Adverum Biotechnologies (ADVM) AI Stock Analysis

• Market Cap: $46.59M
• Dividend Yield: N/A
• Average Volume (3M): 515.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: N/A
• EPS Growth: 37.54%
• Country: US
• Employees: 155
• Sector: Healthcare
• Sector Strength: 43
• Industry: Biotechnology
• EPS (TTM): -2.25
• Shares Outstanding: 20,890,734
• 10 Day Avg. Volume: 559,812
• 30 Day Avg. Volume: 515,315
• PEG Ratio: 0.03
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.39
• Enterprise Value/Market Cap: 1.89
• Enterprise Value/Revenue: -7.74
• Enterprise Value/Gross Profit: -7.68
• Enterprise Value/Ebitda: -0.22
• 1Y Price Target: $17.00
• Price Target Upside: 669.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 41 Neutral
• Price Target: $2.00 ▼( -9.50% Downside)

Adverum Biotechnologies faces significant financial and operational challenges, reflected in its low financial performance score. Technical indicators suggest bearish trends, and valuation metrics highlight speculative risks. The subtenant default situation exacerbates these concerns. Investors should be cautious, as the company needs to improve revenue generation and operational efficiencies to enhance its market position.

Positive Factors

Clinical Trials

The initiation of the Phase 3 ARTEMIS trial for Ixo-vec includes both treatment-naïve and previously treated wet AMD patients, which can reflect the broad real-world wet AMD patient population.

Efficacy

Ixo-vec has demonstrated paradigm shifting potential in the treatment of neovascular or wet AMD patients with its differentiated injection durability profile, and safety and tolerability with reliable inflammation management.

Financial Outlook

The $125.7M in cash and equivalents is anticipated to fund operations into the second half of 2025, supporting the ongoing pivotal program.

Negative Factors

Competition

The study design contrasts favorably with the pivotal study for competitor FDMT's wet AMD GTx, which will focus solely on newly diagnosed, tx-naïve pts with no option for treatment rescue in the control arm.

Funding Challenges

There is a major stock overhang due to management not solving how the Phase 3 ixo-vec program will be funded.

Adverum Biotechnologies Business Overview & Revenue Model

Company Description

Adverum Biotechnologies, Inc., a clinical-stage gene therapy company, develops gene therapy product candidates to treat ocular and rare diseases. Its lead product candidate is ADVM-022, a single intravitreal injection gene therapy candidate used for the treatment of patients with chronic retinal, including wet age-related macular degeneration and diabetic macular edema. Adverum Biotechnologies, Inc. has license and collaboration agreements with University of California; Cornell University; GenSight; Lexeo; and Virovek. The company was formerly known as Avalanche Biotechnologies, Inc. and changed its name to Adverum Biotechnologies, Inc. in May 2016. Adverum Biotechnologies, Inc. was incorporated in 2006 and is headquartered in Redwood City, California.

How the Company Makes Money

Adverum Biotechnologies generates revenue primarily through collaboration and licensing agreements with other pharmaceutical and biotechnology companies. These partnerships often involve upfront payments, milestones, and royalties based on the successful development and commercialization of product candidates. Additionally, Adverum may receive funding from grants and research contracts to advance its gene therapy programs. The company's earnings are influenced significantly by the progress of its clinical trials and the potential market approval of its therapies.

Adverum Biotechnologies Financial Statement Overview

Summary

Adverum Biotechnologies is experiencing substantial financial difficulties. The income statement shows persistent losses, the balance sheet reveals increasing leverage and a shrinking equity base, and cash flows are strained with consistent operational cash outflows. The company must address these issues, stabilize revenue streams, and improve operational efficiencies to enhance its financial health and sustainability.

Income Statement

Adverum Biotechnologies has experienced significant challenges in its income statement. The company reported negative EBIT and net income for several years, indicating ongoing operational losses. The gross profit margin fluctuates with occasional positive figures, but the net profit margin remains negative, highlighting profitability issues. Revenue growth is erratic with periods of no revenue, showing instability in generating consistent revenue streams.

Balance Sheet

The balance sheet of Adverum Biotechnologies reveals a moderately leveraged position with a debt-to-equity ratio that suggests manageable debt levels relative to its equity. However, the company's equity has decreased over time, reflecting a reduction in financial stability. The equity ratio shows a decline, indicating that liabilities are becoming a larger portion of the company's financial structure, potentially increasing financial risk.

Cash Flow

Adverum Biotechnologies faces challenges in cash flow management. Operating cash flow has been consistently negative, which signifies operational struggles to generate cash. Free cash flow remains negative, indicating heavy cash outflows relative to inflows. Despite occasional financing inflows boosting cash reserves, the reliance on external financing could indicate potential liquidity risks without operational improvements.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
-2.60M	1.00M	3.60M	0.00	7.50M	0.00
	Gross Profit
-11.49M	-2.65M	-2.04M	-6.53M	2.85M	-4.16M
	EBIT
-122.02M	-139.16M	-123.99M	-157.13M	-146.12M	-117.95M
	EBITDA
-83.89M	-127.27M	-118.35M	-147.93M	-140.90M	-112.23M
	Net Income Common Stockholders
-125.51M	-130.93M	-117.17M	-154.54M	-145.54M	-117.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
83.08M	125.69M	96.53M	185.59M	305.19M	429.73M
	Total Assets
137.65M	179.84M	173.01M	308.37M	439.73M	482.57M
	Total Debt
93.18M	91.70M	75.04M	106.80M	102.99M	30.71M
	Net Debt
44.02M	31.05M	36.00K	38.37M	68.80M	-31.72M
	Total Liabilities
111.23M	109.13M	89.54M	126.85M	123.54M	48.22M
	Stockholders Equity
26.42M	70.71M	83.47M	181.52M	316.19M	434.35M
Cash Flow		Free Cash Flow
-112.51M	-92.85M	-91.71M	-119.91M	-122.95M	-91.14M
	Operating Cash Flow
-111.99M	-92.46M	-90.90M	-108.09M	-107.83M	-79.29M
	Investing Cash Flow
11.42M	-41.89M	96.88M	141.72M	78.71M	-280.17M
	Financing Cash Flow
123.00K	120.00M	69.00K	607.00K	2.40M	355.99M

Adverum Biotechnologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADVM, the sentiment is Negative. The current price of 2.21 is below the 20-day moving average (MA) of 2.73, below the 50-day MA of 3.49, and below the 200-day MA of 5.40, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 36.25 is Neutral, neither overbought nor oversold. The STOCH value of 37.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADVM.

Adverum Biotechnologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	53 Neutral	$5.14B	3.06	-43.57%	2.81%	16.81%	-0.12%
ADAG	45 Neutral	$76.55M	―	-55.14%	―	-99.43%	-69.40%
TCRX	45 Neutral	$81.49M	―	-78.93%	―	-70.15%	―
ADVM	41 Neutral	$46.59M	―	-127.99%	―	―	37.54%
IGMS	39 Underperform	$72.14M	―	-245.59%	―	27.36%	23.82%
ELTX	30 Underperform	$82.38M	―	-744.59%	―	―	27.65%
ANL		$66.97M	―		―	―	―

Adverum Biotechnologies Corporate Events

Adverum Biotechnologies Faces Subtenant Default Situation

Adverum Biotechnologies is dealing with a default situation involving its subtenants, Advanced Medical Partners, LLC, and Jaguar Gene Therapy, LLC, under the sublease for the NC Premises. Despite these challenges, Adverum Biotechnologies expects its financial resources, including cash, cash equivalents, and short-term investments, to sustain its operations into the second half of 2025.