Compugen Ltd. (NASDAQ:CGEN) Misses Earnings and Revenue Estimates

Compugen Ltd. (NASDAQ:CGEN) is a prominent player in the Medical - Biomedical and Genetics industry, specializing in drug discovery and development, with a focus on immuno-oncology. Despite its innovative approach, the company's recent earnings report has highlighted some challenges, including missed earnings and revenue estimates.

• Compugen reported an EPS of -$0.08, missing the estimated EPS of -$0.06, reflecting a negative surprise of 33.33%.
• The company's revenue for the quarter was $2.28 million, falling short of the estimated $3.70 million by 38.35%.
• Despite financial challenges, Compugen maintains a low debt-to-equity ratio of 0.053 and a strong current ratio of approximately 5.26, indicating financial stability.

On May 19, 2025, CGEN reported an earnings per share (EPS) of -$0.08, missing the estimated EPS of -$0.06. This result mirrors the loss from the same quarter last year, as highlighted by Zacks. The earnings report reflects a negative surprise of 33.33%. In the previous quarter, the company also reported a loss of $0.07 per share, against expectations of $0.07 earnings, resulting in a significant negative surprise of 200%.

CGEN's revenue for the quarter was $2.28 million, falling short of the estimated $3.70 million by 38.35%, as noted by Zacks. This is a decrease from the $2.56 million reported in the same quarter the previous year. Over the past four quarters, Compugen has only surpassed consensus revenue estimates once, indicating a pattern of underperformance in meeting revenue expectations.

Despite a negative price-to-earnings (P/E) ratio of approximately -8.87, Compugen's price-to-sales ratio stands at about 4.73. This suggests that investors are willing to pay $4.73 for every dollar of sales, reflecting some level of confidence in the company's sales potential. The enterprise value to sales ratio is approximately 4.18, providing insight into the company's valuation relative to its sales.

Compugen maintains a low debt-to-equity ratio of 0.053, indicating a conservative approach to leveraging debt. The company also has a strong current ratio of approximately 5.26, suggesting a robust ability to cover its short-term liabilities with its short-term assets. This financial stability may provide some reassurance to investors despite the recent earnings and revenue shortfalls.