Atara Biotherapeutics (ATRA) AI Stock Analysis

• Market Cap: $46.62M
• Dividend Yield: N/A
• Average Volume (3M): 45.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: 1404.02%
• EPS Growth: 59.49%
• Country: US
• Employees: 153
• Sector: Healthcare
• Sector Strength: 57
• Industry: Biotechnology
• EPS (TTM): -12.87
• Shares Outstanding: 5,961,323
• 10 Day Avg. Volume: 38,658
• 30 Day Avg. Volume: 45,939
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.75
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 0.75
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.00
• Price Target Upside: 27.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Atara Biotherapeutics showcases substantial revenue growth, yet its financial instability due to high liabilities and ongoing cash flow challenges significantly impact its attractiveness. Technical indicators highlight a lack of strong momentum, suggesting cautious investor sentiment. Additionally, the negative valuation metrics further underline financial risks, resulting in a low overall score.

Positive Factors

Funding

Atara received a $15 million equity line of credit from Redmile Group, which should support the Ebvallo BLA resubmission.

Regulatory Progress

The FDA did not request any new clinical trials for the resubmission of Ebvallo, indicating confidence in the existing data.

Negative Factors

Operational Challenges

Atara has announced a reduction in its workforce, impacting approximately 50% of its current employees.

Regulatory Setbacks

The FDA has issued clinical holds for ATA3219 and Ebvallo trials, linked to a CRL related to a third-party manufacturing facility.

Atara Biotherapeutics Business Overview & Revenue Model

Company Description

Atara Biotherapeutics, Inc., an off-the-shelf T-cell immunotherapy company, develops treatments for patients with cancer, autoimmune, and viral diseases in the United States. It is developing tabelecleucel, a T-cell immunotherapy that is Phase 3 clinical trials for the treatment of epstein-barr virus (EBV) driven post-transplant lymphoproliferative disease, as well as hematologic and solid tumors, including nasopharyngeal carcinoma. The company is also developing next-generation CAR T immunotherapies for patients with hematologic malignancies and solid tumors, including ATA2271 and ATA3271 for mesothelin; and ATA2431 and ATA3219 for B-cell malignancies, as well as ATA188 for the treatment of multiple sclerosis. In addition, it develops ATA368 program for patients with human papillomavirus associated cancers. Atara Biotherapeutics, Inc. has a license agreement with Memorial Sloan Kettering Cancer Center; license, and research and development collaboration agreement with QIMR Berghofer Medical Research Institute; and strategic collaboration with H. Lee Moffitt Cancer Center, as well as Bayer AG for mesothelin-targeted CAR T-cell therapies for solid tumors. The company was incorporated in 2012 and is headquartered in South San Francisco, California.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
128.94M	8.57M	63.57M	20.34M	0.00
	Gross Profit
107.93M	-313.00K	49.01M	8.96M	-9.87M
	EBIT
-83.44M	-276.01M	-280.51M	-340.46M	-309.05M
	EBITDA
-75.75M	-266.00M	-213.72M	-331.12M	-296.74M
	Net Income Common Stockholders
-85.40M	-276.13M	-2.28B	-3.40B	-3.07B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.50M	51.73M	242.82M	371.07M	500.66M
	Total Assets
109.10M	165.50M	376.42M	468.13M	588.12M
	Total Debt
29.91M	57.87M	71.70M	25.52M	13.04M
	Net Debt
4.88M	32.03M	-21.24M	-80.57M	-187.36M
	Total Liabilities
206.38M	264.74M	249.78M	188.51M	125.78M
	Stockholders Equity
-97.28M	-99.23M	126.64M	279.61M	462.34M
Cash Flow		Free Cash Flow
-68.96M	-194.20M	-274.62M	-231.10M	-185.27M
	Operating Cash Flow
-68.72M	-192.98M	-270.43M	-220.52M	-180.76M
	Investing Cash Flow
8.62M	123.87M	202.96M	22.26M	-120.73M
	Financing Cash Flow
59.28M	2.01M	53.08M	103.94M	427.57M

Atara Biotherapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.82
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATRA, the sentiment is Neutral. The current price of 7.82 is above the 20-day moving average (MA) of 6.52, above the 50-day MA of 6.70, and below the 200-day MA of 8.97, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 62.30 is Neutral, neither overbought nor oversold. The STOCH value of 84.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ATRA.

Atara Biotherapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.35B	3.96	-42.60%	2.86%	17.58%	1.27%
NRXP	45 Neutral	$34.68M	―	108.28%	―	―	41.01%
LTRN	45 Neutral	$38.18M	―	-66.93%	―	―	-31.16%
XFOR	44 Neutral	$21.56M	1.08	121.75%	―	―	―
HOWL	42 Neutral	$40.56M	―	-76.33%	―	-90.55%	-55.06%
KPTI	34 Underperform	$63.07M	―	41.08%	―	-0.55%	49.85%
ATRA	31 Underperform	$46.62M	―	1063.61%	―	1404.02%	59.49%

Atara Biotherapeutics Corporate Events

Atara Biotherapeutics Announces CFO Departure and New Appointment

On March 31, 2025, Atara Biotherapeutics announced the departure of Eric Hyllengren, its Chief Financial Officer and Chief Operating Officer, effective March 31, 2025. Hyllengren will receive severance benefits and his 2024 annual cash bonus, and he will provide consulting services to the company until July 31, 2025. Concurrently, Yanina Grant-Huerta was appointed as the Chief Accounting Officer and principal accounting officer. Grant-Huerta, who has been with the company since 2020, previously served as Vice President of Financial Planning and Analysis.