Carisma Therapeutics (CARM) AI Stock Analysis

• Market Cap: $8.36M
• Dividend Yield: N/A
• Average Volume (3M): 684.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.23
• Revenue Growth: 32.45%
• EPS Growth: 39.31%
• Country: US
• Employees: 46
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): -0.22
• Shares Outstanding: 41,788,097
• 10 Day Avg. Volume: 293,294
• 30 Day Avg. Volume: 684,668
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.15
• Enterprise Value/Market Cap: 0.18
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.10
• Enterprise Value/Ebitda: >-0.01
• 1Y Price Target: $1.00
• Price Target Upside: 455.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 27 Underperform
• 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 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 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

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

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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
16.23M	19.63M	14.92M	9.83M	26.54M	11.24M
	Gross Profit
15.31M	19.63M	-59.21M	3.74M	26.46M	11.24M
	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 Sheet		Cash, Cash Equivalents and Short-Term Investments
7.74M	17.91M	77.61M	52.00M	28.55M	51.79M
	Total Assets
15.95M	30.46M	89.55M	72.15M	35.45M	58.46M
	Total Debt
2.33M	2.48M	3.12M	40.16M	2.63M	3.44M
	Net Debt
-5.42M	-15.43M	-74.48M	15.97M	-25.92M	-48.34M
	Total Liabilities
52.62M	58.37M	63.02M	101.28M	9.43M	8.31M
	Stockholders Equity
-36.66M	-27.91M	26.53M	-49.26M	11.63M	35.76M
Cash Flow		Free 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	-123.00K	72.41M	-32.56M	-1.87M	-440.00K
	Financing Cash Flow
-1.63M	344.00K	62.18M	35.77M	15.96M	72.26M

Carisma Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KPRX	56 Neutral	$8.67M	4.67	-41.13%	―	―	―
Sector *	53 Neutral	$5.23B	3.23	-44.27%	2.82%	16.82%	0.11%
DWTX	49 Neutral	$10.07M	―	-451.34%	―	―	-57.84%
ACXP	39 Underperform	$8.86M	―	-285.79%	―	―	23.65%
TSBX	34 Underperform	$7.24M	―	-126.03%	―	-100.00%	-27.44%
CARM	27 Underperform	$8.36M	―	-362.79%	―	32.45%	39.31%

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.