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CureVac (CVAC)
NASDAQ:CVAC
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CureVac
(NASDAQ:CVAC)
78Outperform
Positive Factors
Financial Outlook
CureVac ended with €550.9M in cash following GSK's payment of €400M for the revised COVID/flu agreement.
Patent Ruling
The European Patent Office largely dismissed the patent opposition filed by BNTX challenging the validity of Curevac's foundational patent for split poly-A tail technology and confirmed its validity, subject to amendment.
Revenue Performance
Revenue significantly surpassed expectations, driven by a new GSK license agreement and contributions from other collaborations.
Negative Factors
Legal Challenges
Near-term focus remains on an intellectual property dispute with PFE/BNTX, indicating ongoing legal challenges.
Patient Outcomes
Most patients progressed following the main treatment period.
Workforce Reduction
A 30% workforce reduction is expected to complete by the end of the year as part of the company's restructuring efforts.
CureVac (CVAC) vs. S&P 500 (SPY)
Market Cap
$637.03M
Dividend YieldN/A
Average Volume (3M)642.84K
Price to Earnings (P/E)5.2
Beta (1Y)0.78
Revenue Growth1202.27%
EPS GrowthN/A
CountryUS
Employees999
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)0.55
Shares Outstanding224,305,680
10 Day Avg. Volume758,634
30 Day Avg. Volume642,838
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)26.28
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.25Price Target Upside225.70% Upside
Rating ConsensusHold
Number of Analyst Covering3
CureVac Business Overview & Revenue Model
Company DescriptionCureVac (CVAC) is a biotechnology company based in Germany that focuses on the development of therapies and vaccines utilizing messenger RNA (mRNA) technology. The company's core products are centered around the use of mRNA to stimulate the body's own production of proteins to combat various diseases, including cancer, infectious diseases, and rare diseases. CureVac is involved in both proprietary projects and collaborations with other pharmaceutical and biotech companies to advance its pipeline of innovative treatments.
How the Company Makes MoneyCureVac makes money primarily through the development and commercialization of its mRNA-based therapeutics and vaccines. The company's revenue streams include milestone payments and royalties from partnerships and collaborations with other pharmaceutical companies. These partnerships often involve joint research and development projects where CureVac provides its mRNA technology expertise. Additionally, CureVac generates revenue from grants and funding received from governmental and non-governmental organizations to support the research and development of its pipeline products. The company also aims to earn through the eventual commercialization of its proprietary drugs and vaccines once they receive regulatory approval.
CureVac Financial Statement Overview
Summary
CureVac demonstrates a significant financial recovery with robust revenue growth and improved profit margins. The balance sheet is strong with low leverage, and cash flow metrics show efficient cash management. However, historical volatility in financial metrics suggests the need for sustained performance.Income Statement
CureVac's income statement shows a robust turnaround with a significant increase in total revenue in the TTM. The gross profit margin improved to 69.76% from negative values in previous years. The net profit margin also turned positive at 20.36%, reflecting better cost management and operational efficiency. However, historical negative EBIT and EBITDA margins indicate past operational inefficiencies, though current improvements are promising. The revenue growth from the previous year is exceptional at 909.46%, positioning the company well for future growth.70
Positive
Balance Sheet
The balance sheet reflects a strong equity base with an equity ratio of 84.85% in the TTM, indicating low leverage and financial stability. The debt-to-equity ratio is low at 0.06, suggesting minimal reliance on debt financing. Return on equity has improved significantly to 15.25% in the TTM, indicating efficient use of shareholder funds. However, past fluctuations in equity and liabilities highlight potential volatility.65
Positive
Cash Flow
CureVac's cash flow statement shows a remarkable recovery with a positive operating cash flow of $128 million in the TTM, compared to significant negative values in prior years. The free cash flow growth is substantial, highlighting better capital expenditure management. The operating cash flow to net income ratio is strong at 1.16, indicating healthy cash generation. The improved free cash flow to net income ratio at 0.90 shows enhanced cash efficiency.75
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 542.70M | 53.76M | 67.42M | 102.99M | 48.90M | 17.42M | Gross Profit |
| 378.59M | -70.61M | -116.57M | -135.21M | 34.73M | -10.57M | EBIT |
| 131.04M | -274.21M | -249.46M | -412.26M | -124.00M | -99.50M | EBITDA |
| 155.72M | -234.09M | -209.39M | -386.49M | -123.09M | -91.50M | Net Income Common Stockholders |
| 110.52M | -260.17M | -249.03M | -411.72M | -129.07M | -99.87M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 60.63M | 405.11M | 500.28M | 816.11M | 1.33B | 32.14M | Total Assets |
| 0.00 | 788.25M | 860.47M | 1.16B | 1.51B | 130.62M | Total Debt |
| 0.00 | 41.82M | 42.09M | 28.89M | 30.09M | 79.15M | Net Debt |
| 60.63M | -360.63M | -453.71M | -782.57M | -1.29B | 48.46M | Total Liabilities |
| 0.00 | 271.31M | 327.22M | 469.77M | 800.01M | 173.42M | Stockholders Equity |
| 32.08M | 516.94M | 533.25M | 688.48M | 711.35M | -42.80M |
| Cash Flow | Free Cash Flow | ||||
| 99.35M | -323.09M | -379.40M | -861.03M | 475.05M | -99.19M | Operating Cash Flow |
| 128.45M | -267.89M | -286.18M | -733.13M | 522.40M | -86.96M | Investing Cash Flow |
| -29.45M | -55.20M | -93.50M | -127.90M | -45.27M | 28.18M | Financing Cash Flow |
| -7.82M | 230.89M | 63.17M | 344.96M | 819.83M | 67.98M |
CureVac Technical Analysis
Negative
2.84
Price Trends
3.28
Negative
3.25
Negative
3.21
Negative
Market Momentum
-0.14
Positive
36.78
Neutral
15.65
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVAC, the sentiment is Negative. The current price of 2.84 is below the 20-day moving average (MA) of 2.95, below the 50-day MA of 3.28, and below the 200-day MA of 3.21, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 36.78 is Neutral, neither overbought nor oversold. The STOCH value of 15.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CVAC.
CureVac Risk Analysis
CureVac disclosed 97 risk factors in its most recent earnings report. CureVac reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CureVac Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $637.03M | 5.17 | 17.08% | ― | 1202.27% | ― | |
68 Neutral | $137.76B | 17.24 | 9.05% | 6.96% | 8.77% | 272.80% | |
54 Neutral | $21.67B | ― | -3.38% | ― | -27.64% | -172.62% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% | |
48 Neutral | $9.93B | ― | -28.77% | ― | -52.75% | 25.00% | |
39 Underperform | $900.73M | ― | 30.06% | ― | -30.65% | 77.62% | |
34 Underperform | $58.30M | ― | -115.42% | ― | -73.83% | 34.81% |
* Healthcare Sector Average
Performance Comparison
CVAC
CureVac
2.84
-0.12
-4.05%
INO
Inovio Pharmaceuticals
1.59
-10.36
-86.69%
NVAX
Novavax
5.60
1.16
26.13%
PFE
Pfizer
24.29
-0.79
-3.15%
MRNA
Moderna
25.73
-76.54
-74.84%
BNTX
BioNTech SE
92.01
2.07
2.30%
CureVac Earnings Call Summary
Earnings Call Date: Nov 12, 2024 | % Change Since: 1.79% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong positive trajectory for CureVac, with significant licensing deals, promising pipeline developments, and strategic cost reductions. However, ongoing litigation and certain financial impairments present challenges.Highlights
New Licensing Agreement with GSK
CureVac announced a licensing agreement with GSK valued up to EUR 1.45 billion, including an upfront payment of EUR 400 million fully booked in Q3 2024.
Promising Glioblastoma Phase I Study Data
Preliminary data from the Phase I study in glioblastoma showed promising immunogenic responses, with 77% of patients showing CD8 T-cell responses.
Strong Cash Position and Financial Outlook
CureVac reported a strong cash position of EUR 550.9 million as of Q3 2024, with a cash runway extending into 2028.
Operational Cost Reduction Initiatives
Initiatives such as a 30% workforce reduction are expected to reduce operational expenses by over 30% starting in 2025.
Pipeline Expansion
Expansion in both oncology and infectious diseases, including a new program for urinary tract infections and a cancer vaccine targeting lung cancer.
Lowlights
Litigation Challenges
Ongoing litigation related to intellectual property rights with significant court cases expected in 2025.
Partial Impairment Costs
Partial impairment of the large-scale GP4 production facility contributed to increased operational expenses.
Increased Costs from Arbitration and Personnel
Higher arbitration costs related to CMO activities and increased personnel expenses were noted.
Company Guidance
During the third quarter of 2024, CureVac reported significant financial and strategic achievements. The company secured a new licensing agreement with GSK valued at up to EUR 1.45 billion, which included an upfront payment of EUR 400 million fully booked in Q3, bolstering their cash position to EUR 550.9 million. This financial strength supports CureVac's strategic transformation, including a 30% workforce reduction by year-end 2024 aimed at reducing operational expenses by over 30% starting in 2025. CureVac is advancing its pipeline with promising developments in oncology and infectious diseases, including a new cancer vaccine for squamous non-small cell lung cancer and a UTI vaccine program targeting uropathogenic E. coli. The company plans to leverage these advances, along with strong partnerships and a robust IP portfolio, to maintain a solid financial runway into 2028, positioning itself for continued growth and innovation.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.