Affimed (AFMD) AI Stock Analysis

• Market Cap: $14.77M
• Dividend Yield: N/A
• Average Volume (3M): 113.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.59
• Revenue Growth: -95.23%
• EPS Growth: -325.89%
• Country: US
• Employees: 76
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -3.64
• Shares Outstanding: 15,227,463
• 10 Day Avg. Volume: 114,745
• 30 Day Avg. Volume: 113,583
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.00
• Price Target Upside: 1011.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Affimed's overall stock score reflects its financial struggles, with declining revenue and increasing losses being major concerns. The stock is technically weak, and the valuation is challenging due to negative earnings. Positive aspects from the earnings call, such as strategic progress in clinical trials and reduced losses, provide some optimism but are outweighed by financial and operational challenges.

Positive Factors

Business Development

Affimed’s three active molecules should be of interest to pharma, and a partnership with non-dilutive financing would provide significant support for the stock.

Clinical Data

AFMD highlighted positive data from the LuminICE-203 study in cHL, showing significantly higher ORR compared to the only currently available option.

Clinical Efficacy

New AFM24 + atezolizumab data in anti-PD-(L)1 relapsed / refractory EGFRwt non-small cell lung cancer confirm clinical activity and hint at durability of benefit that could translate to a meaningful 'long tail' benefit over cytotoxic-based alternatives.

Negative Factors

Financial Concerns

The initiation of the PTCL cohort in LuminICE-203 is contingent upon securing additional capital.

Funding Uncertainty

There is a 1-1.5 year delay and uncertainty in source of funding for the higher dose strategy.

Price Target Adjustment

The price target is adjusted from $15 to $11, reflecting updated model assumptions on patient numbers and market penetration.

Affimed Business Overview & Revenue Model

Company Description

Affimed N.V., a clinical-stage biopharmaceutical company, focuses on discovering and developing cancer immunotherapies in the United States, Germany, and rest of Europe. Its lead product candidate is AFM13, which has completed Phase II clinical study for peripheral T-cell lymphoma; in Phase IIa clinical trial for CD30-positive lymphoma; and in Phase I clinical trial for hodgkin lymphoma. The company is also developing AFM24, a tetravalent, bispecific epidermal growth factor receptor, and CD16A-binding innate cell engager, which is in Phase IIa clinical trial for the treatment of advanced cancers; AFM28, an innate cell engager (ICE), which is in preclinical development to treat acute myeloid leukemia; and AFM32, an ICE candidate that is in preclinical development for the treatment of solid tumors. Affimed N.V. has collaboration agreements with The University of Texas MD Anderson Cancer Center; Genentech, Inc.; and Roivant Sciences Ltd., as well as research funding agreement with The Leukemia & Lymphoma Society. The company was formerly known as Affimed Therapeutics B.V. and changed its name to Affimed N.V. in October 2014. Affimed N.V. was founded in 2000 and is headquartered in Heidelberg, Germany.

How the Company Makes Money

Affimed primarily generates revenue through collaboration and license agreements with pharmaceutical companies, where they develop and commercialize their drug candidates. These agreements often include upfront payments, milestone payments based on the achievement of clinical, regulatory, and commercial milestones, and royalties on sales of commercialized products. Additionally, Affimed may receive funding from grants and research collaborations that support their development programs. Significant partnerships with larger pharmaceutical companies also contribute to their revenue by providing financial support and resources for advancing their therapeutic candidates through clinical trials.

Affimed Financial Statement Overview

Summary

Affimed is experiencing significant financial challenges, with declining revenues and increasing losses. The company's high leverage and negative cash flows raise concerns about its ability to sustain operations without external financing. Despite these challenges, the company holds a modest cash reserve, which provides some liquidity cushion.

Income Statement

The company's revenue has decreased significantly, from $41.35M in 2022 to $0.877M in the TTM. The gross profit margin remains at 100%, but the net profit margin is extremely negative due to high losses, with a negative net income of $69.97M in the TTM. The EBIT and EBITDA margins are also deeply negative, indicating operational challenges.

Balance Sheet

The debt-to-equity ratio has increased, suggesting rising leverage, with total debt at $12.89M against stockholders' equity of $17.19M. The equity ratio is declining, reflecting reduced equity relative to total assets. However, the company maintains a reasonable amount of cash and short-term investments at $24.94M.

Cash Flow

Operating cash flow and free cash flow are negative, indicating cash burn issues, with operating cash flow at -$76.90M in the TTM. The free cash flow growth rate is negative, suggesting increasing cash flow challenges. The ratios of cash flow to net income are unfavorable, highlighting cash flow inefficiencies.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
8.28M	41.35M	40.37M	28.36M	21.39M
	Gross Profit
8.28M	41.35M	40.37M	28.36M	21.39M
	EBIT
-106.66M	-88.12M	-64.03M	-34.72M	-32.38M
	EBITDA
-102.38M	-81.47M	-64.01M	-34.23M	-30.97M
	Net Income Common Stockholders
-105.94M	-86.00M	-57.52M	-41.37M	-32.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
72.90M	190.29M	197.63M	146.85M	104.14M
	Total Assets
97.16M	200.51M	225.13M	175.72M	112.36M
	Total Debt
19.35M	18.19M	18.69M	1.30M	3.19M
	Net Debt
-19.18M	-172.10M	-178.94M	-145.56M	-92.05M
	Total Liabilities
39.35M	47.60M	89.18M	103.73M	73.69M
	Stockholders Equity
57.81M	152.91M	135.95M	71.99M	38.67M
Cash Flow		Free Cash Flow
-114.00M	-105.59M	-90.44M	-19.84M	-30.53M
	Operating Cash Flow
-110.27M	-104.89M	-86.59M	-19.40M	-29.06M
	Investing Cash Flow
-36.06M	5.61M	-3.85M	8.01M	4.34M
	Financing Cash Flow
-6.22M	88.56M	133.58M	69.25M	26.04M

Affimed Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.99
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AFMD, the sentiment is Neutral. The current price of 0.99 is above the 20-day moving average (MA) of 0.73, above the 50-day MA of 0.85, and below the 200-day MA of 2.48, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 68.46 is Neutral, neither overbought nor oversold. The STOCH value of 87.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AFMD.

Affimed Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.35B	3.41	-40.83%	2.89%	18.11%	2.60%
TXMD	47 Neutral	$14.12M	―	-8.16%	―	35.25%	81.05%
AFMD	42 Neutral	$14.77M	―	-151.46%	―	-95.23%	-325.89%
APRE	40 Underperform	$9.67M	―	-66.65%	―	157.63%	40.52%
ATHA	36 Underperform	$11.48M	―	-110.77%	―	―	18.61%
SPRB	35 Underperform	$3.32M	―	-100.70%	―	-51.32%	-1.76%
RNAZ	24 Underperform	$9.85M	―	-490.03%	―	―	99.64%