Cabaletta Bio (CABA) AI Stock Analysis

• Market Cap: $228.15M
• Dividend Yield: N/A
• Average Volume (3M): 4.38M
• Price to Earnings (P/E): ―
• Beta (1Y): 4.28
• Revenue Growth: N/A
• EPS Growth: -17.21%
• Country: US
• Employees: 161
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.44
• Shares Outstanding: 96,265,205
• 10 Day Avg. Volume: 2,685,795
• 30 Day Avg. Volume: 4,378,106
• PEG Ratio: -0.02
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.24
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -59.54
• Enterprise Value/Ebitda: -0.68
• 1Y Price Target: $17.83
• Price Target Upside: 652.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): -2.24
• Revenue Forecast (FY): N/A

• 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

Promising Clinical Data

The promising clinical data from the RESET trials suggests potential transformative impacts for autoimmune disease treatments, enhancing the company's long-term growth prospects and competitive position in the biotechnology sector.

Strong Equity Base

A strong equity base with low debt levels provides Cabaletta Bio with financial stability and flexibility, supporting its long-term strategic initiatives and reducing financial risk.

Innovative Technology

The proprietary CAAR T cell technology positions Cabaletta Bio as a leader in innovative treatments for autoimmune diseases, potentially leading to significant market opportunities and competitive advantages.

Negative Factors

No Revenue Generation

The lack of revenue generation presents a significant challenge, impacting financial stability and requiring reliance on external funding, which could hinder long-term growth and sustainability.

Increasing Net Losses

Increasing net losses indicate financial strain and highlight the need for strategic interventions to achieve profitability, impacting long-term financial health and investor confidence.

Negative Cash Flow Trends

Consistently negative cash flow trends suggest ongoing financial pressure and dependency on external funding, posing risks to operational sustainability and long-term strategic execution.

Cabaletta Bio Business Overview & Revenue Model

Company Description

Cabaletta Bio, Inc., a clinical-stage biotechnology company, focuses on the discovery and development of engineered T cell therapies for patients with B cell-mediated autoimmune diseases. Its proprietary technology utilizes chimeric autoantibody receptor (CAAR) T cells that are designed to selectively bind and eliminate B cells, which produce disease-causing autoantibodies or pathogenic B cells. The company's lead product candidate is DSG3-CAART, which is in Phase I clinical trial for the treatment of mucosal pemphigus vulgaris, an autoimmune blistering skin disease, and Hemophilia A with Factor VIII alloantibodies. Its product candidate pipeline also includes MuSK-CAART, a preclinical stage product to treat a subset of patients with myasthenia gravis; FVIII-CAART, a discovery stage product to treat a subset of patients with Hemophilia A; and DSG3/1-CAART, a discovery stage product for the treatment of mucocutaneous pemphigus vulgaris. It has a collaboration with the University of Pennsylvania; and research agreement with The Regents of the University of California. The company was formerly known as Tycho Therapeutics, Inc. and changed its name to Cabaletta Bio, Inc. in August 2018. Cabaletta Bio, Inc. was incorporated in 2017 and is headquartered in Philadelphia, Pennsylvania.

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	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-1.77M	-4.81M	-1.43M	-3.68M	-733.00K	-354.00K
EBITDA	-154.56M	-110.30M	-66.25M	-49.29M	-45.56M	-32.98M
Net Income	-158.52M	-115.86M	-67.67M	-52.98M	-46.29M	-33.34M
Balance Sheet
Total Assets	189.76M	185.05M	253.65M	116.97M	126.34M	114.72M
Cash, Cash Equivalents and Short-Term Investments	159.93M	163.96M	241.25M	106.55M	122.22M	108.66M
Total Debt	25.78M	15.60M	5.02M	5.14M	0.00	0.00
Total Liabilities	50.29M	32.71M	17.45M	12.45M	8.38M	5.18M
Stockholders Equity	139.47M	152.34M	236.20M	104.52M	117.96M	109.54M
Cash Flow
Free Cash Flow	-120.26M	-90.43M	-54.24M	-48.83M	-35.27M	-27.41M
Operating Cash Flow	-118.86M	-88.22M	-53.55M	-46.38M	-34.11M	-26.77M
Investing Cash Flow	-87.94M	47.29M	-22.45M	-27.22M	6.00M	-7.98M
Financing Cash Flow	96.39M	11.68M	187.63M	32.98M	48.90M	-24.00K

Cabaletta Bio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.37
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 2.37 is below the 20-day moving average (MA) of 2.48, below the 50-day MA of 2.50, and above the 200-day MA of 1.86, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 49.12 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
TRDA	54 Neutral	$385.25M	―	-27.11%	―	-71.42%	-248.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AVIR	47 Neutral	$238.29M	―	-37.98%	―	―	14.33%
CABA	39 Underperform	$228.15M	―	-101.06%	―	―	-17.21%
TNXP	39 Underperform	$177.59M	―	-64.99%	―	-8.79%	81.36%
CRBU	38 Underperform	$202.08M	-1.22	-74.28%	―	-19.00%	-2.72%
BDTX	33 Underperform	$215.37M	10.42	19.23%	―	―	―

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.