Company Overview
Compass Therapeutics, Inc. operates as a clinical-stage oncology-focused biopharmaceutical company dedicated to developing antibody-based therapeutics for the treatment of various human diseases within the United States. The company functions within the broader Healthcare sector and specifically the Biotechnology industry, positioning it as a specialized entity focused on advancing novel therapeutic candidates rather than established commercial products. With a market capitalization of $959.87M and a workforce comprising 39 employees, the firm maintains a relatively lean operational structure typical of early-stage biotechnology ventures. The market cap figure of $959.87M indicates that the market places significant value on the company's pipeline assets and future potential despite the absence of annual revenue data, while the employee count of 39 suggests a high degree of capital intensity per employee and reliance on external funding to sustain research and development activities.
Financial Health
The company reports a net income of $-66,489,000 for the trailing twelve months, while EBITDA stands at $-72,563,000, reflecting substantial operational losses common in the clinical development phase. The gross margin is recorded at 0.0%, the operating margin at 0.0%, and the profit margin at 0.0%, indicating that the company has not yet achieved commercial profitability and that all revenue generated, if any, is fully absorbed by costs before reaching the operating level. Free cash flow is reported at $-26,161,376, which signifies that the company is consuming cash to fund its operations and clinical trials rather than generating liquidity from core business activities. On the balance sheet, Compass Therapeutics holds $208.91M in cash against $9.83M in debt, resulting in a debt-to-equity ratio of 5.00. This specific combination of high cash reserves and low absolute debt levels, despite the high debt-to-equity metric, suggests a conservative leverage profile where the company is not burdened by significant interest obligations. The current ratio is 15.02, a figure that indicates an extremely strong short-term liquidity position where current assets far exceed current liabilities, providing ample buffer to meet immediate financial obligations. Return on equity is -41.3% and return on assets is -25.3%, metrics that reveal that management is currently diluting shareholder value and utilizing assets to generate negative returns due to the heavy investment required to advance drug candidates through clinical stages.
Valuation Assessment
The trailing P/E ratio is N/A due to the lack of positive earnings, while the forward P/E is listed at -11.05, a metric that implies expected earnings are still projected to be negative in the near term. The price-to-book ratio is 4.83, which indicates that the market is valuing the company at a significant premium over its book value, likely attributing high worth to the intangible value of the drug pipeline and intellectual property. The price-to-sales ratio is N/A, and the EV/EBITDA is -10.48, suggesting that traditional valuation multiples based on earnings or sales are not applicable at this stage of development, forcing reliance on asset-based or pipeline-specific valuation models. The stock has a 52-week high of $6.88 and a 52-week low of $1.33, providing a trading range within which the current price fluctuates based on market sentiment regarding clinical trial outcomes and funding news. The beta value is 1.29, meaning the stock exhibits higher price volatility relative to the broader market, moving more aggressively than the average stock in response to market-wide shifts. These valuation metrics collectively illustrate a high-risk, high-potential-risk-reward profile where price movements are driven more by binary clinical events than by fundamental earnings growth.
Growth & Income
Revenue growth year-over-year and earnings growth year-over-year are both N/A, as the company has not yet generated sufficient revenue to calculate meaningful growth rates, implying that earnings cannot be compared to a profitable revenue base. As a non-dividend payer, the company reports a dividend yield of N/A and a payout ratio of 0.0%, confirming that no dividends are distributed to shareholders. Instead of distributing income, the company reinvests its available cash and any future earnings directly into research, development, and the advancement of its therapeutic candidates to secure regulatory approval. The overall growth and income profile is characterized by a complete absence of current income generation and historical growth metrics, relying entirely on future clinical success to transition from a cash-burning entity to a profitable commercial business.