Company Overview
Tempest Therapeutics, Inc. operates as a clinical-stage biotechnology company dedicated to the development of small molecule therapeutics designed to treat cancer. Within the broader Healthcare sector, the company functions specifically within the Biotechnology industry, a domain characterized by high-risk, high-reward research and development cycles focused on bringing novel treatments to market. The company's current scale is defined by a market capitalization of $23.32M and an employee count of 24 individuals, while annual revenue figures are not available for reporting in the provided data. These valuation and staffing metrics indicate that Tempest Therapeutics is a small-cap entity with limited historical revenue visibility, suggesting the company is likely in an early-stage development phase where value is primarily derived from intellectual property and clinical trial potential rather than current cash flows or established sales volume.
Financial Health
The company reports a net income of $-36,054,000 and an EBITDA of $-36,166,000 for the trailing twelve months, with revenue figures listed as not available for the period. The significant gap between the reported revenue (which is not quantified) and the substantial net loss reveals a cost structure heavily dominated by research and development expenditures typical of early-stage biotechnology firms, where expenses outpace any generated income. Free cash flow stands at $-20,340,750, which indicates that the company is burning cash to fund its operations and development programs, thereby limiting its financial flexibility to finance further growth without additional capital raises or external funding. All three margin metrics—gross margin, operating margin, and profit margin—are recorded at 0.0%, a status that reflects the company's lack of commercial sales volume rather than an operational inefficiency in production. Regarding liquidity and leverage, the company holds $7.51M in cash against $8.40M in debt, resulting in a debt-to-equity ratio of 132.45, which characterizes the balance sheet as significantly leveraged relative to its equity base. The current ratio is 2.30, suggesting that the company possesses 2.30 dollars of current assets for every dollar of current liabilities, indicating a reasonable level of short-term liquidity despite the negative net income position. Return on Equity is -405.0% and return on assets is -89.3%, metrics that reveal that management is currently generating negative returns on the capital invested in the company, a common but critical risk factor for clinical-stage assets that have not yet achieved product approval or commercialization.
Valuation Assessment
The trailing P/E ratio is listed as not available due to the lack of net income, while the forward P/E is reported as -0.63, a negative figure that implies the market is pricing in expectations of future earnings losses or that the current valuation model relies on non-earnings-based metrics. The difference between a non-existent trailing P/E and a negative forward P/E suggests that traditional earnings-based valuation methods are not applicable, pointing to a reliance on clinical milestones and potential future cash flows for valuation justification. The price-to-book ratio is 1.21, indicating that the market values the company at 1.21 times its book value, which often occurs when investors assign a premium to the company's intangible assets, such as patent portfolios and clinical data, that are not fully captured on the balance sheet. Alternative valuation metrics such as the price-to-sales ratio and EV/EBITDA are either not available or reported as -0.24, further reinforcing that the company cannot be valued using standard multiples for profitable, revenue-generating businesses. The stock has traded between a 52-week high of $12.23 and a 52-week low of $1.56, with the current price sitting somewhere within this wide range, reflecting the high volatility typical of small-cap biotechnology stocks. The beta value is -2.18, a negative coefficient that indicates the stock's price moves inversely to the broader market, suggesting a unique risk profile where market downturns may theoretically correlate with stock price increases, though this is an atypical behavior for equity securities.
Growth & Income
Revenue growth year-over-year and earnings growth year-over-year are both listed as not available in the provided financial data, preventing a direct comparison of earnings growth relative to revenue expansion. Because the company has not yet generated positive net income or commercial sales, the concept of a sustainable dividend payout ratio is inapplicable, and the company does not pay dividends. Instead of distributing earnings to shareholders, the company reinvests all available capital, including its $7.51M cash reserves, into its clinical-stage lead product candidates and ongoing research and development efforts. The overall growth and income profile for Tempest Therapeutics, Inc. is currently defined by negative earnings, zero revenue generation, and a total reinvestment strategy focused on advancing its oncology pipeline rather than providing current income returns to investors.