Arcellx Inc (ACLX) AI Stock Analysis

• Market Cap: $4.31B
• Dividend Yield: N/A
• Average Volume (3M): 544.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.64
• Revenue Growth: -60.63%
• EPS Growth: -216.87%
• Country: US
• Employees: 163
• Sector: Healthcare
• Sector Strength: 51
• Industry: Biotechnology
• EPS (TTM): -0.94
• Shares Outstanding: 55,458,910
• 10 Day Avg. Volume: 564,780
• 30 Day Avg. Volume: 544,319
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 42.98
• Enterprise Value/Gross Profit: 43.69
• Enterprise Value/Ebitda: -20.36
• 1Y Price Target: $115.83
• Price Target Upside: 49.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 51 Neutral
• Price Target: $71.00 ▼(-8.60% Downside)

Arcellx Inc's overall stock score is primarily influenced by its financial performance, which shows strong cash reserves but ongoing profitability challenges. Technical analysis indicates stable trading conditions, while valuation reflects typical growth-phase characteristics of a biotech firm with a negative P/E ratio.

Positive Factors

Strong Cash Reserves

Strong cash reserves provide Arcellx with the financial flexibility to continue its R&D efforts and sustain operations, crucial for a biotech firm in clinical stages.

Proprietary Technology

The proprietary ARC-SparX platform offers a competitive advantage by enhancing therapy efficacy and safety, potentially leading to successful commercialization.

Partnership Revenue Model

A diversified revenue model through partnerships and licensing provides multiple income streams, reducing reliance on a single source and supporting long-term growth.

Negative Factors

Profitability Challenges

Ongoing profitability challenges indicate financial strain, which could hinder future investments and operational expansion if not addressed.

Revenue Decline

A decline in revenue highlights potential issues in product adoption or market penetration, which could impact future growth prospects.

Negative Cash Flow

Negative cash flow from operations indicates challenges in sustaining operations without external funding, posing a risk to long-term viability.

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 operates in a capital-intensive biotechnology sector, evidenced by continuous investments and R&D spending. The company shows potential with strong cash reserves and equity but faces profitability challenges. While there are signs of improvement in free cash flow, consistent negative earnings suggest ongoing financial pressure.

Income Statement

Arcellx Inc has shown fluctuating revenue with a recent decline in TTM revenue compared to the previous year. The gross profit margin remains high, but negative EBIT and net profit margins indicate ongoing losses. The company faces challenges with profitability as it continues to invest heavily in its operations.

Balance Sheet

The balance sheet reveals a strong equity position with a positive equity ratio. However, the debt-to-equity ratio is moderate, suggesting manageable leverage. The company’s cash reserves are healthy, which can support its operations despite the losses.

Cash Flow

Operating cash flow is negative, highlighting cash burn, but a significant free cash flow improvement was noted in 2023. The company's cash flow from operations to net income ratio is negative, indicating challenges in converting its operations into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	76.81M	107.94M	110.32M	0.00	0.00	0.00
Gross Profit	75.57M	107.94M	110.32M	-2.22M	-1.04M	-629.00K
EBITDA	-162.18M	-99.06M	-64.14M	-184.74M	-63.93M	-31.47M
Net Income	-162.42M	-107.35M	-70.69M	-188.68M	-63.93M	-32.09M
Balance Sheet
Total Assets	648.08M	711.33M	825.13M	313.82M	128.78M	57.69M
Cash, Cash Equivalents and Short-Term Investments	543.26M	587.58M	702.02M	254.84M	104.62M	46.60M
Total Debt	53.19M	54.08M	97.63M	88.13M	100.00K	0.00
Total Liabilities	231.18M	256.54M	339.75M	108.86M	250.30M	121.41M
Stockholders Equity	416.91M	454.79M	485.38M	204.95M	111.86M	50.54M
Cash Flow
Free Cash Flow	-122.49M	-96.90M	186.15M	-101.58M	-60.02M	-29.55M
Operating Cash Flow	-114.70M	-83.47M	207.57M	-99.30M	-54.24M	-28.66M
Investing Cash Flow	61.55M	-183.04M	-154.51M	-117.67M	-79.98M	-888.00K
Financing Cash Flow	-20.56M	-24.09M	279.16M	252.63M	118.45M	41.66M

Arcellx Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 77.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACLX, the sentiment is Positive. The current price of 77.68 is above the 20-day moving average (MA) of 71.58, above the 50-day MA of 70.48, and above the 200-day MA of 68.84, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 68.96 is Neutral, neither overbought nor oversold. The STOCH value of 92.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACLX.

Arcellx Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PTGX	60 Neutral	$3.71B	83.75	8.61%	―	-34.45%	-69.75%
APLS	58 Neutral	$3.21B	―	-108.49%	―	20.02%	33.45%
Sector *	51 Neutral	$8.02B	-0.39	-43.38%	2.20%	22.34%	-2.13%
ACLX	51 Neutral	$4.31B	―	-42.75%	―	-60.63%	-216.87%
BEAM	50 Neutral	$2.01B	―	-41.94%	―	-82.90%	-155.64%
IMVT	45 Neutral	$2.93B	―	-77.58%	―	―	-48.38%
MLTX	41 Neutral	$3.49B	―	-40.29%	―	―	-208.46%

Arcellx Inc Corporate Events

Arcellx Inc Holds Annual Stockholders Meeting

Arcellx Inc. held its Annual Meeting of Stockholders on May 28, 2025, where approximately 96.15% of the outstanding shares were represented. During the meeting, three Class III directors were elected, the executive compensation was approved on an advisory basis, and the appointment of PricewaterhouseCoopers LLP as the independent registered accounting firm for the fiscal year ending December 31, 2025, was ratified.