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Cabaletta Bio (CABA)
NASDAQ:CABA
US Market

Cabaletta Bio (CABA) AI Stock Analysis

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Cabaletta Bio

(NASDAQ:CABA)

Rating:39Underperform
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
Innovative Leadership
Cabaletta is leading in the myositis CAR-T space and could be first to launch.
Regulatory Milestone
Management reached FDA alignment on the RESET-Myositis trial, and RMAT was granted, which could be a positive regulatory milestone for the company.
Trial Advancement
The company is advancing BLA-enabling activities with their lentiviral vector process at Oxford Biomedica and implementing a commercial drug product process at Lonza.
Negative Factors
Financial Concerns
CABA's cash overhang remains a concern, and it's unlikely enough to change sentiment given pivotal data and a BLA submission are beyond the company's cash runway.
Funding Challenges
With few meaningful catalysts in the interim, management will need to secure funding soon, which could prove difficult in the current environment.
Stock Performance
CABA shares are down significantly compared to the broader market, trading below cash due to concerns about rese-cel's safety profile and competition.

Cabaletta Bio (CABA) vs. SPDR S&P 500 ETF (SPY)

Cabaletta Bio Business Overview & Revenue Model

Company DescriptionCabaletta 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 MoneyCabaletta 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
35
Negative
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
45
Neutral
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
40
Negative
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
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
4.01M0.000.000.000.000.00
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 SheetCash, Cash Equivalents and Short-Term Investments
1.00K241.25M106.55M122.22M108.66M136.20M
Total Assets
0.00253.65M116.97M126.34M114.72M141.47M
Total Debt
0.005.02M5.14M0.000.000.00
Net Debt
1.00K-188.22M-76.47M-122.22M-101.43M-136.20M
Total Liabilities
0.0017.45M12.45M8.38M5.18M3.15M
Stockholders Equity
-249.00K236.20M104.52M117.96M109.54M138.32M
Cash FlowFree 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-27.22M6.00M-7.98M-693.00K
Financing Cash Flow
100.35M187.63M32.98M48.90M-24.00K119.92M

Cabaletta Bio Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.88
Price Trends
50DMA
1.41
Positive
100DMA
1.84
Negative
200DMA
2.97
Negative
Market Momentum
MACD
0.13
Negative
RSI
63.07
Neutral
STOCH
71.37
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 1.88 is above the 20-day moving average (MA) of 1.42, above the 50-day MA of 1.41, and below the 200-day MA of 2.97, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 63.07 is Neutral, neither overbought nor oversold. The STOCH value of 71.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CABA.

Cabaletta Bio Risk Analysis

Cabaletta Bio disclosed 86 risk factors in its most recent earnings report. Cabaletta Bio reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Cabaletta Bio Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
53
Neutral
$5.24B3.07-43.58%2.80%16.87%-0.11%
43
Neutral
$100.00M-70.59%81.00%
39
Underperform
$97.43M-73.85%-40.59%
39
Underperform
$73.45M-46.28%-33.00%54.91%
38
Underperform
$67.88M-130.16%65.54%
35
Underperform
$75.71M-101.34%21.40%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CABA
Cabaletta Bio
1.80
-10.01
-84.76%
SAVA
Cassava Sciences
2.05
-20.07
-90.73%
VTGN
VistaGen Therapeutics
2.43
-1.83
-42.96%
VTVT
vTv Therapeutics
19.99
-9.02
-31.09%
JSPR
Jasper Therapeutics
4.82
-19.00
-79.76%

Cabaletta Bio Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Cabaletta Bio Unveils Promising Clinical Data in RESET Trials
Positive
Feb 18, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.