Erasca (ERAS) AI Stock Analysis

• Market Cap: $338.50M
• Dividend Yield: N/A
• Average Volume (3M): 1.94M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.90
• Revenue Growth: N/A
• EPS Growth: 10.38%
• Country: US
• Employees: 103
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -0.75
• Shares Outstanding: 283,265,720
• 10 Day Avg. Volume: 2,305,796
• 30 Day Avg. Volume: 1,935,641
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 749.69
• Price to Cash Flow (P/CF): -4.80
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.00
• Price Target Upside: 316.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Erasca faces significant financial challenges, with ongoing operational losses and negative cash flows reflecting its early-stage status in the biotech industry. The technical analysis suggests a bearish trend and high volatility, while the valuation highlights the difficulties in assessing a company without profitability. Although the strategic focus on cancer therapy innovation is promising, it does not offset the immediate financial and market challenges.

Positive Factors

Product Differentiation

ERAS-0015 and ERAS-4001 differentiate themselves from existing RAS inhibitors by targeting broader RAS mutations and employing novel mechanisms of action.

Regulatory Advancement

The combination of naporafenib and trametinib has received Fast Track Designation for advanced NRASm melanoma.

Stock Valuation

Erasca's stock is considered undervalued, with a target price implying a significant increase in its valuation.

Negative Factors

Data Generation Delay

It will take time for clinical data to be generated for ERAS-0015 and ERAS-4001.

Product Efficacy

Efficacy in non-melanoma tumor types was limited, with a 23% response rate, which was anticipated given the complex MAPK feedback across different tissue types.

Product Risks

There are risks associated with the pre-IND asset, which could affect the company's future performance.

Erasca Business Overview & Revenue Model

Company Description

Erasca, Inc. (ERAS) is a clinical-stage biopharmaceutical company focused on discovering and developing novel oncology therapies. The company aims to eradicate cancer by targeting biological drivers of the disease using precision medicine approaches. Erasca is working on a pipeline of small molecule drugs designed to inhibit oncogenic signaling pathways and address unmet needs in cancer treatment.

How the Company Makes Money

Erasca makes money primarily through partnerships and collaborations with other pharmaceutical and biotechnology companies, focusing on the development and commercialization of its drug candidates. As a clinical-stage company, Erasca is not yet generating revenue from product sales, but it may receive milestone payments, research funding, and potential royalties from strategic alliances. The company also relies on equity financing and public offerings to fund its operations and R&D activities.

Erasca Financial Statement Overview

Summary

Erasca's financial statements reflect significant financial distress typical of early-stage biotechnology companies. The lack of revenue, persistent losses, and negative cash flows underscore the company's dependence on external financing. While the cash position provides some short-term relief, the business model's sustainability and path to profitability remain uncertain.

Income Statement

Erasca's income statement reveals a challenging financial position with no revenue generation over the past several years. The company faces consistent negative EBIT and net income, indicating persistent operational losses. The lack of revenue growth and profitability is a significant concern.

Balance Sheet

The balance sheet shows a relatively strong cash position compared to its liabilities, but the company has consistently negative stockholders' equity due to accumulated losses. The debt-to-equity ratio is not meaningful given the negative equity, and the equity ratio highlights the company's reliance on liabilities to finance assets.

Cash Flow

Operating cash flows are consistently negative, reflecting ongoing cash burn. Although the company has managed to secure financing, the free cash flow remains negative, indicating challenges in achieving cash flow sustainability. The cash burn rate poses a risk to long-term solvency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-3.73M	-2.64M	-829.00K	-540.00K
	EBIT
-179.59M	-141.53M	-247.45M	-124.88M	34.24M
	EBITDA
-179.59M	-121.31M	-240.16M	-121.94M	-101.12M
	Net Income Common Stockholders
-161.65M	-125.04M	-238.16M	-150.09M	-173.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
298.31M	312.35M	435.62M	459.25M	118.70M
	Total Assets
502.53M	395.30M	514.91M	501.42M	124.83M
	Total Debt
51.89M	55.86M	55.10M	18.79M	2.99M
	Net Debt
-15.85M	-37.22M	-229.12M	-341.70M	-62.39M
	Total Liabilities
79.03M	78.61M	103.06M	44.89M	238.81M
	Stockholders Equity
423.50M	316.69M	-480.97M	-238.17M	-113.98M
Cash Flow		Free Cash Flow
-109.48M	-102.99M	-119.81M	-98.48M	-71.38M
	Operating Cash Flow
-109.42M	-101.22M	-103.26M	-79.60M	-32.69M
	Investing Cash Flow
-156.62M	-91.22M	-71.08M	-64.59M	-71.20M
	Financing Cash Flow
240.70M	1.29M	98.08M	439.40M	139.99M

Erasca Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ERAS, the sentiment is Negative. The current price of 1.2 is below the 20-day moving average (MA) of 1.35, below the 50-day MA of 1.46, and below the 200-day MA of 2.39, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 31.32 is Neutral, neither overbought nor oversold. The STOCH value of 20.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ERAS.

Erasca Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETON	56 Neutral	$339.24M	―	-19.16%	―	23.29%	-309.12%
STOK	51 Neutral	$347.72M	―	-45.80%	―	316.30%	29.18%
Sector *	48 Neutral	$6.36B	1.28	-45.04%	2.64%	19.24%	1.69%
CKPT	45 Neutral	$334.22M	―	369.09%	―	-60.19%	56.60%
ORIC	42 Neutral	$333.12M	―	-54.73%	―	―	7.15%
SANA	37 Underperform	$348.79M	―	-99.17%	―	―	19.94%
ERAS	31 Underperform	$338.50M	―	-43.68%	―	―	10.38%

Erasca Corporate Events

Erasca Highlights Strategic Focus at Healthcare Conference

Erasca, Inc. has updated its corporate presentation to include recent business and strategic developments, which will be showcased at the J.P. Morgan Healthcare Conference. The company plans to use its website for future updates and has emphasized its strategic focus on disrupting the RAS/MAPK pathway. This announcement highlights Erasca’s commitment to cancer therapy innovation and reflects its strategic efforts to maintain a strong position in the biotechnology industry.