Enanta Pharmaceuticals (ENTA) AI Stock Analysis

• Market Cap: $428.04M
• Dividend Yield: N/A
• Average Volume (3M): 203.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.64
• Revenue Growth: -3.42%
• EPS Growth: 30.03%
• Country: US
• Employees: 131
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.42
• Shares Outstanding: 29,019,344
• 10 Day Avg. Volume: 189,036
• 30 Day Avg. Volume: 203,410
• PEG Ratio: 0.10
• Price to Book (P/B): 3.95
• Price to Sales (P/S): 3.91
• P/FCF Ratio: -7.94
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 5.37
• Enterprise Value/Gross Profit: 5.37
• Enterprise Value/Ebitda: -6.09
• 1Y Price Target: $20.00
• Price Target Upside: 48.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -3.08
• Revenue Forecast (FY): $64.03M

• Rating: 48 Neutral
• Price Target: $13.50 ▼(-0.07% Downside)
• Action: Reiterated Date: 02/12/26
• Date: Action: Reiterated 02/12/26

The score is held down primarily by weak financial performance: large ongoing losses and continued cash burn outweigh improved revenue momentum and a better leverage profile. Technicals are neutral-to-mixed (some trend support but soft momentum), while valuation is constrained by negative earnings and no dividend yield data.

Positive Factors

Revenue rebound & strong gross margin

A sharp revenue rebound alongside a ~72% gross margin signals durable unit economics and product-level profitability potential. Over the next 2-6 months this supports operating leverage as R&D spends continue, making it easier to fund development if topline momentum persists.

Cash runway and liquidity

A $241.9M liquidity position and management's expectation that cash plus retained royalties will fund operations into 2029 materially reduces near-term financing risk. This provides a multi-year runway to advance registrational trials and de-risk programs without immediate dilution.

Advancing pipeline and program diversification

Progressing an RSV program toward Phase 3 while broadening immunology assets (KIT, STAT6, MRGPRX2) diversifies the portfolio and increases the chance of mid/late-stage success. These durable R&D milestones can translate into scalable revenue streams if clinical outcomes remain favorable.

Negative Factors

Negative operating and free cash flow

Sustained negative operating and free cash flow means the company continues to burn cash to fund trials and operations. Over a 2-6 month horizon this elevates funding and dilution risk if non-dilutive inflows or significant milestones don't materialize to reverse cash burn trends.

Large operating losses and negative net margin

Deep operating losses and a materially negative net margin indicate the current cost structure is not yet supported by revenue. This structural profitability gap raises the time and capital required to reach break-even unless revenue growth accelerates or costs are curtailed.

Value erosion and weak returns on equity

Despite improved leverage, persistent losses have produced negative returns on equity and erode shareholder value over time. This structural weakness increases the likelihood of future equity raises or constrained capital allocation if profitability is not achieved within the medium term.

Enanta Pharmaceuticals Business Overview & Revenue Model

Company Description

Enanta Pharmaceuticals, Inc., a biotechnology company, discovers and develops small molecule drugs for the treatment of viral infections and liver diseases. Its research and development disease targets include respiratory syncytial virus, SARS-CoV-2, human metapneumovirus, and hepatitis B virus. The company has a collaborative development and license agreement with Abbott Laboratories to identify, develop, and commercialize HCV NS3 and NS3/4A protease inhibitor compounds, including paritaprevir and glecaprevir for the treatment of chronic hepatitis C virus. Enanta Pharmaceuticals, Inc. was founded in 1995 and is headquartered in Watertown, Massachusetts.

How the Company Makes Money

Enanta Pharmaceuticals generates revenue primarily through collaborations and partnerships with other pharmaceutical companies. The company engages in research and development agreements that often include upfront payments, milestone payments, and royalties on product sales. Significant partnerships, such as those with AbbVie for the development of antiviral therapies, play a crucial role in its revenue model. Additionally, Enanta may receive revenue from licensing agreements related to its drug candidates, further contributing to its overall earnings. The company's focus on advancing its pipeline and securing strategic collaborations is essential for maintaining and enhancing its revenue streams.

Enanta Pharmaceuticals Financial Statement Overview

Summary

Revenue rebounded strongly and gross margin is healthy (~72%), and leverage has improved to moderate levels (debt-to-equity ~0.45). However, the core picture remains weak: large operating losses, materially negative net margin, and continued negative operating/free cash flow keep funding and sustainability risk elevated.

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded sharply (strong positive growth), and gross margin remains healthy (~72%). However, profitability is still very weak: the company is operating at large losses (EBIT and EBITDA deeply negative) and net margin is materially negative, indicating the current cost structure is not supported by the revenue base. Compared with recent annual periods, losses have narrowed somewhat, but the business is still far from break-even.

Balance Sheet

The balance sheet improved meaningfully versus the most recent annual snapshot: leverage is now moderate (debt-to-equity ~0.45 in TTM (Trailing-Twelve-Months) vs. very high in the latest annual period). Equity remains positive and assets are sizable, providing financial flexibility. The key weakness is continued value erosion from losses, reflected in strongly negative returns on equity, which can pressure the balance sheet if losses persist.

Cash Flow

Cash generation remains negative: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both outflows, and free cash flow deteriorated versus the prior period (negative growth). A positive point is that free cash flow is less negative than net income (cash burn smaller than accounting loss), suggesting meaningful non-cash charges and/or working-capital support. Still, ongoing cash burn elevates funding risk if sustained.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	66.98M	65.32M	67.64M	79.20M	86.16M	97.07M
Gross Profit	66.98M	60.74M	67.64M	79.20M	86.16M	97.07M
EBITDA	-59.03M	-70.78M	-104.51M	-123.48M	-119.22M	-104.25M
Net Income	-71.54M	-81.89M	-116.05M	-133.82M	-121.75M	-79.00M
Balance Sheet
Total Assets	329.50M	280.73M	376.65M	462.27M	380.59M	440.86M
Cash, Cash Equivalents and Short-Term Investments	185.85M	188.86M	248.19M	369.91M	249.23M	244.00M
Total Debt	57.07M	201.06M	226.06M	222.44M	26.69M	6.83M
Total Liabilities	202.91M	216.01M	247.84M	245.54M	59.26M	41.43M
Stockholders Equity	126.59M	64.72M	128.81M	216.74M	321.33M	399.43M
Cash Flow
Free Cash Flow	-18.46M	-32.17M	-96.71M	-112.21M	-86.91M	-70.75M
Operating Cash Flow	-14.17M	-19.27M	-78.76M	-103.15M	-84.78M	-70.00M
Investing Cash Flow	-75.85M	40.35M	58.23M	-53.58M	54.90M	36.99M
Financing Cash Flow	42.50M	-26.62M	-27.63M	198.13M	20.03M	3.08M

Enanta Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENTA, the sentiment is Positive. The current price of 13.51 is below the 20-day moving average (MA) of 13.58, below the 50-day MA of 14.00, and above the 200-day MA of 10.23, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 62.56 is Neutral, neither overbought nor oversold. The STOCH value of 43.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ENTA.

Enanta Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABEO	60 Neutral	$292.63M	4.55	75.90%	―	―	―
TECX	55 Neutral	$399.59M	-6.00	-32.21%	―	―	60.40%
JBIO	55 Neutral	$638.54M	-1.28	-50.23%	14.68%	―	89.16%
ALLO	53 Neutral	$514.63M	-2.58	-54.43%	―	-100.00%	37.10%
NMRA	52 Neutral	$573.12M	-2.36	-104.35%	―	―	20.71%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ENTA	48 Neutral	$428.04M	―	-60.01%	―	-3.42%	30.03%