Company Overview
Compugen Ltd. operates as a clinical-stage therapeutic discovery and development company focused on the research, development, and commercialization of therapeutics and product candidates across Israel, the United States, and Europe. Within the broader Healthcare sector, the company functions specifically within the Biotechnology industry, distinguishing itself through its specialized pipeline that includes COM701, an immuno-oncology program designed to advance novel treatments. The enterprise maintains a market capitalization of $195.64M and reported annual revenue of $72.76M based on trailing twelve-month data, while supporting these operations with a workforce of 75 employees. These valuation and revenue figures indicate a mid-sized biotechnology entity that has achieved significant profitability relative to its size, suggesting a mature operational model capable of generating substantial earnings despite the inherent risks associated with the clinical-stage nature of its business.
Financial Health
The company reported total revenue of $72.76M, net income of $35.34M, and EBITDA of $31.80M over the trailing twelve months, highlighting a robust conversion of sales into bottom-line profit. The substantial gap between the $72.76M revenue and $35.34M net income reveals a highly efficient cost structure where expenses are managed tightly to preserve margins. Free cash flow stands at $24.33M, which provides the organization with significant financial flexibility to fund future research initiatives without relying on external capital markets. Profitability is further underscored by a gross margin of 87.3%, an operating margin of 83.2%, and a profit margin of 48.6%, each figure indicating exceptional control over production costs, operational overhead, and overall expense management. The balance sheet is characterized by a conservative stance, holding $145.64M in cash against only $2.96M in debt, a disparity reflected in a debt-to-equity ratio of 2.88 which, while technically indicating leverage, is supported by the massive cash reserve. Short-term liquidity is exceptionally strong with a current ratio of 6.56, meaning the company holds more than six times the current assets necessary to cover its current liabilities. Management effectiveness is quantified by a return on equity of 44.8% and a return on assets of 14.4%, metrics that demonstrate the ability to generate substantial value from shareholders' capital and the total asset base respectively.
Valuation Assessment
Valuation metrics show a trailing P/E ratio of 5.42 and a forward P/E of -6.18, where the divergence implies that the market expects a normalization of earnings or a significant shift in the earnings trajectory that currently results in a negative forward multiple. The price-to-book ratio is recorded at 1.90, suggesting the market values the company at nearly twice its net asset book value, which is typical for biotechnology firms with valuable intellectual property but also reflects a premium over tangible assets. Alternative valuation measures include a price-to-sales ratio of 2.69 and an EV/EBITDA of 1.64, which together suggest the company is valued conservatively relative to its sales and earnings power given the low absolute multiples. Regarding trading range, the 52-week high is $2.38 and the 52-week low is $1.13, indicating that the current market price sits within this established volatility band. The stock exhibits a beta of 2.96, meaning the price volatility is nearly three times that of the broader market, reflecting the high sensitivity of biotechnology equities to sector-specific developments and market sentiment.
Growth & Income
Revenue growth over the year-on-year period is reported at 4477.3%, while earnings growth is listed as N/A, indicating that the rapid expansion in top-line sales has not yet translated into a comparable year-over-year percentage increase in net income on a historical basis. The company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, which confirms that all net income is retained within the company to fund operations and research. Because the firm is a non-dividend payer, the strategy clearly prioritizes reinvesting earnings into the growth of its therapeutic pipeline rather than distributing cash to shareholders. The overall growth and income profile is defined by explosive revenue expansion coupled with high profitability, but the lack of a dividend yield and the N/A status of earnings growth highlight a capital allocation model focused entirely on business expansion and product development rather than income generation.