Cabaletta Bio (CABA) AI Stock Analysis

• Market Cap: $140.31M
• Dividend Yield: N/A
• Average Volume (3M): 2.38M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.88
• Revenue Growth: N/A
• EPS Growth: -40.59%
• Country: US
• Employees: 161
• Sector: Healthcare
• Sector Strength: 44
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 89,943,100
• 10 Day Avg. Volume: 2,418,548
• 30 Day Avg. Volume: 2,375,298
• PEG Ratio: 0.89
• Price to Book (P/B): 2.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -20.06
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 24.88
• Enterprise Value/Gross Profit: -468.43
• Enterprise Value/Ebitda: -0.45
• 1Y Price Target: $15.29
• Price Target Upside: 880.13% 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

Efficacy Data

Updated data increasingly de-risks registrational trial in ASys/DM, which represent 85% of the myositis population.

Financial Health

The raise removes the near-term financial overhang and likely extends runway beyond the prior guidance.

Regulatory Progress

Recent FDA alignment on a registrational pathway for rese-cel clarifies the path to market in myositis.

Negative Factors

Financing Concerns

The proposed offering at depressed levels versus other financing options isn't a good sign.

Market Reaction

CABA shares are down, likely due to the deal announcement rather than the data.

Stock Offering Impact

Cabaletta announced a $100M stock offering, which has pressured shares given meaningful dilution.

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	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-426.00K	0.00	-1.43M	-3.68M	-733.00K	-354.00K
EBITDA	-122.90M	-125.14M	-73.23M	-52.96M	-45.58M	-33.48M
Net Income	-126.76M	-115.86M	-67.67M	-52.98M	-46.29M	-33.34M
Balance Sheet
Total Assets	165.14M	185.05M	253.65M	116.97M	126.34M	114.72M
Cash, Cash Equivalents and Short-Term Investments	131.83M	163.96M	241.25M	106.55M	122.22M	108.66M
Total Debt	28.79M	15.60M	5.02M	5.14M	0.00	0.00
Total Liabilities	43.59M	32.71M	17.45M	12.45M	8.38M	5.18M
Stockholders Equity	121.55M	152.34M	236.20M	104.52M	117.96M	109.54M
Cash Flow
Free Cash Flow	-97.22M	-90.43M	-54.24M	-48.83M	-35.27M	-27.41M
Operating Cash Flow	-95.04M	-88.22M	-53.55M	-46.38M	-34.11M	-26.77M
Investing Cash Flow	47.32M	47.29M	-22.45M	-27.22M	6.00M	-7.98M
Financing Cash Flow	4.27M	11.68M	187.63M	32.98M	48.90M	-24.00K

Cabaletta Bio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.56 is below the 20-day moving average (MA) of 1.88, below the 50-day MA of 1.68, and below the 200-day MA of 2.52, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 42.76 is Neutral, neither overbought nor oversold. The STOCH value of 14.64 is Positive, 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
Sector *	51 Neutral	$7.55B	0.39	-61.90%	2.32%	17.14%	1.55%
VTGN	48 Neutral	$58.61M	―	-46.28%	―	-33.00%	54.91%
SAVA	43 Neutral	$89.37M	―	-70.59%	―	―	81.00%
CABA	39 Underperform	$140.31M	―	-73.85%	―	―	-40.59%
VTVT	38 Underperform	$46.86M	―	-130.16%	―	―	65.54%
JSPR	35 Underperform	$86.23M	―	-101.34%	―	―	21.40%

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.