Armata Pharmaceuticals (ARMP) AI Stock Analysis

• Market Cap: $103.26M
• Dividend Yield: N/A
• Average Volume (3M): 11.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: 84.67%
• EPS Growth: 61.76%
• Country: US
• Employees: 60
• Sector: Healthcare
• Sector Strength: 52
• Industry: Biotechnology
• EPS (TTM): -0.45
• Shares Outstanding: 36,229,843
• 10 Day Avg. Volume: 16,163
• 30 Day Avg. Volume: 11,585
• PEG Ratio: 0.05
• Price to Book (P/B): -1.39
• Price to Sales (P/S): 12.93
• P/FCF Ratio: -1.70
• Enterprise Value/Market Cap: 2.02
• Enterprise Value/Revenue: 30.34
• Enterprise Value/Gross Profit: 38.36
• Enterprise Value/Ebitda: -19.55
• 1Y Price Target: $9.00
• Price Target Upside: 219.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: $3.00 ▲(6.38% Upside)

The overall stock score reflects significant financial challenges, with persistent losses and a weak balance sheet being major concerns. However, positive technical indicators and promising corporate events, including new funding and successful trial results, provide some optimism. The valuation remains unattractive due to negative earnings.

Positive Factors

Clinical Trial Success

Armata reported positive topline results from the Phase 1b/2a diSArm trial assessing AP-SA02 in patients with S. aureus bacteremia, meeting all primary endpoints.

Funding and Partnerships

Armata Pharmaceuticals has secured an additional $4.65 million award from the U.S. Department of Defense, increasing total non-dilutive funding for AP-SA02 to $26.2 million.

Negative Factors

Clinical Trial Challenges

The primary endpoint of the Phase 2 Tailwind clinical trial did not reach statistical significance, likely due to small numbers of subjects.

Financial Risks

There are risks to achieving the price target, including potential failed or inconclusive clinical trials and inability to secure adequate funding for drug development.

Armata Pharmaceuticals Business Overview & Revenue Model

Company Description

Armata Pharmaceuticals (ARMP) is a biotechnology company focused on developing innovative therapies for the treatment of antibiotic-resistant infections. The company operates primarily in the pharmaceutical sector, leveraging its proprietary bacteriophage technology to create targeted therapies that address the growing challenge of multi-drug resistant pathogens. Armata's core products include its lead therapeutic candidates aimed at treating serious bacterial infections, potentially offering alternatives to traditional antibiotics.

How the Company Makes Money

Armata Pharmaceuticals generates revenue primarily through the development and commercialization of its bacteriophage-based therapies. The company may receive funding from government grants and contracts, particularly for research and development initiatives aimed at addressing public health challenges. Additionally, Armata may enter into partnerships and collaborations with larger pharmaceutical companies, which can provide milestone payments and royalties on sales of products developed through these partnerships. The company could also explore licensing agreements that enable it to monetize its intellectual property and technology platforms. These diverse revenue streams are critical for supporting its ongoing clinical trials and operational expenses.

Armata Pharmaceuticals Financial Statement Overview

Summary

Armata Pharmaceuticals is facing serious financial challenges, with negative revenue growth, persistent losses, and a weak balance sheet with negative equity. The cash flow situation is strained, heavily reliant on financing. The company must address these financial deficiencies to improve its financial health and sustainability.

Income Statement

Armata Pharmaceuticals shows a significant decline in revenue with no revenue reported in the most recent year from $4.5 million the previous year. The company has been consistently operating at a loss, with increasing negative EBIT and EBITDA margins. The net profit margin is also negative due to substantial net losses over the years, indicating financial distress.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, which is concerning as liabilities exceed assets. The debt-to-equity ratio is not applicable due to negative equity, but high total liabilities relative to assets suggest a heavily leveraged position. The equity ratio is negative, indicating insolvency risks.

Cash Flow

Free cash flow remains negative, but there is a minor improvement in free cash flow growth due to reduced negative cash flow. The operating cash flow is significantly negative and larger than net income, suggesting inefficient cash management. The company relies on financing activities for cash inflow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.87M	5.17M	4.53M	5.51M	4.47M	823.00K
Gross Profit	5.43M	3.85M	-29.24M	4.62M	-15.54M	-13.62M
EBITDA	-10.66M	-6.85M	-39.92M	-36.05M	-22.65M	-20.44M
Net Income	-25.71M	-18.92M	-69.05M	-36.92M	-23.16M	-22.18M
Balance Sheet
Total Assets	80.79M	86.44M	98.36M	95.83M	69.77M	39.52M
Cash, Cash Equivalents and Short-Term Investments	4.33M	9.29M	13.52M	14.85M	10.29M	9.65M
Total Debt	110.51M	126.52M	120.37M	48.81M	37.99M	13.15M
Total Liabilities	150.29M	134.46M	130.43M	59.75M	44.37M	20.66M
Stockholders Equity	-69.50M	-48.02M	-32.06M	36.08M	25.40M	18.86M
Cash Flow
Free Cash Flow	-32.09M	-39.43M	-55.57M	-34.69M	-24.88M	-19.09M
Operating Cash Flow	-31.58M	-37.55M	-47.42M	-32.48M	-23.57M	-18.27M
Investing Cash Flow	-511.00K	-1.88M	-8.13M	-2.21M	-1.30M	-824.00K
Financing Cash Flow	9.93M	34.96M	53.99M	44.02M	25.52M	23.21M

Armata Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARMP, the sentiment is Positive. The current price of 2.82 is above the 20-day moving average (MA) of 2.60, above the 50-day MA of 2.43, and above the 200-day MA of 2.01, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 59.23 is Neutral, neither overbought nor oversold. The STOCH value of 64.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARMP.

Armata Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARMP	55 Neutral	$103.26M	―	81.15%	―	84.67%	61.76%
Sector *	51 Neutral	$7.95B	-0.38	-43.43%	2.22%	22.30%	-1.83%
ELUT	48 Neutral	$79.70M	―	149.62%	―	-5.22%	82.06%
VERU	47 Neutral	$49.40M	―	-96.35%	―	-52.76%	43.40%
ORMP	47 Neutral	$91.44M	21.10	-14.57%	―	―	-217.26%
ADAG	47 Neutral	$103.69M	―	-63.24%	―	-87.65%	11.76%
INKT	38 Underperform	$66.94M	―	78.50%	―	―	41.90%

Armata Pharmaceuticals Corporate Events

Armata Pharmaceuticals Secures $15M Loan for Development

On August 11, 2025, Armata Pharmaceuticals entered into a secured credit agreement with Innoviva Strategic Opportunities LLC for a $15 million loan maturing in 2029. The funding will support the development of Armata’s lead therapeutic candidate, AP-SA02, which showed positive results in a Phase 1b/2a trial for treating complicated Staphylococcus aureus bacteremia. The trial met all primary endpoints, demonstrating improved clinical outcomes without serious adverse events. Armata plans to discuss a Phase 3 trial design with the FDA later this year, aiming to change the standard of care for this serious infection. Additionally, Armata received $4.65 million in non-dilutive funding from the U.S. Department of Defense to support its ongoing research efforts.

Armata Pharmaceuticals Elects Board Members at Annual Meeting

At the Annual Meeting of Shareholders on June 12, 2025, Armata Pharmaceuticals elected seven board members for a one-year term ending in 2026. Shareholders also approved the compensation of the company’s executive officers and ratified Ernst & Young LLP as the independent accounting firm for the fiscal year ending December 31, 2025.