Emmaus Life Sciences (EMMA) AI Stock Analysis

• Market Cap: $710.50K
• Dividend Yield: N/A
• Average Volume (3M): 33.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 55.35
• Revenue Growth: -29.92%
• EPS Growth: 36.90%
• Country: US
• Employees: 34
• Sector: Healthcare
• Sector Strength: 47
• Industry: Biotechnology
• EPS (TTM): -0.02
• Shares Outstanding: 63,865,570
• 10 Day Avg. Volume: 41,507
• 30 Day Avg. Volume: 33,710
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 45.51
• Enterprise Value/Revenue: 1.95
• Enterprise Value/Gross Profit: 2.10
• Enterprise Value/Ebitda: 69.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: $0.00 ▼(-100.00% Downside)

Emmaus Life Sciences' overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, high leverage, and negative cash flows. The technical analysis further indicates a bearish trend, while the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively contribute to a low overall stock score.

Positive Factors

High Gross Profit Margin

A high gross profit margin indicates strong operational efficiency, allowing the company to maintain profitability potential despite revenue challenges.

Product Focus on Rare Diseases

Focusing on rare diseases like sickle cell provides a niche market with less competition, potentially leading to stable demand and pricing power for their products.

Experienced Leadership

The appointment of an experienced CAO with a strong background in finance and accounting can enhance financial oversight and strategic decision-making.

Negative Factors

Declining Revenue

A significant decline in revenue suggests challenges in market penetration or product adoption, potentially impacting long-term growth and sustainability.

High Leverage

High leverage with negative equity poses financial risks, limiting the company's ability to invest in growth and increasing vulnerability to economic downturns.

Negative Cash Flows

Persistent negative cash flows indicate ongoing cash burn, which can strain financial resources and hinder the company's ability to sustain operations without external funding.

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 sale of its pharmaceutical products, with Endari being its main revenue driver. The company sells Endari directly to pharmacies and healthcare providers, and it may also benefit from reimbursement arrangements with insurance companies that cover the cost of the medication for patients. Additionally, Emmaus may pursue strategic collaborations, partnerships, or licensing agreements with other pharmaceutical companies to enhance its product portfolio or expand market reach, which can provide supplementary income. The company may also explore grants or funding opportunities for research and development to support its ongoing projects, contributing to its overall financial health.

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	16.55M	16.65M	29.60M	18.39M	20.61M	23.17M
Gross Profit	15.38M	15.45M	28.25M	15.80M	17.30M	20.92M
EBITDA	464.00K	-910.00K	3.62M	-5.50M	-12.76M	7.02M
Net Income	-4.43M	-6.45M	-3.73M	-10.63M	-15.95M	1.35M
Balance Sheet
Total Assets	22.48M	23.60M	35.18M	48.23M	56.73M	59.27M
Cash, Cash Equivalents and Short-Term Investments	1.33M	1.39M	2.55M	2.02M	2.28M	2.49M
Total Debt	32.98M	33.13M	32.65M	25.10M	29.91M	18.99M
Total Liabilities	81.08M	80.08M	82.94M	82.32M	78.18M	64.69M
Stockholders Equity	-58.60M	-56.48M	-47.76M	-34.09M	-21.45M	-5.42M
Cash Flow
Free Cash Flow	-2.15M	-2.30M	-1.52M	-5.10M	-1.33M	-28.63M
Operating Cash Flow	-2.15M	-2.29M	-1.50M	-5.07M	-1.25M	-2.45M
Investing Cash Flow	2.50M	2.50M	-432.00K	-2.39M	-6.38M	5.47M
Financing Cash Flow	-743.00K	-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: Positive

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 below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.25 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, 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
Sector *	51 Neutral	$7.92B	-0.36	-43.38%	2.24%	22.38%	-2.16%
GRI	45 Neutral	$4.55M	―	-248.95%	―	―	98.45%
EMMA	40 Underperform	$710.50K	―	6.50%	―	-29.92%	36.90%
SCPX	38 Underperform	$183.43K	―	-287.19%	―	-69.81%	88.78%
ONCO	33 Underperform	$4.71M	―	-254.09%	―	-9.34%	93.84%
SLRX	30 Underperform	$2.70M	―	-660.37%	―	―	74.27%
PCSA	29 Underperform	$9.66M	―	-212.38%	―	―	57.99%

Emmaus Life Sciences Corporate Events

Emmaus Life Sciences Appoints Hiroko Huynh as New CAO

On June 30, 2025, Yasushi Nagasaki resigned as Chief Financial Officer of Emmaus Life Sciences, Inc., marking his transition to full retirement. Subsequently, on July 1, 2025, Hiroko Huynh was promoted to Chief Accounting Officer, having previously served as Controller since January 2020 and as Senior Manager in the finance and accounting department from October 2018 to January 2020. Her extensive experience includes eight years with Deloitte & Touche LLP.