Cabaletta Bio (CABA) AI Stock Analysis

• Market Cap: $62.41M
• Dividend Yield: N/A
• Average Volume (3M): 921.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.28
• Revenue Growth: N/A
• EPS Growth: -40.59%
• Country: US
• Employees: 161
• Sector: Healthcare
• Sector Strength: 70
• Industry: Biotechnology
• EPS (TTM): -2.33
• Shares Outstanding: 50,743,100
• 10 Day Avg. Volume: 1,161,410
• 30 Day Avg. Volume: 921,356
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -1.10
• 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: $15.50
• Price Target Upside: 1160.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Cabaletta Bio's overall stock score is impacted primarily by its poor financial performance, with no revenue and increasing losses posing significant risks. While technical analysis indicates a bearish trend, recent corporate events, including positive clinical trial results and strategic partnerships, provide a glimmer of hope for the future. However, the lack of earnings call data means there's limited insight into short-term strategic direction.

Positive Factors

Clinical Trials

The independent data monitoring committee recommended the trial proceed at the current dose and endorsed Cabaletta’s proposed protocol amendment.

Efficacy Data

CABA-201 demonstrated encouraging efficacy with responses deepening over time and naïve B cell repopulation with consistent safety.

Regulatory Progress

Cabaletta anticipates meeting with the FDA to discuss the design of a potential registrational trial of rese-cel.

Negative Factors

Financial Stability

CABA's cash reserves expected to last until 1H26 may not be sufficient to achieve significant milestones, raising concerns about access to capital.

Market Sentiment

Despite potential capital acquisition, investor sentiment may remain low due to safety concerns and the need for more clarity and long-term data on rese-cel.

Safety Concerns

The occurrence of a new Grade 3 ICANS event in the SSc trial raises concerns about the safety and potential of rese-cel.

Cabaletta Bio Business Overview & Revenue Model

Company Description

Cabaletta Bio (CABA) is a biotechnology company focused on developing engineered T cell therapies for patients with B cell-mediated autoimmune diseases. The company's core product pipeline involves utilizing its proprietary Chimeric AutoAntibody Receptor (CAAR) T cell technology to target and eliminate disease-causing B cells while preserving healthy B cells, aiming to provide a transformative impact on patients' lives.

How the Company Makes Money

Cabaletta Bio generates revenue primarily through the development and potential commercialization of its CAAR T cell therapies. The company may earn income from collaborations and partnerships with other pharmaceutical or biotechnology firms for research, development, and commercialization efforts. Additionally, Cabaletta Bio might receive milestone payments, licensing fees, or royalties related to its technology and products. The company's financial performance is significantly influenced by the progress of its clinical trials, regulatory approvals, and the successful commercialization of its therapies.

Cabaletta Bio Financial Statement Overview

Summary

Cabaletta Bio shows promising revenue growth with a strong equity position, yet persistent net losses and negative cash flows highlight ongoing profitability and cash management challenges. The company needs to focus on improving operational efficiency and achieving a sustainable cash flow to secure its financial future in the competitive biotechnology industry.

Income Statement

Cabaletta Bio experienced a significant increase in revenue to $4.01 million TTM, marking a notable improvement from no revenue in previous years. However, gross profit margin stands at 71.3%, net profit margin is negative due to substantial net losses, and both EBIT and EBITDA margins are also negative, indicating challenges in profitability and operational efficiency.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 85.2% TTM, showing financial stability. However, the debt-to-equity ratio is relatively low at 0.09, suggesting minimal leverage, which could both reduce financial risk and limit potential growth via debt financing. Return on equity remains negative due to persistent net losses.

Cash Flow

Cabaletta Bio's free cash flow is negative, which is a concern for long-term sustainability. The operating cash flow to net income ratio is slightly negative, reflecting inefficiencies in converting net income to cash flow from operations. Financing activities have been a primary source of cash, but this reliance could pose risks if external financing conditions change.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
4.01M	0.00	0.00	0.00	0.00	0.00
	Gross Profit
2.85M	-1.43M	-3.68M	-733.00K	-354.00K	-104.00K
	EBIT
-114.50M	-74.66M	-54.14M	-46.31M	-33.83M	-18.68M
	EBITDA
-112.92M	-73.23M	-52.96M	-45.58M	-33.48M	-18.68M
	Net Income Common Stockholders
-104.16M	-67.67M	-51.81M	-45.53M	-32.49M	-15.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.00K	241.25M	106.55M	122.22M	108.66M	136.20M
	Total Assets
0.00	253.65M	116.97M	126.34M	114.72M	141.47M
	Total Debt
0.00	5.02M	5.14M	0.00	0.00	0.00
	Net Debt
1.00K	-188.22M	-76.47M	-122.22M	-101.43M	-136.20M
	Total Liabilities
0.00	17.45M	12.45M	8.38M	5.18M	3.15M
	Stockholders Equity
-249.00K	236.20M	104.52M	117.96M	109.54M	138.32M
Cash Flow		Free Cash Flow
-83.57M	-54.24M	-48.83M	-35.27M	-27.41M	-16.74M
	Operating Cash Flow
-81.55M	-53.55M	-46.38M	-34.11M	-26.77M	-16.05M
	Investing Cash Flow
36.30M	-22.45M	-27.22M	6.00M	-7.98M	-693.00K
	Financing Cash Flow
100.35M	187.63M	32.98M	48.90M	-24.00K	119.92M

Cabaletta Bio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.23
• 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 CABA, the sentiment is Negative. The current price of 1.23 is below the 20-day moving average (MA) of 1.40, below the 50-day MA of 1.82, and below the 200-day MA of 3.75, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 35.88 is Neutral, neither overbought nor oversold. The STOCH value of 45.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CABA.

Cabaletta Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTIL	48 Neutral	$46.12M	2.32	19.05%	―	40.98%	―
Sector *	48 Neutral	$6.36B	1.19	-46.31%	2.67%	19.41%	1.23%
MGNX	46 Neutral	$81.39M	―	-49.85%	―	155.26%	-640.36%
ADAP	46 Neutral	$56.90M	―	-273.36%	―	194.23%	45.50%
FATE	42 Neutral	$121.48M	―	-54.21%	―	-78.55%	-0.92%
KLRS	41 Neutral	$121.01M	―	-45.37%	―	―	72.12%
CABA	28 Underperform	$62.41M	―	-59.64%	―	―	-40.59%

Cabaletta Bio Corporate Events

Cabaletta Bio Unveils Promising Clinical Data in RESET Trials

On February 18, 2025, Cabaletta Bio announced new and updated clinical data from its trials involving resecabtagene autoleucel (rese-cel) in the RESET program. Significant findings include promising results for patients with conditions such as dermatomyositis, systemic lupus erythematosus, and systemic sclerosis. The trials showed potential for drug-free remission and improved clinical responses off immunosuppressants and steroids. Cabaletta’s trials aim to evaluate rese-cel’s safety and efficacy, with positive initial outcomes suggesting potential transformative impacts for autoimmune disease treatments.