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Carisma Therapeutics (CARM)
NASDAQ:CARM

Carisma Therapeutics (CARM) AI Stock Analysis

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Carisma Therapeutics

(NASDAQ:CARM)

Rating:27Underperform
Price Target:
$0.00
▼(-100.00%Downside)
Carisma Therapeutics faces significant financial challenges, with negative profitability and high leverage. The technical indicators paint a bearish picture, and valuation metrics are unattractive due to ongoing losses and high volatility. Without positive earnings call data or corporate events to offset these issues, the stock remains a high-risk investment with limited upside potential.
Positive Factors
Cash Flow and Financial Stability
The company expects its current cash runway to last through the third quarter of 2025, providing a degree of financial stability.
Partnerships and Collaborations
Carisma's focus is now on partnered programs with Moderna, including a GPC3-targeted program and a liver-fibrosis program, showing potential future growth areas.
Negative Factors
Program Discontinuation and Restructuring
Carisma announced the discontinuation of their lead HER-2 monocyte program CT-0525 due to lack of strong enrollment and evolving clinical landscape.
Rating Downgrade
The rating for Carisma has been downgraded from Buy to Neutral due to a lack of near-term catalysts and a financing overhang.

Carisma Therapeutics (CARM) vs. SPDR S&P 500 ETF (SPY)

Carisma Therapeutics Business Overview & Revenue Model

Company DescriptionCarisma 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 MoneyCarisma 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 struggling financially, with negative profitability and high leverage. The income statement shows ongoing net losses and operational challenges. The balance sheet highlights financial instability with negative equity, while cash flows are consistently negative, indicating cash management issues. The company faces significant risks without a clear path to profitability or financial sustainability.
Income Statement
15
Very Negative
Carisma Therapeutics has experienced inconsistent revenue generation, with significant fluctuations over the years. The company has not consistently generated gross profit, and net losses have been substantial. The net profit margin is negative, reflecting ongoing challenges in achieving profitability. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.
Balance Sheet
10
Very Negative
The balance sheet reveals high leverage with negative equity in recent years, indicating financial instability. The debt-to-equity ratio is not meaningful due to negative equity. The company has a low equity ratio and high total liabilities relative to assets, posing significant financial risk.
Cash Flow
20
Very Negative
Carisma Therapeutics has faced negative free cash flow consistently, indicating cash outflows exceeding inflows. Operating cash flows are negative, and the free cash flow to net income ratio is adversely affected by persistent net losses. Financing cash flow has occasionally provided liquidity but not enough to offset operational losses.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
16.23M19.63M14.92M9.83M26.54M11.24M
Gross Profit
15.31M19.63M-59.21M3.74M26.46M11.24M
EBIT
-42.67M-62.18M-88.73M-56.16M-40.79M-28.38M
EBITDA
-40.79M-57.12M-85.89M-51.99M-40.11M-27.93M
Net Income Common Stockholders
-50.77M-60.48M-86.88M-61.23M-40.77M-28.32M
Balance SheetCash, Cash Equivalents and Short-Term Investments
7.74M17.91M77.61M52.00M28.55M51.79M
Total Assets
15.95M30.46M89.55M72.15M35.45M58.46M
Total Debt
2.33M2.48M3.12M40.16M2.63M3.44M
Net Debt
-5.42M-15.43M-74.48M15.97M-25.92M-48.34M
Total Liabilities
52.62M58.37M63.02M101.28M9.43M8.31M
Stockholders Equity
-36.66M-27.91M26.53M-49.26M11.63M35.76M
Cash FlowFree Cash Flow
-47.66M-60.04M-82.31M-12.23M-39.20M-27.45M
Operating Cash Flow
-47.56M-59.92M-81.18M-7.57M-37.33M-27.01M
Investing Cash Flow
418.00K-123.00K72.41M-32.56M-1.87M-440.00K
Financing Cash Flow
-1.63M344.00K62.18M35.77M15.96M72.26M

Carisma Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.18
Price Trends
50DMA
0.21
Negative
100DMA
0.33
Negative
200DMA
0.60
Negative
Market Momentum
MACD
-0.01
Negative
RSI
41.95
Neutral
STOCH
44.42
Neutral
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 0.18 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.21, and below the 200-day MA of 0.60, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 41.95 is Neutral, neither overbought nor oversold. The STOCH value of 44.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CARM.

Carisma Therapeutics Risk Analysis

Carisma Therapeutics disclosed 82 risk factors in its most recent earnings report. Carisma Therapeutics 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 2 New Risks
1.
We do not currently meet the requirements for continued listing on the Nasdaq Global Market. If we fail to meet the requirements for continued listing on the Nasdaq Global Market, our common stock could be delisted from trading, which would have a negative effect on the price of our common stock and our ability to raise additional capital. Q3, 2024
2.
We currently, and may in the future, rely on single-source suppliers for certain materials and components used in the manufacturing of our product candidates. Q3, 2024

Carisma Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
$8.67M4.67-41.13%
53
Neutral
$5.23B3.23-44.27%2.82%16.82%0.11%
49
Neutral
$10.07M-451.34%-57.84%
39
Underperform
$8.86M-285.79%23.65%
34
Underperform
$7.24M-126.03%-100.00%-27.44%
27
Underperform
$8.36M-362.79%32.45%39.31%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CARM
Carisma Therapeutics
0.18
-0.93
-83.78%
KPRX
Kiora Pharmaceuticals
3.19
-0.70
-17.99%
DWTX
Dogwood Therapeutics
5.34
-0.56
-9.49%
ACXP
Acurx Pharmaceuticals
0.36
-2.01
-84.81%
TSBX
Turnstone Biologics Corp.
0.35
-2.31
-86.84%

Carisma Therapeutics Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Carisma Therapeutics Appoints Interim VP of Finance
Positive
Dec 26, 2024

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.

Executive/Board ChangesBusiness Operations and Strategy
Carisma Therapeutics Restructures Amid Strategic Refocus
Negative
Dec 9, 2024

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.

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.