Aardvark Therapeutics, Inc. (AARD) AI Stock Analysis

• Market Cap: $241.48M
• Dividend Yield: N/A
• Average Volume (3M): 40.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 17
• Sector: Healthcare
• Sector Strength: 45
• Industry: Pharmaceuticals
• EPS (TTM): N/A
• Shares Outstanding: 21,695,920
• 10 Day Avg. Volume: 37,310
• 30 Day Avg. Volume: 40,465
• PEG Ratio: 0.43
• Price to Book (P/B): -5.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -31.72
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -3.62
• 1Y Price Target: $31.50
• Price Target Upside: 319.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• 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

Clinical Data

Early clinical data for PWS patients shows promise, with ARD-101 having a positive effect on reducing hunger at 28 days, with limited adverse events.

Market Potential

Currently, there are no approved treatments for PWS, positioning ARD-101 as a potentially favorable option based on initial data.

Regulatory Approval

The recent FDA approval of a competitor's drug for the same condition is seen as setting a positive regulatory precedent, which is favorable for Aardvark Therapeutics.

Negative Factors

Clinical Data Risk

A main risk is AARD's limited clinical data generated thus far, and whether it can be replicated in larger trials.

Competition

Aardvark will face competition from a newly approved drug that has already been validated by the FDA, potentially impacting its market share.

Aardvark Therapeutics, Inc. Business Overview & Revenue Model

Company Description

Aardvark Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing small-molecule therapeutics to activate innate homeostatic pathways for the treatment of metabolic diseases. Its lead product candidate is the ARD-101, an oral gut-restricted small-molecule agonist of certain targeting bitter taste receptors expressed in the gut lumen that is in Phase III clinical trial for hyperphagia associated with Prader-Willi Syndrome, as well as in Phase II clinical trial for hyperphagia associated with acquired hypothalamic obesity resultant from treatment of craniopharyngioma, including surgery or radiation. It also developing ARD-201, which is in Phase I clinical trial for the treatment of obesity. The company was incorporated in 2017 and is based in San Diego, California.

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
0.00	0.00	0.00	0.00
	EBIT
-25.01M	-22.79M	-7.42M	-11.36M
	EBITDA
-24.92M	-22.79M	-7.32M	-10.25M
	Net Income Common Stockholders
-22.27M	-20.59M	-7.21M	-13.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
151.26M	73.66M	9.99M	16.11M
	Total Assets
157.03M	77.51M	10.54M	16.76M
	Total Debt
726.00K	779.00K	162.00K	262.00K
	Net Debt
-25.78M	-60.86M	-9.57M	-15.30M
	Total Liabilities
6.34M	132.15M	45.34M	44.68M
	Stockholders Equity
150.69M	72.11M	-34.80M	-27.92M
Cash Flow		Free Cash Flow
-23.08M	-18.20M	-5.82M	-10.54M
	Operating Cash Flow
-23.07M	-18.09M	-5.82M	-10.54M
	Investing Cash Flow
-124.52M	-12.00M	0.00	-1.00M
	Financing Cash Flow
87.92M	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
OPRX	70 Outperform	$238.22M	―	-12.90%	―	20.66%	17.97%
Sector *	51 Neutral	$7.32B	0.30	-60.36%	2.39%	17.47%	1.73%
FDMT	48 Neutral	$191.32M	―	-32.97%	―	―	―
OBIO	40 Underperform	$115.32M	―	-179.12%	―	30.23%	-21.32%
RAPT	39 Underperform	$122.86M	―	-75.60%	―	―	-2.29%
NMRA	33 Underperform	$127.09M	―	-79.05%	―	―	-0.42%
AARD	25 Underperform	$241.48M	―		―	―	―