PepGen Inc. Common Stock (PEPG)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Graham taught me to start with what is known and not pay for hope. PepGen is a clinical-stage biotechnology company with no revenue in the filed figures. It lost $78.6 million in fiscal year 2023, the year ended 2023-12-31; $90.0 million in fiscal year 2024, the year ended 2024-12-31; and $89.7 million in fiscal year 2025, the year ended 2025-12-31. The most recent quarter, fiscal Q2 2026, the quarter ended 2026-06-30, still showed a net loss of $17.8 million. Trailing free cash flow was negative $69.5 million, a negative 40.1% FCF yield on a $173.1 million market cap. That is not a business throwing off cash; it is a business consuming it. The balance sheet gives some comfort: debt-to-equity is only 0.13, and price-to-book is 1.45 at the $2.50 close on 2026-10-13. But FairStock calculations show deeply negative returns, with ROE of -75.45% and ROCE of -39.12%. Its Piotroski score is 0/9 and Altman Z-score is 1.77, which tells me financial quality is poor. The Lynch category is none, because there has been a loss in each of the last four years. A moat is hard to identify. The value, if any, sits in the Phase 2 programs for myotonic dystrophy type 1 and the open-label extension. Those are scientific bets, not proven competitive advantages. At $2.50, the share price is closer to the 52-week low of $1.31 than the high of $7.80. I would call it speculative, not cheap. Without profits or revenue, the margin of safety depends on trial data and financing, not on the current numbers.

In plain English: PepGen is a small drug developer working on treatments for severe muscle and nerve diseases. It has no product revenue yet, has lost money for years, and is using cash, so the business looks weak on its current numbers. At $2.50, the stock is well below its 52-week high of $7.80, but because there are no profits to value, the price depends mostly on whether its drug trials succeed; it is not a classic cheap, profitable company.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer