SQZ Biotechnologies (NYSE:SQZ) - Share price, News & Analysis

SQZ fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	2/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

SQZ Stock Overview

SQZ Biotechnologies Company, a clinical-stage biotechnology company, develops cell therapies for patients with cancer, autoimmune, infectious diseases, and other serious conditions.

Rewards

Revenue is forecast to grow 68.81% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Volatile share price over the past 3 months

Does not have a meaningful market cap ($99M)

SQZ Biotechnologies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SQZ Biotechnologies
Historical stock prices
Current Share Price	US$3.53
52 Week High	US$16.17
52 Week Low	US$2.73
Beta	0
1 Month Change	5.37%
3 Month Change	-27.52%
1 Year Change	-75.14%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-73.36%

Shareholder Returns

	SQZ	US Biotechs	US Market
7D	12.4%	10.3%	6.6%
1Y	-75.1%	-24.4%	-18.5%

Return vs Industry: SQZ underperformed the US Biotechs industry which returned -25.1% over the past year.

Return vs Market: SQZ underperformed the US Market which returned -20.5% over the past year.

Price Volatility

Is SQZ's price volatile compared to industry and market?
SQZ volatility
SQZ Average Weekly Movement	14.3%
Biotechs Industry Average Movement	13.0%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.1%

Stable Share Price: SQZ is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: SQZ's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

Founded	Employees	CEO	Website
2013	115	Armon Sharei	https://www.sqzbiotech.com

SQZ Biotechnologies Company, a clinical-stage biotechnology company, develops cell therapies for patients with cancer, autoimmune, infectious diseases, and other serious conditions. Its lead product candidate is SQZ-PBMC-HPV, from its SQZ Antigen Presenting Cells platform, which is in a Phase I clinical trial as a monotherapy and in combination with other immuno-oncology agents for the treatment of HPV16+ advanced or metastatic solid tumors, including cervical, head-and-neck, anal, penile, vulvar, and vaginal cancer. The company also develops SQZ-AAC-HPV, which is in a Phase I clinical trial for the treatment of HPV16+ advanced or metastatic solid tumors in monotherapy and in combinations with other immune-oncology agents.

SQZ Biotechnologies Fundamentals Summary

How do SQZ Biotechnologies's earnings and revenue compare to its market cap?
SQZ fundamental statistics
Market Cap	US$99.36m
Earnings (TTM)	-US$74.38m
Revenue (TTM)	US$24.51m

4.1x

P/S Ratio

-1.3x

P/E Ratio

Is SQZ overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SQZ income statement (TTM)
Revenue	US$24.51m
Cost of Revenue	US$72.42m
Gross Profit	-US$47.90m
Other Expenses	US$26.48m
Earnings	-US$74.38m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-2.64
Gross Margin	-195.43%
Net Profit Margin	-303.43%
Debt/Equity Ratio	0%

How did SQZ perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is SQZ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SQZ?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SQZ. This is calculated by dividing SQZ's market cap by their current preferred multiple.
What is SQZ's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$99.36m

SQZ key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.8x
Enterprise Value/EBITDA	-0.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does SQZ's PS Ratio compare to its peers?

SQZ PS Ratio vs Peers

The above table shows the PS ratio for SQZ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	28x

Forward PS

Price-To-Sales vs Peers: SQZ is good value based on its Price-To-Sales Ratio (4.1x) compared to the peer average (28x).

Price to Earnings Ratio vs Industry

How does SQZ's PE Ratio compare vs other companies in the U.S. Biotechs Industry?

Price-To-Sales vs Industry: SQZ is good value based on its Price-To-Sales Ratio (4.1x) compared to the US Biotechs industry average (13.8x)

Price to Sales Ratio vs Fair Ratio

What is SQZ's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SQZ PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	4.1x
Fair PS Ratio	1.3x

Price-To-Sales vs Fair Ratio: SQZ is expensive based on its Price-To-Sales Ratio (4.1x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).

Share Price vs Fair Value

What is the Fair Price of SQZ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate SQZ's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate SQZ's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SQZ's PEG Ratio to determine if it is good value.

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Future Growth

How is SQZ Biotechnologies forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

21.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SQZ is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SQZ is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SQZ is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SQZ's revenue (68.8% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: SQZ's revenue (68.8% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if SQZ's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has SQZ Biotechnologies performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-36.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SQZ is currently unprofitable.

Growing Profit Margin: SQZ is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: SQZ is unprofitable, and losses have increased over the past 5 years at a rate of 36.4% per year.

Accelerating Growth: Unable to compare SQZ's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SQZ is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (96.9%).

Return on Equity

High ROE: SQZ has a negative Return on Equity (-70.9%), as it is currently unprofitable.

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Financial Health

How is SQZ Biotechnologies's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: SQZ's short term assets ($127.9M) exceed its short term liabilities ($29.5M).

Long Term Liabilities: SQZ's short term assets ($127.9M) exceed its long term liabilities ($66.4M).

Debt to Equity History and Analysis

Debt Level: SQZ is debt free.

Reducing Debt: SQZ has not had any debt for past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SQZ has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: SQZ has sufficient cash runway for 1.6 years if free cash flow continues to reduce at historical rates of 61.5% each year.

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Dividend

What is SQZ Biotechnologies's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate SQZ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SQZ's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SQZ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SQZ's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SQZ has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure

CEO

Armon Sharei (34 yo)

7.42yrs

Tenure

US$2,901,460

Compensation

Dr. Armon R. Sharei, Ph.D. is the Founder of SQZ Biotechnologies Company and serves as its President and has been its Chief Executive Officer since January 2015 and has been a Director since March 2013. Dr...

CEO Compensation Analysis

Compensation vs Market: Armon's total compensation ($USD2.90M) is above average for companies of similar size in the US market ($USD758.64K).

Compensation vs Earnings: Armon's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: SQZ's management team is considered experienced (2.4 years average tenure).

Board Members

Experienced Board: SQZ's board of directors are considered experienced (3.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: SQZ insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31