Adverum Biotechnologies (ADVM) AI Stock Analysis

• Market Cap: $91.84M
• Dividend Yield: N/A
• Average Volume (3M): 794.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: -100.00%
• EPS Growth: -42.12%
• Country: US
• Employees: 155
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -2.03
• Shares Outstanding: 22,077,467
• 10 Day Avg. Volume: 378,988
• 30 Day Avg. Volume: 794,399
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 92.38
• P/FCF Ratio: -0.99
• Enterprise Value/Market Cap: 1.84
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -364.03
• Enterprise Value/Ebitda: -0.82
• 1Y Price Target: $4.90
• Price Target Upside: 17.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $4.00 ▼(-3.85% 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 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 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, the balance sheet reveals increasing leverage and a shrinking equity base, and cash flows are strained with consistent operational cash outflows. These issues highlight the need for revenue stabilization and operational efficiency improvements.

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	0.00	1.00M	3.60M	0.00	7.50M	0.00
Gross Profit	-465.00K	1.00M	3.60M	0.00	7.50M	-4.16M
EBITDA	-205.45M	-135.51M	-123.30M	-150.61M	-141.48M	-112.23M
Net Income	-204.39M	-130.93M	-122.12M	-154.54M	-145.54M	-117.51M
Balance Sheet
Total Assets	72.40M	179.84M	155.77M	308.37M	439.73M	482.57M
Cash, Cash Equivalents and Short-Term Investments	26.06M	125.69M	96.53M	185.59M	305.19M	429.73M
Total Debt	88.94M	91.70M	74.04M	106.80M	102.99M	30.71M
Total Liabilities	128.05M	109.13M	88.55M	126.85M	123.54M	48.22M
Stockholders Equity	-55.65M	70.71M	67.22M	181.52M	316.19M	434.35M
Cash Flow
Free Cash Flow	-138.44M	-92.85M	-91.71M	-119.91M	-122.95M	-91.14M
Operating Cash Flow	-137.90M	-92.46M	-90.90M	-108.09M	-107.83M	-79.29M
Investing Cash Flow	60.85M	-41.89M	96.88M	141.72M	78.71M	-280.17M
Financing Cash Flow	10.26M	120.00M	69.00K	607.00K	2.40M	355.99M

Adverum Biotechnologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.16
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 4.16 is below the 20-day moving average (MA) of 4.25, below the 50-day MA of 4.37, and above the 200-day MA of 3.47, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 45.59 is Neutral, neither overbought nor oversold. The STOCH value of 33.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADVM.

Adverum Biotechnologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VTGN	54 Neutral	$150.08M	―	―	―	-33.00%	54.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ARMP	51 Neutral	$242.38M	―	―	―	-7.55%	-13.09%
ADVM	49 Neutral	$91.84M	-0.49	-417.79%	―	-100.00%	-42.12%
MGNX	45 Neutral	$93.62M	―	-81.13%	―	-9.70%	23.23%
NAUT	41 Neutral	$200.83M	-3.19	-32.00%	―	―	11.15%
KLRS	28 Underperform	$107.96M	―	-63.45%	―	―	63.31%