One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Sagimet Biosciences Inc.
SGMT · NGM · Healthcare · Biotechnology
Current price
$8.17
52-week range
$4.50 - $11.45
Market cap
$579.32M
Balance sheet
Healthy
-9.72x Concerning
Net cash $238.19M. Interest coverage shows how many times profit covers the interest bill.
What stands out
0 Rewards
1 Risk
0 rewards · 1 risks
View details ↓What this company does
Sagimet Biosciences Inc.
Sagimet Biosciences develops medicines that target how the body uses fat to treat diseases like liver conditions, acne, and certain cancers. Their main product, Denifanstat, is a pill that could become a new treatment for people with these issues. This matters because if their drug is successful, it could help many patients and create a new income stream for the company.
How the company got here
Sagimet Biosciences, originally known as 3-V Biosciences, was founded in 2006. The company's journey has been focused on developing new medicines based on a specific biological target. It officially changed its name to Sagimet Biosciences Inc. in August 2019, reflecting its evolving research and development efforts. Headquartered in San Mateo, California, Sagimet has dedicated itself to tackling diseases linked to how the body processes fats and builds scar tissue.
What it actually does
Sagimet Biosciences is a biopharmaceutical company working on creating new medicines. These medicines are designed to treat diseases that happen when the body's metabolism (how it uses energy and nutrients) or its fibrotic pathways (how it forms scar tissue) aren't working correctly. The company's main approach involves developing drugs that inhibit (block) an enzyme called fatty acid synthase (FASN). By blocking FASN, Sagimet aims to correct these underlying metabolic and fibrotic issues in various diseases.
Denifanstat (Metabolic Dysfunction-Associated Steatohepatitis, Acne, and Cancer Programs)
The company's most advanced product candidate is Denifanstat, which is an oral (taken by mouth) pill designed to be taken once a day. Denifanstat is a selective inhibitor of fatty acid synthase (FASN), meaning it specifically targets and blocks the FASN enzyme. Sagimet is developing Denifanstat for several conditions, including metabolic dysfunction-associated steatohepatitis (a liver condition), acne (a common skin condition), and certain types of cancer. This represents Sagimet's primary business line, focusing on bringing this potential new therapy through clinical trials to market.
Other Oncology Programs
In addition to Denifanstat, Sagimet is also exploring other applications for its FASN inhibitor technology in the field of oncology (cancer treatment). This includes developing treatments for solid tumors, which are masses of abnormal tissue, and glioblastoma, a type of aggressive brain cancer. These programs represent earlier-stage research efforts aimed at expanding the potential uses of Sagimet's core scientific approach to combat different forms of cancer.
What management is betting on now
Sagimet's management is primarily focused on advancing its lead drug candidate, Denifanstat, through the necessary clinical trials to demonstrate its safety and effectiveness. The company is strategically prioritizing the development of Denifanstat for metabolic dysfunction-associated steatohepatitis (MASH), a liver disease, as well as for acne and certain cancers. Success in these trials is crucial for Sagimet, as it will determine the potential for these drugs to reach patients and generate future revenue for the company.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
—
Net income
$-13.95M
Diluted EPS
-0.26
Operating cash flow
$-11.10M
Free cash flow
—
Fetching…
Sources
Revenue
—
Net income
$-10.65M
Diluted EPS
-0.33
Operating cash flow
$-8.61M
Free cash flow
—
Fetching…
Sources
Revenue
—
Net income
$-9.57M
Diluted EPS
-0.30
Operating cash flow
$-11.83M
Free cash flow
—
Fetching…
Sources
Revenue
—
Net income
$-12.91M
Diluted EPS
-0.40
Operating cash flow
$-10.18M
Free cash flow
—
Fetching…
Sources
Revenue
—
Net income
$-10.39M
Diluted EPS
-0.32
Operating cash flow
$-9.10M
Free cash flow
—
Fetching…
Sources
Revenue
—
Net income
$-18.18M
Diluted EPS
-0.56
Operating cash flow
$-14.54M
Free cash flow
—
Fetching…
Sources
Revenue
—
Net income
$-16.20M
Diluted EPS
-0.52
Operating cash flow
$-11.02M
Free cash flow
—
Fetching…
Sources
Revenue
—
Net income
$-14.62M
Diluted EPS
-0.45
Operating cash flow
$-19.57M
Free cash flow
—
Fetching…
Sources
Is it cheap or expensive?
Fair value — vs current price $8.17
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $238.2M - more cash than debt. Interest coverage -9.7x.
Net debt
$-238.19M
Interest coverage
-9.72x
Sagimet Biosciences Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
SGMT
BASELINE
Sagimet Biosciences Inc.
Total debt $1.94M Interest coverage -9.72x This is the baseline the peer rows are being compared against.
Total debt $76.91M Interest coverage -41.89x Neither company has much profit cushion over interest right now.
Total debt $64.14M Interest coverage 24.61x This peer still has a real interest-payment cushion, while SGMT does not.
Total debt $93.13M Interest coverage 17.53x This peer still has a real interest-payment cushion, while SGMT does not.
Total debt $244.73M Interest coverage -73.44x Neither company has much profit cushion over interest right now.
Total debt $836.64M Interest coverage 4.32x This peer still has a real interest-payment cushion, while SGMT does not.
What you should know
The case for and against SGMT
0 Rewards
1 Risk
Rewards
Risks
-
Return on equity was -24.4% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
-6.28x
P/B
1.97x
P/S
—
EV/EBITDA
—
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
0.0%
Operating margin
0.0%
Net margin
0.0%
ROE
-24.4%
ROA
-16.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
45.02x
Quick ratio
44.31x
Total debt
$1.94M
Total cash
$240.13M
Growth
How the business has been compounding
Revenue TTM
$2.00M
Revenue 5Y CAGR
0.0%
EPS TTM
-1.27
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-41.72M
Free CF TTM
$-45.65M
FCF margin
-2,282.5%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
—