Sol-Gel Technologies Ltd. (SLGL) AI Stock Analysis

Sol-Gel Technologies Ltd. is an Israel-based clinical-stage specialty pharmaceutical company founded in 1997. It specializes in developing and commercializing topical dermatological drug products using its proprietary microencapsulation delivery system. Its pipeline features Twyneo, a once-daily non-antibiotic topical cream that completed Phase III trials for acne vulgaris, and Epsolay, a once-daily topical cream that completed Phase III trials for papulopustular rosacea. Sol-Gel is also advancing SGT-210 in Phase I trials for palmoplantar keratoderma, exploring Erlotinib, Tapinarof, and roflumilast for psoriasis, developing generic topical drugs, and partnering with Perrigo.

Sol-Gel's revenue fluctuated significantly from $31.3M in FY2021 to $3.9M in FY2022 and $1.6M in FY2023, before rebounding to $11.5M in FY2024 and $19.4M in FY2025. In FY2025, revenue grew 68.0% with a gross margin of 100.0%, an operating margin of -38.9%, and a net loss of -$6.1M, supported by R&D spending of $22.8M. For the trailing twelve months ended June 30, 2026, revenue stood at $1.8M with an operating margin of -704.2% and EPS of -$5.61. In the latest quarter ended June 30, 2026, revenue fell 96.6% year-over-year, while quarterly earnings grew 487.6%.

As of June 30, 2026, Sol-Gel held $47.9M in cash and short-term investments against total debt of $770,000, resulting in net cash of $47.2M. The company reported a current ratio of 10.37 and a debt-to-equity ratio of 0.02. Shareholders' equity was $48.1M and total assets were $53.8M. In FY2025, operating cash flow turned positive at $322,000 and free cash flow was $275,000, with capital expenditures of $47,000. Over five years, the company's share count changed by -86.2%.

At a share price of $64.25, Sol-Gel holds a market capitalization of $210.4M and an enterprise value of $150.2M. The stock trades at a forward P/E of 9.3x, compared to 17.3x for the median of its US-listed Healthcare peers. Its price-to-sales ratio is 117.2x and EV-to-revenue is 83.7x, both well above the peer medians of 4.1x for price-to-sales. EV-to-EBITDA stands at 0.2x against a peer median of 12.0x. Over the past year, the stock returned 58.6%, outperforming the S&P 500 return of 16.8%, though its 5-year return of -31.1% trails the S&P 500 return of 83.0%.

All 4 analysts covering Sol-Gel rate the stock as a Strong Buy, with zero Buy, Hold, Sell, or Strong Sell ratings. The mean price target is $152.50, representing an upside of 137.4% from the last closing price of $64.25. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.0M and EPS of -$7.75. For the following fiscal year, 4 analysts estimate revenue of $566,670 and EPS of -$8.03. Sol-Gel has beaten EPS estimates in 2 of the last 4 quarters, with next earnings scheduled for November 19, 2026.

This page is an AI-written research summary of Sol-Gel Technologies Ltd. (SLGL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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