Cara Therapeutics (CARA) AI Stock Analysis

• Market Cap: $22.41M
• Dividend Yield: N/A
• Average Volume (3M): 14.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -65.96%
• EPS Growth: 40.80%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 65
• Industry: Biotechnology
• EPS (TTM): -1.68
• Shares Outstanding: 4,573,606
• 10 Day Avg. Volume: 20,058
• 30 Day Avg. Volume: 14,228
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.65
• Price to Cash Flow (P/CF): -1.60
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Cara Therapeutics' overall score is influenced by significant financial difficulties, with declining revenues and persistent losses indicating a challenging financial situation. However, the recent merger with Tvardi Therapeutics offers potential for strategic growth and improved market positioning. Positive technical indicators suggest some market optimism, but poor valuation metrics remain a concern. The company's future largely hinges on successful integration and execution post-merger.

Cara Therapeutics Business Overview & Revenue Model

Company Description

Cara Therapeutics, Inc., an early commercial-stage biopharmaceutical company, focuses on developing and commercializing chemical entities with a primary focus on pruritus and pain by selectively targeting kappa opioid receptors in the United States. The company is developing product candidates that target the body's peripheral nervous system and immune cells. The company's lead product is KORSUVA (difelikefalin) injection for the treatment of moderate-to-severe pruritus associated with chronic kidney disease (CKD) in adults undergoing hemodialysis. Its product candidate includes Oral KORSUVA (difelikefalin), which has completed Phase II clinical trial to treat pruritus atopic dermatitis and pruritus non-dialysis-dependent chronic kidney disease (NDD-CKD) associated pruritus; and in Phase II clinical trial to treat pruritus chronic liver disease (CLD) primary biliary cholangitis (PBC) and notalgia paresthetica. The company has license agreements with Maruishi Pharmaceutical Co., Ltd to develop, manufacture, and commercialize drug products containing difelikefalin for acute pain and uremic pruritus in Japan; and Chong Kun Dang Pharmaceutical Corporation to develop, manufacture, and commercialize drug products containing difelikefalin in South Korea. Cara Therapeutics, Inc. was incorporated in 2004 and is based in Stamford, Connecticut.

How the Company Makes Money

Cara Therapeutics generates revenue primarily through the commercialization of its lead product, KORSUVA injection. The company earns money by selling this product to healthcare providers and institutions treating patients with chronic kidney disease on dialysis who experience pruritus. Additionally, Cara Therapeutics has entered into strategic partnerships and licensing agreements with other pharmaceutical companies to expand the distribution and commercialization of KORSUVA in various markets outside the United States, which contributes to its revenue through milestone payments and royalties. The company's financial performance is significantly influenced by regulatory approvals, market acceptance of its product, and the ability to successfully expand its distribution network.

Cara Therapeutics Financial Statement Overview

Summary

Cara Therapeutics is facing severe financial challenges with declining revenues, negative net income, and a deteriorating balance sheet. Despite some management of debt, the negative equity and operational inefficiencies reflected in cash flow issues highlight substantial financial instability.

Income Statement

Cara Therapeutics has experienced significant revenue volatility over recent years, with a sharp decline from $135 million in 2020 to $7.1 million in 2024. The company has consistently reported negative net income, indicating ongoing challenges in achieving profitability. Gross profit margins have been positive when revenue is present, but operating margins such as EBIT and EBITDA margins are deeply negative, reflecting substantial operational losses.

Balance Sheet

The balance sheet of Cara Therapeutics shows a concerning trend with the stockholders' equity turning negative in 2024, a sign of financial distress. The company has managed its debt levels well, with no debt in 2024, but the negative equity ratio and substantial liabilities are risks. Previously, the company had a stronger equity position, but recent losses have eroded this significantly.

Cash Flow

Cash flows from operations have been consistently negative, indicating challenges in generating cash from core activities. The free cash flow position has also worsened, and despite occasional influxes from financing activities, the company's ability to sustain its cash burn rate is concerning. The operating cash flow to net income ratio remains poor, highlighting inefficiencies in cash conversion.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.14M	20.97M	41.87M	23.03M	135.08M
	Gross Profit
7.14M	14.79M	34.60M	21.47M	28.01M
	EBIT
-58.38M	-121.50M	-87.53M	-89.08M	5.38M
	EBITDA
-62.60M	-117.65M	-83.80M	-88.19M	5.59M
	Net Income Common Stockholders
-70.87M	-118.51M	-83.41M	-88.19M	8.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
37.90M	100.76M	145.40M	167.03M	180.93M
	Total Assets
43.83M	125.84M	182.24M	247.06M	271.16M
	Total Debt
0.00	43.17M	1.92M	3.67M	5.28M
	Net Debt
-37.90M	-8.61M	-61.82M	-9.78M	-26.41M
	Total Liabilities
48.42M	68.76M	23.46M	19.53M	22.16M
	Stockholders Equity
-4.59M	57.09M	158.78M	227.52M	249.00M
Cash Flow		Free Cash Flow
-61.96M	-94.45M	-78.77M	-60.13M	-5.84M
	Operating Cash Flow
-60.92M	-92.08M	-78.73M	-60.09M	-5.49M
	Investing Cash Flow
48.74M	43.46M	128.71M	-4.75M	-20.27M
	Financing Cash Flow
-3.60M	38.15M	311.00K	46.61M	39.14M

Cara Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CARA, the sentiment is Positive. The current price of 17.04 is above the 20-day moving average (MA) of 16.01, above the 50-day MA of 15.55, and above the 200-day MA of 12.88, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 57.87 is Neutral, neither overbought nor oversold. The STOCH value of 38.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CARA.

Cara Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARA	53 Neutral	$22.41M	―	-270.01%	―	-65.96%	40.80%
Sector *	51 Neutral	$5.31B	3.33	-39.82%	2.92%	17.95%	1.84%
SLRX	30 Underperform	$1.53M	―	-164.02%	―	―	79.57%
QNRX	25 Underperform	$1.70M	―	-121.15%	―	―	42.26%
PCSA	22 Underperform	$1.16M	―	-354.51%	―	―	56.26%
WINT	18 Underperform	$931.00K	―	-21.57%	―	―	97.84%
VINC	15 Underperform	$1.44M	―	-431.29%	―	―	48.17%

Cara Therapeutics Corporate Events

Cara Therapeutics Completes Merger with Tvardi Therapeutics

On April 15, 2025, Cara Therapeutics completed its merger with Tvardi Therapeutics, resulting in the formation of a Nasdaq-listed company named Tvardi Therapeutics, Inc. The merger, accompanied by a reverse stock split and a private placement financing, positions Tvardi to advance its clinical programs targeting fibrosis-driven diseases, with anticipated data readouts in 2025 and 2026. The merger also involved a significant restructuring of the company’s board and management, aligning with Tvardi’s strategic focus.

Spark’s Take on CARA Stock

According to Spark, TipRanks’ AI Analyst, CARA is a Neutral.

Cara Therapeutics is currently facing significant financial difficulties, with declining revenues and persistent losses weighing heavily on its prospects. However, the technical indicators show positive momentum, and the strategic merger with Tvardi Therapeutics offers a potential path to future growth and improvement in market positioning. The poor valuation remains a concern, but the merger could help address financial stability issues.

To see Spark’s full report on CARA stock, click here.

Cara Therapeutics Announces Merger with Tvardi Therapeutics

On December 17, 2024, Cara Therapeutics announced a merger with Tvardi Therapeutics, which will see Tvardi become a wholly-owned subsidiary. The merger, expected to close in mid-April 2025, will result in the combined company being renamed Tvardi Therapeutics, Inc. and trading under Nasdaq: TVRD. This merger aims to advance Tvardi’s programs, particularly in treating idiopathic pulmonary fibrosis and hepatocellular carcinoma, with the combined entity expected to be funded into the second half of 2026.

Spark’s Take on CARA Stock

According to Spark, TipRanks’ AI Analyst, CARA is a Neutral.

Cara Therapeutics’ overall score is driven by significant financial difficulties, marked by declining revenues and persistent losses. While technical indicators show some positive momentum, the company’s poor valuation and financial instability weigh heavily on its prospects. The strategic merger with Tvardi Therapeutics, however, offers a glimmer of hope for future growth, potentially improving its market positioning and addressing unmet medical needs.

To see Spark’s full report on CARA stock, click here.

Cara Therapeutics Announces Merger with Tvardi Therapeutics

On December 17, 2024, Cara Therapeutics entered into a merger agreement with Tvardi Therapeutics, where Tvardi will become a wholly-owned subsidiary of Cara. This strategic merger aims to advance the development of Tvardi’s therapies for fibrosis-driven diseases and is expected to close in the first half of 2025. The combined entity will be renamed Tvardi Therapeutics, Inc., and will trade under the Nasdaq symbol TVRD. The merger is anticipated to enhance the company’s market positioning by focusing on unmet needs in treating diseases like idiopathic pulmonary fibrosis and hepatocellular carcinoma, with expected clinical trial data in the second half of 2025.