Breaking Down Compugen Ltd. (CGEN) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments in the biotech sector? Specifically, have you been following Compugen Ltd. (CGEN) and wondering about its financial stability? In 2024, Compugen reported a revenue of $27.9 million, a decrease from $33.5 million in 2023. With a net loss of $14.2 million for the year, how is Compugen positioned for future growth? As of December 31, 2024, the company holds approximately $103.3 million in cash, cash equivalents and investments, but is that enough to fuel its operations and pipeline advancements into 2027? Let's delve into the key financial insights that can help you make informed decisions about Compugen.

Compugen Ltd. (CGEN) Revenue Analysis

Analyzing Compugen Ltd. (CGEN)'s financial health requires a close examination of its revenue streams, growth, and segment contributions. Understanding these elements provides investors with key insights into the company's performance and potential.

As of the fiscal year 2024, detailed information on Compugen Ltd. (CGEN)'s revenue streams, including specific breakdowns by products, services, or regions, is not readily available in the search results. Investors are advised to consult the company's official financial statements and investor relations materials for a comprehensive understanding of their revenue composition.

Year-over-year revenue growth rate is a critical indicator of a company's financial trajectory. To assess Compugen Ltd. (CGEN)'s performance, one should examine historical trends to identify percentage increases or decreases in revenue. Analyzing these trends can reveal the company's ability to expand its market presence and generate sustainable growth. Information about year-over-year revenue growth rate is not available in the search results.

The contribution of different business segments to overall revenue highlights the diversification and strategic focus of Compugen Ltd. (CGEN). Examining which segments are driving the most revenue can indicate the company's core strengths and areas of opportunity. Without specific data from the search results, it's recommended to refer to Compugen Ltd. (CGEN)'s financial reports for a detailed breakdown of segment contributions.

Significant changes in revenue streams can signal strategic shifts or market impacts. Investors should be aware of any new revenue sources, discontinued products, or changes in regional contributions. Monitoring these changes helps in understanding the evolving dynamics of Compugen Ltd. (CGEN)'s business model. Information about significant changes in revenue streams is not available in the search results.

For a more in-depth analysis, consider exploring: Exploring Compugen Ltd. (CGEN) Investor Profile: Who’s Buying and Why?

Compugen Ltd. (CGEN) Profitability Metrics

Analyzing Compugen Ltd.'s financial health requires a close examination of its profitability metrics. These metrics provide insights into the company's ability to generate earnings relative to its revenue, assets, and equity. Key indicators include gross profit, operating profit, and net profit margins, which are crucial for assessing its financial performance.

Here's what we'll explore:

• Gross profit, operating profit, and net profit margins
• Trends in profitability over time
• Comparison of profitability ratios with industry averages
• Analysis of operational efficiency (e.g., cost management, gross margin trends)

As of the fiscal year 2024, Compugen Ltd. (CGEN) reported a gross profit of $14.27 million. The operating profit stood at -$42.04 million, indicating an operating loss. The net profit margin was -297.61%, reflecting a net loss of -$42.11 million. These figures highlight the challenges the company faces in achieving profitability.

A review of profitability trends over time is essential to understand whether Compugen Ltd. is improving its financial performance. Analyzing several years of data can reveal patterns and help investors assess the company's ability to manage costs and increase revenue. For instance, a consistent increase in gross margin indicates better cost management and pricing strategies.

When comparing Compugen Ltd.'s profitability ratios with industry averages, it's important to consider the specific sector in which the company operates. The biotechnology industry, for example, often sees companies investing heavily in research and development, which can impact profitability in the short term. A comprehensive comparison involves looking at similar-sized companies and their respective margins to provide a benchmark for performance evaluation.

Operational efficiency plays a significant role in Compugen Ltd.'s profitability. Effective cost management and favorable gross margin trends are key indicators. For example, a rising gross margin suggests that the company is either reducing its cost of goods sold or increasing its selling prices effectively. Monitoring these trends helps in evaluating the company's ability to convert revenue into profit.

Below is a table summarizing Compugen Ltd.'s key profitability metrics for the fiscal year 2024:

For further insights, you can explore: Breaking Down Compugen Ltd. (CGEN) Financial Health: Key Insights for Investors

Compugen Ltd. (CGEN) Debt vs. Equity Structure

Understanding how Compugen Ltd. (CGEN) finances its growth is crucial for investors. This involves examining the company's debt levels, debt-to-equity ratio, and recent financing activities to assess its financial stability and growth strategy. Here's a detailed look:

As of December 31, 2024, Compugen Ltd. (CGEN) reported having no long-term debt. This indicates that the company has been financing its operations and growth through other means, such as equity or revenue.

Debt-to-Equity Ratio:

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity a company uses to finance its assets. For Compugen Ltd. (CGEN), with no long-term debt, the debt-to-equity ratio as of December 31, 2024, is 0. This suggests that the company relies entirely on equity to finance its operations, which can be seen as a sign of financial prudence.

Here's a breakdown of Compugen Ltd.'s (CGEN) liabilities and equity as of December 31, 2024:

• Total Current Liabilities: $11.468 million
• Total Liabilities: $12.477 million
• Total Equity: $113.456 million

The absence of long-term debt and a debt-to-equity ratio of 0 can be particularly attractive to investors, as it reduces the risk of financial distress and increases the company's financial flexibility. This allows Compugen Ltd. (CGEN) to pursue growth opportunities without the burden of debt obligations.

Recent Financing Activities:

While Compugen Ltd. (CGEN) currently has no long-term debt, it's important to monitor any recent or upcoming financing activities. Any debt issuances or refinancing activities could change the company's debt profile and impact its financial ratios.

Balancing Debt and Equity:

Compugen Ltd. (CGEN) currently relies solely on equity funding. While this strategy reduces financial risk, it also means that the company may be missing out on the potential benefits of debt financing, such as tax advantages and increased financial leverage. The decision to avoid debt financing likely reflects a strategic choice to maintain a strong balance sheet and minimize financial risk, aligning with the company's overall financial strategy.

For further insights into the company's strategic vision, explore Mission Statement, Vision, & Core Values of Compugen Ltd. (CGEN).

Compugen Ltd. (CGEN) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and long-term liabilities, respectively. For Compugen Ltd. (CGEN), assessing these metrics provides valuable insights into its operational stability and financial risk profile.

The current and quick ratios are fundamental measures of a company's liquidity position. These ratios evaluate whether a company possesses sufficient liquid assets to cover its short-term liabilities. A higher ratio generally indicates a stronger liquidity position, suggesting the company is well-equipped to meet its immediate financial obligations.

Analysis of working capital trends offers another perspective on liquidity. Working capital, calculated as the difference between current assets and current liabilities, reflects the company's operational efficiency and short-term financial health. Monitoring changes in working capital over time can reveal whether the company's liquidity position is improving or deteriorating. Effective management of working capital is crucial for sustaining smooth business operations.

Here's an overview of key aspects derived from Compugen Ltd.'s (CGEN) financial statements:

• Cash, Cash Equivalents, and Short-Term Deposits: As of December 31, 2024, Compugen Ltd. (CGEN) reported having $108.6 million in cash, cash equivalents, and short-term deposits.
• Total Assets: The company's total assets amounted to $126.7 million as of the same date.
• Total Liabilities: Compugen Ltd. (CGEN) reported total liabilities of $20.1 million.
• Revenue: For the year 2024, the company's revenue totaled $3.4 million.
• Net Loss: The company experienced a net loss of $38.8 million for the same period.

The cash flow statement provides a comprehensive view of all cash inflows and outflows, categorized into operating, investing, and financing activities. Examining the trends in these cash flows can reveal how the company generates and uses cash. Positive cash flow from operations indicates the company's core business is generating sufficient cash to sustain itself. Investment activities might include capital expenditures or acquisitions, while financing activities involve debt, equity, and dividends.

Here's a summary of Compugen Ltd.'s (CGEN) cash flow activities for the year 2024:

• Net cash used in operating activities: $34.9 million
• Net cash used in investing activities: $0.4 million
• Net cash from financing activities: $0.0 million

Based on the 2024 financial data, Compugen Ltd. (CGEN) has a substantial amount of cash and short-term deposits, but it is also experiencing significant net losses and negative cash flow from operations. The company's ability to manage its cash burn and achieve profitability will be critical for its long-term financial health.

Any potential liquidity concerns or strengths should be carefully considered. A strong cash position can provide a buffer against short-term financial challenges, allowing the company to invest in growth opportunities or weather economic downturns. However, consistent losses and negative cash flow may raise concerns about the company's long-term sustainability. Investors should monitor these trends closely and evaluate the company's plans to improve profitability and cash flow generation.

For additional insights into Compugen Ltd.'s (CGEN) strategic direction, you might find this resource helpful: Mission Statement, Vision, & Core Values of Compugen Ltd. (CGEN).

Compugen Ltd. (CGEN) Valuation Analysis

Determining whether Compugen Ltd. (CGEN) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. Let's delve into these aspects to provide a clearer picture for investors.

When evaluating if Compugen Ltd. (CGEN) is overvalued or undervalued, several ratios are typically considered:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share. As of December 31, 2024, Compugen Ltd. (CGEN) does not have a P/E ratio because its earnings are negative.
• Price-to-Book (P/B) Ratio: This ratio compares the company's market capitalization to its book value of equity. As of December 31, 2024, Compugen Ltd. (CGEN)'s Price/Book ratio is 1.78. This indicates how much investors are paying for each dollar of the company's net assets.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares the company's enterprise value to its earnings before interest, taxes, depreciation, and amortization. As of December 31, 2024, Compugen Ltd. (CGEN) does not have an EV/EBITDA ratio because its EBITDA is negative.

Analyzing Compugen Ltd. (CGEN)’s stock price trends over the past year provides insights into market sentiment and investor confidence. As of April 18, 2025, Compugen Ltd. (CGEN) stock is trading at $2.17. Over the last year, the stock has experienced considerable fluctuation. The 52-week high is $4.80, while the 52-week low is $1.76.

Dividend yield and payout ratios are important metrics for assessing returns to shareholders. However, as of 2024, Compugen Ltd. (CGEN) does not offer dividends. Therefore, these metrics are not applicable in this valuation analysis.

Analyst consensus provides a summarized view of professional opinions on the stock’s potential. According to the latest data, the consensus among analysts is that Compugen Ltd. (CGEN) is a 'hold.' The consensus rating has remained consistent, with no changes over the past three months. The mean target price is $6.00, suggesting a potential upside from the current trading price of $2.17.

Here’s a summary table of key valuation metrics for Compugen Ltd. (CGEN) as of December 31, 2024:

For more insights into the company’s strategic direction, explore: Mission Statement, Vision, & Core Values of Compugen Ltd. (CGEN).

Compugen Ltd. (CGEN) Risk Factors

Compugen Ltd. (CGEN) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges, external market pressures, and strategic considerations. Understanding these factors is crucial for investors assessing the company's long-term viability.

Here’s an overview of key risks:

• Industry Competition: The biopharmaceutical industry is intensely competitive. Compugen faces competition from established pharmaceutical companies, biotechnology firms, and academic institutions. Many of these competitors have substantially greater financial, technical, and marketing resources.
• Regulatory Changes: The development and commercialization of biopharmaceutical products are subject to extensive regulation by governmental authorities in the United States, Europe, and other countries. Changes in regulatory policies or approvals could delay or prevent the company's ability to bring products to market.
• Market Conditions: Economic downturns, healthcare reforms, and changes in market sentiment can all affect the demand for Compugen's products and its ability to secure funding.

Operational, financial, and strategic risks are often highlighted in Compugen's earnings reports and filings. These include:

• Clinical Trial Risks: The success of Compugen's product candidates depends heavily on the outcomes of clinical trials. These trials are subject to numerous risks, including delays in enrollment, unexpected adverse events, and failure to demonstrate efficacy.
• Financial Risks: As a research and development-focused company, Compugen relies on securing sufficient funding to advance its pipeline. This includes risks related to raising capital, managing cash flow, and achieving profitability.
• Strategic Risks: Strategic risks involve decisions related to partnerships, collaborations, and overall business strategy. Failure to effectively manage these aspects can impact the company's competitive position and long-term growth prospects.

Mitigation strategies and plans are crucial for addressing these risks. While specific details can vary, common strategies include:

• Diversifying Pipeline: Developing a diverse portfolio of product candidates can reduce the impact of failure in any single program.
• Strategic Partnerships: Collaborating with larger pharmaceutical companies can provide financial support, development expertise, and commercialization capabilities.
• Adaptive Trial Designs: Using flexible clinical trial designs can allow for adjustments based on interim data, potentially improving the efficiency and success rate of trials.

For additional insights into Compugen's mission, vision, and core values, you can visit: Mission Statement, Vision, & Core Values of Compugen Ltd. (CGEN).

Compugen Ltd. (CGEN) Growth Opportunities

Compugen Ltd. (CGEN) faces a dynamic future, with several factors poised to influence its growth trajectory. Understanding these elements is crucial for investors seeking to assess the company's potential.

Key growth drivers for Compugen Ltd. (CGEN) include:

• Product Innovations: Compugen's ability to develop and commercialize novel therapeutic candidates is central to its growth.
• Market Expansions: Expanding into new geographical markets or therapeutic areas can unlock additional revenue streams.
• Strategic Partnerships: Collaborations with other pharmaceutical or biotechnology companies can accelerate drug development and commercialization efforts.

Future revenue growth projections and earnings estimates for Compugen Ltd. (CGEN) are contingent upon the success of its pipeline programs. Analysts' forecasts vary, reflecting the inherent uncertainty in drug development. Investors should consult multiple sources and consider a range of potential outcomes. For insights into the company's guiding principles, refer to Mission Statement, Vision, & Core Values of Compugen Ltd. (CGEN).

Strategic initiatives that may drive future growth encompass:

• Advancing Pipeline Programs: Progressing its lead drug candidates through clinical trials and toward regulatory approval is paramount.
• Expanding Technology Platform: Leveraging its computational discovery platform to identify new drug targets and therapeutic candidates can fuel long-term growth.
• Securing Strategic Collaborations: Partnering with larger pharmaceutical companies can provide financial resources and expertise to accelerate development and commercialization.

Compugen Ltd. (CGEN) possesses several competitive advantages that could position it for growth:

• Proprietary Technology Platform: Its computational discovery platform provides a unique capability to identify novel drug targets.
• Innovative Pipeline: Its portfolio of therapeutic candidates addresses unmet medical needs in oncology and immunology.
• Experienced Management Team: A seasoned leadership team with expertise in drug development and commercialization can navigate the challenges of the biotechnology industry.