Aclaris Therapeutics (ACRS) AI Stock Analysis

• Market Cap: $163.50M
• Dividend Yield: N/A
• Average Volume (3M): 684.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: -40.09%
• EPS Growth: -18.67%
• Country: US
• Employees: 61
• Sector: Healthcare
• Sector Strength: 55
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.12
• Shares Outstanding: 108,281,240
• 10 Day Avg. Volume: 764,914
• 30 Day Avg. Volume: 684,634
• PEG Ratio: 0.36
• Price to Book (P/B): 5.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.07
• Enterprise Value/Market Cap: 6.01
• Enterprise Value/Revenue: 10.28
• Enterprise Value/Gross Profit: 268.89
• Enterprise Value/Ebitda: -3.95
• 1Y Price Target: $9.40
• Price Target Upside: 514.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 46 Neutral
• Price Target: ―

Aclaris Therapeutics is currently facing significant challenges, with a primary focus on its financial performance. The company's lack of profitability and reliance on external financing are major concerns. The technical analysis further underscores negative momentum, although oversold indicators might suggest a potential short-term rebound. Valuation is unattractive due to negative earnings, and no significant earnings call data or corporate events are available to offset these issues.

Positive Factors

Clinical trial advancements

Bosakitug mid-stage atopic dermatitis trial started on schedule.

Financial outlook

ACRS has a cash runway into 2028, supporting its operations for several more years.

Pipeline potential

Bosakitug possesses superior potency and residence time along with unique TSLP binding characteristics, which may position it as a potential best-in-class anti-TSLP therapeutic monoclonal antibody.

Negative Factors

Market competition

'045 and '052 demonstrated superior potency, shorter dissociation curves, and longer residence times compared to TSLP competitors, which could translate into promising efficacy.

Proof of concept skepticism

Investors view Teze data as proof of concept for TSLP inhibition, lending support for '045 despite Teze's discontinuation in AD.

Trial design concerns

The lack of a placebo control in the open-label Ph2a trial for '045 requires caution, even though investors see the data as promising.

Aclaris Therapeutics Business Overview & Revenue Model

Company Description

Aclaris Therapeutics, Inc. operates a clinical-stage biopharmaceutical company, develops novel drug candidates for immune-inflammatory diseases in the United States. It operates through two segments: Therapeutics and Contract Research. The Therapeutics segment is involved in identifying and developing innovative therapies to address significant unmet needs for immuno-inflammatory diseases. The Contract Research segment engages in the provision of laboratory services. The company also develops Zunsemetinib, an MK2 inhibitor for the treatment of moderate to severe rheumatoid and Psoriatic arthritis, and Hidradenitis suppurativa; and ATI-1777, a soft JAK 1/3 inhibitor for the treatment of moderate to severe atopic dermatitis. In addition, it develops ATI-2138, an ITK/TXK/JAK3 inhibitor as a potential treatment for T cell-mediated autoimmune diseases; Gut-Biased Program for inflammatory bowel disease; and ATI-2231, an MK2 inhibitor treatment for pancreatic and metastatic breast cancer. The company was incorporated in 2012 and is headquartered in Wayne, Pennsylvania.

How the Company Makes Money

Aclaris Therapeutics makes money primarily through the development and potential commercialization of its proprietary drug candidates. The company's revenue model includes milestones and royalty payments from partnerships with larger pharmaceutical companies that collaborate on the development and commercialization of Aclaris's therapies. Additionally, Aclaris may earn revenue from out-licensing its technologies and intellectual property, as well as from any approved products sold directly to the market. The company's earnings are significantly influenced by the successful advancement of its drug candidates through clinical trials and regulatory approvals, as well as strategic partnerships that provide funding for development activities.

Aclaris Therapeutics Financial Statement Overview

Summary

Aclaris Therapeutics faces significant challenges in achieving profitability and positive cash flow, despite a strong balance sheet with no debt and substantial cash reserves. Revenue growth is inconsistent, and ongoing losses suggest a need for strategic changes to improve operational efficiency. The company's ability to maintain financial health is contingent on continued access to external financing and cost management improvements.

Income Statement

Aclaris Therapeutics has experienced fluctuating revenue growth, with a decline from 2023 to 2024. The company struggles with profitability, indicated by substantial negative EBIT, EBITDA, and net income margins. Gross profit margin is relatively high, suggesting effective cost management at the gross level, but significant operating losses highlight challenges in controlling other expenses.

Balance Sheet

The balance sheet displays a strong equity position with zero debt in 2024, leading to a healthy equity ratio. However, consistent losses have eroded equity over time. The company maintains significant cash reserves which provide a buffer against operational losses, but the lack of profitability poses a long-term risk.

Cash Flow

Cash flow analysis reveals negative operating cash flow, indicating a reliance on external financing to sustain operations. Free cash flow remains negative, although there is a slight improvement in cash flow stability compared to previous years. The company is capable of raising capital, as evidenced by positive financing cash flows.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
17.78M	18.72M	31.25M	29.75M	6.76M	6.48M
	Gross Profit
3.65M	3.46M	13.17M	17.79M	2.05M	1.35M
	EBIT
-140.78M	-141.93M	-97.36M	-85.15M	-65.38M	-50.91M
	EBITDA
-54.12M	-51.72M	-117.56M	-84.36M	-65.06M	-48.20M
	Net Income Common Stockholders
-130.21M	-132.06M	-88.48M	-88.66M	-114.28M	-51.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
105.31M	113.59M	119.11M	229.81M	225.66M	54.13M
	Total Assets
198.09M	220.33M	197.41M	254.60M	251.21M	70.78M
	Total Debt
0.00	0.00	426.00K	684.00K	693.00K	11.26M
	Net Debt
-30.36M	-24.57M	-39.45M	-44.59M	-26.66M	-42.88M
	Total Liabilities
54.03M	64.77M	40.23M	56.98M	53.87M	33.13M
	Stockholders Equity
144.07M	155.55M	157.18M	197.62M	197.34M	37.65M
Cash Flow		Free Cash Flow
-48.16M	-20.20M	-79.63M	-68.17M	-52.44M	-39.09M
	Operating Cash Flow
-12.32M	-20.07M	-78.33M	-67.57M	-52.13M	-38.63M
	Investing Cash Flow
-67.48M	-69.77M	46.22M	12.63M	-167.63M	6.39M
	Financing Cash Flow
74.32M	74.54M	26.71M	72.87M	225.05M	18.37M

Aclaris Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.53
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACRS, the sentiment is Positive. The current price of 1.53 is above the 20-day moving average (MA) of 1.42, above the 50-day MA of 1.32, and below the 200-day MA of 1.92, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 58.83 is Neutral, neither overbought nor oversold. The STOCH value of 55.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACRS.

Aclaris Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
TLSI	51 Neutral	$211.14M	―	271.41%	―	85.03%	53.73%
FDMT	48 Neutral	$201.98M	―	-32.97%	―	―	―
MOLN	47 Neutral	$143.23M	―	-40.40%	―	-67.23%	4.11%
ACRS	46 Neutral	$163.50M	―	-91.03%	―	-40.09%	-18.67%
IPHA	41 Neutral	$186.47M	―	-160.99%	―	-75.67%	-552.37%
TARA	39 Underperform	$130.02M	―	-41.88%	―	―	32.58%

Aclaris Therapeutics Corporate Events

Aclaris Therapeutics Highlights Drug Progress and Financial Strength

Aclaris Therapeutics has updated its corporate overview presentation, highlighting the progress and potential of its drug candidates, including ATI-045, ATI-052, and ATI-2138. The company is well-positioned financially, with a strong cash runway expected to support operations into 2028, and is leveraging its expertise in small and large molecule discovery to advance its pipeline. This update suggests a solid trajectory for Aclaris in its market, potentially enhancing its position in the biotechnology industry and providing significant opportunities for stakeholders.