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MGX Stock Analysis 2026 - Metagenomi Therapeutics, Inc. AI Rating

MGX Nasdaq Biological Products, (No Diagnostic Substances) CIK: 0001785279
Recently Updated • Analysis: Apr 1, 2026 • SEC Data: 2025-12-31
STRONG SELL
92% Conf
Pending
Analysis scheduled

📊 MGX Key Takeaways

Revenue: $25.2M
Net Margin: -348.5%
Free Cash Flow: $-89.5M
Current Ratio: 7.22x
Debt/Equity: 0.00x
EPS: $-2.36
AI Rating: STRONG SELL with 92% confidence

Is MGX a Good Investment? Thesis Analysis

Claude

Metagenomi is a pre-revenue biotech company with severe cash burn and deteriorating fundamentals. Revenue declined 51.8% YoY to $25.2M while operating losses widened to -$96.0M, indicating the company is consuming cash at an unsustainable rate. At current burn rate of ~$89.5M annually in negative free cash flow against only $41.7M in cash reserves, the company faces imminent funding challenges within 6-12 months.

Why Buy MGX? Key Strengths

Claude
  • + Strong balance sheet with $158.6M stockholders equity
  • + Zero debt (Debt/Equity of 0.0x) provides financial flexibility
  • + Excellent liquidity position with 7.22x current ratio

MGX Investment Risks to Consider

Claude
  • ! Massive operating losses of -$96.0M with -380.9% operating margin indicates core business is deeply unprofitable
  • ! Negative operating cash flow of -$88.9M with free cash flow of -$89.5M; cash runway appears to be 5-6 months at current burn rate
  • ! Revenue collapsed 51.8% YoY to $25.2M, signaling failed commercialization or clinical setbacks
  • ! Diluted EPS of -$2.36 reflects severe shareholder dilution from funding rounds
  • ! Negative ROE of -55.4% and ROA of -39.7% show value destruction

Key Metrics to Watch

Claude
  • * Monthly cash burn rate and runway until additional funding required
  • * Path to gross profitability and timeline for positive operating cash flow
  • * Revenue trajectory and clinical trial progression announcements
  • * Capital raise activities and dilution impact

MGX Financial Metrics

Revenue
$25.2M
Net Income
$-87.9M
EPS (Diluted)
$-2.36
Free Cash Flow
$-89.5M
Total Assets
$221.1M
Cash Position
$41.7M

💡 AI Analyst Insight

Strong liquidity with a 7.22x current ratio provides a solid financial cushion.

MGX Profitability Ratios

Gross Margin N/A
Operating Margin -380.9%
Net Margin -348.5%
ROE -55.4%
ROA -39.7%
FCF Margin -354.9%

MGX vs Healthcare Sector

How Metagenomi Therapeutics, Inc. compares to Healthcare sector averages

Net Margin
MGX -348.5%
vs
Sector Avg 12.0%
MGX Sector
ROE
MGX -55.4%
vs
Sector Avg 15.0%
MGX Sector
Current Ratio
MGX 7.2x
vs
Sector Avg 2.0x
MGX Sector
Debt/Equity
MGX 0.0x
vs
Sector Avg 0.6x
MGX Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is MGX Overvalued or Undervalued?

Based on fundamental analysis, Metagenomi Therapeutics, Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.

Return on Equity
-55.4%
Sector avg: 15%
Net Profit Margin
-348.5%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 0.6x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

MGX Balance Sheet & Liquidity

Current Ratio
7.22x
Quick Ratio
7.22x
Debt/Equity
0.00x
Debt/Assets
28.3%
Interest Coverage
N/A
Long-term Debt
N/A

MGX 5-Year Financial Trend & Growth Analysis

MGX 5-year financial data: Year 2024: Revenue $52.3M, Net Income -$68.3M, EPS $-20.05. Year 2025: Revenue $52.3M, Net Income -$78.1M, EPS $-2.36.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Metagenomi Therapeutics, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $-2.36 indicates the company is currently unprofitable.

MGX Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-354.9%
Free cash flow / Revenue

MGX Quarterly Performance

Quarterly financial performance data for Metagenomi Therapeutics, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $8.7M -$10.7M $-0.51
Q2 2025 $8.5M -$10.7M $-0.29
Q1 2025 $4.1M -$25.0M $-0.68
Q3 2024 $11.5M -$10.7M $-0.51
Q2 2024 $11.3M -$10.7M $-0.29
Q1 2024 $8.7M -$16.1M $-1.19

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

MGX Capital Allocation

Operating Cash Flow
-$88.9M
Cash generated from operations
Capital Expenditures
$574.0K
Investment in assets
Dividends
None
No dividend program

MGX SEC 10-K & 10-Q Filing Analysis

Access official SEC EDGAR filings for Metagenomi Therapeutics, Inc. (CIK: 0001785279)

📋 Recent SEC Filings

Date Form Document Action
Apr 3, 2026 4 xslF345X06/ownership.xml View →
Apr 3, 2026 4 xslF345X06/ownership.xml View →
Apr 3, 2026 4 xslF345X06/ownership.xml View →
Mar 9, 2026 4 xslF345X05/ownership.xml View →
Mar 9, 2026 4 xslF345X05/ownership.xml View →

Frequently Asked Questions about MGX

What is the AI rating for MGX?

Metagenomi Therapeutics, Inc. (MGX) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are MGX's key strengths?

Claude: Strong balance sheet with $158.6M stockholders equity. Zero debt (Debt/Equity of 0.0x) provides financial flexibility.

What are the risks of investing in MGX?

Claude: Massive operating losses of -$96.0M with -380.9% operating margin indicates core business is deeply unprofitable. Negative operating cash flow of -$88.9M with free cash flow of -$89.5M; cash runway appears to be 5-6 months at current burn rate.

What is MGX's revenue and growth?

Metagenomi Therapeutics, Inc. reported revenue of $25.2M.

Does MGX pay dividends?

Metagenomi Therapeutics, Inc. does not currently pay dividends.

Where can I find MGX SEC filings?

Official SEC filings for Metagenomi Therapeutics, Inc. (CIK: 0001785279) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is MGX's EPS?

Metagenomi Therapeutics, Inc. has a diluted EPS of $-2.36.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is MGX a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Metagenomi Therapeutics, Inc. has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is MGX stock overvalued or undervalued?

Valuation metrics for MGX: ROE of -55.4% (sector avg: 15%), net margin of -348.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

Should I buy MGX stock in 2026?

Our dual AI analysis gives Metagenomi Therapeutics, Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is MGX's free cash flow?

Metagenomi Therapeutics, Inc.'s operating cash flow is $-88.9M, with capital expenditures of $574.0K. FCF margin is -354.9%.

How does MGX compare to other Healthcare stocks?

Vs Healthcare sector averages: Net margin -348.5% (avg: 12%), ROE -55.4% (avg: 15%), current ratio 7.22 (avg: 2).

Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 1, 2026 | Data as of: 2025-12-31 | Powered by Claude AI