Compugen Ltd. (CGEN)
Valuation Overview•Is Compugen Ltd. Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
High-quality fundamentals with a strong composite quality score of 92/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Elite compounder with fortress-level fundamentals across every core pillar.
Wall Street is highly bullish, projecting significant upside. The company currently dilutes shareholders to fund operations and growth rather than returning capital.
CGEN exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins (highlighted by a massive 85.9% ROIC). This is backed by a fortress balance sheet, holding significant net cash ($88M) and minimal debt risk.
The company is driving exceptional top-line expansion (113.3% 3Y CAGR) paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 43.1% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $67.3M | +161.1% | +113.3% | +105.2% | +22.9% | |
| EBITDA | $56.0M | — | — | — | — | |
| Net Income | $56.8M | +348.4% | — | — | — | |
| EPS (Diluted) | $0.60 | +337.5% | — | — | — | |
| Free Cash Flow | $0.00 | -36.7% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 87.3% | 84.3% | 85.7% | 86.0% |
| Operating Margin | 43.1% | -16.4% | -221.1% | -923.4% |
| Net Margin | 48.6% | -19.5% | -215.6% | -889.3% |
| FCF Margin | — | 37.6% | -147.5% | -673.3% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $-0.07 | $-0.08 | -14.3% | ||
| Q1'26 | $-0.07 | $0.60 | +957.1% | ||
| Q4'25 | $-0.09 | $-0.07 | +22.2% | ||
| Q3'25 | $-0.07 | $-0.08 | -14.3% | ||
| Q2'25 | $-0.06 | $-0.08 | -33.3% | ||
| Q1'25 | $0.07 | $-0.07 | -200.0% | ||
| Q4'24 | $0.06 | $0.01 | -83.3% | ||
| Q3'24 | $-0.08 | $-0.02 | +75.0% |
Total return is +21.8% (1Y), lagging the benchmark by -3.2%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +29.7% | +20.4% | — |
| 1Y | +21.8% | -3.2% | — |
| 3YCAGR | +15.9% | -4.0% | — |
| 5YCAGR | -23.8% | -36.4% | — |
| 10YCAGR | -11.2% | -24.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Compugen Ltd. (CGEN) valuation, health, and returns.
Compugen Ltd. valuation is being assessed using available models.
Compugen Ltd. has multiple valuation anchors: Wall Street Analyst Target: $4.50 (implying +123.9% upside). A convergence of these signals offers higher conviction.
Compugen Ltd. displays excellent financial health with a composite quality score of 92/100, supported by a Altman Z-Score of -0.1 (distress zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 85.9%.
Compugen Ltd. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Compugen Ltd.'s current growth trajectory is Accelerating. The company achieved +161.1% 1Y revenue growth and +337.5% 1Y EPS growth, compared to its 3Y revenue CAGR of +113.3%.
Wall Street consensus is Buy based on 14 analysts, beating EPS expectations in 42% of recent quarters with a -1-quarter streak. The consensus price target represents a +123.9% change from current levels.
Investment risks for Compugen Ltd. include: -36.8% 1-year max drawdown, high beta (1.71x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 1.71x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.