SGMO Stock Risk & Deep Value Analysis
Sangamo Therapeutics Inc
Healthcare • Biotechnology
DVR Score
out of 10
What You Need to Know About SGMO Stock
We analyzed Sangamo Therapeutics Inc using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran SGMO through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Aggressive. Here's what we found.
SGMO Risk Analysis & Red Flags
Risk Matrix
Overall
Aggressive
Financial
High
Market
Medium
Competitive
High
Execution
High
Regulatory
High
Upcoming Risk Events
- 📅
Inability to secure crucial funding, leading to insolvency or extreme dilution
- 📅
Clinical trial failures or significant delays for key programs
- 📅
Negative results from upcoming Q4/FY2025 earnings report regarding cash runway
- 📅
Increased competitive pressure or loss of partnership support
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What Does Sangamo Therapeutics Inc (SGMO) Do?
Market Cap
$111.62M
Sector
Healthcare
Industry
Biotechnology
Employees
183
Sangamo Therapeutics, Inc., a clinical-stage genomic medicine company, focuses on translating science into medicines that transform the lives of patients and families afflicted with serious diseases in the United States. The company's clinical-stage product candidates are ST-920, a gene therapy product candidate, which is in Phase 1/2 clinical study for the treatment of Fabry disease; TX200, a chimeric antigen receptor engineered regulatory T cell (CAR-Treg) therapy product candidate that is in Phase 1/2 clinical study for the prevention of immune-mediated rejection in HLA-A2 mismatched kidney transplantation; and SB-525, a gene therapy product candidate, which is in Phase 3 clinical trial for the treatment of moderately severe to severe hemophilia A. Its preclinical development products focus on tauopathies, ALS/FTD, and huntington's diseases Sangamo Therapeutics, Inc. has collaborative and strategic partnerships with Biogen MA, Inc.; Kite Pharma, Inc.; Pfizer Inc.; Sanofi S.A.; Novartis Institutes for BioMedical Research, Inc.; Shire International GmbH; Dow AgroSciences LLC; Sigma-Aldrich Corporation; Genentech, Inc.; and Open Monoclonal Technology, Inc. The company was formerly known as Sangamo BioSciences, Inc. and changed its name to Sangamo Therapeutics, Inc. in January 2017. The company was incorporated in 1995 and is headquartered in Richmond, California.
Visit Sangamo Therapeutics Inc WebsiteInvestment Thesis
Sangamo presents a highly speculative investment opportunity based on its proprietary ZFN gene editing technology and advanced clinical pipeline, particularly SB-525 in Phase 3. A successful, non-dilutive capital raise and positive clinical trial readouts, potentially leading to regulatory approval, could unlock significant value and allow the company to capitalize on its strategic partnerships and high-TAM disease targets. However, this is a bet on overcoming severe financial hurdles and executing flawlessly in a high-risk sector.
Is SGMO Stock Undervalued?
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SGMO Price Targets & Strategy
12-Month Target
$1.20
Bull Case
$4.10
Bear Case
$0.10
Valuation Basis
12-month target reflects a market capitalization of ~$400M assuming successful, non-dilutive capital raise and positive early-stage clinical readouts. Upside scenario aligns with median analyst targets, contingent on significant clinical breakthroughs and commercial pathway clarity.
Entry Strategy
Highly speculative. Consider only a very small, risk-tolerant position for investors who can absorb a total loss. Dollar-cost average below $0.50 only after clear, positive financing news emerges. Avoid large positions without updated financials.
Exit Strategy
Take profit on any significant rallies above $1.00 as a result of positive news. A hard stop-loss at $0.20 to manage extreme downside risk is advisable given the precarious financial situation.
Portfolio Allocation
Less than 1% for aggressive risk tolerance only. Not suitable for conservative or moderate portfolios.
Price Targets & Strategy
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Is SGMO Financially Healthy?
Valuation
P/E Ratio
-0.96
Profitability
Gross Margin
-27.89%
Operating Margin
-76.79%
Net Margin
-77.48%
Return on Equity
-292.47%
EPS
$-0.28
Balance Sheet
Total Debt
$23.46M
Cash & Equivalents
$38.34M
Cash Flow
EBITDA
-$58.27M
Other
Beta (Volatility)
1.33
Does SGMO Have a Competitive Moat?
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🛡️ Narrow
Moat Trend
Eroding
Moat Sources
2 Identified
Sangamo's moat, primarily stemming from its proprietary ZFN technology and existing partnerships, is under severe pressure. While the technology holds potential, its durability is contingent on successful clinical translation and commercialization, which are currently hampered by significant financial instability and intense competition in the gene editing space. The lack of financial strength erodes the ability to fully capitalize on IP.
Moat Erosion Risks
- •Clinical trial failures or delays by superior competitor products
- •Inability to secure necessary funding to advance its pipeline
- •Loss of key strategic partnerships
- •Emergence of more effective or safer gene editing technologies
SGMO Competitive Moat Analysis
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SGMO Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Bearish, reflecting extreme uncertainty around financial viability and lack of recent positive news flow.
Institutional Sentiment
Neutral/Negative; while institutional ownership is 56.92%, recent analyst ratings include downgrades (Barclays) and 'Sell' ratings (Wall Street Zen, Weiss), outweighing the single 'Buy' from HC Wainwright.
Insider Activity (Form 4)
No specific Form 4 filings reported in the last 90 days, indicating no significant insider buying or selling activity.
Options Flow
Normal options activity; no specific data provided to indicate unusual institutional positioning.
Earnings Intelligence
Next Earnings
2026-03-30 (Q4/Full-Year 2025)
Surprise Probability
Medium
Historical Earnings Pattern
Historical stock price reactions to earnings have been volatile and often negative, with a -16.3% move after the Q3 2025 results. Given the current financial uncertainty, negative reactions are highly probable without clear positive news on funding.
Key Metrics to Watch
Competitive Position
Top Competitor
CRISPR Therapeutics (CRSP)
Market Share Trend
N/A (Early-stage biotech, focused on market entry rather than market share trends).
Valuation vs Peers
Trading at an extremely high P/B (24.2x vs. sector 1.8x-2.6x) suggesting low book value, while P/S (1.9x LTM vs. sector 3.1x-9.6x) is low, reflecting depressed revenue. This implies a highly speculative valuation detached from current fundamentals and a significant discount in revenue potential compared to peers.
Competitive Advantages
- •Proprietary Zinc Finger Nuclease (ZFN) gene editing platform technology
- •Strategic partnerships with major pharmaceutical companies (Pfizer, Novartis, Sanofi)
- •Advanced clinical assets, including a Phase 3 program for Hemophilia A (SB-525)
Market Intelligence
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What Could Drive SGMO Stock Higher?
Near-Term (0-6 months)
- •Q4/Full-Year 2025 Earnings Report (March 30, 2026)
- •Updates on cash position and future financing plans
- •Further details on advancing FDA gene therapy submission
Medium-Term (6-18 months)
- •Phase 3 clinical trial updates for SB-525 (Hemophilia A)
- •Phase 1/2 clinical trial updates for ST-920 (Fabry disease) and TX200 (kidney transplant)
- •Potential new or expanded strategic partnerships
Long-Term (18+ months)
- •Regulatory approval and commercialization of lead gene therapy candidates
- •Expansion of ZFN gene editing platform applications
- •Industry-leading position in specific gene therapy niches
Catalysts & Growth Drivers
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What's the Bull Case for SGMO?
- ✓
Clear and sustainable financing solutions announced (e.g., major non-dilutive partnership payments)
- ✓
Positive Phase 3 clinical trial results for SB-525 with clear path to regulatory approval
- ✓
Significant improvements in cash position and reduced burn rate in future earnings reports
Bull Case Analysis
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Competing with SGMO
See how Sangamo Therapeutics Inc compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
Sangamo Therapeutics Inc SGMO | $111.6M | 2.8 | -1.0 | $81.7M | -77.5% | 0.0% | |
AbbVie Inc ABBV | $403.8B | 0.1 | 171.8 | — | — | — | Compare → |
Johnson & Johnson JNJ | — | 1.0 | — | — | — | — | Compare → |
Eli Lilly and Co LLY | $965.0B | 0.5 | 52.6 | — | — | — | Compare → |
Pfizer Inc PFE | $161.1B | 0.2 | 20.2 | $17.6B | 12.4% | -1.7% | Compare → |
UnitedHealth Group Inc UNH | $300.6B | 0.5 | 17.3 | — | — | — | Compare → |
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FAQ
What is the DVR Score for Sangamo Therapeutics Inc (SGMO)?
As of March 23, 2026, Sangamo Therapeutics Inc has a DVR Score of 2.8 out of 10, placing it in the "Risk Trap" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Sangamo Therapeutics Inc?
Sangamo Therapeutics Inc's market capitalization is approximately $111.6M. The company operates in the Healthcare sector within the Biotechnology industry.
What ticker symbol does Sangamo Therapeutics Inc use?
SGMO is the ticker symbol for Sangamo Therapeutics Inc. The company trades on the NCM.
What is the risk level for SGMO stock?
Our analysis rates Sangamo Therapeutics Inc's overall risk as Aggressive. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of SGMO?
Sangamo Therapeutics Inc currently has a price-to-earnings (P/E) ratio of -1.0. This is below the market average, which could indicate the stock is undervalued or facing headwinds.
Is Sangamo Therapeutics Inc's revenue growing?
Sangamo Therapeutics Inc has reported revenue growth of 0.0%. Revenue has been declining, which warrants closer examination.
Is SGMO stock profitable?
Sangamo Therapeutics Inc has a profit margin of -77.5%. The company is currently unprofitable.
How often is the SGMO DVR analysis updated?
Our AI-powered analysis of Sangamo Therapeutics Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on March 23, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for SGMO (Sangamo Therapeutics Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.