Enanta Pharmaceuticals (ENTA) AI Stock Analysis

• Market Cap: $166.96M
• Dividend Yield: N/A
• Average Volume (3M): 200.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.64
• Revenue Growth: -9.94%
• EPS Growth: 20.81%
• Country: US
• Employees: 131
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.85
• Shares Outstanding: 21,377,922
• 10 Day Avg. Volume: 285,112
• 30 Day Avg. Volume: 200,758
• PEG Ratio: 0.13
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 3.24
• P/FCF Ratio: -2.27
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 2.54
• Enterprise Value/Gross Profit: 2.54
• Enterprise Value/Ebitda: -2.00
• 1Y Price Target: $17.60
• Price Target Upside: 122.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 39 Underperform
• Price Target: $7.00 ▼(-11.39% Downside)

Enanta Pharmaceuticals' overall stock score is primarily impacted by its poor financial performance, characterized by significant losses, high leverage, and cash flow issues. Technical analysis indicates bearish momentum, while valuation metrics highlight ongoing profitability challenges. The absence of earnings call data and corporate events further limits positive influences on the score.

Positive Factors

Innovative Drug Pipeline

Enanta's focus on innovative drug candidates for HBV and RSV positions it well in the biotechnology sector, potentially leading to breakthrough treatments and long-term revenue streams.

Strategic Collaborations

Collaborations with major pharmaceutical companies like AbbVie offer financial stability through upfront and milestone payments, enhancing Enanta's ability to fund R&D and expand its market reach.

Revenue Streams

Diverse revenue streams from royalties and licensing agreements provide Enanta with financial resilience and potential for steady cash flow, supporting long-term growth.

Negative Factors

High Leverage

High leverage indicates reliance on debt financing, which can strain financial resources and limit strategic flexibility, posing risks to long-term financial health.

Negative Cash Flow

Negative cash flow challenges Enanta's ability to fund operations and invest in growth, potentially hindering its capacity to sustain long-term business development.

Profitability Challenges

Ongoing profitability challenges, as evidenced by negative net profit margins, reflect operational inefficiencies and may impact Enanta's ability to achieve sustainable growth.

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 through various streams, primarily including royalties, collaborations, and licensing agreements. The company earns royalties from its partnerships with larger pharmaceutical companies, particularly from the sales of its antiviral treatments. Enanta has established significant collaborations, such as with AbbVie for the development of HBV therapies, which provide upfront payments and potential milestone payments tied to clinical progress. Additionally, the company seeks to monetize its research and development through licensing deals that allow other companies to develop and commercialize its drug candidates, thereby generating revenue from these agreements as well.

Enanta Pharmaceuticals Financial Statement Overview

Summary

Enanta Pharmaceuticals is facing financial difficulties with declining revenue, negative profitability, and cash flow challenges. Despite a high gross profit margin and stable equity ratio, the company's financial performance is hindered by operating inefficiencies and high expenses relative to revenue.

Income Statement

Enanta Pharmaceuticals has been experiencing declining revenue with a negative growth rate over recent periods. The company is facing significant challenges in terms of profitability, as evidenced by negative net profit and EBIT margins. However, the gross profit margin is high, indicating that the cost of revenue is well-managed.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, suggesting balanced leverage. However, the return on equity is negative due to consistent net losses. The equity ratio is relatively stable, indicating that a fair portion of the company's assets are financed by equity.

Cash Flow

Operating cash flow and free cash flow remain negative, reflecting ongoing operational challenges and capital spending. Despite this, the company's ability to maintain cash reserves is noted, although cash generation from operations is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.81M	67.64M	79.20M	86.16M	97.07M	122.47M
Gross Profit	64.81M	67.64M	79.20M	86.16M	97.07M	122.47M
EBITDA	-82.41M	-104.51M	-123.48M	-119.22M	-104.25M	-37.99M
Net Income	-92.01M	-116.05M	-133.82M	-121.75M	-79.00M	-36.17M
Balance Sheet
Total Assets	301.03M	376.65M	462.27M	375.41M	438.79M	486.13M
Cash, Cash Equivalents and Short-Term Investments	204.11M	248.19M	369.91M	249.23M	244.00M	386.65M
Total Debt	207.10M	226.06M	26.51M	25.26M	5.33M	9.58M
Total Liabilities	221.75M	247.84M	245.54M	54.08M	39.36M	30.55M
Stockholders Equity	79.28M	128.81M	216.74M	321.33M	399.43M	455.58M
Cash Flow
Free Cash Flow	-43.57M	-96.71M	-112.21M	-86.91M	-70.75M	5.64M
Operating Cash Flow	-23.18M	-78.76M	-103.15M	-84.78M	-70.00M	7.09M
Investing Cash Flow	57.12M	58.23M	-53.58M	54.90M	36.99M	19.83M
Financing Cash Flow	-25.51M	-27.63M	198.13M	20.03M	3.08M	8.98M

Enanta Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 7.9 is below the 20-day moving average (MA) of 8.17, below the 50-day MA of 7.94, and above the 200-day MA of 6.66, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 48.90 is Neutral, neither overbought nor oversold. The STOCH value of 57.83 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
CSBR	53 Neutral	86.87M	31.53	124.63%	―	10.11%	―
SLS	43 Neutral	171.63M	-4.96	―	―	―	64.43%
MCRB	42 Neutral	165.72M	-2.39	―	―	-100.00%	66.57%
ENTA	39 Underperform	$166.96M	―	-80.64%	―	-9.94%	20.81%
TIL	34 Underperform	114.29M	-1.31	―	―	―	29.72%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Enanta Pharmaceuticals Corporate Events

Enanta Pharmaceuticals Appoints Interim Financial Officers

On August 26, 2025, Enanta Pharmaceuticals appointed Harry R. Trout, III as interim principal financial officer and Kathleen S. Capps as interim principal accounting officer during the medical leave of Paul J. Mellett, the Chief Financial and Administrative Officer. This interim leadership change ensures continuity in the company’s financial operations, with both appointees having extensive experience within the company and the industry.

The most recent analyst rating on (ENTA) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Enanta Pharmaceuticals stock, see the ENTA Stock Forecast page.

Enanta Pharmaceuticals Sues Pfizer Over Patent Infringement

On August 20, 2025, Enanta Pharmaceuticals announced it filed a patent infringement lawsuit against Pfizer Inc. in the Unified Patent Court of the European Union. The suit seeks to determine liability for the use and infringement of Enanta’s European Patent No. EP 4 051 265 in relation to Pfizer’s COVID-19 antiviral, Paxlovid™, across 18 EU countries. This legal action follows the recent grant of the patent by the European Patent Office and parallels ongoing U.S. litigation concerning a related patent. The outcome of this case could significantly impact Enanta’s market position and financial performance, as well as influence its reputation and stock market valuation.

The most recent analyst rating on (ENTA) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Enanta Pharmaceuticals stock, see the ENTA Stock Forecast page.