Atara Biotherapeutics (ATRA) AI Stock Analysis

• Market Cap: $38.73M
• Dividend Yield: N/A
• Average Volume (3M): 105.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: 1404.02%
• EPS Growth: 59.49%
• Country: US
• Employees: 225
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -12.87
• Shares Outstanding: 5,858,909
• 10 Day Avg. Volume: 71,612
• 30 Day Avg. Volume: 105,818
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.30
• Price to Cash Flow (P/CF): -0.40
• 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: $9.00
• Price Target Upside: 31.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Atara Biotherapeutics faces significant challenges with financial stability due to high liabilities and ongoing losses, despite strong revenue growth. The technical indicators reveal a bearish trend, reinforcing concerns about the stock's performance. With a negative P/E ratio, the valuation is unattractive. Overall, the stock is positioned as high-risk, needing strategic improvements to enhance its financial health.

Positive Factors

Funding

Atara has entered into a non-binding term sheet with Redmile Group to provide up to $15M in funding through an equity line of credit.

Regulatory Approval Process

FDA did not request new clinical data, and did not identify manufacturing deficiencies.

Negative Factors

Operational Challenges

Atara announced a reduction in its workforce that will impact approximately 50% of its current employees.

Atara Biotherapeutics Business Overview & Revenue Model

Company Description

Atara Biotherapeutics, Inc. operates as a clinical stage company, which engages in the development of novel therapeutics for patients with cancer, autoimmune, and viral diseases. Its pipeline includes Tab-cel, ATA188, ATA2271/ATA3271, and ATA3219. The company was founded by Isaac E. Ciechanover on August 22, 2012 and is headquartered in South San Francisco, CA.

How the Company Makes Money

Atara Biotherapeutics primarily makes money through the development and commercialization of its biopharmaceutical products. The company generates revenue through strategic collaborations and licensing agreements with other pharmaceutical companies and research institutions. These partnerships often involve upfront payments, milestone payments, and royalties based on product sales. Atara's revenue model is heavily reliant on the successful clinical development, regulatory approval, and commercialization of its drug candidates. Additionally, Atara invests in research and development to expand its pipeline and seek new therapeutic applications for its technologies.

Atara Biotherapeutics Financial Statement Overview

Summary

Atara Biotherapeutics demonstrates strong revenue growth potential yet struggles with profitability and financial stability. The negative equity and high liabilities pose substantial risks. While revenue has surged, ongoing losses and cash flow challenges highlight the need for strategic adjustments to improve financial health and long-term viability.

Income Statement

Atara Biotherapeutics has shown significant revenue growth in 2024, with a notable increase from $8.57 million in 2023 to $128.94 million. However, the company remains unprofitable, with a negative net profit margin and EBIT margin. The gross profit margin improved substantially but is still overshadowed by the consistent net losses over the years.

Balance Sheet

The company exhibits a very high level of liabilities compared to its equity, resulting in a negative stockholders' equity position. This is a significant concern indicating financial instability. The debt-to-equity ratio cannot be computed due to negative equity, highlighting leverage issues. The equity ratio is also negative, underscoring high financial risk.

Cash Flow

Cash flows remain a challenge for Atara Biotherapeutics, with negative operating and free cash flows indicating ongoing cash burn. However, there is a slight improvement in operating cash flow compared to previous years. The free cash flow to net income ratio remains negative, reflecting insufficient cash generation relative to the net losses.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
100.44M	128.94M	8.57M	63.57M	20.34M	0.00
	Gross Profit
83.06M	107.93M	-313.00K	49.01M	8.96M	-9.87M
	EBIT
-119.76M	-83.44M	-276.01M	-280.51M	-340.46M	-309.05M
	EBITDA
-123.21M	-83.44M	-266.00M	-213.72M	-331.12M	-296.74M
	Net Income Common Stockholders
-962.98M	-85.40M	-276.13M	-2.28B	-3.40B	-3.07B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
309.63M	42.50M	51.73M	242.82M	371.07M	500.66M
	Total Assets
391.84M	109.10M	165.50M	376.42M	468.13M	588.12M
	Total Debt
0.00	29.91M	57.87M	71.70M	25.52M	13.04M
	Net Debt
-60.70M	4.88M	32.03M	-21.24M	-80.57M	-187.36M
	Total Liabilities
52.98M	206.38M	264.74M	249.78M	188.51M	125.78M
	Stockholders Equity
338.86M	-97.28M	-99.23M	126.64M	279.61M	462.34M
Cash Flow		Free Cash Flow
-94.85M	-68.96M	-194.20M	-274.62M	-231.10M	-185.27M
	Operating Cash Flow
-94.65M	-68.72M	-192.98M	-270.43M	-220.52M	-180.76M
	Investing Cash Flow
15.19M	8.62M	123.87M	202.96M	22.26M	-120.73M
	Financing Cash Flow
61.12M	59.28M	2.01M	53.08M	103.94M	427.57M

Atara Biotherapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATRA, the sentiment is Negative. The current price of 6.86 is below the 20-day moving average (MA) of 7.35, below the 50-day MA of 9.48, and below the 200-day MA of 9.81, indicating a bearish trend. The MACD of -0.70 indicates Negative momentum. The RSI at 41.86 is Neutral, neither overbought nor oversold. The STOCH value of 37.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATRA.

Atara Biotherapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	49 Neutral	$6.84B	0.05	-53.14%	2.48%	24.49%	-3.26%
ADAP	44 Neutral	$114.38M	―	-53.54%	―	145.37%	57.01%
CARA	44 Neutral	$23.43M	―	-221.25%	―	-59.08%	18.99%
BLUE	42 Neutral	$38.57M	―	-270.20%	―	144.50%	-141.91%
FATE	42 Neutral	$110.00M	―	-54.21%	―	-78.55%	-0.92%
KPTI	41 Neutral	$62.62M	―	41.08%	―	-0.55%	49.85%
ATRA	25 Underperform	$38.73M	―	1063.61%	―	1404.02%	59.49%

Atara Biotherapeutics Corporate Events

Atara Biotherapeutics Advances with Strategic Partnerships

Atara Biotherapeutics is making significant strides in its immunotherapy platform, highlighted by the Phase 1 trial enrollment for ATA3219 targeting Non-Hodgkin’s Lymphoma, and anticipated FDA approval of tab-cel in early 2025. The company’s strategic partnership with Pierre Fabre is pivotal, potentially resulting in a substantial milestone payment upon tab-cel’s approval. With a strong cash position and reduced operating expenses, Atara is well-positioned for future growth, focusing on advancing its innovative CAR T-cell therapies in oncology and autoimmune diseases.