Sol-Gel Technologies Ltd. (SLGL) | Investment Case

1. Company Snapshot

1.a. Company Description

Sol-Gel Technologies Ltd., a clinical stage specialty pharmaceutical company, focuses on developing and commercializing topical dermatological drug products based on its proprietary microencapsulation delivery system in Israel.The company's lead product candidates include Twyneo, a novel, once-daily, non-antibiotic topical cream which has completed Phase III clinical trials for the treatment of acne vulgaris; Epsolay, a once-daily topical cream that has completed Phase III clinical trials for the treatment of papulopustular rosacea; SGT-210, which is in Phase I clinical trial for the treatment of palmoplantar keratoderma; and Erlotinib, Tapinarof, and roflumilast to treat psoriasis and other medical conditions.It is also involved in the development of generic topical dermatological drug products.

The company has collaboration with Perrigo.Sol-Gel Technologies Ltd.was incorporated in 1997 and is headquartered in Ness Ziona, Israel.

Show Full description

1.b. Last Insights on SLGL

Sol-Gel Technologies' recent performance was negatively impacted by the lack of a Q4 earnings release, which has left investors without crucial insights into the company's financials. Additionally, the absence of a clear revenue growth strategy and the company's high burn rate have raised concerns among analysts. Furthermore, the recent market research report on sol-gel coatings has highlighted the competitive landscape, but its impact on the company's short-term performance remains uncertain.

1.c. Company Highlights

Last Price	42.25
Change Percentage	8.31%
Open	41.47
Previous Close	39.01
Market Cap ( Millions)	118
Volume	14524
Year High	52.26
Year Low	4.02
M A 50	37.83
M A 200	18.03

FCF Yield	0.00%
Dividend Yield	0.00%
ROE	-11.80%
Debt / Equity	3.71%
Net Debt / EBIDTA	-65.93%
Price To Book	3.69
Price Earnings Ratio	-34.52
Price To FCF	0
Price To sales	4.92
EV / EBITDA	7.93

2. Transcript Summary

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3. NewsRoom

Sol-Gel Reports Third Quarter 2025 Financial Results and Provides Corporate Updates

Nov -20

Source: globenewswire.com

Sol-Gel Reports Second Quarter 2025 Financial Results and Provides Corporate Updates

Aug -15

Source: globenewswire.com

Sol-Gel Reports First Quarter 2025 Results

May -23

Source: globenewswire.com

Sol-Gel Announces Reverse Share Split

May -01

Source: globenewswire.com

Sol-Gel and Mayne Pharma Announce the Purchase of EPSOLAY® and TWYNEO® in the U.S.

Apr -17

Source: globenewswire.com

Global Sol-Gel Coatings Market Research 2025-2035: Competitive Landscape, Functional Properties and Applications, End-users, Technology Fundamentals, Overview and Growth Analysis

Apr -07

Source: globenewswire.com

SLGL Gears Up to Report Q4 Earnings: Here's What You Should Know

Feb -25

Source: zacks.com

SolGel Technologies (SLGL) Upgraded to Buy: Here's What You Should Know

Nov -20

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.97%)

6. Segments

Topical Dermatological Drug

Expected Growth: 8.97%

Sol-Gel Technologies Ltd.'s topical dermatological drug growth is driven by increasing prevalence of skin diseases, rising demand for non-invasive treatments, and growing awareness of aesthetic appeal. Additionally, the company's proprietary technology and strong pipeline of products contribute to its growth, along with strategic partnerships and expanding distribution channels.

7. Detailed Products

BenzaClin

Topical cream for the treatment of acne, containing benzoyl peroxide and clindamycin

Epsolay

Topical cream for the treatment of papulopustular rosacea, containing benzoyl peroxide

TWYNEO

Topical cream for the treatment of acne, containing benzoyl peroxide and tretinoin

Customized Topical Products

Sol-Gel's proprietary technology allows for the development of customized topical products for pharmaceutical and cosmetic companies

8. Sol-Gel Technologies Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Sol-Gel Technologies Ltd. is medium due to the availability of alternative technologies and materials in the market.

Bargaining Power Of Customers

The bargaining power of customers for Sol-Gel Technologies Ltd. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Sol-Gel Technologies Ltd. is medium due to the company's dependence on a few key suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants for Sol-Gel Technologies Ltd. is high due to the relatively low barriers to entry in the industry and the attractiveness of the market.

Intensity Of Rivalry

The intensity of rivalry for Sol-Gel Technologies Ltd. is high due to the presence of several established competitors in the market and the high stakes of competition.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	4.10%
Debt Cost	3.95%
Equity Weight	95.90%
Equity Cost	10.84%
WACC	10.55%
Leverage	4.28%

11. Quality Control: Sol-Gel Technologies Ltd. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Sol-Gel Technologies

A-Score: 4.4/10

Value: 6.6

Growth: 3.7

Quality: 6.0

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

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A-Score: 3.7/10

Value: 6.4

Growth: 2.0

Quality: 3.1

Yield: 0.0

Momentum: 9.0

Volatility: 1.7

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Exscientia

A-Score: 3.4/10

Value: 7.0

Growth: 2.2

Quality: 3.6

Yield: 0.0

Momentum: 4.0

Volatility: 3.3

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Moolec Science

A-Score: 3.1/10

Value: 7.8

Growth: 3.3

Quality: 2.5

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

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Evogene

A-Score: 3.0/10

Value: 9.0

Growth: 3.0

Quality: 5.6

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

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Affimed

A-Score: 2.2/10

Value: 8.2

Growth: 0.9

Quality: 4.2

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

32.59%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

10.55%

Sol-Gel Technologies Ltd. - IL0011417206

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SLGL

1.c. Company Highlights

Lower Quality

Weak Momentum

More Volatile

Earnings Miss

Revenues Miss

Cheaper

Earnings Beats

Revenues Beats

Fairly Valued

Lower Growth

Strong Momentum

Average Yield

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.97%)

6. Segments

Topical Dermatological Drug

Expected Growth: 8.97%

7. Detailed Products

BenzaClin

Epsolay

TWYNEO

Customized Topical Products

8. Sol-Gel Technologies Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Sol-Gel Technologies Ltd. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

42.25$

Current Price

42.25$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA