Breaking Down Synlogic, Inc. (SYBX) Financial Health: Key Insights for Investors

Are you keeping a close watch on Synlogic, Inc. (SYBX) and wondering about its financial stability? Let's delve into some key figures from 2024. Synlogic's financial results reveal a complex picture: While revenue plummeted to just $8,000, a staggering -99.76% decrease compared to the previous year's $3.37 million, losses also decreased by -61.88%, coming in at -$23.36 million. Furthermore, as of September 30, 2024, the company's cash and cash equivalents stood at $19.4 million. With these figures in mind, how should investors interpret Synlogic's financial trajectory? Keep reading to find out more.

Synlogic, Inc. (SYBX) Revenue Analysis

Understanding Synlogic, Inc.'s revenue streams is crucial for investors. Here's a breakdown of their financial performance:

• Mission Statement, Vision, & Core Values of Synlogic, Inc. (SYBX).

Breakdown of Primary Revenue Sources:

Synlogic, Inc. primarily generates revenue through research collaborations and agreements. For instance, in 2023, a $2.5 million milestone payment was received from Roche due to their IBD Synthetic Biotic research collaboration. Additionally, they secured an approximately $1 million subcontract with the Air Force Research Laboratory (AFRL). However, as of late 2024, Synlogic's revenue streams have faced significant changes due to strategic decisions and restructuring.

Year-over-Year Revenue Growth Rate:

Analyzing Synlogic's year-over-year revenue growth reveals considerable fluctuations:

• 2023: Revenue was $3.37 million, a substantial increase of 185.68% from the previous year.
• 2024: Revenue plummeted to $8,000, marking a -99.76% decrease.

This drastic downturn is attributed to the conclusion of prior research collaborations, such as the one with Roche.

Contribution of Different Business Segments to Overall Revenue:

Synlogic operates in one reportable business segment: the discovery and development of Synthetic Biotics. Revenue streams have been primarily driven by:

• Research Collaborations: Payments from collaborative agreements.
• Subcontracts: Funding from government or other research contracts.
• Material Transfer Agreements: Revenue from such agreements amounted to $0.01 million for the three months ended March 31, 2024.

Analysis of Significant Changes in Revenue Streams:

Several factors contributed to the significant changes in Synlogic's revenue streams:

• Discontinuation of Synpheny-3 Study: The decision to discontinue the Synpheny-3 study in February 2024 led to restructuring charges and a re-evaluation of strategic options.
• Strategic Alternatives: The company retained Lucid Capital Markets, LLC to explore potential strategic alternatives, including a possible acquisition or merger.
• Cost Reduction Measures: Efforts to cut expenses dramatically, as reflected in the reduced R&D and administrative costs in Q3 2024.

The following table summarizes Synlogic's revenue history:

In Q3 2024, Synlogic reported no revenue, compared to $0.4 million in Q3 2023, which was associated with a prior research collaboration with Roche. The company's financial results reflect a consolidated net loss of $(0.1) million, or ($0.01) per share, for the three months ended September 30, 2024, compared to a consolidated net loss of $(12.1) million, or ($2.57) per share, for the corresponding period in 2023.

As of September 30, 2024, Synlogic had cash and cash equivalents of $19.4 million.

Synlogic, Inc. (SYBX) Profitability Metrics

Analyzing Synlogic, Inc. (SYBX)'s profitability involves examining several key metrics that provide insights into the company's financial health. These include gross profit, operating profit, and net profit margins. Understanding these elements helps investors assess the company's efficiency in generating profits from its revenue and managing its expenses.

As of the latest information available, it's essential to note that Synlogic, Inc. is a clinical-stage biopharmaceutical company. For such companies, traditional profitability metrics may not always be the most relevant indicators of performance, especially when they are heavily invested in research and development. Therefore, negative or low profitability margins are not uncommon during this phase.

Here’s what to consider when evaluating Synlogic's profitability:

• Gross Profit: This is the revenue remaining after deducting the cost of goods sold (COGS). For a biopharmaceutical company like Synlogic, COGS may include the direct costs associated with producing clinical trial materials.
• Operating Profit: This is calculated by subtracting operating expenses (such as research and development (R&D) and selling, general, and administrative (SG&A) expenses) from gross profit. A company heavily investing in R&D may show a lower operating profit.
• Net Profit: This is the profit remaining after all expenses, including interest and taxes, have been deducted from revenue.

Given that Synlogic is in the clinical stage, a significant portion of its expenses is allocated to R&D. Investors should, therefore, pay close attention to the trends in R&D spending, the progress of clinical trials, and potential future revenue streams from successful products. A close look at their financial statements will reveal these trends over the past few years.

A comparison of Synlogic’s financial ratios with industry averages can provide a clearer picture. However, it's crucial to compare Synlogic with similar-stage companies, as mature, revenue-generating pharmaceutical firms will naturally have different profiles. Industry-specific databases and reports often provide benchmarks for companies in the biotechnology sector.

To evaluate Synlogic’s operational efficiency, consider the following:

• Cost Management: How effectively is Synlogic managing its operating expenses, particularly R&D and SG&A?
• Gross Margin Trends: Although potentially variable for a clinical-stage company, monitoring gross margins can indicate production efficiency as the company advances its pipeline.

For detailed financial figures, one should refer to Synlogic's official financial statements and investor presentations. These documents provide the most accurate and up-to-date information on the company's profitability and financial health. The numbers and data for the fiscal year 2024 are particularly relevant for current investment decisions.

While traditional profitability metrics offer some insight, understanding Synlogic's business model, pipeline progress, and cash runway is crucial for a comprehensive assessment. Investors should also keep an eye on strategic partnerships, regulatory milestones, and overall market conditions, which can significantly impact the company's financial outlook.

Synlogic, Inc. (SYBX) Debt vs. Equity Structure

Synlogic, Inc. (SYBX) strategically manages its debt and equity to fund operations and growth. Understanding the balance between these two is crucial for investors. Here's a detailed look at Synlogic's approach to financing:

As of the fiscal year 2024, Synlogic, Inc. (SYBX) showcases the following debt structure:

• Long-term Debt: Details regarding Synlogic's long-term debt, including specific amounts, can be found in their financial statements.
• Short-term Debt: Similarly, information on Synlogic's short-term debt is available in their financial reports.

The debt-to-equity ratio provides insights into Synlogic, Inc. (SYBX)'s financial leverage. Here's how it typically works:

• Debt-to-Equity Ratio: To calculate this, you'd divide the total liabilities by shareholders' equity. A higher ratio indicates more debt relative to equity.
• Industry Comparison: Comparing Synlogic, Inc. (SYBX)'s ratio to industry peers helps determine if the company is more or less leveraged than its competitors.

Recent financial activities involving debt may include:

• Debt Issuances: Any new bonds or loans issued by Synlogic, Inc. (SYBX) to raise capital.
• Credit Ratings: Ratings from agencies like Standard & Poor's or Moody's, reflecting Synlogic, Inc. (SYBX)'s creditworthiness.
• Refinancing: Actions taken to replace existing debt with new debt, potentially at more favorable terms.

Synlogic, Inc. (SYBX) balances debt and equity financing to optimize its capital structure. This involves:

• Strategic Decisions: Weighing the costs and benefits of each type of financing to support R&D, clinical trials, and other operational needs.
• Flexibility: Maintaining financial flexibility to respond to market changes and investment opportunities.

For more in-depth analysis, consider exploring Synlogic, Inc. (SYBX)'s financial health through this comprehensive overview: Breaking Down Synlogic, Inc. (SYBX) Financial Health: Key Insights for Investors

Synlogic, Inc. (SYBX) 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 Synlogic, Inc. (SYBX), assessing these metrics provides insights into its operational stability and financial risk profile. Here's an overview based on the latest available financial data:

Assessing Synlogic, Inc.'s Liquidity:

Liquidity ratios evaluate Synlogic's capacity to cover its current liabilities with its current assets. Key metrics include:

• Current Ratio: This ratio measures Synlogic's ability to pay off its short-term liabilities with its short-term assets.
• Quick Ratio: Similar to the current ratio, the quick ratio excludes inventory from current assets, providing a more conservative view of Synlogic's immediate liquidity.

Analyzing working capital trends offers a deeper understanding of Synlogic’s operational efficiency. Working capital, calculated as current assets minus current liabilities, indicates the resources available for day-to-day operations. Monitoring changes in working capital helps identify potential strains or improvements in Synlogic's liquidity position.

Cash Flow Statements Overview:

Cash flow statements provide a comprehensive view of Synlogic's cash inflows and outflows, categorized into operating, investing, and financing activities:

• Operating Cash Flow: This section reflects the cash generated or used from Synlogic's core business operations.
• Investing Cash Flow: This includes cash spent on investments such as property, plant, and equipment (PP&E) and proceeds from the sale of investments.
• Financing Cash Flow: This covers cash flows related to debt, equity, and dividends, indicating how Synlogic funds its operations and returns capital to investors.

Potential Liquidity Concerns or Strengths:

A thorough analysis of Synlogic's financial statements is essential to identify any potential liquidity concerns or strengths. Factors to consider include:

• Consistent Negative Operating Cash Flow: A company consistently showing negative operating cash flow might signal issues with its core business activities.
• Significant Debt Obligations: High levels of debt can strain Synlogic’s finances, especially if the company's revenue streams are unpredictable.
• Healthy Cash Reserves: Strong cash reserves can provide a buffer against financial uncertainties and support ongoing operations.

For more detailed insights, you can read the full analysis here: Breaking Down Synlogic, Inc. (SYBX) Financial Health: Key Insights for Investors

Synlogic, Inc. (SYBX) Valuation Analysis

Determining whether Synlogic, Inc. (SYBX) is overvalued or undervalued requires a multifaceted approach, incorporating several key financial metrics and market analyses. These include relative valuation ratios, stock price performance, and analyst sentiment. Below is an overview of these components to provide a clearer picture for investors.

Relative Valuation Ratios:

These ratios provide a snapshot of how the market values Synlogic, Inc. (SYBX) relative to its earnings, book value, and operational cash flow. Here's how these metrics are typically used:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share (EPS). As of the latest available data, Synlogic, Inc. (SYBX) does not have a meaningful P/E ratio because the company currently has no earnings.
• Price-to-Book (P/B) Ratio: This ratio compares the company's market capitalization to its book value of equity. It can indicate whether the stock is trading at a premium or discount to its net asset value. As of now, Synlogic's Price-to-Book (P/B) ratio stands at 2.7x, which may suggest the company is trading at a premium compared to its net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio compares the company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). Currently, Synlogic Inc.'s EV/EBITDA is -13.4x.

Stock Price Trends:

Analyzing the stock price trends provides insights into market sentiment and investor confidence. Recent data indicates:

• Over the past year, Synlogic's stock has shown considerable volatility. As of April 2025, the stock price has increased to $7.46.
• Significant price fluctuations can reflect broader market trends, company-specific news, or changes in investor expectations.

Dividend Yield and Payout Ratios:

Currently, Synlogic, Inc. (SYBX) does not offer a dividend, which is common for biotechnology companies focused on reinvesting earnings into research and development. Therefore, dividend yield and payout ratios are not applicable.

Analyst Consensus:

Analyst ratings provide a consolidated view of professional opinions on the stock's potential. Recent analyst ratings show:

• The consensus among analysts is that Synlogic, Inc. (SYBX) is a 'moderate buy.'
• Price targets from analysts vary, with some projecting potential upside based on clinical trial outcomes and others remaining cautious due to the inherent risks in the biotechnology sector.

Additional Considerations:

Given that Synlogic, Inc. (SYBX) is a biotechnology company, its valuation is heavily influenced by factors such as:

• Clinical trial results
• Regulatory approvals
• Partnerships and collaborations
• Cash runway

These elements can significantly impact market perception and stock valuation, often leading to rapid changes in price.

Here is a summary table of Synlogic, Inc. (SYBX) valuation metrics:

In conclusion, evaluating whether Synlogic, Inc. (SYBX) is overvalued or undervalued requires a comprehensive analysis that extends beyond traditional financial ratios. Investors should closely monitor clinical developments, regulatory milestones, and overall market conditions to make informed decisions. For more insights into the company’s direction, see: Mission Statement, Vision, & Core Values of Synlogic, Inc. (SYBX).

Synlogic, Inc. (SYBX) Risk Factors

Synlogic, Inc. (SYBX) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges and external market dynamics, requiring careful monitoring and proactive mitigation strategies.

Here's an overview of key risks:

• Industry Competition: The biotechnology industry is intensely competitive. Synlogic faces competition from established pharmaceutical companies, other biotech firms, and academic institutions all vying for market share in similar therapeutic areas. This competition can affect Synlogic's ability to successfully develop and commercialize its products.
• Regulatory Changes: The development and commercialization of new therapies are subject to extensive regulation by health authorities like the FDA in the United States. Changes in regulatory requirements or delays in obtaining regulatory approvals can significantly impact Synlogic's timelines and increase costs.
• Market Conditions: Broader economic conditions and market sentiment can impact Synlogic's ability to raise capital and maintain investor confidence. Economic downturns or negative market trends can reduce the availability of funding and negatively affect Synlogic's stock price.

Operational, financial, and strategic risks are often detailed in Synlogic's earnings reports and filings. These documents provide insights into specific challenges the company is addressing. Some common areas of concern include:

• Clinical Trial Risks: The success of Synlogic's product candidates depends heavily on the outcomes of clinical trials. Unfavorable trial results, delays, or difficulties in enrolling patients can significantly delay or halt the development process.
• Manufacturing Risks: Manufacturing biologics is complex and subject to stringent quality control requirements. Problems with manufacturing processes, contamination, or supply chain disruptions can lead to delays and increased costs.
• Financial Risks: As a clinical-stage biotech company, Synlogic typically relies on external funding to finance its operations. Risks related to securing sufficient funding, managing cash flow, and controlling expenses are critical.

Mitigation strategies and plans are essential for managing these risks. Synlogic may implement various strategies, such as:

• Diversifying Product Pipeline: Developing multiple product candidates across different therapeutic areas can reduce the company's dependence on the success of any single program.
• Strategic Partnerships: Collaborating with larger pharmaceutical companies or other biotech firms can provide access to additional resources, expertise, and funding.
• Efficient Resource Management: Carefully managing expenses, prioritizing key programs, and optimizing resource allocation can help Synlogic extend its cash runway and maximize the value of its assets.

Understanding and monitoring these risk factors is crucial for investors. Analyzing Synlogic's filings and earnings reports can provide valuable insights into how the company is managing these challenges and positioning itself for future success.

Learn more about Synlogic, Inc. (SYBX): Mission Statement, Vision, & Core Values of Synlogic, Inc. (SYBX).

Synlogic, Inc. (SYBX) Growth Opportunities

Synlogic, Inc. (SYBX) is a clinical-stage biopharmaceutical company focused on discovering and developing Synthetic Biotic medicines. These are designed to treat metabolic and inflammatory diseases. Evaluating Synlogic's future growth prospects requires an analysis of its product pipeline, strategic initiatives, and competitive positioning.

Key growth drivers for Synlogic include:

• Product Innovations: Synlogic's proprietary Synthetic Biotic platform allows for the engineering of microbial strains to perform specific therapeutic functions.
• Market Expansions: The company is targeting a range of metabolic and inflammatory diseases, offering multiple avenues for growth.
• Strategic Partnerships: Collaborations with other pharmaceutical companies or research institutions can accelerate the development and commercialization of Synlogic's pipeline.

As of the 2024 fiscal year, detailed future revenue growth projections and earnings estimates for Synlogic, Inc. (SYBX) were not readily available in the provided search results. Investors should refer to Synlogic's official financial reports, investor presentations, and SEC filings for the most up-to-date financial forecasts.

Strategic initiatives that may drive future growth:

• Clinical Trial Advancement: Progressing its lead drug candidates through clinical trials is crucial for demonstrating safety and efficacy.
• New Target Identification: Expanding the application of its Synthetic Biotic platform to new disease targets can broaden Synlogic's market opportunity.
• Manufacturing Scalability: Developing efficient and scalable manufacturing processes is essential for meeting future commercial demand.

Synlogic's competitive advantages that position the company for growth include:

• Novel Technology Platform: The Synthetic Biotic platform represents a unique approach to drug development, potentially offering advantages over traditional therapies.
• Intellectual Property: A strong patent portfolio can protect Synlogic's proprietary technology and provide a competitive edge.
• Experienced Management Team: A skilled leadership team with expertise in drug development and commercialization is essential for guiding the company's growth.

To further understand Synlogic's mission, vision, and core values, you can explore: Mission Statement, Vision, & Core Values of Synlogic, Inc. (SYBX).