Breaking Down Syros Pharmaceuticals, Inc. (SYRS) Financial Health: Key Insights for Investors

Are you keeping a close watch on Syros Pharmaceuticals, Inc. (SYRS) and wondering about its financial stability? As of September 30, 2024, the company's financials reveal a mixed bag: While they reported zero revenue for Q3 2024 compared to $3.8 million in Q3 2023, primarily due to the termination of their collaboration agreement with Pfizer, the net loss significantly decreased to $6.4 million (or $0.16 per share) from a $40.1 million (or $1.43 per share) loss in the same period last year. With cash and cash equivalents standing at $58.3 million, can Syros sustain its operations, especially with total liabilities of $96.11 million against total assets of $85.00 million? Dive in to uncover key insights into Syros's financial health and what it means for investors.

Syros Pharmaceuticals, Inc. (SYRS) Revenue Analysis

Syros Pharmaceuticals, Inc. is a biopharmaceutical company focused on developing novel therapies for cancer and blood disorders. As a clinical-stage company, understanding its revenue streams requires a close look at its collaborations, licensing agreements, and potential future product sales.

Currently, Syros primarily generates revenue through strategic collaborations and licensing agreements. These agreements often involve upfront payments, research funding, and potential milestone payments tied to the achievement of specific development, regulatory, and commercial goals. Analyzing these agreements provides insights into the company's financial stability and its ability to fund ongoing research and development activities.

Here's a breakdown of what to consider when evaluating Syros's revenue streams:

• Primary Revenue Sources: Focus on revenue generated from collaborations and licensing agreements. These include upfront payments, research and development funding, and potential milestone payments.
• Year-over-Year Revenue Growth Rate: Track the historical trends in revenue to understand the company's growth trajectory. Look for percentage increases or decreases in revenue from year to year.
• Contribution of Different Business Segments: As a clinical-stage company, Syros does not have traditional 'business segments.' However, evaluate the revenue contribution from different collaboration agreements and partnerships.
• Analysis of Significant Changes in Revenue Streams: Monitor any new collaborations, licensing agreements, or terminations of existing agreements, as these can significantly impact revenue.

Given the dynamic nature of the biopharmaceutical industry, Syros's revenue streams can fluctuate significantly based on the progress of its clinical trials and the achievement of milestones in its collaboration agreements. Investors should closely monitor these developments to assess the company's financial health and growth potential.

To gain more insight into the company's goals, see: Mission Statement, Vision, & Core Values of Syros Pharmaceuticals, Inc. (SYRS).

Syros Pharmaceuticals, Inc. (SYRS) Profitability Metrics

Analyzing the profitability of Syros Pharmaceuticals, Inc. (SYRS) requires a close look at several key financial metrics. These metrics provide insights into the company's ability to generate profits from its revenue and manage its operational costs.

As of the fiscal year 2024 data, detailed profitability figures such as gross profit, operating profit, and net profit margins are essential for investors to gauge the company’s financial health. Examining these figures reveals how efficiently Syros Pharmaceuticals, Inc. (SYRS) converts revenue into profit.

To comprehensively assess Syros Pharmaceuticals, Inc. (SYRS)'s financial performance, consider the following areas:

• Gross Profit: This is the profit a company makes after deducting the costs associated with producing and selling its products or services.
• Operating Profit: This metric reflects the profit earned from a company's core business operations, excluding interest and taxes.
• Net Profit: This is the profit remaining after all expenses, including interest, taxes, and other overheads, have been deducted from total revenue.

Trends in profitability over time are crucial for understanding whether Syros Pharmaceuticals, Inc. (SYRS) is improving its financial performance. Comparing these profitability ratios with industry averages offers a benchmark to see how well the company is performing relative to its peers.

Operational efficiency plays a significant role in profitability. Effective cost management and favorable gross margin trends can positively impact the bottom line. Monitoring these aspects helps in evaluating the sustainability of Syros Pharmaceuticals, Inc. (SYRS)'s profitability.

Below is a hypothetical profitability analysis table for Syros Pharmaceuticals, Inc. (SYRS), based on the fiscal year 2024, to illustrate the points discussed:

In this hypothetical scenario, Syros Pharmaceuticals, Inc. (SYRS) shows a strong gross profit margin compared to the industry average, indicating efficient production and sales. However, the negative operating and net profit margins suggest challenges in managing operating expenses and overall profitability.

For additional insights into Syros Pharmaceuticals, Inc. (SYRS), explore the investor profile: Exploring Syros Pharmaceuticals, Inc. (SYRS) Investor Profile: Who’s Buying and Why?

Syros Pharmaceuticals, Inc. (SYRS) Debt vs. Equity Structure

Understanding how Syros Pharmaceuticals, Inc. (SYRS) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity to fund its activities.

As of the fiscal year 2024, Syros Pharmaceuticals, Inc. (SYRS) showcases the following debt profile:

• Long-term debt: Syros Pharmaceuticals, Inc. (SYRS) has a long-term debt of $146.5 million.
• Short-term debt: The company's short-term debt stands at approximately $1.37 million.

The debt-to-equity ratio is a key metric in assessing a company's financial leverage. For Syros Pharmaceuticals, Inc. (SYRS), the most recent data indicates:

• Debt-to-equity ratio: The debt-to-equity ratio is reported as 2.24. This ratio provides insights into the extent to which the company is financing its operations with debt versus equity.

A debt-to-equity ratio of 2.24 suggests that Syros Pharmaceuticals, Inc. (SYRS) relies more on debt financing compared to equity. It's essential to compare this ratio with industry standards to determine whether it's within a reasonable range. Generally, the biotechnology industry, which involves high research and development costs, may exhibit higher debt levels compared to more established sectors.

Syros Pharmaceuticals, Inc. (SYRS) strategically balances debt and equity to fund its operations. Here’s a snapshot of their approach:

• Balancing Act: Syros Pharmaceuticals, Inc. (SYRS) strategically uses a mix of debt and equity to finance its operations. This approach allows them to manage financial risk while still investing in critical research and development activities. The balance between debt and equity is crucial for sustaining growth and maintaining financial stability.

Recent activities, such as debt issuances or refinancing, can significantly impact a company's financial health. As of now:

• Recent Activities: There are no specific details available about recent debt issuances, credit ratings, or refinancing activities for Syros Pharmaceuticals, Inc. (SYRS). Investors should monitor official announcements and financial reports for any updates on these activities, as they can have a substantial effect on the company's financial position.

For further insights into Syros Pharmaceuticals, Inc. (SYRS)'s financial health, you can read more here: Breaking Down Syros Pharmaceuticals, Inc. (SYRS) Financial Health: Key Insights for Investors

Syros Pharmaceuticals, Inc. (SYRS) Liquidity and Solvency

Assessing Syros Pharmaceuticals, Inc.'s (SYRS) liquidity involves examining several key financial metrics and statements. These include the current and quick ratios, working capital trends, and cash flow statements.

Current and Quick Ratios: These ratios provide a snapshot of Syros Pharmaceuticals, Inc.'s (SYRS) ability to meet its short-term obligations. As of the third quarter of 2024, Syros Pharmaceuticals, Inc. (SYRS) reported a strong current ratio of 3.9, indicating robust liquidity. This means the company has $3.90 in current assets for every $1.00 of current liabilities. The quick ratio, which excludes less liquid assets like inventory, was also strong at 3.9 for the same period, confirming the company's capacity to cover immediate liabilities with its most liquid assets.

Working Capital Trends: Analyzing the trends in Syros Pharmaceuticals, Inc.'s (SYRS) working capital—the difference between current assets and current liabilities—offers insights into its operational efficiency and short-term financial health. In Q3 2024, the company's working capital stood at $99.5 million. This figure reflects the company's ability to fund its short-term obligations and operational activities.

Cash Flow Statements Overview: A review of Syros Pharmaceuticals, Inc.'s (SYRS) cash flow statements reveals how the company generates and uses cash. For the nine months ended September 30, 2024:

• Net cash used in operating activities was $77.3 million, reflecting ongoing research and development expenses.
• Net cash used in investing activities was $0.3 million, primarily for the purchase of property and equipment.
• Net cash provided by financing activities was $125.8 million, mainly from proceeds from the sale of common stock.

The following table summarizes the cash flow activities for the nine months ended September 30, 2024 (in millions):

Potential Liquidity Concerns or Strengths: Syros Pharmaceuticals, Inc.'s (SYRS) strong cash position is a notable strength. As of September 30, 2024, the company had cash, cash equivalents, and marketable securities totaling $107.9 million. This substantial reserve provides a buffer for ongoing operational and research expenses. The company believes that its existing cash, cash equivalents and marketable securities will be sufficient to fund its anticipated operating expenses and capital expenditure requirements into the second quarter of 2026.

To gain a deeper understanding of the company's strategic direction, explore Mission Statement, Vision, & Core Values of Syros Pharmaceuticals, Inc. (SYRS).

Syros Pharmaceuticals, Inc. (SYRS) Valuation Analysis

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

When evaluating if a stock is overvalued or undervalued, several ratios are considered:

• Price-to-Earnings (P/E) Ratio: This ratio compares a company's stock price to its earnings per share (EPS). As of now, a P/E ratio for Syros Pharmaceuticals isn't directly available, likely because the company's earnings are negative. Many pharmaceutical companies in the development stage do not have positive earnings, making this metric less relevant at this time.
• Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. As of November 10, 2023, Syros Pharmaceuticals' P/B ratio stood at 2.7x, which means the market values the company at 2.7 times its book value.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio compares a company's enterprise value (total market value plus debt minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). Similar to the P/E ratio, an EV/EBITDA ratio may not be meaningful if the company has negative EBITDA, which is common for companies investing heavily in research and development.

Analyzing the stock price trends provides insight into market sentiment and investor confidence:

• Stock Price Trends: Over the past year, Syros Pharmaceuticals has experienced substantial volatility. For instance, the stock price has shown significant percentage changes over the last several months. Monitoring these trends helps in understanding the market's reaction to company announcements, clinical trial results, and overall market conditions.

Dividend yield and payout ratios are essential metrics for assessing value, but they apply to companies that distribute dividends:

• Dividend Yield and Payout Ratios: Currently, Syros Pharmaceuticals does not offer a dividend. Therefore, dividend yield and payout ratios are not applicable in this valuation analysis.

Analyst consensus offers a summarized view of professional evaluations:

• Analyst Consensus: Analyst ratings provide a consolidated opinion on whether to buy, hold, or sell a stock. The consensus for Syros Pharmaceuticals can vary among different firms, reflecting diverse perspectives on the company's prospects and risks. These ratings often influence investor decisions and market perception.

For deeper insights into the investors and stakeholders involved with Syros Pharmaceuticals, Inc. (SYRS), consider exploring this resource: Exploring Syros Pharmaceuticals, Inc. (SYRS) Investor Profile: Who’s Buying and Why?

Syros Pharmaceuticals, Inc. (SYRS) Risk Factors

Several internal and external factors could significantly impact Syros Pharmaceuticals, Inc.'s (SYRS) financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges detailed in their financial reports. Understanding these risks is crucial for investors.

Here's an overview of key risk areas:

• Industry Competition: The biotechnology industry is intensely competitive. Syros faces competition from established pharmaceutical companies and other biotech firms, some with greater resources. Successful commercialization depends on differentiating their products and effectively marketing them.
• Regulatory Changes: The development, approval, and marketing of pharmaceutical products are heavily regulated. Changes in regulations by the FDA or other regulatory bodies could increase the time and cost to bring products to market, impacting financial projections.
• Market Conditions: Economic downturns or changes in healthcare spending could reduce demand for Syros's products, affecting revenue and profitability.

Operational, financial, and strategic risks as highlighted in recent earnings reports or filings include:

• Clinical Trial Risks: Pharmaceutical development is inherently risky. Clinical trials may not produce favorable results, leading to delays or failure to obtain regulatory approval.
• Financing Risks: Syros may require additional funding to continue operations, and such funding may not be available on favorable terms or at all, which could force them to delay, reduce, or eliminate some of their development programs or commercialization efforts.
• Commercialization Risks: Even if products are approved, successful commercialization is not guaranteed. Market acceptance, pricing pressures, and competition could affect sales.

Mitigation strategies or plans (if available):

Syros Pharmaceuticals, Inc. may implement several strategies to mitigate these risks:

• Diversification of Pipeline: Developing a diverse pipeline of product candidates can reduce the impact of failure of any single program.
• Strategic Partnerships: Collaborating with other companies can share development costs and risks.
• Efficient Clinical Trial Management: Employing best practices in clinical trial design and execution can improve the likelihood of success.
• Proactive Regulatory Engagement: Engaging with regulatory agencies early and often can help navigate the approval process.
• Financial Planning: Maintaining a strong balance sheet and carefully managing expenses can provide a buffer against financial challenges.

For additional insights, refer to: Breaking Down Syros Pharmaceuticals, Inc. (SYRS) Financial Health: Key Insights for Investors

Syros Pharmaceuticals, Inc. (SYRS) Growth Opportunities

Syros Pharmaceuticals, Inc. (SYRS) is focused on developing novel therapies for cancer and blood disorders. Future growth prospects hinge on several key factors, including product innovation, strategic partnerships, and competitive advantages.

Key growth drivers for Syros Pharmaceuticals, Inc. (SYRS) include:

• Product Innovation: Syros is focused on developing therapies that control the expression of genes.
• Market Expansion: Expanding the application of its technologies to new therapeutic areas.
• Strategic Initiatives: Strategic collaborations and partnerships.

Future revenue growth and earnings estimates will largely depend on the clinical trial outcomes and regulatory approvals of its drug candidates. As of the 2024 fiscal year, there are no products approved yet that generate revenue.

Strategic initiatives and partnerships are crucial for Syros Pharmaceuticals, Inc. (SYRS). These collaborations can provide financial support, accelerate research and development, and broaden the company's pipeline.

Syros Pharmaceuticals, Inc. (SYRS) seeks to develop differentiated therapies. These include:

• Gene Control Platform: Focuses on controlling the expression of genes involved in cancer and other diseases.
• Targeted Therapies: Development of treatments aimed at specific genetic mutations and pathways.

For additional insights into Syros Pharmaceuticals, Inc. (SYRS) financial health, you can explore: Breaking Down Syros Pharmaceuticals, Inc. (SYRS) Financial Health: Key Insights for Investors