Carisma Therapeutics (CARM) AI Stock Analysis

• Market Cap: $8.32M
• Dividend Yield: N/A
• Average Volume (3M): 232.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.32
• Revenue Growth: 31.59%
• EPS Growth: 57.94%
• Country: US
• Employees: 107
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -1.46
• Shares Outstanding: 41,788,097
• 10 Day Avg. Volume: 383,781
• 30 Day Avg. Volume: 232,005
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.85
• Price to Cash Flow (P/CF): -0.30
• 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: $1.00
• Price Target Upside: 376.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Carisma Therapeutics faces significant financial difficulties with negative profitability and high leverage. The technical analysis suggests a bearish trend, while valuation metrics indicate that the stock is not attractively priced. These factors contribute to a low overall stock score, reflecting substantial risks and uncertainties.

Positive Factors

Financial Stability

The company expects its current cash runway to last through the third quarter of 2025, providing a degree of financial stability.

Partnerships

The expansion of Carisma's partnership with Moderna to include autoimmune programs in addition to oncology work is viewed as a positive signal.

Negative Factors

Program Discontinuation

Carisma announced the discontinuation of their lead HER-2 monocyte program CT-0525 due to lack of strong enrollment and evolving clinical landscape in the treatment of HER2 tumors.

Workforce Reduction

The company's workforce will be reduced by 34% with associated expenses, indicating a significant reorganization effort.

Carisma Therapeutics Business Overview & Revenue Model

Company Description

Carisma Therapeutics (CARM) is a biotechnology company focused on the development of innovative cellular therapies aimed at treating cancer and other serious diseases. Utilizing its proprietary chimeric antigen receptor macrophage (CAR-M) technology, Carisma is pioneering a new class of immunotherapy treatments that harness the body's own immune system to target and eliminate cancer cells. The company's core product pipeline includes several promising candidates in various stages of clinical development, addressing unmet medical needs in oncology and beyond.

How the Company Makes Money

Carisma Therapeutics generates revenue primarily through the development and commercialization of its proprietary CAR-M technology-based therapies. The company's revenue streams include potential product sales upon successful approval and market entry of its therapeutic candidates. Additionally, Carisma may engage in strategic collaborations and partnerships with other pharmaceutical companies, allowing for co-development, licensing agreements, and milestone payments. These partnerships provide financial support and accelerate the development of its therapeutic pipeline. Furthermore, Carisma may receive research grants and funding from governmental or non-profit organizations that support innovative cancer treatment research, contributing to its overall earnings.

Carisma Therapeutics Financial Statement Overview

Summary

Carisma Therapeutics is experiencing significant financial challenges, with negative stockholders' equity and ongoing losses despite revenue growth. The negative EBIT and net income margins, along with negative free cash flow, highlight substantial financial instability.

Income Statement

Carisma Therapeutics has shown some revenue growth, with Total Revenue increasing from $9.83 million in 2022 to $20.26 million in TTM 2024. However, the company is experiencing significant losses, as indicated by negative EBIT and Net Income margins. The Gross Profit Margin is positive, but the high operating expenses lead to a negative EBIT Margin of -329.35% for TTM 2024.

Balance Sheet

The balance sheet shows a negative Stockholders' Equity of -$11.13 million as of TTM 2024, indicating financial distress. The high total liabilities compared to assets result in a negative equity ratio, and the Debt-to-Equity ratio cannot be calculated due to negative equity, highlighting potential risk. The company needs to address its leverage to improve financial stability.

Cash Flow

Operating cash flow remains negative, reflecting ongoing operational challenges. The Free Cash Flow is also negative, though it showed some improvement from -$82.31 million in 2023 to -$68.49 million in TTM 2024. This indicates the company is still struggling to generate sufficient cash flow to cover its expenses and investments.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
20.27M	14.92M	9.83M	26.54M	11.24M	0.00
	Gross Profit
16.24M	-59.21M	3.74M	26.46M	11.24M	-219.00K
	EBIT
-66.77M	-88.73M	-56.16M	-40.79M	-28.38M	-36.87M
	EBITDA
-64.01M	-85.89M	-51.99M	-40.11M	-27.93M	-107.28M
	Net Income Common Stockholders
-63.80M	-86.88M	-61.23M	-40.77M	-28.32M	-107.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.94M	77.61M	52.00M	28.55M	51.79M	48.12M
	Total Assets
11.24M	89.55M	72.15M	35.45M	58.46M	114.36M
	Total Debt
4.52M	3.12M	40.16M	2.63M	3.44M	0.00
	Net Debt
-3.42M	-74.48M	15.97M	-25.92M	-48.34M	-48.12M
	Total Liabilities
8.89M	63.02M	101.28M	9.43M	8.31M	141.06M
	Stockholders Equity
2.35M	26.53M	-49.26M	11.63M	35.76M	-26.70M
Cash Flow		Free Cash Flow
-68.49M	-82.31M	-12.23M	-39.20M	-27.45M	-37.66M
	Operating Cash Flow
-67.81M	-81.18M	-7.57M	-37.33M	-27.01M	-37.52M
	Investing Cash Flow
-45.98M	72.41M	-32.56M	-1.87M	-440.00K	-136.00K
	Financing Cash Flow
1.21M	62.18M	35.77M	15.96M	72.26M	35.36M

Carisma Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CARM, the sentiment is Negative. The current price of 0.21 is below the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.39, and below the 200-day MA of 0.77, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 23.26 is Positive, neither overbought nor oversold. The STOCH value of 4.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CARM.

Carisma Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.35B	1.19	-46.26%	2.67%	19.24%	1.75%
ADAP	46 Neutral	$55.03M	―	-273.36%	―	194.23%	45.50%
IMTX	45 Neutral	$482.55M	51.36	3.73%	―	188.64%	―
FATE	42 Neutral	$107.18M	―	-54.21%	―	-78.55%	-0.92%
BLUE	36 Underperform	$45.72M	―	-295.35%	―	184.12%	31.92%
CABA	28 Underperform	$62.41M	―	-59.64%	―	―	-40.59%
CARM	23 Underperform	$8.32M	―	-362.79%	―	31.59%	57.94%

Carisma Therapeutics Corporate Events

Carisma Therapeutics Appoints Interim VP of Finance

Carisma Therapeutics Inc. has entered into a master services agreement with Danforth Global, Inc. and Danforth Advisors, LLC to receive finance and accounting services from Natalie McAndrew, who will serve as the interim Vice President of Finance and principal financial officer. This strategic appointment is expected to bolster the company’s financial management capabilities, enhancing its operational efficiency and potentially impacting its industry standing positively.

Carisma Therapeutics Restructures Amid Strategic Refocus

Carisma Therapeutics Inc. announced a revised operating plan, including a significant workforce reduction of 34%, affecting areas like R&D and finance, and the termination of CFO Richard Morris. The company is halting development of its HER2-targeting CT-0525 due to competitive pressures, pivoting towards mRNA/lipid nanoparticle CAR-M programs with ModernaTX Inc., and exploring treatments for fibrosis and neurodegeneration. These changes aim to streamline operations and focus on promising therapeutic areas.