Arcellx Inc (ACLX) AI Stock Analysis

• Market Cap: $4.02B
• Dividend Yield: N/A
• Average Volume (3M): 883.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: -76.96%
• EPS Growth: -425.41%
• Country: US
• Employees: 163
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.99
• Shares Outstanding: 57,822,872
• 10 Day Avg. Volume: 1,564,169
• 30 Day Avg. Volume: 883,896
• PEG Ratio: -1.06
• Price to Book (P/B): 9.03
• Price to Sales (P/S): 38.06
• P/FCF Ratio: -42.39
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 118.01
• Enterprise Value/Gross Profit: 5.23K
• Enterprise Value/Ebitda: -20.22
• 1Y Price Target: $113.23
• Price Target Upside: 62.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $71.00 ▲(2.07% Upside)

Arcellx Inc's overall stock score reflects significant financial challenges, including persistent losses and declining revenues. The technical analysis indicates a bearish trend with weak momentum. The negative P/E ratio and lack of dividend yield further contribute to a low valuation score. The company needs to address these issues to improve its financial health and stock performance.

Positive Factors

Strategic Partnerships

Strategic partnerships provide funding for R&D and access to broader distribution networks, enhancing product reach and innovation potential.

Cash Flow Management

Positive cash flow growth, despite being from reduced negative cash flow, indicates improving efficiency in cash management, crucial for sustainability.

Low Leverage

Low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities without excessive debt burden.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market demand or competitive positioning, impacting long-term growth and profitability prospects.

Negative Profit Margins

Significant negative profit margins highlight operational inefficiencies and the need for cost management to achieve sustainable profitability.

Negative Operating Cash Flow

Negative operating cash flow indicates insufficient cash generation from core operations, posing risks to financial health and operational sustainability.

Arcellx Inc Business Overview & Revenue Model

Company Description

Arcellx, Inc., a clinical-stage biotechnology company, engages in the development of various immunotherapies for patients with cancer and other incurable diseases. The company's lead ddCAR product candidate is CART-ddBCMA, which is in phase 1 clinical trial for the treatment of patients with relapsed or refractory (r/r) multiple myeloma (MM). It is also developing ACLX-001, an immunotherapeutic combination composed of ARC-T cells and bi-valent SparX proteins targeting BCMA to treat r/r MM; ACLX-002 and ACLX-003 for treating r/r acute myeloid leukemia (AML) and myelodysplastic syndrome (MDS); and other AML/MDS product candidates, as well as solid tumor programs. The company was formerly known as Encarta Therapeutics, Inc. and changed its name to Arcellx, Inc. in January 2016. Arcellx, Inc. was incorporated in 2014 and is headquartered in Gaithersburg, Maryland.

How the Company Makes Money

Arcellx generates revenue primarily through the development and commercialization of its therapeutic products. The company may earn revenue from product sales once its therapies receive regulatory approval and are launched in the market. Additionally, Arcellx can benefit from strategic partnerships and collaborations with larger pharmaceutical companies, which may include upfront payments, milestone payments, and royalties on sales. These partnerships not only provide funding for ongoing research and development but also facilitate access to broader distribution networks and resources. Furthermore, grants and funding from governmental or non-profit organizations focused on cancer research may also contribute to the company's financial resources.

Arcellx Inc Financial Statement Overview

Summary

Arcellx Inc is facing significant financial challenges, with persistent losses and declining revenues. The company has a stable balance sheet with low leverage but struggles with profitability and cash flow generation. While there are some positive signs in cash flow management, the overall financial health is concerning, and the company needs to address its operational inefficiencies and improve revenue growth to achieve sustainable profitability.

Income Statement

Arcellx Inc's income statement shows significant challenges with negative net profit margins and declining revenue growth. The TTM data indicates a net profit margin of -329.93%, reflecting substantial losses. Revenue has decreased by 37% compared to the previous period, indicating a contraction in sales. The EBIT and EBITDA margins are also negative, highlighting operational inefficiencies. Overall, the company is struggling to achieve profitability and growth in its current state.

Balance Sheet

The balance sheet of Arcellx Inc reveals a relatively low debt-to-equity ratio of 0.13, suggesting manageable leverage. However, the return on equity is negative at -43.04%, indicating that the company is not generating returns for its shareholders. The equity ratio stands at 67.20%, showing a strong equity base relative to total assets. While the company maintains a stable capital structure, the lack of profitability is a concern.

Cash Flow

The cash flow statement highlights a challenging situation with negative operating and free cash flows. The free cash flow growth rate is positive at 63.23%, but this is due to a reduction in negative cash flow rather than actual growth. The operating cash flow to net income ratio is -0.97, indicating that the company is not generating sufficient cash from operations to cover its losses. The free cash flow to net income ratio is slightly positive at 1.04, suggesting some efficiency in managing cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.90M	107.94M	110.32M	0.00	0.00	0.00
Gross Profit	810.00K	102.75M	110.32M	-2.22M	0.00	0.00
EBITDA	-209.52M	-99.06M	-64.14M	-184.74M	-63.92M	-31.47M
Net Income	-217.90M	-107.35M	-70.69M	-188.68M	-64.97M	-32.09M
Balance Sheet
Total Assets	655.92M	711.33M	825.13M	313.82M	128.78M	57.69M
Cash, Cash Equivalents and Short-Term Investments	461.38M	587.58M	702.02M	254.84M	104.62M	46.60M
Total Debt	51.79M	54.08M	97.63M	88.13M	0.00	0.00
Total Liabilities	215.14M	256.54M	339.75M	108.86M	250.30M	7.15M
Stockholders Equity	440.78M	454.79M	485.38M	204.95M	-121.52M	50.54M
Cash Flow
Free Cash Flow	-201.18M	-96.90M	186.15M	-101.58M	-60.02M	-29.55M
Operating Cash Flow	-198.11M	-83.47M	207.57M	-99.30M	-54.24M	-28.66M
Investing Cash Flow	24.38M	-183.04M	-154.51M	-117.67M	-79.98M	-888.00K
Financing Cash Flow	90.88M	-24.09M	279.16M	252.63M	118.45M	41.66M

Arcellx Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 69.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACLX, the sentiment is Negative. The current price of 69.56 is below the 20-day moving average (MA) of 81.18, below the 50-day MA of 84.03, and below the 200-day MA of 71.34, indicating a bearish trend. The MACD of -4.54 indicates Positive momentum. The RSI at 32.82 is Neutral, neither overbought nor oversold. The STOCH value of 14.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACLX.

Arcellx Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PTGX	68 Neutral	$5.60B	141.54	7.80%	―	-35.39%	-72.97%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
APLS	50 Neutral	$2.99B	79.59	14.10%	―	42.11%	―
IMVT	45 Neutral	$4.00B	―	-95.93%	―	―	-27.70%
BEAM	44 Neutral	$2.75B	―	-47.19%	―	-84.07%	-157.71%
MLTX	41 Neutral	$1.06B	-4.48	-54.17%	―	―	-157.74%
ACLX	41 Neutral	$4.02B	―	-47.18%	―	-76.96%	-425.41%

Arcellx Inc Corporate Events

Arcellx, Inc. Reports Increased Loss Amid Rising Expenses

Arcellx, Inc. is a clinical-stage biopharmaceutical company focused on developing innovative cell therapies for cancer and other incurable diseases, operating within the biotechnology sector. In its latest earnings report for the quarter ending September 30, 2025, Arcellx reported a net loss of $55.8 million, reflecting increased operating expenses and a decline in collaboration revenue compared to the previous year. The company’s collaboration revenue from its partnership with Kite Pharma, a Gilead company, decreased significantly to $4.9 million for the quarter, down from $26 million in the same period last year. This decline was primarily due to changes in the timing of revenue recognition under the collaboration agreement. Despite the financial loss, Arcellx continues to advance its pipeline, with significant investments in research and development, particularly in its lead product candidate, anito-cel, for the treatment of multiple myeloma. Looking ahead, Arcellx remains focused on its strategic collaborations and the development of its innovative therapies, with management expressing confidence in its cash reserves to fund operations into 2028.

Arcellx’s iMMagine-3 Study: A Potential Game-Changer for Multiple Myeloma Treatment

Study Overview: The iMMagine-3 study aims to evaluate the efficacy and safety of anitocabtagene autoleucel compared to standard of care therapy (SOCT) in patients with relapsed/refractory multiple myeloma (RRMM) who have undergone 1 to 3 prior treatments, including an anti-CD38 monoclonal antibody and an immunomodulatory drug. This Phase 3 trial is significant as it seeks to provide an alternative treatment option for RRMM, potentially improving patient outcomes.

Arcellx Advances in Autoimmune Treatment with Anitocabtagene Autoleucel Study

Study Overview: Arcellx, Inc. is conducting a Phase 1 clinical study titled ‘A Phase 1 Study of Anitocabtagene Autoleucel for the Treatment of Subjects With Non-oncology Plasma Cell-related Diseases’. The study aims to evaluate the safety, tolerability, and preliminary efficacy of anito-cel, a BCMA-directed CAR-T cell therapy, in patients with generalized myasthenia gravis (GMG). This research is significant as it explores a novel treatment approach for autoimmune diseases affecting the nervous system.