sheet reveals a concerning negative stockholders' equity as of 2024, indicating financial instability. The debt-to-equity ratio is not favorable due to the negative equity, and although the company maintains substantial cash reserves, the high liabilities present a risk. Improving equity and managing liabilities are critical for financial health.

Cash Flow

Silence Therapeutics has managed significant financing cash flow, which supports its operations despite negative operating cash flow. The free cash flow has been consistently negative, reflecting ongoing cash challenges. However, the company's ability to secure financing offers some operational flexibility. Improving free cash flow is essential for sustainable growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
43.26M	25.38M	17.50M	12.41M	5.48M
	Gross Profit
31.45M	15.06M	6.62M	4.96M	1.72M
	EBIT
-63.32M	-49.60M	-48.59M	-45.81M	-35.85M
	EBITDA
-48.99M	-49.78M	-47.88M	-45.42M	-35.53M
	Net Income Common Stockholders
-45.31M	-43.27M	-40.49M	-39.41M	-32.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
147.33M	54.03M	71.14M	73.54M	37.45M
	Total Assets
202.63M	93.82M	107.50M	96.19M	85.97M
	Total Debt
117.00K	272.00K	446.00K	137.00K	341.00K
	Net Debt
-121.21M	-53.76M	-54.37M	-73.40M	-27.11M
	Total Liabilities
68.61M	76.77M	85.43M	87.67M	76.91M
	Stockholders Equity
-134.02M	17.05M	22.07M	8.53M	9.06M
Cash Flow		Free Cash Flow
-67.85M	-39.40M	-45.90M	5.47M	-11.29M
	Operating Cash Flow
-67.64M	-39.35M	-45.46M	6.81M	-10.78M
	Investing Cash Flow
-21.97M	16.43M	-16.54M	8.68M	9.62M
	Financing Cash Flow
142.09M	25.16M	43.05M	30.71M	15.43M

Silence Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.05
• 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 SLN, the sentiment is Neutral. The current price of 3.05 is above the 20-day moving average (MA) of 2.83, below the 50-day MA of 3.75, and below the 200-day MA of 11.40, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 52.86 is Neutral, neither overbought nor oversold. The STOCH value of 93.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SLN.

Silence Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RGLS	53 Neutral	$153.68M	―	-95.00%	―	―	44.85%
Sector *	51 Neutral	$5.20B	3.26	-40.34%	2.93%	17.68%	1.94%
SLN	45 Neutral	$142.31M	―	-99.23%	―	-40.10%	-16.60%
KRRO	45 Neutral	$153.37M	―	-50.61%	―	―	85.19%
ADCT	41 Neutral	$121.99M	―	123.38%	―	1.84%	43.40%
FDMT	39 Underperform	$157.43M	―	-25.95%	―	―	―
KLRS	28 Underperform	$113.15M	―	-45.37%	―	―	72.12%

Silence Therapeutics Corporate Events

Silence Therapeutics Extends Cash Runway to 2027

Silence Therapeutics reported its financial results for the year ending December 31, 2024, highlighting strong clinical execution and pipeline advancements. The company plans to prioritize investment in siRNA programs targeting rare conditions, with a focus on the divesiran program for polycythemia vera (PV) and the zerlasiran program for cardiovascular disease. Silence ended the year with $147 million in cash, and its decision to delay the zerlasiran Phase 3 study until a partner is secured extends its cash runway into 2027. The company received positive regulatory feedback for the zerlasiran study design and anticipates full enrollment in the SANRECO Phase 2 study of divesiran by the end of 2025.