New Risk • Mar 27
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 17% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Currently unprofitable and not forecast to become profitable next year (US$20m net loss next year). Share price has been volatile over the past 3 months (15% average weekly change). Shareholders have been diluted in the past year (17% increase in shares outstanding). Announcement • Mar 24
Sol-Gel Technologies Ltd. has completed a Follow-on Equity Offering in the amount of $33.056064 million. Sol-Gel Technologies Ltd. has completed a Follow-on Equity Offering in the amount of $33.056064 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 459,112
Price\Range: $72
Discount Per Security: $4.32 Reported Earnings • Mar 19
Full year 2025 earnings released: US$2.20 loss per share (vs US$3.80 loss in FY 2024) Full year 2025 results: US$2.20 loss per share (improved from US$3.80 loss in FY 2024). Revenue: US$19.4m (up 68% from FY 2024). Net loss: US$6.13m (loss narrowed 42% from FY 2024). Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Announcement • Dec 17
Sol-Gel Technologies, Ltd. Provides Update Following Unblinding of Phase 1b Study of SGT-210 in Darier Disease Sol-Gel Technologies Ltd. provided an update following the unblinding of clinical data from its vehicle-controlled proof-of-concept Phase 1b study of SGT-210 on Darier disease. Following unblinding, the data from the vehicle-controlled Phase 1b proof-of-concept study did not show differentiation between SGT-210 and vehicle on the study's efficacy assessments. Mutations in the PTCH1 gene may cause a loss of PTCH1 function, release of SMO, and may allow BCC tumor cells to divide uncontrollably. SGT-610, a hedgehog signaling pathway blocker, has the potential to be the first ever treatment for prevention of BCCs in Gorlin syndrome patients, if approved. Gorlin syndrome, an autosomal dominant genetic disorder affecting approximately 1 in 27,000-31,000 people in the U.S., is mostly caused by inheritance of one defective copy of the tumor suppressor patched homolog 1 (PTCH1) gene. Normally, the PTCH1 gene blocks the smoothened, frizzle class receptor (SMO) gene, turning off the hedgehog signaling pathway when it is not needed. Mutations in the PTCH1 gene may cause a loss of PTCH1 function, release of SMO, and may allow BCC tumor cells to divide uncontrollably. Patidegib, the active substance in SGT-610, is designed to block the SMO signal, thus, allowing cells to function normally and reducing the production of new tumors. Reported Earnings • Nov 21
Third quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2025 results: US$2.13 loss per share (further deteriorated from US$0.13 loss in 3Q 2024). Revenue: US$400.0k (down 93% from 3Q 2024). Net loss: US$5.94m (loss widened US$5.58m from 3Q 2024). Revenue exceeded analyst estimates by 33%. Earnings per share (EPS) missed analyst estimates by 1.9%. Revenue is expected to decline by 82% p.a. on average during the next 2 years, while revenues in the Pharmaceuticals industry in the US are expected to grow by 9.5%. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. New Risk • Oct 27
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 140% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (18% average weekly change). Earnings are forecast to decline by an average of 140% per year for the foreseeable future. Minor Risk Currently unprofitable and not forecast to become profitable next year (US$10m net loss next year). New Risk • Sep 29
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of American stocks, typically moving 17% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (17% average weekly change). Minor Risk Market cap is less than US$100m (US$80.8m market cap). Announcement • Sep 26
Sol-Gel Technologies Ltd., Annual General Meeting, Nov 11, 2025 Sol-Gel Technologies Ltd., Annual General Meeting, Nov 11, 2025. Location: offices of mintz, levin, cohn, ferris, glovsky and, popeo, p.c., 919 third avenue, floor 38, ny 10022., new york United States Announcement • Sep 04
Sol-Gel Announces Health Canada Approval of EPSOLAY®? Sol-Gel Technologies Ltd. conducting a Phase-3 clinical trial of SGT-610 (patidegib gel, 2%) for Gorlin syndrome, a Phase-1b, double blinded clinical trial of SGT-210 (erlotinib appointment, 5%) on Darier disease patients and with two approved large-category dermatology products, TWYNEO and EPSOLAY, announced that on August 27, 2025Health Canada issued a Notice of Compliance (NOC) for EPSOLAY for the treatment of inflammatory lesions of rosacea in adults. Based on current plans, launches in many of these territories are expected to begin in 2027 and 2028, and partners forecasts indicate that ex-U.S. contribution to the EBITDA of the company are expected to gradually increase and potentially reach approximately $10 million annually by 2031. Mutations in the PTCH1 gene may cause a loss of PTCH1 function, release of SMO, and may allow BCC tumor cells to divide uncontrollably. Reported Earnings • Aug 17
Second quarter 2025 earnings released: EPS: US$4.17 (vs US$0.71 in 2Q 2024) Second quarter 2025 results: EPS: US$4.17 (up from US$0.71 in 2Q 2024). Revenue: US$17.3m (up 218% from 2Q 2024). Net income: US$11.6m (up 488% from 2Q 2024). Profit margin: 67% (up from 36% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has fallen by 36% per year, which means it is performing significantly worse than earnings. Reported Earnings • May 01
Full year 2024 earnings released: US$0.38 loss per share (vs US$1.01 loss in FY 2023) Full year 2024 results: US$0.38 loss per share (improved from US$1.01 loss in FY 2023). Revenue: US$11.5m (up US$9.98m from FY 2023). Net loss: US$10.6m (loss narrowed 61% from FY 2023). Over the last 3 years on average, earnings per share has fallen by 50% per year whereas the company’s share price has fallen by 51% per year. Recent Insider Transactions • May 01
CEO & Executive Chairman recently bought US$98k worth of stock On the 28th of April, Moshe Arkin bought around 136k shares on-market at roughly US$0.72 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Moshe's only on-market trade for the last 12 months. New Risk • Dec 23
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of American stocks, typically moving 80% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (80% average weekly change). Minor Risks Currently unprofitable and not forecast to become profitable over next 3 years (US$9.8m net loss in 3 years). Market cap is less than US$100m (US$12.0m market cap). Announcement • Nov 21
Sol-Gel Technologies Receives 180-Day Extension to Regain Compliance with Nasdaq Minimum Bid Requirement Sol-Gel Technologies Ltd. announced that it has received an extension of the period to regain compliance with The Nasdaq Stock Market LLC’s (‘Nasdaq’) minimum bid price rule. On November 19, 2024, the Company received a letter from Nasdaq notifying the Company that, while the Company has not regained compliance with the Minimum Bid Price Requirement, Nasdaq has determined that the Company is eligible for an additional 180 calendar day period, or until May 19, 2025, (the ‘Second Compliance Period’) to regain compliance. Nasdaq's determination was based on (i) the Company meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on The Nasdaq Capital Market, with the exception of the Minimum Bid Price Requirement, and (ii) the Company's written notice to Nasdaq of its intention to cure the deficiency during the Second Compliance Period by effecting a reverse stock split, if necessary. In order to be provided with a Second Compliance Period, the Company submitted an application to transfer the listing of its Ordinary Shares from the Nasdaq Global Market to the Nasdaq Capital Market. This transfer to the Nasdaq Capital Market was approved and became effective as of November 15, 2024. If at any time during the Second Compliance Period, the closing bid price of the Company’s Ordinary Shares meet or exceed USD 1.00 per Ordinary Share for at least ten consecutive business days, Nasdaq will provide written confirmation of compliance and this matter will be closed. The Company intends to continue to actively monitor its compliance with the Minimum Bid Price Requirement and, as appropriate, will consider available options to resolve any deficiencies and regain compliance, including the implementation of a reverse share split, if necessary. Board Change • Nov 18
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent External Director Yuval Yanai was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • May 22
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: US$0.23 loss per share (improved from US$0.41 loss in 1Q 2023). Net loss: US$6.34m (loss narrowed 38% from 1Q 2023). Revenue missed analyst estimates by 17%. Earnings per share (EPS) also missed analyst estimates by 44%. Revenue is forecast to grow 56% p.a. on average during the next 3 years, compared to a 9.5% growth forecast for the Pharmaceuticals industry in the US. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has fallen by 57% per year, which means it is performing significantly worse than earnings. New Risk • May 22
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.5% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.5% per year for the foreseeable future. Minor Risks Currently unprofitable and not forecast to become profitable over next 3 years (US$8.5m net loss in 3 years). Share price has been volatile over the past 3 months (14% average weekly change). Shareholders have been diluted in the past year (8.4% increase in shares outstanding). Revenue is less than US$5m (US$1.6m revenue). Market cap is less than US$100m (US$19.6m market cap). Major Estimate Revision • Mar 20
Consensus revenue estimates increase by 13%, EPS downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from US$2.13m to US$2.40m. EPS estimate fell from -US$0.69 to -US$0.70 per share. Pharmaceuticals industry in the US expected to see average net income growth of 3.3% next year. Consensus price target of US$8.00 unchanged from last update. Share price fell 6.9% to US$0.98 over the past week. Reported Earnings • Mar 14
Full year 2023 earnings: EPS in line with analyst expectations despite revenue beat Full year 2023 results: US$1.01 loss per share (further deteriorated from US$0.65 loss in FY 2022). Net loss: US$27.2m (loss widened 83% from FY 2022). Revenue is forecast to grow 60% p.a. on average during the next 3 years, compared to a 8.9% growth forecast for the Pharmaceuticals industry in the US. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 58% per year, which means it is significantly lagging earnings. Major Estimate Revision • Dec 10
Consensus revenue estimates decrease by 15% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from US$1.37m to US$1.17m. EPS estimate unchanged from -US$1.01 per share at last update. Pharmaceuticals industry in the US expected to see average net income growth of 47% next year. Consensus price target of US$8.00 unchanged from last update. Share price fell 12% to US$1.17 over the past week. Announcement • Nov 21
Sol-Gel Technologies Ltd. Announces Resignation of Shmuel Ben Zvi from Board Sol-Gel Technologies Ltd. announced on November 19, 2023, Dr. Shmuel Ben Zvi submitted to the Board of Directors of the company his resignation from the Board, effective immediately. Dr. Ben Zvi’s decision to resign was due to his recent appointment as chairman of Bank Leumi Le-Israel B.M. Buying Opportunity • Nov 18
Now 24% undervalued after recent price drop Over the last 90 days, the stock is down 49%. The fair value is estimated to be US$1.87, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 13% over the last 3 years. Meanwhile, the company became loss making. For the next 3 years, revenue is forecast to grow by 67% per annum. Earnings is also forecast to grow by 41% per annum over the same time period. Major Estimate Revision • Nov 16
Consensus revenue estimates decrease by 38%, EPS upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from US$2.21m to US$1.37m. EPS estimate increased from -US$1.10 to -US$1.01 per share. Pharmaceuticals industry in the US expected to see average net income growth of 40% next year. Consensus price target down from US$10.50 to US$8.00. Share price was steady at US$1.47 over the past week. Reported Earnings • Nov 11
Third quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2023 results: US$0.20 loss per share (further deteriorated from US$0.15 loss in 3Q 2022). Net loss: US$5.71m (loss widened 68% from 3Q 2022). Revenue missed analyst estimates by 69%. Earnings per share (EPS) exceeded analyst estimates by 8.7%. Revenue is forecast to grow 103% p.a. on average during the next 2 years, compared to a 8.3% growth forecast for the Pharmaceuticals industry in the US. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 46% per year, which means it is significantly lagging earnings. Major Estimate Revision • Aug 17
Consensus revenue estimates decrease by 69%, EPS upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from US$7.16m to US$2.21m. EPS estimate increased from -US$1.15 to -US$1.10 per share. Pharmaceuticals industry in the US expected to see average net income growth of 4.2% next year. Consensus price target down from US$14.00 to US$10.50. Share price fell 16% to US$2.71 over the past week. Price Target Changed • Aug 14
Price target decreased by 28% to US$10.50 Down from US$14.50, the current price target is an average from 2 analysts. New target price is 244% above last closing price of US$3.05. Stock is down 51% over the past year. The company is forecast to post a net loss per share of US$1.10 next year compared to a net loss per share of US$0.65 last year. Reported Earnings • Aug 12
Second quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2023 results: US$0.22 loss per share (further deteriorated from US$0.006 loss in 2Q 2022). Net loss: US$5.97m (loss widened US$5.84m from 2Q 2022). Revenue missed analyst estimates by 62%. Earnings per share (EPS) exceeded analyst estimates by 14%. Revenue is forecast to grow 26% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the Pharmaceuticals industry in the US. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has fallen by 29% per year, which means it is significantly lagging earnings. Announcement • Jul 30
Sol-Gel Technologies Ltd. Appoints Sharon Kochan to the Board of Directors Sol-Gel Technologies Ltd. at its Annual Meeting of Shareholders held on July 26, 2023, approved the appointment of Mr. Sharon Kochan to the Board of Directors until the annual general meeting to be held in 2024. Major Estimate Revision • Jul 20
Consensus revenue estimates decrease by 36%, EPS upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from US$11.2m to US$7.16m. EPS estimate increased from -US$1.28 to -US$1.15 per share. Pharmaceuticals industry in the US expected to see average net income growth of 1.3% next year. Consensus price target down from US$14.50 to US$14.00. Share price rose 6.8% to US$3.38 over the past week. Recent Insider Transactions Derivative • Jul 01
Co-Founder notifies of intention to sell stock Alon Seri-Levy intends to sell 55k shares in the next 90 days after lodging an Intent To Sell Form on the 27th of June. If the sale is conducted around the recent share price of US$3.06, it would amount to US$169k. For the year to December 2017, Alon's total compensation was 25% salary and 75% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since March 2023, Alon has not owned shares directly (This sale likely refers to shares that have not yet been received). There have been no trades via on-market transactions or options from company insiders in the last 12 months. Announcement • Jun 15
Sol-Gel Technologies Ltd., Annual General Meeting, Jul 26, 2023 Sol-Gel Technologies Ltd., Annual General Meeting, Jul 26, 2023, at 16:00 Israel Standard Time. Location: 7 Golda Meir St., Weizmann Science Park Ness-Ziona Israel Agenda: To appoint Kesselman & Kesselman, certified public accountants in Israel and a member of PricewaterhouseCoopers International Limited, as the Company's independent auditors for the year 2023 and for an additional period until the following annual general meeting; and to inform the shareholders of the aggregate compensation paid to the auditors for the year ended December 31, 2022; to approve the election of Mr. Sharon Kochan and the re-election of Dr. Alon Seri-Levy, Mr. Moshe Arkin, Mr. Itai Arkin, Ms. Hani Lerman, Dr. Shmuel Ben Zvi and Mr. Jonathan B. Siegel to Board of Directors, each for an additional one-year term until the annual general meeting to be held in 2024; to approve the grant of an award of options to and an amendment to the terms of engagement of Dr. Alon Seri-Levi; and to approve amendments to the Company's Compensation Policy. Major Estimate Revision • Jun 07
Consensus revenue estimates increase by 42%, EPS downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from US$7.91m to US$11.2m. EPS estimate fell from -US$0.93 to -US$1.28 per share. Pharmaceuticals industry in the US expected to see average net income decline 12% next year. Consensus price target of US$14.50 unchanged from last update. Share price rose 2.6% to US$3.49 over the past week. Reported Earnings • May 14
First quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2023 results: US$0.41 loss per share (further deteriorated from US$0.24 loss in 1Q 2022). Revenue: US$758.0k (up US$755.0k from 1Q 2022). Net loss: US$10.3m (loss widened 83% from 1Q 2022). Revenue exceeded analyst estimates by 60%. Earnings per share (EPS) missed analyst estimates by 91%. Revenue is forecast to grow 34% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Pharmaceuticals industry in the US. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has fallen by 23% per year, which means it is significantly lagging earnings. Major Estimate Revision • Apr 13
Consensus revenue estimates increase by 72%, EPS downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from US$4.60m to US$7.91m. EPS estimate fell from -US$0.90 to -US$0.93 per share. Pharmaceuticals industry in the US expected to see average net income growth of 7.1% next year. Consensus price target of US$11.50 unchanged from last update. Share price rose 8.5% to US$4.07 over the past week. Reported Earnings • Mar 12
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: US$0.65 loss per share (down from US$0.14 profit in FY 2021). Revenue: US$3.88m (down 88% from FY 2021). Net loss: US$14.9m (down US$18.1m from profit in FY 2021). Revenue missed analyst estimates by 32%. Earnings per share (EPS) also missed analyst estimates by 29%. Revenue is forecast to grow 29% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Pharmaceuticals industry in the US. Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has fallen by 21% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Mar 10
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to US$3.80, the stock trades at a trailing P/E ratio of 20x. Average forward P/E is 15x in the Pharmaceuticals industry in the US. Total loss to shareholders of 47% over the past three years. Reported Earnings • Nov 25
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: US$0.15 loss per share (down from US$0.056 profit in 3Q 2021). Revenue: US$261.0k (down 97% from 3Q 2021). Net loss: US$3.41m (down 365% from profit in 3Q 2021). Revenue missed analyst estimates by 92%. Earnings per share (EPS) also missed analyst estimates by 131%. Revenue is forecast to grow 24% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Pharmaceuticals industry in the US. Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Price Target Changed • Nov 17
Price target decreased to US$12.50 Down from US$14.50, the current price target is an average from 3 analysts. New target price is 155% above last closing price of US$4.90. Stock is down 46% over the past year. The company is forecast to post a net loss per share of US$0.50 compared to earnings per share of US$0.14 last year. Board Change • Nov 17
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 8 experienced directors. 1 highly experienced director. Independent Director Jonathan Siegel was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Sep 28
Investor sentiment deteriorated over the past week After last week's 18% share price decline to US$4.85, the stock trades at a trailing P/E ratio of 11.7x. Average forward P/E is 12x in the Pharmaceuticals industry in the US. Total loss to shareholders of 43% over the past three years. Major Estimate Revision • Sep 03
Consensus revenue estimates increase by 20% The consensus outlook for revenues in 2022 has improved. 2022 revenue forecast increased from US$10.2m to US$12.3m. Forecast losses expected to reduce from -US$0.49 to -US$0.36 per share. Pharmaceuticals industry in the US expected to see average net income growth of 0.1% next year. Consensus price target up from US$16.74 to US$18.00. Share price rose 2.3% to US$6.03 over the past week. Price Target Changed • Sep 03
Price target increased to US$19.00 Up from US$17.67, the current price target is an average from 3 analysts. New target price is 215% above last closing price of US$6.03. Stock is down 41% over the past year. The company is forecast to post a net loss per share of US$0.45 compared to earnings per share of US$0.14 last year. Price Target Changed • Aug 29
Price target increased to US$18.00 Up from US$16.75, the current price target is an average from 3 analysts. New target price is 198% above last closing price of US$6.05. Stock is down 38% over the past year. The company is forecast to post a net loss per share of US$0.49 compared to earnings per share of US$0.14 last year. Reported Earnings • Aug 05
Second quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2022 results: US$0.006 loss per share (up from US$0.35 loss in 2Q 2021). Revenue: US$3.52m (up 279% from 2Q 2021). Net loss: US$134.0k (loss narrowed 98% from 2Q 2021). Revenue missed analyst estimates by 24%. Earnings per share (EPS) exceeded analyst estimates by 90%. Over the next year, revenue is expected to shrink by 26% compared to a 18% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Jul 15
Investor sentiment improved over the past week After last week's 24% share price gain to US$5.47, the stock trades at a trailing P/E ratio of 75x. Average forward P/E is 15x in the Pharmaceuticals industry in the US. Total loss to shareholders of 44% over the past three years. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment deteriorated over the past week After last week's 21% share price decline to US$4.51, the stock trades at a trailing P/E ratio of 61.9x. Average forward P/E is 14x in the Pharmaceuticals industry in the US. Total loss to shareholders of 51% over the past three years. Major Estimate Revision • Jun 01
Consensus revenue estimates increase by 33% The consensus outlook for revenues in 2022 has improved. 2022 revenue forecast increased from US$11.1m to US$14.8m. Forecast losses expected to reduce from -US$0.70 to -US$0.49 per share. Pharmaceuticals industry in the US expected to see average net income growth of 9.5% next year. Consensus price target of US$16.75 unchanged from last update. Share price was steady at US$5.91 over the past week. Major Estimate Revision • May 16
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from US$14.9m to US$11.1m. EPS estimate unchanged from -US$0.70 per share at last update. Pharmaceuticals industry in the US expected to see average net income growth of 14% next year. Consensus price target of US$16.75 unchanged from last update. Share price rose 3.9% to US$6.18 over the past week. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 8 experienced directors. 1 highly experienced director. Independent Director Jonathan Siegel was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 02
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: EPS: US$0.14 (up from US$1.30 loss in FY 2020). Revenue: US$31.3m (up 257% from FY 2020). Net income: US$3.22m (up US$32.5m from FY 2020). Profit margin: 10% (up from net loss in FY 2020). The move to profitability was primarily driven by higher revenue. Post-clinical trial products Pre-registration: 1 Approved (during full year): 1 Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 180%. Over the next year, revenue is expected to shrink by 66% compared to a 17% growth forecast for the pharmaceuticals industry in the US. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Apr 01
Consensus revenue estimates fall by 45% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from US$19.6m to US$10.7m. Forecast losses increased from -US$0.71 to -US$0.81 per share. Pharmaceuticals industry in the US expected to see average net income growth of 14% next year. Consensus price target of US$17.75 unchanged from last update. Share price was steady at US$7.24 over the past week. Breakeven Date Change • Dec 24
Forecast to breakeven in 2021 The 4 analysts covering Sol-Gel Technologies expect the company to break even for the first time. New consensus forecast suggests the company will make a profit of US$1.15m in 2021. Earnings growth of 47% is required to achieve expected profit on schedule. Major Estimate Revision • Dec 22
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast increased from US$26.3m to US$30.8m. EPS estimate unchanged from -US$0.015 at last update. Pharmaceuticals industry in the US expected to see average net income growth of 16% next year. Consensus price target of US$17.75 unchanged from last update. Share price fell 9.2% to US$6.85 over the past week. Price Target Changed • Nov 17
Price target decreased to US$17.75 Down from US$19.25, the current price target is an average from 4 analysts. New target price is 95% above last closing price of US$9.12. Stock is up 16% over the past year. The company is forecast to post a net loss per share of US$0.015 next year compared to a net loss per share of US$1.30 last year. Reported Earnings • Nov 14
Third quarter 2021 earnings released: EPS US$0.056 (vs US$0.38 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: US$8.84m (up 318% from 3Q 2020). Net income: US$1.29m (up US$9.91m from 3Q 2020). Profit margin: 15% (up from net loss in 3Q 2020). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 05
Second quarter 2021 earnings released: US$0.35 loss per share (vs US$0.31 loss in 2Q 2020) The company reported a poor second quarter result with increased losses, weaker revenues and weaker control over costs. Second quarter 2021 results: Revenue: US$928.0k (down 18% from 2Q 2020). Net loss: US$8.03m (loss widened 14% from 2Q 2020). Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jul 15
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast fell from US$17.4m to US$14.8m. EPS estimate increased from -US$0.97 to -US$0.89 per share. Pharmaceuticals industry in the US expected to see average net income growth of 11% next year. Consensus price target broadly unchanged at US$19.00. Share price rose 3.2% to US$12.50 over the past week. Recent Insider Transactions Derivative • Jul 06
Chief Financial Officer notifies of intention to sell stock Gilad Mamlok intends to sell 5k shares in the next 90 days after lodging an Intent To Sell Form on the 30th of June. If the sale is conducted around the recent share price of US$12.17, it would amount to US$61k. As of today, Gilad currently holds no shares directly (This sale likely refers to shares that have not yet been received). There have been no trades via on-market transactions or options from company insiders in the last 12 months. Major Estimate Revision • Jun 29
Consensus revenue estimates increase to US$17.4m The consensus outlook for revenues in 2021 has improved. 2021 revenue forecast increased from US$15.0m to US$17.4m. Forecast losses expected to reduce from -US$1.64 to -US$0.97 per share. Pharmaceuticals industry in the US expected to see average net income growth of 11% next year. Consensus price target of US$20.00 unchanged from last update. Share price rose 3.4% to US$12.36 over the past week. Major Estimate Revision • May 20
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast fell from US$16.8m to US$15.0m. EPS estimate increased from -US$2.02 to -US$1.89 per share. Pharmaceuticals industry in the US expected to see average net income growth of 13% next year. Consensus price target of US$20.00 unchanged from last update. Share price fell 10% to US$10.29 over the past week. Reported Earnings • May 15
First quarter 2021 earnings released: US$0.18 loss per share (vs US$0.33 loss in 1Q 2020) The company reported a soft first quarter result with weaker revenues and control over costs, although losses reduced. First quarter 2021 results: Revenue: US$701.0k (down 80% from 1Q 2020). Net loss: US$4.06m (loss narrowed 43% from 1Q 2020). Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Breakeven Date Change • May 15
Forecast breakeven pushed back to 2024 The 4 analysts covering Sol-Gel Technologies previously expected the company to break even in 2023. New consensus forecast suggests the company will make a profit of US$37.4m in 2024. Average annual earnings growth of 63% is required to achieve expected profit on schedule. Major Estimate Revision • Mar 11
Analysts lower revenue estimates to US$16.8m The 2021 consensus revenue estimate decreased from US$20.4m. Earnings per share (EPS) also decreased, with analysts lowering their estimates from -US$1.99 to -US$2.02 for the same period. The Pharmaceuticals industry in the US is expected to see an average net income growth of 11% next year. The consensus price target of US$20.00 was unchanged from the last update. Share price is up 3.2% to US$9.86 over the past week. Reported Earnings • Mar 06
Full year 2020 earnings released: US$1.30 loss per share (vs US$1.26 loss in FY 2019) The company reported a poor full year result with increased losses, weaker revenues and weaker control over costs. Full year 2020 results: Revenue: US$8.77m (down 62% from FY 2019). Net loss: US$29.3m (loss widened 19% from FY 2019). Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Mar 06
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 5.7%. Earnings per share (EPS) missed analyst estimates by 12%. Over the next year, revenue is forecast to grow 97%, compared to a 23% growth forecast for the Pharmaceuticals industry in the US. Is New 90 Day High Low • Mar 01
New 90-day low: US$8.90 The company is down 1.0% from its price of US$9.00 on 30 November 2020. The American market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is up 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$74.65 per share. Is New 90 Day High Low • Jan 07
New 90-day high: US$10.09 The company is up 34% from its price of US$7.52 on 09 October 2020. The American market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Pharmaceuticals industry, which is up 5.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$74.65 per share. Is New 90 Day High Low • Dec 05
New 90-day high: US$9.40 The company is up 25% from its price of US$7.52 on 04 September 2020. The American market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Pharmaceuticals industry, which is up 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$85.16 per share. Analyst Estimate Surprise Post Earnings • Nov 17
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 16%. Earnings per share (EPS) missed analyst estimates by 20%. Over the next year, revenue is forecast to grow 131%, compared to a 21% growth forecast for the Pharmaceuticals industry in the US. Reported Earnings • Nov 14
Third quarter 2020 earnings released: US$0.38 loss per share The company reported a poor third quarter result with increased losses and weaker revenues and control over expenses. Third quarter 2020 results: Revenue: US$2.12m (down 55% from 3Q 2019). Net loss: US$8.62m (loss widened 17% from 3Q 2019). Is New 90 Day High Low • Nov 14
New 90-day high: US$8.69 The company is up 9.0% from its price of US$7.97 on 14 August 2020. The American market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Pharmaceuticals industry, which is down 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$85.16 per share. Is New 90 Day High Low • Oct 02
New 90-day low: US$7.11 The company is down 18% from its price of US$8.69 on 02 July 2020. The American market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is up 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$61.46 per share.