Cabaletta Bio (CABA) AI Stock Analysis

• Market Cap: $121.65M
• Dividend Yield: N/A
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.88
• Revenue Growth: N/A
• EPS Growth: -41.69%
• Country: US
• Employees: 161
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.73
• Shares Outstanding: 91,465,230
• 10 Day Avg. Volume: 929,503
• 30 Day Avg. Volume: 1,183,484
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.62
• Enterprise Value/Revenue: -46.24
• Enterprise Value/Gross Profit: 135.73
• Enterprise Value/Ebitda: 0.55
• 1Y Price Target: $12.43
• Price Target Upside: 626.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 39 Underperform
• Price Target: ―

Cabaletta Bio's overall score is low primarily due to its financial performance, marked by no revenue and increasing losses. The technical analysis indicates a bearish trend, further impacting the score. However, the recent positive clinical trial data provides a glimmer of hope, slightly improving future outlook. Despite this, the stock's valuation remains a concern, making it a risky investment at this stage.

Positive Factors

Enrollment and Clinical Progress

Having the leading number of US cell therapy clinical sites has always been a key strength of Cabaletta in accelerating patient enrollment and program progress.

Funding and Financial Outlook

Recent financing closed at approximately $94M supports clinical development and extends the cash runway into the second half of 2026.

Regulatory Alignment

Cabaletta has reached alignment with the FDA on the pivotal trial design for rese-cel in myositis.

Negative Factors

Capital Needs

Despite the recent financing, CABA's cash overhang persists, and the company will need to raise again to reach rese-cel's pivotal readouts for myositis, absent any strategic partnering.

Investor Sentiment

Shares are down -39% YTD as investor skepticism persists on rese-cel's safety and its differentiation from other autoCART programs.

Market Expectations

Sentiment remains challenging with expectations that shares will be range bound.

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 faces significant challenges with no revenue generation and increasing net losses affecting its financial stability. While the balance sheet shows a reasonable level of equity, the company's reliance on external financing to cover operational costs presents a risk. The negative cash flow trends suggest financial pressure, and the company needs strategic interventions to achieve revenue growth and financial sustainability.

Income Statement

Cabaletta Bio has not generated any revenue over the analyzed period, heavily impacting its income statement metrics. The company has experienced increasing net losses, with the net income deteriorating from -$15.1 million in 2019 to -$115.9 million in 2024. The consistent lack of revenue coupled with increasing operating losses results in very low profitability scores.

Balance Sheet

The company maintains a relatively healthy balance sheet with a strong equity base and a low debt level, as seen in the debt-to-equity ratio remaining low due to minimal debt. However, the declining stockholders' equity from $138.3 million in 2019 to $152.3 million in 2024 indicates potential financial strain. The equity ratio remains strong, demonstrating reliance on equity financing.

Cash Flow

Operating cash flow has been consistently negative, and free cash flow growth has shown a negative trend, indicating cash burn over the years. Although financing activities have provided some cash inflows, the company remains highly dependent on external funding to sustain operations, which is a potential risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.64M	0.00	0.00	0.00	0.00	0.00
Gross Profit	-558.00K	-4.81M	-1.43M	-3.68M	-733.00K	-354.00K
EBITDA	-137.14M	-125.14M	-73.23M	-52.96M	-45.58M	-33.48M
Net Income	-144.29M	-115.86M	-67.67M	-52.98M	-46.29M	-33.34M
Balance Sheet
Total Assets	224.50M	185.05M	253.65M	116.97M	126.34M	114.72M
Cash, Cash Equivalents and Short-Term Investments	194.68M	163.96M	241.25M	106.55M	122.22M	108.66M
Total Debt	24.89M	15.60M	5.02M	5.14M	0.00	0.00
Total Liabilities	46.02M	32.71M	17.45M	12.45M	8.38M	5.18M
Stockholders Equity	178.48M	152.34M	236.20M	104.52M	117.96M	109.54M
Cash Flow
Free Cash Flow	-106.25M	-90.43M	-54.24M	-48.83M	-35.27M	-27.41M
Operating Cash Flow	-104.67M	-88.22M	-53.55M	-46.38M	-34.11M	-26.77M
Investing Cash Flow	-25.61M	47.29M	-22.45M	-27.22M	6.00M	-7.98M
Financing Cash Flow	97.26M	11.68M	187.63M	32.98M	48.90M	-24.00K

Cabaletta Bio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.71
• 50DMA: Negative
• 100DMA: Positive
• 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 Positive. The current price of 1.71 is above the 20-day moving average (MA) of 1.55, below the 50-day MA of 1.71, and below the 200-day MA of 2.12, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 57.70 is Neutral, neither overbought nor oversold. The STOCH value of 39.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CABA.

Cabaletta Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VTGN	52 Neutral	$87.75M	―	-46.28%	―	-33.00%	54.91%
Sector *	51 Neutral	$7.43B	-0.36	-45.45%	2.27%	22.98%	-2.34%
SAVA	43 Neutral	$112.07M	―	-70.59%	―	―	-30.52%
CABA	39 Underperform	$121.65M	―	-76.34%	―	―	-41.69%
VTVT	38 Underperform	$46.29M	―	-203.31%	―	-98.30%	54.90%
JSPR	35 Underperform	$42.81M	―	-146.87%	―	―	-17.96%

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.