Assembly Biosciences (ASMB) AI Stock Analysis

• Market Cap: $68.13M
• Dividend Yield: N/A
• Average Volume (3M): 33.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: 298.16%
• EPS Growth: 50.72%
• Country: US
• Employees: 73
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -6.71
• Shares Outstanding: 7,503,385
• 10 Day Avg. Volume: 45,484
• 30 Day Avg. Volume: 33,137
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.47
• Price to Cash Flow (P/CF): -1.20
• 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: $31.00
• Price Target Upside: 241.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Assembly Biosciences faces substantial financial challenges, with consistent revenue declines, net losses, and negative cash flows undermining profitability and liquidity. The stock's bearish technical indicators and negative valuation metrics further reinforce a cautious outlook, resulting in a low overall stock score.

Positive Factors

Drug Development

ABI-6250's oral bioavailability is a key attribute, indicating the potential for once-daily oral dosing, possibly becoming the first oral chronic HDV treatment.

Financial Investment

Gilead's latest equity investment, priced at a premium, raises Gilead's ownership of outstanding ASMB voting stock from approximately 19.9% to 29.9%.

Funding

Assembly received $30.1M in cash infusions from Gilead.

Negative Factors

Program Efficacy

There is current uncertainty on the efficacy of Assembly's programs including ABI-5366, ABI-4334, and ABI-6250, at a level that could potentially support their advancement towards regulatory approvals.

Timeline Delays

Data readout for ABI-5366, originally expected in the first half of 2025, has been delayed to Fall 2025.

Trial Risks

Key risks include failed or equivocal trial results, unforeseen safety or tolerability issues, meaningful delays to expected timelines, and inability to sufficiently fund operations.

Assembly Biosciences Business Overview & Revenue Model

Company Description

Assembly Biosciences, Inc., a clinical-stage biotechnology company, discovers and develops therapeutic candidates for the treatment of hepatitis B virus (HBV) infection in the United States. The company's lead product candidate is Vebicorvir, which as completed Phase 2 clinical trials to treat patients with chronic HBV infection. It is also developing ABI-H3733 that has completed Phase 1a clinical study, and ABI-4334, which is in pre-clinical trials for the treatment of HBV. The company has collaboration agreements with BeiGene, Ltd. and Arbutus Biopharma Corporation; and Antios Therapeutics, Inc. to evaluate a triple combination treatment in patients with chronic hepatitis B virus infection. It also has strategic license agreements with Indiana University Research and Technology Corporation; and Door Pharmaceuticals, LLC. The company was formerly known as Ventrus Biosciences, Inc. and changed its name to Assembly Biosciences, Inc. in June 2014. Assembly Biosciences, Inc. was incorporated in 2005 and is headquartered in South San Francisco, California.

How the Company Makes Money

Assembly Biosciences makes money through the development and commercialization of its proprietary drug candidates. The company generates revenue by entering into strategic collaborations and partnerships with larger pharmaceutical companies, which may involve milestone payments, licensing fees, and royalties on future sales. Additionally, Assembly Biosciences seeks to advance its drug candidates through clinical trials, aiming for regulatory approval to bring these treatments to market, which would further contribute to its revenue through direct sales or additional partnerships.

Assembly Biosciences Financial Statement Overview

Summary

Assembly Biosciences exhibits financial distress across key areas. The absence of revenue in recent years, combined with enduring net losses and negative cash flows, suggests significant profitability and liquidity challenges. While leverage remains low, declining equity and assets reflect potential financial instability, requiring strategic reassessment.

Income Statement

Assembly Biosciences has faced significant challenges with consistent revenue declines from $79.1M in 2020 to $0 in 2022 and 2024, indicating potential instability. The company has struggled with persistent net losses and negative profit margins, including a net profit margin of -100% in 2024. These factors highlight major profitability issues.

Balance Sheet

While the company maintains a reasonable equity ratio of 28% in 2024, indicative of some financial stability, the declining stockholders' equity from $240.6M in 2020 to $33.4M in 2024 raises concerns. A relatively low debt-to-equity ratio of 0.09 in 2024 suggests manageable leverage, but the shrinking equity indicates potential risk.

Cash Flow

Assembly Biosciences experiences significant volatility in free cash flow, with figures dropping sharply from $22.5M in 2023 to -$51.1M in 2024. The negative operating cash flow and free cash flow pose risks to future liquidity and financial health.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
28.52M	7.16M	0.00	6.25M	79.11M
	Gross Profit
28.52M	-41.74M	-498.00K	5.79M	79.00M
	EBIT
-45.42M	-64.65M	-94.11M	-132.69M	-64.78M
	EBITDA
-45.42M	-64.20M	-92.59M	-91.93M	-64.78M
	Net Income Common Stockholders
-40.18M	-61.23M	-92.07M	-129.85M	-59.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
112.08M	130.25M	91.61M	146.63M	216.41M
	Total Assets
119.17M	136.82M	101.79M	191.06M	283.25M
	Total Debt
3.09M	2.34M	3.46M	6.48M	10.13M
	Net Debt
-35.26M	-17.50M	-48.95M	-39.15M	-49.31M
	Total Liabilities
85.81M	95.73M	19.13M	22.13M	42.68M
	Stockholders Equity
33.36M	41.10M	82.66M	168.93M	240.58M
Cash Flow		Free Cash Flow
-51.15M	22.49M	-84.56M	-96.49M	-65.18M
	Operating Cash Flow
-51.12M	22.74M	-84.46M	-93.40M	-62.96M
	Investing Cash Flow
40.17M	-69.14M	90.64M	26.52M	68.07M
	Financing Cash Flow
29.45M	13.82M	614.00K	53.06M	7.60M

Assembly Biosciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASMB, the sentiment is Negative. The current price of 9.08 is below the 20-day moving average (MA) of 9.94, below the 50-day MA of 11.47, and below the 200-day MA of 14.56, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 30.14 is Neutral, neither overbought nor oversold. The STOCH value of 11.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASMB.

Assembly Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GILD	75 Outperform	$129.19B	270.93	2.28%	2.99%	6.16%	-91.54%
NBIX	68 Neutral	$8.98B	27.61	14.16%	―	24.81%	33.67%
ARWR	50 Neutral	$1.62B	―	-600.68%	―	-98.62%	-86.21%
IONS	49 Neutral	$4.44B	―	-93.03%	―	-10.48%	-18.79%
Sector *	48 Neutral	$6.35B	1.19	-46.26%	2.67%	19.24%	1.75%
ENTA	46 Neutral	$100.05M	―	-69.10%	―	-9.55%	24.57%
ASMB	27 Underperform	$68.13M	―	-107.92%	―	298.16%	50.72%