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Adverum Biotechnologies (ADVM)
NASDAQ:ADVM
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Adverum Biotechnologies (ADVM) AI Stock Analysis

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ADVM

Adverum Biotechnologies

(NASDAQ:ADVM)

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Neutral 49 (OpenAI - 4o)
Rating:49Neutral
Price Target:
$4.00
▼(-7.19% Downside)
Adverum Biotechnologies' overall stock score is primarily impacted by its financial performance, which is currently weak due to persistent losses and cash flow challenges. While technical analysis shows positive momentum, the negative valuation metrics, such as a negative P/E ratio, weigh heavily on the overall score.
Positive Factors
Innovative Technology Platform
Adverum's proprietary AAV technology platform positions it to develop long-lasting therapies, offering a competitive edge in gene therapy for eye diseases.
Strategic Partnerships
Collaborations with larger pharmaceutical companies provide Adverum with crucial funding and development support, enhancing its market position and potential revenue streams.
Focus on Unmet Medical Needs
Targeting significant unmet medical needs in ocular diseases could lead to high demand and market adoption, supporting long-term growth prospects.
Negative Factors
Persistent Financial Losses
Ongoing financial losses highlight operational inefficiencies and the need for revenue stabilization, posing a risk to long-term financial health.
Negative Cash Flow
Consistently negative cash flow indicates operational struggles and potential liquidity risks, necessitating improvements in cash generation ability.
Shrinking Equity Base
A shrinking equity base reflects reduced financial stability, increasing reliance on liabilities and potentially elevating financial risk.

Adverum Biotechnologies (ADVM) vs. SPDR S&P 500 ETF (SPY)

Adverum Biotechnologies Business Overview & Revenue Model

Company DescriptionAdverum 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 MoneyAdverum Biotechnologies primarily generates revenue through collaborations and partnerships with larger pharmaceutical companies, which may involve upfront payments, milestone payments based on development progress, and royalties on future sales of approved therapies. The company may also receive funding from government grants or research institutions to support its clinical trials and research initiatives. As Adverum advances its product candidates through clinical trials and towards potential commercialization, it aims to secure licensing agreements that can further enhance its revenue streams.

Adverum Biotechnologies Financial Statement Overview

Summary
Adverum Biotechnologies is facing significant financial challenges. The income statement shows persistent losses with negative EBIT and net income. The balance sheet indicates increasing leverage and a shrinking equity base, while cash flows are strained with consistent operational cash outflows. These issues highlight the need for improved operational efficiencies and revenue stabilization.
Income Statement
35
Negative
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
45
Neutral
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.00M1.00M3.60M0.007.50M0.00
Gross Profit-11.75M-2.65M-2.04M-6.53M2.85M-4.16M
EBITDA-161.36M-127.27M-117.55M-147.93M-140.90M-112.23M
Net Income-183.87M-130.93M-122.12M-154.54M-145.54M-117.51M
Balance Sheet
Total Assets96.18M179.84M173.01M308.37M439.73M482.57M
Cash, Cash Equivalents and Short-Term Investments44.40M125.69M96.53M185.59M305.19M429.73M
Total Debt92.22M91.70M74.04M106.80M102.99M30.71M
Total Liabilities116.40M109.13M89.54M126.85M123.54M48.22M
Stockholders Equity-20.22M70.71M83.47M181.52M316.19M434.35M
Cash Flow
Free Cash Flow-131.53M-92.85M-91.71M-119.91M-122.95M-91.14M
Operating Cash Flow-130.91M-92.46M-90.90M-108.09M-107.83M-79.29M
Investing Cash Flow45.65M-41.89M96.88M141.72M78.71M-280.17M
Financing Cash Flow359.00K120.00M69.00K607.00K2.40M355.99M

Adverum Biotechnologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.31
Price Trends
50DMA
2.95
Positive
100DMA
2.72
Positive
200DMA
3.53
Positive
Market Momentum
MACD
0.30
Negative
RSI
70.15
Negative
STOCH
58.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADVM, the sentiment is Positive. The current price of 4.31 is above the 20-day moving average (MA) of 3.37, above the 50-day MA of 2.95, and above the 200-day MA of 3.53, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 70.15 is Negative, neither overbought nor oversold. The STOCH value of 58.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADVM.

Adverum Biotechnologies Risk Analysis

Adverum Biotechnologies disclosed 71 risk factors in its most recent earnings report. Adverum Biotechnologies reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Adverum Biotechnologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
49
Neutral
$91.07M-222.28%1.80%
46
Neutral
104.42M-1.62-77.40%-42.94%
45
Neutral
95.68M-3.14-66.16%-87.65%11.76%
30
Underperform
180.54M-2.60-4.60%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ADVM
Adverum Biotechnologies
4.31
-2.63
-37.90%
IGMS
IGM Biosciences
1.27
-15.73
-92.53%
ELTX
Elicio Therapeutics
10.85
5.79
114.43%
ADAG
Adagene
2.02
-0.22
-9.82%
TCRX
TScan Therapeutics
1.78
-3.26
-64.68%
ANL
Adlai Nortye Ltd. Sponsored ADR
1.78
-0.28
-13.59%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 24, 2025