Emmaus Life Sciences (EMMA) AI Stock Analysis

• Market Cap: $686.55K
• Dividend Yield: N/A
• Average Volume (3M): 112.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 59.31
• Revenue Growth: -41.78%
• EPS Growth: -101.59%
• Country: US
• Employees: 34
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.03
• Shares Outstanding: 63,865,570
• 10 Day Avg. Volume: 152,781
• 30 Day Avg. Volume: 112,453
• PEG Ratio: >-0.01
• Price to Book (P/B): >-0.01
• Price to Sales (P/S): 0.03
• P/FCF Ratio: -0.23
• Enterprise Value/Market Cap: 46.75
• Enterprise Value/Revenue: 2.70
• Enterprise Value/Gross Profit: 2.93
• Enterprise Value/Ebitda: -28.71
• 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: 41 Neutral
• Price Target: $0.00 ▼(-100.00% Downside)

Emmaus Life Sciences' overall stock score is heavily influenced by its poor financial performance and valuation metrics. The company's declining revenues, persistent losses, and high leverage are significant concerns. Additionally, weak technical indicators and a negative P/E ratio further contribute to the low score. The absence of earnings call data and corporate events means these factors do not impact the score.

Positive Factors

High Gross Profit Margin

A high gross profit margin indicates strong operational efficiency, allowing the company to manage costs effectively despite revenue challenges.

Product Focus on Rare Diseases

Targeting rare diseases like sickle cell offers niche market opportunities with less competition, potentially leading to sustainable revenue streams.

Improved Free Cash Flow

Improvement in free cash flow, despite being negative, reflects better cash management, which is crucial for long-term financial health.

Negative Factors

Declining Revenue

Significant revenue decline indicates challenges in market demand or sales execution, impacting long-term growth prospects.

High Leverage

High leverage with negative equity suggests financial instability and potential solvency risks, limiting strategic flexibility.

Negative Cash Flow

Consistently negative operating cash flow indicates ongoing cash burn, which can strain resources and hinder long-term sustainability.

Emmaus Life Sciences Business Overview & Revenue Model

Company Description

Emmaus Life Sciences, Inc., a commercial-stage biopharmaceutical company, discovers, develops, markets, and sells treatments and therapies primarily for rare and orphan diseases in the United States and internationally. The company's lead candidate is Endari, an L-glutamine oral powder to reduce the acute complications of sickle cell disease in adult and pediatric patients five years of age and older. It has a collaboration agreement with Kainos Medicine, Inc. for the preclinical development of Kainos' patented IRAK4 inhibitor (KM10544) as an anti-cancer drug. The company was formerly known as Emmaus Holdings, Inc. and changed its name to Emmaus Life Sciences, Inc. in September 2011. Emmaus Life Sciences, Inc. was founded in 2000 and is headquartered in Torrance, California.

How the Company Makes Money

Emmaus Life Sciences generates revenue primarily through the sales of its flagship product, Endari. The company earns money by marketing and distributing this medication to healthcare providers, pharmacies, and patients. Revenue is also supplemented by potential partnerships with other pharmaceutical companies for research and development collaborations, as well as possible licensing agreements that could provide additional income streams. Furthermore, EMMA may benefit from grants or government funding focused on research initiatives aimed at rare diseases.

Emmaus Life Sciences Financial Statement Overview

Summary

Emmaus Life Sciences faces significant financial challenges characterized by declining revenues and persistent losses. The high gross profit margin is a positive indicator of operational efficiency, but the negative net income and equity position highlight ongoing financial instability. The company's high leverage and negative cash flows pose risks to its financial health and long-term viability.

Income Statement

The company has experienced a significant decline in revenue from $29.6 million in 2023 to $16.7 million in 2024, indicating a negative revenue growth rate. Gross profit margin remains high at approximately 92.8% in 2024, suggesting efficient cost management. However, the net profit margin is deeply negative due to substantial net losses, highlighting ongoing profitability challenges.

Balance Sheet

The balance sheet shows high leverage with a negative equity position, as indicated by a debt-to-equity ratio that cannot be calculated meaningfully due to negative equity. The substantial total debt of $33.1 million in 2024 is concerning given the negative stockholders' equity, suggesting financial instability and potential solvency risks.

Cash Flow

Operating cash flow is consistently negative, though the free cash flow improved slightly from -$1.52 million in 2023 to -$2.30 million in 2024. The operating cash flow to net income ratio suggests that cash outflows are less than the net losses, reflecting some control over cash management despite ongoing cash burn.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.89M	16.65M	29.60M	18.39M	20.61M	23.17M
Gross Profit	10.96M	15.45M	28.25M	15.80M	17.30M	20.92M
EBITDA	-1.12M	-910.00K	3.62M	-5.50M	-12.76M	7.02M
Net Income	-7.29M	-6.45M	-3.73M	-10.63M	-15.95M	1.35M
Balance Sheet
Total Assets	20.76M	23.60M	35.18M	48.23M	56.73M	59.27M
Cash, Cash Equivalents and Short-Term Investments	293.00K	1.39M	2.55M	2.02M	2.28M	2.49M
Total Debt	31.69M	32.96M	32.65M	30.82M	29.91M	18.99M
Total Liabilities	80.24M	80.08M	82.94M	82.32M	78.18M	64.69M
Stockholders Equity	-59.49M	-56.48M	-47.76M	-34.09M	-21.45M	-5.42M
Cash Flow
Free Cash Flow	-1.88M	-2.30M	-1.52M	-5.10M	-1.33M	-28.63M
Operating Cash Flow	-1.88M	-2.29M	-1.50M	-5.07M	-1.25M	-2.45M
Investing Cash Flow	2.17M	2.50M	-432.00K	-2.39M	-6.38M	5.47M
Financing Cash Flow	-1.26M	-1.35M	2.48M	7.23M	7.41M	-2.31M

Emmaus Life Sciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 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 EMMA, the sentiment is Negative. The current price of 0.01 is above the 20-day moving average (MA) of <0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.01, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.64 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EMMA.

Emmaus Life Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCNI	52 Neutral	$639.75K	-0.06	―	―	178.82%	-4121.10%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EMMA	41 Neutral	$686.55K	-0.09	―	―	-41.78%	-101.59%
DRMA	15 Underperform	$2.43M	-0.12	-203.36%	―	―	90.53%