Enanta Pharmaceuticals (ENTA) AI Stock Analysis

• Market Cap: $140.87M
• Dividend Yield: N/A
• Average Volume (3M): 176.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: -11.55%
• EPS Growth: 27.32%
• Country: US
• Employees: 131
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -1.06
• Shares Outstanding: 21,376,581
• 10 Day Avg. Volume: 146,731
• 30 Day Avg. Volume: 176,383
• PEG Ratio: -0.18
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.71
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 2.16
• Enterprise Value/Ebitda: -0.36
• 1Y Price Target: $17.00
• Price Target Upside: 139.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 51 Neutral
• Price Target: $7.00 ▼(-1.27%Downside)

The stock's overall score is primarily hindered by poor financial performance and valuation concerns due to negative profitability and the absence of dividends. Technical analysis provides some support with short-term positive momentum. The lack of earnings call data and corporate events leaves financials and technicals as the main contributors to the score.

Positive Factors

Financial Performance

Enanta received a $33.8M federal income tax refund, strengthening their balance sheet.

Research and Development

Zelicapavir successfully met the study's primary virology endpoint in the pooled efficacy population, with a peak viral load reduction of 0.7 log on Day 9 compared to placebo.

Strategic Partnerships

Management announced plans to evaluate potential partnership opportunities for advancing its RSV programs.

Negative Factors

Price Target Revision

The analyst slightly lowered their end-market global Mavyret forecasts and raised their R&D forecast for FY25E, which net, decreased the price target to $7.

Regulatory Challenges

Clarity is needed for symptom improvement with zelicapavir, as there are no regulatory-approved symptom assessment tools for pediatric RSV currently.

Stock Performance

Enanta shares have settled near multi-year lows with a lack of late-stage catalysts and visibility to approvals/market.

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 larger pharmaceutical companies. These partnerships often involve licensing agreements, under which Enanta receives upfront payments, milestone payments, and royalties on net sales of products developed using its proprietary compounds. For instance, Enanta has a collaboration with AbbVie for the development and commercialization of HCV therapies, which has been a significant source of revenue. Additionally, Enanta invests in its own research and development efforts to advance its pipeline of drug candidates, aiming to bring new therapies to market and generate revenue through direct sales in the future.

Enanta Pharmaceuticals Financial Statement Overview

Summary

Enanta Pharmaceuticals is facing financial difficulties with declining revenue and negative profitability. The high gross profit margin and stable equity ratio are positive, but ongoing challenges with operational inefficiencies and high expenses relative to revenue impact the overall financial performance.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	67.64M	79.20M	86.16M	97.07M	122.47M
Gross Profit	67.64M	79.20M	86.16M	97.07M	122.47M
EBITDA	-104.51M	-123.48M	-119.22M	-104.25M	-37.99M
Net Income	-116.05M	-133.82M	-121.75M	-79.00M	-36.17M
Balance Sheet
Total Assets	376.65M	462.27M	375.41M	438.79M	486.13M
Cash, Cash Equivalents and Short-Term Investments	248.19M	369.91M	249.23M	244.00M	386.65M
Total Debt	55.47M	26.51M	25.26M	5.33M	8.10M
Total Liabilities	247.84M	245.54M	54.08M	39.36M	30.55M
Stockholders Equity	128.81M	216.74M	321.33M	399.43M	455.58M
Cash Flow
Free Cash Flow	-96.71M	-112.21M	-86.91M	-70.75M	5.64M
Operating Cash Flow	-78.76M	-103.15M	-84.78M	-70.00M	7.09M
Investing Cash Flow	58.23M	-53.58M	54.90M	36.99M	19.83M
Financing Cash Flow	-27.63M	198.13M	20.03M	3.08M	8.98M

Enanta Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.09
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENTA, the sentiment is Negative. The current price of 7.09 is below the 20-day moving average (MA) of 7.32, above the 50-day MA of 6.64, and below the 200-day MA of 7.36, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 41.50 is Neutral, neither overbought nor oversold. The STOCH value of 12.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ENTA.

Enanta Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENTA	51 Neutral	$140.87M	―	-74.26%	―	-11.55%	27.32%
CSBR	49 Neutral	$110.20M	17.32	376.84%	―	19.03%	―
Sector *	46 Neutral	C$197.76M	-3.38	-23.14%	2.64%	20.75%	-0.36%
SLS	43 Neutral	$189.58M	―	-144.90%	―	―	60.51%
XBIT	―	$83.84M	―	-20.53%	―	―	―
MCRB	42 Neutral	$128.10M	―	-3758.21%	―	-100.00%	-7.66%
TIL	34 Underperform	$156.59M	―	-44.50%	―	―	52.54%

Enanta Pharmaceuticals Corporate Events

Enanta Pharmaceuticals Stockholders Approve Key Proposals in 2025

At the Annual Meeting on March 13, 2025, Enanta Pharmaceuticals’ stockholders voted on several key proposals. They re-elected two Class III directors, approved an amendment to the 2019 Equity Incentive Plan to increase shares by 800,000, decided to hold an annual advisory vote on executive compensation, approved the executive compensation, and ratified PricewaterhouseCoopers LLP as the independent auditor for the 2025 fiscal year.