Investment Thesis
Metagenomi is a pre-commercialization biotech company with minimal revenue ($1.2M, down 51.8% YoY) but unsustainable cash burn ($21.2M operating outflow annually). Despite a strong balance sheet ($137.8M equity, $25.3M cash, zero debt), the current burn rate provides only ~1.2 years of runway, and the company shows no clear path to profitability from available financial metrics.
Strengths
- Strong balance sheet with $137.8M stockholders equity and zero debt
- Adequate near-term cash position of $25.3M with excellent liquidity ratios (6.43x current/quick)
- Minimal capital expenditure ($25K) suggests focused R&D allocation rather than infrastructure spending
Risks
- Severe cash burn of $21.2M annually with negative operating cash flow, resulting in ~1.2 year runway at current burn rate
- Revenue collapsing (-51.8% YoY) from already minimal $1.2M base indicates commercialization challenges
- Massive operating losses (-$24.6M) and negative net margin (-1847.7%) with no visible path to profitability
- Early-stage biotech model dependent on pipeline success, regulatory approvals, and capital raise requirements
Key Metrics to Watch
- Monthly cash burn rate and remaining runway (critical for survival assessment)
- Revenue growth trajectory and any new product commercialization milestones
- Clinical pipeline progress and regulatory filing status for core candidates
- Capital raise activity and dilution impact on equity holders
Financial Metrics
Revenue
1.2M
Net Income
-23.1M
EPS (Diluted)
$-0.61
Free Cash Flow
-21.2M
Total Assets
197.0M
Cash
25.3M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-1,970.1%
Net Margin
-1,847.7%
ROE
-16.7%
ROA
-11.7%
FCF Margin
-1,698.7%
Balance Sheet & Liquidity
Current Ratio
6.43x
Quick Ratio
6.43x
Debt/Equity
0.00x
Debt/Assets
30.0%
Interest Coverage
N/A
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-14T08:48:46.130036 |
Data as of: 2026-03-31 |
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