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Sol-Gel Technologies Ltd. (SLGL) is a clinical-stage dermatology company. It utilizes a proprietary silica-based microencapsulation technology to improve the stability and efficacy of topical drugs.
Investment Thesis
Sol-Gel is a high-potential 'platform' biotech. Their technology solves a fundamental problem in dermatology: many effective active ingredients (like benzoyl peroxide or retinoids) are unstable or cause irritation when applied directly to the skin. By 'trapping' these ingredients in tiny silica shells, Sol-Gel allows for a slow, controlled release that is more effective and much better tolerated by patients. With two FDA-approved products (EPSOLAY and TWYNEO) already on the market and a robust pipeline of new applications, Sol-Gel is transitioning from a research firm to a commercial-stage cash flow generator. At its current micro-cap valuation, the market is completely ignoring the royalty potential of its technology.
Key Growth Drivers
Proprietary Silica Technology
Their microencapsulation platform is protected by a deep patent moat and can be applied to hundreds of existing active ingredients, creating a massive pipeline of potential drugs.
Commercial-Stage Inflection
As their newly launched products for acne and rosacea gain market share, the resulting royalty streams will drive Sol-Gel toward self-sustaining profitability.
Partnership Upside
The company has established partnerships with global giants like Galderma, providing immediate commercial scale and validation of their technology platform.
Valuation & Financial Modeling
Sol-Gel trades at a fraction of the valuation of comparable dermatology-focused biotech firms. We believe the market is mispricing it as a one-product company rather than a versatile technology platform. The re-rating potential upon the next successful clinical trial or royalty milestone is significant.
Risk Factors & Bear Case
Clinical trial failures for their pipeline candidates are an inherent risk. Furthermore, as a small-cap firm, they may require additional capital raises if their commercial royalties do not scale as quickly as anticipated, leading to shareholder dilution.
Conclusion
Sol-Gel Technologies is an undervalued technology play in the dermatology space. It offers a de-risked entry point given its existing FDA approvals and massive future pipeline optionality. Rated 'Buy'.
Upcoming Catalysts
No upcoming catalysts identified.
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Relative valuation derived from Healthcare sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 41.2GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
-146.7%
Sector: -43.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Sol-Gel Technologies Ltd. (SLGL) receives a "Buy" rating with a composite score of 56.6/100, ranked #71 out of 4446 stocks. Key factor scores: Quality 41/100, Value 36/100, Momentum 98/100. This is quantitative analysis only — not investment advice.
Sol-Gel Technologies Ltd. (SLGL) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Sol-Gel Technologies Ltd. Do?
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. Sol-Gel Technologies Ltd. (SLGL) is classified as a micro-cap stock in the Healthcare sector, specifically within the Pharmaceutical Products industry. The company is led by CEO Alon Seri-Levy and employs approximately 50 people. With a market capitalization of $271M, SLGL is one of the notable companies in the Healthcare sector.
As of April 2026, Sol-Gel Technologies Ltd. receives a Buy rating with a composite score of 56.6/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.SLGL ranks #71 out of 4,446 stocks in our coverage universe. Within the Healthcare sector, Sol-Gel Technologies Ltd. ranks #2 of 838 stocks, placing it in the top 10% of its Healthcare peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
SLGL Stock Price and 52-Week Range
Sol-Gel Technologies Ltd. (SLGL) currently trades at $74.86. The stock gained $2.84 (3.9%) in the most recent trading session. The 52-week high for SLGL is $97.97, which means the stock is currently trading -23.6% from its annual peak. The 52-week low is $0.40, putting the stock 18531.2% above its annual trough. Recent trading volume was 73K shares, suggesting relatively thin trading activity.
Is SLGL Overvalued or Undervalued? — Valuation Analysis
Sol-Gel Technologies Ltd. (SLGL) carries a value factor score of 36/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The price-to-book ratio stands at 8.38x, versus the sector average of 2.75x. The price-to-sales ratio is 5.24x, compared to 1.66x for the average Healthcare stock.
At current multiples, Sol-Gel Technologies Ltd. trades at a premium to most Healthcare peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.
Sol-Gel Technologies Ltd. Profitability — ROE, Margins, and Quality Score
Sol-Gel Technologies Ltd. (SLGL) earns a quality factor score of 41/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is -146.7%, compared to the Healthcare sector average of -43.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -118.1% versus the sector average of -33.1%.
On a margin basis, Sol-Gel Technologies Ltd. reports gross margins of 100.0%, compared to 71.5% for the sector. The operating margin is -104.1% (sector: -66.1%). Net profit margin stands at -91.7%, versus -58.7% for the average Healthcare stock. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
SLGL Debt, Balance Sheet, and Financial Health
Sol-Gel Technologies Ltd. has a debt-to-equity ratio of 0.0%, compared to the Healthcare sector average of 32.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 5.92x, indicating strong short-term liquidity. Total debt on the balance sheet is $0. Cash and equivalents stand at $19M.
SLGL has a beta of 1.69, meaning it is more volatile than the broader market — a $10,000 investment in SLGL would be expected to move 69.2% more than the S&P 500 on any given day. The stability factor score for Sol-Gel Technologies Ltd. is 38/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.
Sol-Gel Technologies Ltd. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Sol-Gel Technologies Ltd. reported revenue of $12M and earnings per share (EPS) of $-0.38. Net income for the quarter was $-11M. Gross margin was 100.0%. Operating income came in at $-12M.
In FY 2024, Sol-Gel Technologies Ltd. reported revenue of $12M and earnings per share (EPS) of $-0.38. Net income for the quarter was $-11M. Gross margin was 100.0%. Revenue grew 642.5% year-over-year compared to FY 2023. Operating income came in at $-12M.
In FY 2023, Sol-Gel Technologies Ltd. reported revenue of $2M and earnings per share (EPS) of $-1.01. Net income for the quarter was $-27M. Gross margin was 100.0%. Revenue grew -60.0% year-over-year compared to FY 2022. Operating income came in at $-29M.
In FY 2022, Sol-Gel Technologies Ltd. reported revenue of $4M and earnings per share (EPS) of $-0.65. Net income for the quarter was $-15M. Gross margin was 100.0%. Revenue grew -87.6% year-over-year compared to FY 2021. Operating income came in at $-16M.
Over the past 8 quarters, Sol-Gel Technologies Ltd. has demonstrated a growth trajectory, with revenue expanding from $129,000 to $12M. Investors analyzing SLGL stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
SLGL Dividend Yield and Income Analysis
Sol-Gel Technologies Ltd. (SLGL) does not currently pay a dividend. This is common among smaller companies in the Pharmaceutical Products industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Healthcare dividend stocks may want to explore other Healthcare stocks or use the stock screener to filter by dividend yield.
SLGL Momentum and Technical Analysis Profile
Sol-Gel Technologies Ltd. (SLGL) has a momentum factor score of 98/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 58/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 47/100 reflects moderate short selling activity.
SLGL vs Competitors — Healthcare Sector Ranking and Peer Comparison
Comparing SLGL against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full SLGL vs S&P 500 (SPY) comparison to assess how Sol-Gel Technologies Ltd. stacks up against the broader market across all factor dimensions.
SLGL Next Earnings Date
No upcoming earnings date has been announced for Sol-Gel Technologies Ltd. (SLGL) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy SLGL? — Investment Thesis Summary
The bull case for Sol-Gel Technologies Ltd. rests on several quantitative strengths. The value score of 36/100 indicates premium valuation. Price momentum is positive at 98/100, suggesting the trend favors buyers. High volatility (stability score 38/100) increases portfolio risk.
In summary, Sol-Gel Technologies Ltd. (SLGL) earns a Buy rating with a composite score of 56.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on SLGL stock.
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Execution Benchmarks audit
Gross Margin
Core pricing power
100.0%
Sector: 71.5%
+40% VS SCTR
+205%
Price / Sales
5.2x
+216%
Sol-Gel Technologies Ltd. exhibits a 99% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
-118.1%
Sector: -33.1%
Gross Margin
Pricing power and cost efficiency
100.0%
Sector: 71.5%
Operating Margin
Core business profitability
-104.1%
Sector: -66.1%
Net Margin
Bottom-line profitability
-91.7%
Sector: -58.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.