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Arcturus Therapeutics (ARCT)
NASDAQ:ARCT
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Arcturus Therapeutics
(NASDAQ:ARCT)48Neutral
Positive Factors
Clinical Performance
Head-to-head studies have shown superior and longer-lasting immunogenicity for Kostaive compared to the current market leader.
Regulatory Approval
Approval of COVID vaccine Kostaive by the European Commission is expected to boost the launch in Japan.
Negative Factors
Financial Performance
Distribution partner Meiji has faced initial headwinds and reported a significant operating profit loss due to increased Kostaive inventory write downs.
Arcturus Therapeutics (ARCT) vs. S&P 500 (SPY)
Market Cap
$454.80M
Dividend YieldN/A
Average Volume (3M)418.48K
Price to Earnings (P/E)―
Beta (1Y)2.78
Revenue Growth-50.30%
EPS Growth-159.03%
CountryUS
Employees180
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)-2.21
Shares Outstanding27,087,358
10 Day Avg. Volume418,923
30 Day Avg. Volume418,484
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.84
Price to Cash Flow (P/CF)-4.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$76.60Price Target Upside394.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Arcturus Therapeutics Business Overview & Revenue Model
Company DescriptionArcturus Therapeutics (ARCT) is a biotechnology company focused on developing innovative RNA-based therapeutics for the treatment of various diseases. The company specializes in the discovery, development, and commercialization of RNA medicines using its proprietary LUNAR® lipid-mediated delivery and STARR™ mRNA technologies. Arcturus is engaged in creating transformative therapeutics for rare diseases, infectious diseases, and vaccines, leveraging its advanced platform to address unmet medical needs.
How the Company Makes MoneyArcturus Therapeutics generates revenue primarily through collaboration agreements, licensing, and development partnerships with pharmaceutical and biotechnology companies. These collaborations typically involve upfront payments, research funding, milestone payments based on development progress, and potential royalties on commercialized products. The company's strategic alliances with major industry players, such as its partnership with Ultragenyx, provide significant financial support and share development risks. Additionally, Arcturus may receive government grants or funding for specific research initiatives, contributing to its revenue stream.
Arcturus Therapeutics Financial Statement Overview
Summary
Arcturus Therapeutics shows a mixed financial performance. The company has a strong gross profit margin but struggles with operational losses and cash flow challenges. The balance sheet is relatively strong with low leverage, but negative returns indicate profitability concerns. The company should focus on improving operational efficiencies and cash flow conversion to enhance its financial health.Income Statement
Arcturus Therapeutics has shown a decline in total revenue in the TTM period compared to the previous annual report. The gross profit margin is notably high at 104.5% for TTM (Trailing-Twelve-Months), indicating a strong capacity to generate profit over the cost of goods sold. However, the company is experiencing negative EBIT and EBITDA margins, reflecting operational inefficiencies. The net profit margin is also negative, which is concerning for profitability.40
Negative
Balance Sheet
The company's balance sheet shows a moderate debt-to-equity ratio of 0.11 for TTM, indicating low leverage. The equity ratio stands at 70.65%, suggesting a strong equity base relative to total assets. However, the return on equity is negative due to ongoing net losses, signaling potential issues in generating shareholder returns.55
Neutral
Cash Flow
Arcturus Therapeutics has a negative free cash flow growth rate and an operating cash flow to net income ratio of 1.01 in TTM, demonstrating challenges in cash generation relative to net income. The free cash flow to net income ratio is -1.02, indicating that the company is not converting its net income into free cash flow effectively.45
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 145.60M | 157.75M | 205.75M | 12.36M | 9.54M | 20.79M | Gross Profit |
| 152.16M | 154.79M | 62.70M | -159.50M | -46.41M | -11.65M | EBIT |
| -54.94M | -78.20M | 12.18M | -202.85M | -71.52M | -25.51M | EBITDA |
| -59.33M | -24.17M | 13.70M | -201.66M | -70.64M | -24.42M | Net Income Common Stockholders |
| -59.51M | -29.73M | 9.35M | -206.86M | -71.36M | -25.72M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 292.00M | 292.00M | 391.88M | 370.49M | 462.89M | 71.35M | Total Assets |
| 429.40M | 429.40M | 450.39M | 392.81M | 476.46M | 82.14M | Total Debt |
| 30.22M | 30.22M | 90.87M | 67.61M | 17.87M | 19.84M | Net Debt |
| -261.79M | -261.79M | -301.01M | -302.88M | -445.02M | -51.51M | Total Liabilities |
| 150.89M | 150.89M | 180.07M | 164.60M | 79.90M | 56.35M | Stockholders Equity |
| 278.51M | 278.51M | 270.31M | 228.21M | 396.55M | 25.79M |
| Cash Flow | Free Cash Flow | ||||
| -60.84M | -21.00M | 24.27M | -138.45M | -44.60M | -7.26M | Operating Cash Flow |
| -60.01M | -18.10M | 31.99M | -135.04M | -42.86M | -6.45M | Investing Cash Flow |
| -1.48M | -2.90M | -7.73M | -3.41M | -1.74M | -818.00K | Financing Cash Flow |
| -12.74M | -24.09M | -2.86M | 48.02M | 436.14M | 41.91M |
Arcturus Therapeutics Technical Analysis
Negative
15.49
Price Trends
16.85
Negative
17.78
Negative
21.30
Negative
Market Momentum
-0.26
Positive
42.88
Neutral
24.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARCT, the sentiment is Negative. The current price of 15.49 is below the 20-day moving average (MA) of 16.65, below the 50-day MA of 16.85, and below the 200-day MA of 21.30, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 42.88 is Neutral, neither overbought nor oversold. The STOCH value of 24.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARCT.
Arcturus Therapeutics Risk Analysis
Arcturus Therapeutics disclosed 61 risk factors in its most recent earnings report. Arcturus Therapeutics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arcturus Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $145.93B | 18.28 | 8.68% | 6.44% | 8.77% | 272.80% | |
56 Neutral | $26.29B | ― | -2.44% | ― | -52.11% | -118.03% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
48 Neutral | $454.80M | ― | -22.72% | ― | -50.30% | -159.03% | |
48 Neutral | $11.72B | ― | -32.67% | ― | -52.75% | 25.00% | |
40 Underperform | $1.24B | ― | 30.06% | ― | -30.65% | 77.62% |
* Healthcare Sector Average
Performance Comparison
ARCT
Arcturus Therapeutics
15.49
-22.07
-58.76%
NVAX
Novavax
7.68
2.11
37.88%
PFE
Pfizer
25.75
1.21
4.93%
MRNA
Moderna
30.37
-65.19
-68.22%
BNTX
BioNTech SE
109.65
19.13
21.13%
Arcturus Therapeutics Earnings Call Summary
Earnings Call Date: Nov 7, 2024 | % Change Since: -17.34% | Next Earnings Date: Mar 6, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted the successful commercial launch of KOSTAIVE in Japan and positive clinical trial results, indicating significant progress in Arcturus' pipeline. However, financial challenges such as a decrease in revenue and a reported net loss, along with delays in data for the OTC program, were noted. Overall, the sentiment is balanced with notable achievements and ongoing challenges.Highlights
Commercial Launch of KOSTAIVE in Japan
Arcturus launched KOSTAIVE, a self-amplifying mRNA COVID-19 vaccine, in Japan, marking the first commercial product in the company's history. They received a $25 million commercial milestone from this launch.
Positive Phase III Results for ARCT-2303
ARCT-2303, a monovalent XBB variant of KOSTAIVE, met all primary and key secondary objectives in Phase III trials, demonstrating superior immune response against Omicron variants.
FDA Clearance for ARCT-032 IND in Cystic Fibrosis
Arcturus received FDA clearance for an IND application for ARCT-032, an inhaled mRNA therapeutic for cystic fibrosis, enabling the initiation of a Phase II study.
Strong Financial Position
Arcturus reported cash, cash equivalents, and restricted cash of $294.1 million as of September 30, 2024, with a projected cash runway extending into Q1 2027.
Lowlights
Decrease in Quarterly Revenue
Revenues for Q3 2024 were $41.7 million, a slight decrease from $45.1 million in Q3 2023, attributed to a reduced milestone payment from CSL.
Net Loss for the Quarter
Arcturus reported a net loss of $6.9 million in Q3 2024, an improvement from a net loss of $16.2 million in Q3 2023, but still a loss.
Delay in OTC Program Data
Interim Phase II data for the ARCT-810 program for OTC deficiency, initially expected in Q4 2024, has been delayed to the first half of 2025.
Company Guidance
In the third quarter of 2024 earnings call, Arcturus Therapeutics provided several key metrics and guidance details. The company reported Q3 revenues of $41.7 million, a decrease from the previous year's $45.1 million, primarily due to a reduction in CSL revenue. However, the company received a $25 million commercial milestone following the launch of its COVID-19 vaccine, KOSTAIVE, in Japan. Arcturus reported a net loss of $6.9 million or $0.26 per diluted share for Q3 2024, compared to a net loss of $16.2 million or $0.61 per diluted share in Q3 2023. Operating expenses for the quarter were $52.4 million, down from $64.5 million in the previous year. The company anticipates that its cash runway, which stood at $294.1 million as of September 30, 2024, will extend into the first quarter of 2027. Looking ahead, Arcturus plans to file a BLA for KOSTAIVE in the U.S. in the first half of 2025, supported by positive Phase III results. Additionally, interim Phase II data for its therapeutic programs, ARCT-032 and ARCT-810, is expected in the first half of 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.