Armata Pharmaceuticals (ARMP) AI Stock Analysis

• Market Cap: $81.44M
• Dividend Yield: N/A
• Average Volume (3M): 480.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: N/A
• EPS Growth: 99.47%
• Country: US
• Employees: 60
• Sector: Healthcare
• Sector Strength: 44
• Industry: Biotechnology
• EPS (TTM): -0.20
• Shares Outstanding: 36,193,478
• 10 Day Avg. Volume: 1,398,333
• 30 Day Avg. Volume: 480,108
• PEG Ratio: -2.63
• Price to Book (P/B): -0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.35
• Enterprise Value/Market Cap: 1.77
• Enterprise Value/Revenue: 14.94
• Enterprise Value/Gross Profit: 266.92
• Enterprise Value/Ebitda: -1.78
• 1Y Price Target: $9.00
• Price Target Upside: 328.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: $2.50 ▲( 19.05% Upside)

Armata Pharmaceuticals scores low primarily due to severe financial distress, marked by negative revenue growth and a weak balance sheet. While technical indicators show some short-term bullish trends, the overall valuation metrics are unattractive. Recent positive trial results and secured financing provide a glimmer of hope for future prospects, but the company's financial challenges weigh heavily on its overall stock score.

Positive Factors

Clinical Trials Success

Armata announced a very big clinical win as well a defining moment for bacteriophage therapy.

Financial Support

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.

Treatment Efficacy

AP-SA02 showed a responder rate of 88% compared to 58% for the best available antibiotic therapy.

Negative Factors

Clinical Trial 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.

Financial Constraints

The company ended the year with $14.8 million in cash, and has a loan with an annual interest rate of 14% maturing in 2026.

Statistical Significance Concerns

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

Armata Pharmaceuticals Business Overview & Revenue Model

Company Description

Armata Pharmaceuticals, Inc., a clinical-stage biotechnology company, focuses on the development of targeted bacteriophage therapeutics for antibiotic-resistant infections worldwide. It develops its products using its proprietary bacteriophage-based technology. The company's product candidates include AP-SA02 for the treatment of Staphylococcus aureus bacteremia; AP-PA02 for Pseudomonas aeruginosa; and AP-PA03 for the treatment of pneumonia. It has a partnership agreement with Merck & Co. for developing synthetic bacteriophage candidates to target undisclosed infectious disease agents. The company is headquartered in Marina del Rey, California.

How the Company Makes Money

Armata Pharmaceuticals generates revenue primarily through research and development collaborations, government grants, and strategic partnerships. The company focuses on advancing its pipeline of bacteriophage therapies through clinical trials, with the ultimate goal of securing regulatory approval and commercialization. Revenue streams may also include licensing agreements, milestone payments, and royalties from successfully developed and marketed products. Significant partnerships with research institutions and pharmaceutical companies contribute to its funding and developmental capabilities.

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
1.24M	5.17M	4.53M	5.51M	4.47M	823.00K
	Gross Profit
540.00K	3.85M	-29.24M	4.62M	-15.54M	-13.62M
	EBIT
-32.21M	-42.44M	-40.89M	-36.95M	-23.82M	-21.59M
	EBITDA
16.03M	-6.85M	-39.92M	-36.05M	-22.65M	-20.44M
	Net Income Common Stockholders
-426.00K	-18.92M	-69.05M	-36.89M	-23.22M	-22.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.69M	9.29M	13.52M	14.85M	10.29M	9.65M
	Total Assets
87.25M	86.44M	98.36M	95.83M	69.77M	39.52M
	Total Debt
106.96M	126.52M	120.37M	48.81M	37.99M	13.15M
	Net Debt
95.28M	117.22M	106.85M	33.96M	27.70M	3.50M
	Total Liabilities
141.03M	134.46M	130.43M	59.75M	44.37M	20.66M
	Stockholders Equity
-53.78M	-48.02M	-32.06M	36.08M	25.40M	18.86M
Cash Flow		Free Cash Flow
-36.27M	-39.43M	-55.57M	-34.69M	-24.88M	-19.09M
	Operating Cash Flow
-34.55M	-37.55M	-47.42M	-32.48M	-23.57M	-18.27M
	Investing Cash Flow
-1.73M	-1.88M	-8.13M	-2.21M	-1.30M	-824.00K
	Financing Cash Flow
10.01M	34.96M	53.99M	44.02M	25.52M	23.21M

Armata Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.10
• 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 2.1 is above the 20-day moving average (MA) of 1.53, above the 50-day MA of 1.50, and above the 200-day MA of 2.04, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 65.52 is Neutral, neither overbought nor oversold. The STOCH value of 69.57 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
Sector *	53 Neutral	$5.24B	3.07	-43.58%	2.80%	16.87%	-0.11%
PDSB	50 Neutral	$74.51M	―	-119.22%	―	―	25.51%
ALGS	45 Neutral	$37.06M	―	-60.44%	―	-76.29%	―
ARMP	44 Neutral	$81.44M	―	81.15%	―	―	99.47%
ATNM	41 Neutral	$55.84M	―	-130.87%	―	-100.00%	30.65%
CUE	40 Underperform	$50.45M	―	-221.66%	―	13.83%	37.66%
CNTX	37 Underperform	$63.36M	―	-55.59%	―	―	65.02%

Armata Pharmaceuticals Corporate Events

Armata Pharmaceuticals Reports Positive Phase 1b/2a Trial Results

On May 19, 2025, Armata Pharmaceuticals announced positive topline results from its Phase 1b/2a diSArm trial, which evaluated the intravenous administration of AP-SA02 for treating complicated Staphylococcus aureus bacteremia. The study met all primary endpoints for safety, tolerability, and clinical response, showing significant improvement in clinical outcomes and prevention of relapse compared to best available antibiotic therapy. The trial’s success marks a significant advancement in phage therapy, with no serious adverse events reported, and supports further development towards a pivotal trial. Armata’s ability to produce high-purity phage therapeutics and its manufacturing capacity to produce over 10,000 full courses annually positions it strongly in the field of bacteriophage-based treatments.

The most recent analyst rating on (ARMP) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Armata Pharmaceuticals stock, see the ARMP Stock Forecast page.

Armata Pharmaceuticals Secures $10M Loan for Clinical Trials

On March 12, 2025, Armata Pharmaceuticals announced a secured credit agreement with Innoviva Strategic Opportunities LLC, providing a $10 million loan to advance its lead therapeutic phage candidates, AP-PA02 and AP-SA02. This financing will support the company’s clinical trials, including the Phase 1b/2a trial for AP-SA02, and preparations for an end-of-Phase 2 meeting with the FDA, while also extending the maturity dates of previous credit agreements to March 12, 2026.