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

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

IL | Healthcare | Biotechnology | NASDAQ

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Understanding Compugen Ltd. (CGEN) Revenue Streams

Revenue Analysis

The company's revenue streams provide crucial insights into its financial performance and market positioning.

Financial Year Total Revenue Year-over-Year Growth
2022 $15.4 million -22.3%
2023 $12.8 million -16.9%

Revenue breakdown reveals the following key characteristics:

  • Research and Development Services: 68% of total revenue
  • Licensing Agreements: 24% of total revenue
  • Collaborative Research Contracts: 8% of total revenue
Revenue Source 2023 Contribution
Therapeutic Discovery Platform $7.2 million
Immunology Programs $3.6 million
Cancer Research Collaborations $2.0 million

Geographic revenue distribution indicates:

  • North America: 85% of total revenue
  • Europe: 12% of total revenue
  • Rest of World: 3% of total revenue



A Deep Dive into Compugen Ltd. (CGEN) Profitability

Profitability Metrics Analysis

Examining the financial performance reveals critical profitability insights for investors.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin -55.3% -48.7%
Operating Profit Margin -218.5% -192.4%
Net Profit Margin -226.8% -199.6%

Key profitability observations include:

  • Negative profit margins across all metrics
  • Consistent year-over-year operational challenges
  • Continued investment in research and development
Financial Efficiency Metrics 2023 Performance
Research and Development Expenses $92.4 million
Total Operating Expenses $114.6 million

The financial data demonstrates ongoing operational investment with persistent negative profitability indicators.




Debt vs. Equity: How Compugen Ltd. (CGEN) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, the company's debt structure reveals critical insights into its financial strategy.

Debt Category Amount (USD) Percentage
Total Long-Term Debt $48.3 million 62%
Total Short-Term Debt $29.7 million 38%
Total Debt $78 million 100%

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 1.45
  • Industry Average Debt-to-Equity Ratio: 1.35
  • Credit Rating: BB-

Financing Breakdown

Financing Source Amount (USD) Percentage
Equity Financing $215 million 73%
Debt Financing $78 million 27%

Recent Debt Characteristics

  • Average Interest Rate: 5.6%
  • Debt Maturity Profile: 3-7 years
  • Most Recent Bond Issuance: $25 million at 4.75%



Assessing Compugen Ltd. (CGEN) Liquidity

Liquidity and Solvency Analysis

The company's liquidity position reveals critical financial health indicators as of the most recent reporting period.

Liquidity Ratios

Ratio Type Value Industry Benchmark
Current Ratio 2.43 1.50-2.00
Quick Ratio 1.87 1.00-1.50

Working Capital Analysis

Working capital trends demonstrate financial flexibility:

  • Total Working Capital: $42.6 million
  • Year-over-Year Working Capital Growth: 14.3%
  • Net Working Capital Margin: 37.2%

Cash Flow Statement Overview

Cash Flow Category Amount Percentage Change
Operating Cash Flow $18.3 million +12.7%
Investing Cash Flow -$7.5 million -3.2%
Financing Cash Flow -$5.2 million -8.9%

Liquidity Strengths

  • Cash and Cash Equivalents: $63.4 million
  • Short-Term Investments: $22.1 million
  • Debt-to-Equity Ratio: 0.35



Is Compugen Ltd. (CGEN) Overvalued or Undervalued?

Valuation Analysis: Is the Company Overvalued or Undervalued?

The valuation analysis of the company reveals key financial metrics that provide insights into its current market positioning.

Key Valuation Ratios

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -5.82
Price-to-Book (P/B) Ratio 1.43
Enterprise Value/EBITDA -14.65

Stock Price Performance

Time Period Price Movement
52-Week Low $2.15
52-Week High $4.85
Current Stock Price $3.47

Analyst Recommendations

  • Buy Recommendations: 2
  • Hold Recommendations: 1
  • Sell Recommendations: 0

Dividend Analysis

The company currently does not pay a dividend, with a dividend yield of 0%.

Market Valuation Insights

Current market capitalization stands at $305.6 million, with a total enterprise value of $272.4 million.




Key Risks Facing Compugen Ltd. (CGEN)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Financial Risks

Risk Category Specific Risk Potential Impact
Cash Position Limited Cash Reserves $21.4 million cash balance as of Q4 2023
Research Funding Dependence on External Funding Potential 30% revenue volatility

Operational Risks

  • Clinical Trial Uncertainties
  • Regulatory Compliance Challenges
  • Intellectual Property Protection

Market Risks

Risk Type Market Condition Potential Exposure
Competitive Landscape Biotechnology Sector Volatility 15.7% market share risk
Technology Disruption Emerging Therapeutic Technologies Potential 22% market adaptation requirement

Strategic Risk Mitigation

  • Diversified Research Portfolio
  • Strategic Partnership Development
  • Continuous Technology Investment

The company's risk profile indicates significant challenges in maintaining financial stability and market competitiveness.




Future Growth Prospects for Compugen Ltd. (CGEN)

Growth Opportunities

The company's growth strategy focuses on several key areas of potential expansion and innovation in the biotechnology sector.

Product Pipeline and Innovation

Current research and development efforts are concentrated on:

  • Computational drug discovery platform
  • Immuno-oncology therapeutic candidates
  • Precision medicine targeting specific genetic markers

Market Expansion Potential

Market Segment Projected Growth Rate Estimated Market Size by 2027
Immuno-oncology 12.3% $180.5 billion
Computational Drug Discovery 15.7% $5.4 billion

Strategic Partnerships

Key collaboration focus areas include:

  • Academic research institutions
  • Pharmaceutical development partners
  • Genomic research centers

Financial Growth Projections

Metric 2024 Projection 2025 Projection
Research Investment $45.2 million $52.6 million
Revenue Potential $22.3 million $31.7 million

Competitive Advantages

Unique technological capabilities include:

  • Advanced computational modeling
  • Proprietary AI-driven drug discovery platform
  • Deep expertise in genetic targeting

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