Education
About Us
Working with TipRanks
Follow Us
Editas Medicine Inc (EDIT)
NASDAQ:EDIT
Top Page
Editas Medicine
(NASDAQ:EDIT)
Select Model
Select Model
Rating:41Neutral
Price Target:
$2.00
▼(-1.48% Downside)
The score is primarily constrained by weak financial performance—large ongoing losses, substantial cash burn, and a weakened equity base that elevates leverage risk. Technicals add pressure with the stock trading below major moving averages and a negative MACD, while valuation is limited by negative earnings and no dividend yield data.
Positive Factors
Promising Product Development
The promising preclinical data on EDIT-401 could strengthen Editas's market position in gene therapy, indicating potential future revenue streams and competitive advantage in addressing genetic diseases.
Strong Cash Reserves
Strong cash reserves provide Editas with financial stability, enabling sustained investment in R&D and operations, crucial for biotech firms in the pre-commercial phase.
Low Debt Levels
Low debt levels reduce financial risk and provide Editas with greater flexibility to invest in long-term growth opportunities without the burden of high interest obligations.
Negative Factors
Negative Cash Flow
Persistent negative cash flow indicates operational inefficiencies and high cash burn, posing a risk to long-term sustainability and necessitating reliance on external funding.
Revenue Decline
The drop to zero revenue highlights challenges in transitioning to a commercially viable model, impacting Editas's ability to generate sustainable income and fund operations.
Erosion of Shareholder Value
Declining stockholders' equity suggests diminishing returns for investors and potential challenges in maintaining investor confidence, which could affect future capital raising efforts.
Editas Medicine (EDIT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$198.17M
Dividend YieldN/A
Average Volume (3M)1.70M
Price to Earnings (P/E)―
Beta (1Y)2.13
Revenue Growth-24.90%
EPS Growth7.19%
CountryUS
Employees246
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.28
Shares Outstanding97,618,660
10 Day Avg. Volume1,781,207
30 Day Avg. Volume1,697,905
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)0.78
Price to Sales (P/S)3.24
P/FCF Ratio-0.48
Enterprise Value/Market Cap0.26
Enterprise Value/Revenue1.12
Enterprise Value/Gross Profit1.12
Enterprise Value/Ebitda-0.30
Forecast
1Y Price Target
$4.02Price Target Upside98.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)-1.09
Revenue Forecast (FY)$15.43M
Editas Medicine Business Overview & Revenue Model
Company DescriptionEditas Medicine, Inc., a clinical stage genome editing company, focuses on developing transformative genomic medicines to treat a range of serious diseases. It develops a proprietary gene editing platform based on CRISPR technology. The company develops EDIT-101, which is in Phase 1/2 clinical trial for Leber Congenital Amaurosis 10 that leads to inherited childhood blindness. It also develops EDIT-102 for the treatment of Usher Syndrome 2A, which is a form of retinitis pigmentosa that also includes hearing loss; autosomal dominant retinitis pigmentosa, a progressive form of retinal degeneration; and EDIT-301 to treat sickle cell disease and transfusion-dependent beta-thalassemia. In addition, the company is developing gene-edited Natural Killer cell medicines to treat solid tumor cancers; alpha-beta T cells for multiple cancers; and gamma delta T cell therapies to treat cancer, as well as has an early discovery program to develop a therapy to treat a neurological disease. It has a research collaboration with Juno Therapeutics, Inc. to develop engineered T cells for cancer; strategic alliance and option agreement with Allergan Pharmaceuticals International Limited to discover, develop, and commercialize new gene editing medicines for a range of ocular disorders; and research collaboration with Asklepios BioPharmaceutical, Inc. to develop a therapy to treat a neurological disease, as well as research collaboration with AskBio. The company was formerly known as Gengine, Inc. and changed its name to Editas Medicine, Inc. in November 2013. Editas Medicine, Inc. was incorporated in 2013 and is based in Cambridge, Massachusetts.
How the Company Makes MoneyEditas Medicine generates revenue through a combination of funding from collaborations, partnerships, and grants, as well as potential future product sales. The company partners with pharmaceutical companies and research institutions to co-develop gene editing therapies, which can lead to milestone payments and royalties on product sales. Additionally, Editas may receive funding from government grants aimed at supporting innovative medical research. As the company progresses through clinical trials and towards commercialization of its therapies, it anticipates revenue from the sale of its gene editing products.
Editas Medicine Key Performance Indicators (KPIs)
Any
Operating Expense Breakdown
Details core costs like R&D, marketing, and admin, offering insight into how efficiently the company runs and where it’s prioritizing investment, crucial for understanding Editas Medicine's focus on innovation and operational strategy.
Details core costs like R&D, marketing, and admin, offering insight into how efficiently the company runs and where it’s prioritizing investment, crucial for understanding Editas Medicine's focus on innovation and operational strategy.
Data provided by:
The Fly
The FlyEditas Medicine Earnings Call Summary
Earnings Call Date:Aug 07, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Positive
The call highlighted significant progress in both clinical trials and in vivo pipeline development. Financial stability was assured despite a higher burn rate. However, challenges such as increased expenses and regulatory issues around fertility support present hurdles. Overall, the company's advancements in gene editing and robust clinical trial outcomes provide a positive outlook.Q2-2024 Updates
Positive Updates
Reni-cel Clinical Trials Progress
Completed adolescent cohort enrollment for the RUBY trial, and adult cohort enrollment in the EdiTHAL trial. Clinical data from RUBY and EdiTHAL trials show promising results with all patients free from vaso-occlusive events and a high level of fetal hemoglobin.
In Vivo Pipeline Advancements
On track to establish in vivo preclinical proof of concept for an undisclosed indication by the end of the year. Strengthening in vivo discovery capabilities and pursuing a differentiated strategy for gene editing.
Financial Position
Cash, cash equivalents, and marketable securities as of June 30 were $318 million, expected to fund operations into 2026.
Manufacturing Improvements
Robust manufacturing process for reni-cel with a low failure rate, potentially reducing patient burden and cost.
Negative Updates
Increased Burn Rate
Higher burn rate this quarter due to increased external R&D expenses, primarily related to clinical and manufacturing costs.
Regulatory and Market Challenges
Concerns regarding HHS decision on fertility preservation coverage for sickle cell therapies, which may affect market dynamics.
Company Guidance
During the Editas Medicine Q2 2024 earnings call, CEO Gilmore O'Neill outlined the company's strategic progress, emphasizing three main pillars: advancing reni-cel towards BLA and commercialization, building a differentiated in vivo editing pipeline, and enhancing business development with a focus on intellectual property. The RUBY trial data for sickle cell disease showed promising results, with 18 patients having follow-up periods ranging from 2.4 to 22.8 months and demonstrating robust anemia correction. The EdiTHAL trial for beta-thalassemia included data from 7 patients with 4.1 to 12.8 months follow-up. Financially, Editas reported cash, cash equivalents, and marketable securities totaling $318 million as of June 30, 2024, with a burn rate increase due to R&D expenses. They expect to fund operations into 2026. The company is also on track to establish in vivo preclinical proof of concept by year-end, with a focus on leveraging indel technology for gene upregulation, targeting rare and orphan diseases initially.Editas Medicine Financial Statement Overview
Summary
Despite 19.2% TTM revenue growth, EDIT remains deeply unprofitable (TTM net margin ~-609%) with heavy cash burn (TTM operating cash flow and free cash flow both around -$180M). Balance-sheet risk is elevated due to a sharply reduced equity base, driving very high debt-to-equity (~4.1x) and strongly negative returns on equity.Income Statement
TTM (Trailing-Twelve-Months) revenue grew 19.2% versus the prior year, a clear top-line positive. However, the business remains deeply unprofitable with very large operating and net losses (TTM net margin around -609%), indicating the cost base is far ahead of current revenue scale. Profitability has not shown a sustained improvement across the period, keeping overall earnings quality weak despite occasional revenue variability.22
Negative
Balance Sheet
Leverage is the key concern: TTM debt-to-equity is very high (~4.1x) because equity has fallen sharply versus prior years, reducing financial flexibility. While total debt in TTM is not large in absolute dollars, the reduced equity cushion increases balance-sheet risk. Returns on equity are strongly negative (TTM), consistent with ongoing losses and capital erosion.28
Negative
Cash Flow
Cash burn remains heavy: TTM operating cash flow and free cash flow are both around -$180M, and free cash flow declined versus the prior period (about -11.8% growth). A modest positive is that free cash flow is broadly in line with reported net loss (free cash flow to net income near ~1.0), suggesting losses are not being materially understated by non-cash items—yet the absolute level of cash consumption is still a major overhang.24
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 46.38M | 32.31M | 78.12M | 19.71M | 25.54M | 90.73M |
| Gross Profit | 46.38M | 32.31M | 72.06M | 13.38M | 20.49M | -67.26M |
| EBITDA | -176.31M | -233.11M | -163.12M | -219.61M | -188.09M | -130.88M |
| Net Income | -199.84M | -237.09M | -153.22M | -220.43M | -192.50M | -115.98M |
Balance Sheet | ||||||
| Total Assets | 201.75M | 341.59M | 499.15M | 514.32M | 677.48M | 572.60M |
| Cash, Cash Equivalents and Short-Term Investments | 165.65M | 269.91M | 323.11M | 344.27M | 499.85M | 402.11M |
| Total Debt | 19.65M | 35.03M | 48.54M | 43.95M | 26.38M | 26.14M |
| Total Liabilities | 188.30M | 207.31M | 150.06M | 153.64M | 123.84M | 179.02M |
| Stockholders Equity | 13.45M | 134.27M | 349.10M | 360.68M | 553.64M | 393.59M |
Cash Flow | ||||||
| Free Cash Flow | -180.70M | -219.11M | -136.90M | -181.47M | -171.78M | -187.00M |
| Operating Cash Flow | -179.62M | -210.28M | -132.18M | -177.35M | -163.80M | -179.84M |
| Investing Cash Flow | 169.57M | 162.15M | -3.73M | 114.07M | -54.47M | -140.52M |
| Financing Cash Flow | 78.66M | 56.03M | 118.04M | 1.28M | 282.11M | 224.12M |
Editas Medicine Technical Analysis
Negative
2.03
Price Trends
2.35
Negative
2.79
Negative
2.43
Negative
Market Momentum
-0.09
Negative
39.34
Neutral
46.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDIT, the sentiment is Negative. The current price of 2.03 is below the 20-day moving average (MA) of 2.14, below the 50-day MA of 2.35, and below the 200-day MA of 2.43, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 39.34 is Neutral, neither overbought nor oversold. The STOCH value of 46.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EDIT.
Editas Medicine Risk Analysis
Editas Medicine disclosed 71 risk factors in its most recent earnings report. Editas Medicine 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 0 New Risks
Editas Medicine Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | $293.36M | -12.21 | -31.07% | ― | 158.54% | 66.90% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $352.66M | -5.07 | ― | ― | -3.91% | 37.89% | |
47 Neutral | $345.09M | -0.04 | ― | ― | ― | -1072.48% | |
47 Neutral | $136.46M | -0.86 | -74.28% | ― | -19.00% | -2.72% | |
43 Neutral | $144.29M | -2.43 | ― | ― | ― | 17.36% | |
41 Neutral | $198.17M | -0.85 | -211.37% | ― | -24.90% | 7.19% |
* Healthcare Sector Average
EDIT
Editas Medicine
2.03
0.82
67.77%
CLLS
Cellectis SA
4.07
2.56
169.54%
FHTX
Foghorn Therapeutics
6.02
1.61
36.51%
ELTX
Elicio Therapeutics
8.25
1.80
27.91%
VOR
Vor Biopharma
15.75
-11.45
-42.10%
CRBU
Caribou Biosciences
1.46
-0.06
-3.95%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.