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Adicet Bio (ACET)
NASDAQ:ACET

Adicet Bio (ACET) AI Stock Analysis

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Adicet Bio

(NASDAQ:ACET)

27Underperform
Adicet Bio faces significant financial challenges and technical weaknesses, with no revenue and ongoing losses as critical concerns. The poor valuation further impacts the stock's appeal. While the new board appointment is positive, it does not mitigate the substantial risks present in the company’s financials and market performance.
Positive Factors
Clinical Development
Initial clinical data from both LN and RCC indications are eagerly anticipated, which could confirm the potential of engineered gamma-delta T cells.
Financial Position
A solid cash position of $176.3MM is highlighted as a strength.
Regulatory Advantage
Adicet has received Fast Track Designation for ADI-001 for refractory SLE with extrarenal involvement and SSc.
Negative Factors
Market Competition
ACET shares trade at a fair discount consistent with other biotech companies facing similar uncertainties.
Treatment Risks
Stopping immunosuppression in autoimmune patients can be very risky, and autologous CAR-Ts often require this, creating potential health risks.
Valuation Concerns
Uncertainty surrounding clinical readouts leads to a Market Perform rating and shares are viewed as fairly valued.

Adicet Bio (ACET) vs. S&P 500 (SPY)

Adicet Bio Business Overview & Revenue Model

Company DescriptionAdicet Bio, Inc., a biotechnology company, discovers and develops allogeneic gamma delta T cell therapies for cancer and other diseases. The company offers gamma delta T cells engineered with chimeric antigen receptors and T cell receptor-like antibodies to enhance selective tumor targeting, facilitate innate and adaptive anti-tumor immune response, and enhance persistence for durable activity in patients. Its lead product in pipeline includes ADI-001, which is in Phase I clinical study for the treatment of non-Hodgkin's lymphoma. The company also engages in the development of ADI-002, which is undergoing preclinical studies for the treatment of various solid tumors. Adicet Bio, Inc. is based in Boston, Massachusetts.
How the Company Makes MoneyAdicet Bio primarily makes money through the development and commercialization of its allogeneic gamma delta T cell therapies for cancer treatment. The company generates revenue from partnerships and collaborations with other pharmaceutical companies, as well as through grants and funding aimed at advancing its research and development efforts. Additionally, Adicet Bio may earn income from licensing agreements, where it allows other companies to utilize its proprietary technology in exchange for upfront payments, milestone payments, and potential royalties on future products. The success of these revenue streams is significantly influenced by the company's ability to bring its therapeutic candidates to market and establish strong industry collaborations.

Adicet Bio Financial Statement Overview

Summary
Adicet Bio's financial statements exhibit significant challenges, including no revenue, ongoing losses, and reliance on debt financing. Despite a healthy equity position and substantial cash reserves, the negative cash flows and financial risks pose substantial hurdles.
Income Statement
20
Very Negative
Adicet Bio's income statement reflects significant challenges with no total revenue reported in the recent year, leading to a gross profit margin of 0%. The consistent net losses over the years and a declining EBIT indicate ongoing operational inefficiencies. The company has not shown recent revenue growth, presenting a concerning outlook for profitability.
Balance Sheet
40
Negative
The balance sheet shows some stability with a healthy equity position due to a positive stockholders' equity. However, the company carries a debt level that is notable, though it's offset by a substantial cash position. Despite these factors, the equity ratio suggests some financial risk due to high liabilities compared to assets.
Cash Flow
35
Negative
The cash flow statement highlights negative operating cash flow and free cash flow, indicating cash outflows from operations. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, reflecting cash management issues. The reliance on financing activities to cover deficits is a potential area of concern.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.0024.99M9.73M17.90M
Gross Profit
0.00-6.10M19.98M9.73M17.90M
EBIT
-127.61M-152.04M-72.55M-61.43M-39.19M
EBITDA
-127.61M-136.53M-64.70M-60.41M-37.41M
Net Income Common Stockholders
-117.12M-142.66M-67.03M-62.00M-36.68M
Balance SheetCash, Cash Equivalents and Short-Term Investments
176.30M159.71M257.66M277.54M94.61M
Total Assets
220.22M207.29M330.69M338.94M153.84M
Total Debt
17.23M20.92M21.02M20.94M21.64M
Net Debt
-39.26M-138.79M-236.63M-256.60M-62.69M
Total Liabilities
33.61M37.12M38.35M35.81M44.01M
Stockholders Equity
186.61M170.18M-238.11M-168.32M-106.33M
Cash FlowFree Cash Flow
-93.50M-98.18M-61.55M-64.10M-42.54M
Operating Cash Flow
-92.38M-93.72M-44.77M-51.05M-41.55M
Investing Cash Flow
-119.24M-4.46M-16.78M-2.80M115.22M
Financing Cash Flow
111.31M236.00K41.51M242.69M303.00K

Adicet Bio Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.60
Price Trends
50DMA
0.78
Negative
100DMA
0.87
Negative
200DMA
1.12
Negative
Market Momentum
MACD
-0.07
Negative
RSI
43.40
Neutral
STOCH
75.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACET, the sentiment is Negative. The current price of 0.6 is below the 20-day moving average (MA) of 0.64, below the 50-day MA of 0.78, and below the 200-day MA of 1.12, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 43.40 is Neutral, neither overbought nor oversold. The STOCH value of 75.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACET.

Adicet Bio Risk Analysis

Adicet Bio disclosed 93 risk factors in its most recent earnings report. Adicet Bio reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Adicet Bio Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$58.96M1.86-58.97%36.45%
56
Neutral
$55.76M3.0019.05%40.98%
51
Neutral
$5.20B3.26-40.34%2.93%17.68%1.94%
40
Underperform
$47.91M-33.30%-100.00%37.59%
40
Underperform
$63.64M-54.07%10.84%
37
Underperform
$42.49M-295.35%184.12%31.92%
27
Underperform
$48.10M-65.65%59.75%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ACET
Adicet Bio
0.61
-1.20
-66.30%
BLUE
Bluebird Bio
4.16
-14.09
-77.21%
CTMX
CytomX Therapeutics
0.76
-0.84
-52.50%
DTIL
Precision BioSciences
5.50
-4.22
-43.42%
IKNA
Ikena Oncology
1.21
-0.10
-7.63%
ACRV
Acrivon Therapeutics, Inc.
1.99
-6.48
-76.51%

Adicet Bio Corporate Events

Executive/Board Changes
Adicet Bio Appoints Michael Grissinger to Board
Positive
Apr 17, 2025

On April 17, 2025, Adicet Bio announced the appointment of Michael Grissinger to its Board of Directors. Grissinger, with over four decades of experience in pharmaceutical business development and strategic transactions, is expected to bring valuable insights to Adicet as it advances its gamma delta T cell platform. His extensive background, particularly in immunology, will be instrumental in guiding the company’s growth and development of therapies for autoimmune and solid tumor indications.

Spark’s Take on ACET Stock

According to Spark, TipRanks’ AI Analyst, ACET is a Underperform.

Adicet Bio faces significant financial challenges with no revenue and consistent losses, presenting major risk factors. The technical analysis suggests a bearish trend, while poor valuation due to a negative P/E ratio further impacts the stock’s attractiveness. Without improvement in revenue and cash flow management, the outlook remains concerning.

To see Spark’s full report on ACET stock, click here.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.