eFFECTOR Therapeutics (EFTR) AI Stock Analysis

• Market Cap: $941.00
• Dividend Yield: N/A
• Average Volume (3M): 79.17K
• Price to Earnings (P/E): ―
• Beta (1Y): -66.90
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 14
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -13.31
• Shares Outstanding: 4,704,409
• 10 Day Avg. Volume: 79,165
• 30 Day Avg. Volume: 79,165
• PEG Ratio: >-0.01
• Price to Book (P/B): -4.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 25 Underperform
• Price Target: ―

eFFECTOR Therapeutics' overall score is primarily impacted by severe financial distress, with declining revenue, negative equity, and reliance on external financing. The absence of technical indicators and negative valuation metrics further hinder the stock's attractiveness. Lack of earnings call insights limits understanding of future prospects. Strategic changes are critical for improvement.

Positive Factors

Innovative Drug Development

eFFECTOR's focus on STRIs represents a novel approach in cancer treatment, potentially offering unique therapeutic options and competitive advantages in the biotechnology sector.

Strategic Partnerships

Partnerships with larger pharmaceutical companies provide financial support and market access, enhancing eFFECTOR's ability to advance drug candidates and potentially achieve commercialization.

Industry Position

eFFECTOR's niche focus on translational control mechanisms positions it uniquely within the biotechnology industry, potentially leading to breakthroughs in cancer treatment.

Negative Factors

Financial Distress

The company's financial instability, characterized by declining revenues and negative equity, raises concerns about its ability to sustain operations and invest in R&D long-term.

Negative Cash Flow

Persistent negative cash flow indicates operational inefficiencies and dependency on external financing, which could hinder strategic investments and growth initiatives.

Operational Inefficiencies

High operational costs and negative margins suggest inefficiencies that could undermine profitability and competitiveness unless addressed.

eFFECTOR Therapeutics Business Overview & Revenue Model

Company Description

eFFECTOR Therapeutics, Inc. (EFTR) is a biopharmaceutical company focused on the development of selective translation regulator inhibitors (STRIs) for the treatment of cancer. The company operates within the biotechnology sector, with a particular emphasis on harnessing the body's translational control mechanisms to modulate protein production associated with cancerous growth. Its core services revolve around the discovery, development, and commercialization of innovative therapies aimed at improving the lives of patients afflicted with various cancer types.

How the Company Makes Money

eFFECTOR Therapeutics makes money primarily through the development and potential commercialization of its proprietary drug candidates. The company generates revenue through strategic collaborations and partnerships with larger pharmaceutical companies, which may include upfront payments, milestone payments, and royalties based on future product sales. Additionally, eFFECTOR may engage in licensing agreements for its technology or compounds, allowing other entities to develop and market these products. The company's financial performance is heavily dependent on the successful progression of its drug candidates through clinical trials and eventual FDA approval for market release.

eFFECTOR Therapeutics Financial Statement Overview

Summary

eFFECTOR Therapeutics is experiencing severe financial difficulties across all major financial metrics, including declining revenues, increasing losses, negative equity, and insufficient cash flow generation. High leverage and reliance on external financing raise concerns about long-term viability.

Income Statement

eFFECTOR Therapeutics has faced significant revenue challenges, with revenues decreasing to zero in 2023 from $3.55 million in 2022. The company has consistently reported negative net income, with the net profit margin declining sharply due to increasing losses. The lack of revenue and high expenses have resulted in negative EBIT and EBITDA margins, indicating operational inefficiencies and financial distress.

Balance Sheet

The balance sheet reveals a concerning financial structure, with negative stockholders' equity and a high debt-to-equity ratio due to liabilities exceeding assets. The company's equity ratio is negative, pointing to potential solvency issues. The high leverage and negative equity position pose substantial risks to financial stability.

Cash Flow

Cash flow analysis shows negative free cash flow, indicating that the company is not generating sufficient cash from operations to cover its capital expenditures. Operating cash flow remains negative, and the operating cash flow to net income ratio is unfavorable. The company relies heavily on financing activities to sustain operations, reflecting a challenging cash flow situation.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	162.00K	0.00	3.55M	1.43M	42.00M	0.00
Gross Profit	51.00K	-111.00K	3.50M	1.41M	42.00M	-307.00K
EBITDA	-31.84M	-32.78M	-20.36M	17.59M	16.05M	-28.05M
Net Income	-34.63M	-35.81M	-12.93M	15.80M	14.21M	-29.74M
Balance Sheet
Total Assets	27.13M	20.54M	29.08M	54.06M	16.70M	5.09M
Cash, Cash Equivalents and Short-Term Investments	25.38M	18.37M	26.31M	49.70M	15.22M	3.43M
Total Debt	20.25M	20.55M	20.28M	20.03M	12.96M	15.24M
Total Liabilities	26.30M	26.34M	25.18M	36.77M	148.95M	18.93M
Stockholders Equity	827.00K	-5.79M	3.90M	17.28M	979.00K	-13.84M
Cash Flow
Free Cash Flow	-29.27M	-29.65M	-26.09M	-24.93M	13.68M	-27.60M
Operating Cash Flow	-29.19M	-29.55M	-25.90M	-24.89M	13.84M	-27.60M
Investing Cash Flow	-864.00K	14.48M	-17.86M	565.00K	-154.00K	84.00K
Financing Cash Flow	35.25M	21.23M	2.77M	58.81M	-1.89M	20.24M

eFFECTOR Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BOLT	45 Neutral	$9.67M	-0.19	-81.97%	―	-46.88%	34.83%
GRI	45 Neutral	$6.47M	―	-397.84%	―	―	98.22%
MTNB	45 Neutral	$6.46M	-0.33	-157.24%	―	―	25.19%
AIM	39 Underperform	$4.53M	―	―	―	-41.05%	57.35%
SLRX	30 Underperform	$3.37M	-0.07	-139.55%	―	―	68.08%
EFTR	25 Underperform	$941.00	―	617.96%	―	―	―