Editas Medicine (EDIT) AI Stock Analysis

• Market Cap: $231.36M
• Dividend Yield: N/A
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.15
• Revenue Growth: -24.90%
• EPS Growth: 7.19%
• Country: US
• Employees: 246
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.28
• Shares Outstanding: 97,618,660
• 10 Day Avg. Volume: 1,714,094
• 30 Day Avg. Volume: 1,667,331
• 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 Cap: 0.98
• Enterprise Value/Revenue: 4.87
• Enterprise Value/Gross Profit: 4.87
• Enterprise Value/Ebitda: -1.28
• 1Y Price Target: $4.02
• Price Target Upside: 71.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): -1.99
• Revenue Forecast (FY): $23.12M

• Rating: 49 Neutral
• Price Target: $2.50 ▲(6.38% Upside)

Editas Medicine's overall stock score reflects significant financial challenges and valuation concerns, balanced by promising preclinical data on EDIT-401. The company's strong cash reserves provide some financial stability, but persistent losses and negative cash flows pose risks. Technical indicators suggest a bearish trend, while the promising corporate event offers potential upside in the long term.

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 Business Overview & Revenue Model

Company Description

Editas 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 Money

Editas 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 Financial Statement Overview

Summary

Editas Medicine faces significant financial challenges typical of biotech firms in the R&D phase. The lack of revenue growth and persistent losses indicate difficulties in transitioning to a commercially viable model. The balance sheet is bolstered by strong cash reserves, yet the continuous negative cash flow suggests an ongoing reliance on external funding. Investors should be cautious of the high risks associated with the company's current financial position.

Income Statement

Editas Medicine has shown a volatile revenue trajectory with a significant drop to zero revenue in 2024 from previous levels. The company has consistently reported negative net income, leading to negative profit margins. This indicates challenges in achieving profitability, common in the biotech industry, which often requires substantial R&D investments without immediate revenue.

Balance Sheet

The company's balance sheet exhibits moderate financial health with a significant cash reserve relative to its total assets. The debt-to-equity ratio is low, suggesting conservative use of debt. However, the continuous decline in stockholders' equity indicates erosion of shareholder value, which is a concern.

Cash Flow

Editas Medicine has consistently faced negative operating and free cash flows, reflecting operational struggles and high cash burn. Although there are instances of positive financing cash flows, this is likely due to capital raises rather than operational efficiency, posing a risk to long-term sustainability.

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

• Technical Analysis Sentiment: Negative
• Last Price: 2.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 2.35 is below the 20-day moving average (MA) of 2.42, below the 50-day MA of 2.88, and below the 200-day MA of 2.36, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 41.21 is Neutral, neither overbought nor oversold. The STOCH value of 19.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EDIT.

Editas Medicine Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLLS	54 Neutral	$290.41M	-12.48	-31.07%	―	158.54%	66.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
FHTX	51 Neutral	$262.40M	-4.21	―	―	-3.91%	37.89%
EDIT	49 Neutral	$231.36M	-0.99	-211.37%	―	-24.90%	7.19%
CRBU	47 Neutral	$151.42M	-0.96	-74.28%	―	-19.00%	-2.72%
VOR	33 Underperform	$312.45M	-0.03	―	―	―	-1072.48%
ELTX	30 Underperform	$137.64M	-2.35	―	―	―	17.36%

Editas Medicine Corporate Events

Editas Medicine Unveils Promising Preclinical Data on EDIT-401

On October 9, 2025, Editas Medicine presented in vivo preclinical proof-of-concept data for their experimental therapy, EDIT-401, at the European Society of Gene and Cell Therapy Congress. The therapy aims to significantly reduce LDL-cholesterol by upregulating the LDL receptor, showing promising results in non-human primates and mice with reductions exceeding 90% within 48 hours of a single dose, potentially impacting the company’s position in the gene therapy market.