Aardvark Therapeutics, Inc. (AARD) AI Stock Analysis

• Market Cap: $206.85M
• Dividend Yield: N/A
• Average Volume (3M): 166.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: N/A
• EPS Growth: 31.30%
• Country: US
• Employees: 22
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.75
• Shares Outstanding: 21,773,272
• 10 Day Avg. Volume: 148,283
• 30 Day Avg. Volume: 166,372
• PEG Ratio: -0.05
• Price to Book (P/B): -3.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.15
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -16.32K
• Enterprise Value/Ebitda: -3.14
• 1Y Price Target: $30.63
• Price Target Upside: 226.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): -2.97
• Revenue Forecast (FY): N/A

• Rating: 25 Underperform
• Price Target: ―

Aardvark Therapeutics, Inc. faces severe financial challenges typical of early-stage pharmaceutical companies, with zero revenue and substantial operational losses. The lack of technical and valuation indicators further contributes to the high-risk profile.

Positive Factors

Innovative Therapies

Aardvark's focus on innovative therapies for metabolic and inflammatory diseases positions it to address significant unmet medical needs, which can drive long-term growth and market differentiation.

Strategic Partnerships

Strategic partnerships with larger pharmaceutical companies and research institutions can enhance Aardvark's development capabilities and expand its market reach, providing a sustainable path to revenue generation.

Revenue Model

Aardvark's revenue model, based on licensing and royalties, offers potential for high-margin income streams as its drug candidates advance through development and commercialization.

Negative Factors

Financial Instability

The lack of revenue and negative cash flow highlight financial instability, necessitating continuous external funding and posing a risk to long-term viability.

Negative Equity

Negative equity indicates liabilities exceed assets, which can limit financial flexibility and increase the risk of insolvency if not addressed through successful product commercialization or additional funding.

Profitability Challenges

Persistent profitability challenges, with no revenue and increasing losses, underscore the difficulty in achieving financial sustainability without successful product launches or strategic financial management.

Aardvark Therapeutics, Inc. Business Overview & Revenue Model

Company Description

Aardvark Therapeutics, Inc. (AARD) is a biotechnology company focused on developing innovative therapies for metabolic and inflammatory diseases. The company specializes in creating and advancing novel treatments aimed at addressing unmet medical needs in these sectors. Its core products include proprietary drug candidates designed to modulate metabolic pathways and reduce inflammation, ultimately improving patient outcomes and quality of life.

How the Company Makes Money

Aardvark Therapeutics, Inc. generates revenue primarily through the development and commercialization of its proprietary pharmaceutical products. The company earns income by licensing its drug candidates to larger pharmaceutical companies, securing milestone payments, and receiving royalties on product sales. Additionally, Aardvark may engage in strategic partnerships with other biotech firms and research institutions to co-develop and co-market therapies, further expanding its revenue streams. The company may also seek government grants and research funding to support its development programs, contributing to its financial stability.

Aardvark Therapeutics, Inc. Financial Statement Overview

Summary

Aardvark Therapeutics, Inc. shows significant financial instability typical of early-stage pharmaceutical firms, with zero revenue, negative equity, and cash flow challenges.

Income Statement

Aardvark Therapeutics, Inc. has reported zero revenue consistently over the past three years, indicating a lack of commercialized products or services. With increasing net losses and negative EBIT and EBITDA margins, the company faces significant profitability challenges, typical for early-stage pharmaceutical firms focused on R&D.

Balance Sheet

The company's balance sheet reflects significant financial instability with negative stockholders' equity, indicating liabilities exceed assets. The presence of minimal debt suggests reliance on equity financing, yet the negative equity and high liabilities pose substantial financial risk.

Cash Flow

Aardvark Therapeutics exhibits negative operating and free cash flows, consistent with its developmental stage. While financing inflows in 2024 provided liquidity, the company remains heavily cash-flow negative, highlighting the need for continued external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	0.00	0.00	0.00	0.00
Gross Profit	-10.00K	0.00	0.00	0.00
EBITDA	-52.05M	-22.65M	-6.65M	-9.76M
Net Income	-48.77M	-20.59M	-7.21M	-13.56M
Balance Sheet
Total Assets	133.23M	77.51M	10.54M	16.76M
Cash, Cash Equivalents and Short-Term Investments	126.35M	73.66M	9.99M	16.11M
Total Debt	545.00K	779.00K	162.00K	262.00K
Total Liabilities	10.85M	132.15M	45.34M	44.68M
Stockholders Equity	122.38M	-54.64M	-34.80M	-27.92M
Cash Flow
Free Cash Flow	-47.58M	-18.20M	-5.82M	-10.54M
Operating Cash Flow	-47.48M	-18.09M	-5.82M	-10.54M
Investing Cash Flow	-85.86M	-12.00M	0.00	-1.00M
Financing Cash Flow	90.35M	81.99M	0.00	225.00K

Aardvark Therapeutics, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OABI	55 Neutral	$213.05M	-2.44	-22.37%	―	3.36%	5.15%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
THRD	49 Neutral	―	―	―	―	―	-14.76%
NBTX	48 Neutral	$1.04B	―	―	―	―	―
DRTS	38 Underperform	$323.55M	―	-54.38%	―	―	-22.82%
ANNX	38 Underperform	$652.73M	―	-83.98%	―	―	-35.62%
AARD	25 Underperform	$206.85M	―	-48.06%	―	―	31.30%