89bio (ETNB) AI Stock Analysis

• Market Cap: $2.19B
• Dividend Yield: N/A
• Average Volume (3M): 7.52M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• Revenue Growth: N/A
• EPS Growth: -82.75%
• Country: US
• Employees: 93
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.71
• Shares Outstanding: 148,308,240
• 10 Day Avg. Volume: 3,392,107
• 30 Day Avg. Volume: 7,518,988
• PEG Ratio: -0.03
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.23
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 48.90K
• Enterprise Value/Gross Profit: -57.05K
• Enterprise Value/Ebitda: -2.26
• 1Y Price Target: $26.64
• Price Target Upside: 80.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 42 Neutral
• Price Target: ―

The overall score for 89bio is primarily weighed down by the financial performance due to ongoing losses and cash flow issues. Technical indicators show bearish momentum, adding to the risk. Although corporate events highlight promising clinical progress, the company's valuation remains low due to negative earnings, typical in the biotech industry. The stock reflects high-risk, high-reward potential.

Positive Factors

Strong Cash Reserves

A strong cash reserve provides financial flexibility, allowing 89bio to fund ongoing R&D activities and withstand periods of operational losses.

Clinical Progress of Pegozafermin

Advancing pegozafermin in late-stage trials positions 89bio to potentially capture significant market share in treating NASH and SHTG, addressing unmet needs.

External Financing Support

Access to external financing ensures 89bio can continue its R&D efforts and operational activities, essential for a clinical-stage biotech firm.

Negative Factors

Negative Cash Flow

Persistent negative cash flow indicates ongoing cash burn, which could threaten sustainability if external funding becomes scarce.

Operational Losses

Continued operational losses highlight challenges in achieving profitability, necessitating successful product commercialization or partnerships.

High Liabilities

High liabilities relative to assets can strain financial health, especially if cash reserves are depleted, impacting long-term viability.

89bio Business Overview & Revenue Model

Company Description

89bio, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of therapies for the treatment of liver and cardio-metabolic diseases. Its lead product candidate is pegozafermin, a glycoPEGylated analog of fibroblast growth factor 21 for the treatment of nonalcoholic steatohepatitis. The company also intends to develop pegozafermin for the treatment of severe hypertriglyceridemia. 89bio, Inc. was incorporated in 2018 and is headquartered in San Francisco, California.

How the Company Makes Money

89bio makes money primarily through the development and eventual commercialization of its lead product candidate, pegozafermin. The company's revenue model is focused on progressing its candidate through various stages of clinical trials with the goal of achieving regulatory approval for commercial sale. Key revenue streams are expected to arise from licensing agreements, partnerships with larger pharmaceutical companies, and eventual product sales. 89bio may also secure funding through strategic collaborations and potential milestone payments associated with the development and commercialization of its therapeutic solutions. As a clinical-stage company, 89bio currently does not generate revenue from product sales but is actively engaged in research and development activities to bring its therapies to market.

89bio Financial Statement Overview

Summary

89bio exhibits strong cash reserves and external financing support but faces major operational challenges with continued net losses and negative cash flows. The company's financial health relies heavily on its cash management and ability to secure further funding.

Income Statement

The company has minimal revenue with high negative EBIT and Net Income, indicating significant operational losses. The TTM gross profit margin stands at 42.86%, but the negative profit margins and lack of revenue growth present a major concern for profitability.

Balance Sheet

The balance sheet shows a strong cash position, with cash and equivalents significantly outweighing total debt, resulting in a negative net debt. However, the high liabilities compared to assets could be a potential risk if cash reserves diminish.

Cash Flow

The company has substantial negative free cash flow with an operating cash flow that is significantly negative compared to net income, indicating cash burn. However, strong financing cash flows show potential external funding support.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.00K	0.00	0.00	0.00	0.00	0.00
Gross Profit	-18.00K	-38.00K	-273.00K	-240.00K	-79.00K	-60.00K
EBITDA	-455.13M	-384.66M	-134.46M	-99.84M	-90.19M	-49.50M
Net Income	-450.21M	-367.08M	-142.19M	-102.03M	-90.12M	-49.50M
Balance Sheet
Total Assets	603.49M	478.69M	596.27M	196.82M	162.42M	211.07M
Cash, Cash Equivalents and Short-Term Investments	561.16M	439.95M	578.87M	188.16M	150.75M	204.65M
Total Debt	1.46M	37.55M	27.11M	20.55M	19.40M	0.00
Total Liabilities	81.75M	77.90M	59.96M	44.99M	36.47M	8.11M
Stockholders Equity	521.73M	400.79M	536.31M	151.83M	125.96M	202.96M
Cash Flow
Free Cash Flow	-439.19M	-367.84M	-129.19M	-81.10M	-76.84M	-46.37M
Operating Cash Flow	-439.10M	-367.82M	-129.19M	-81.09M	-76.78M	-46.24M
Investing Cash Flow	-103.27M	-40.86M	-123.02M	-33.94M	7.16M	-106.83M
Financing Cash Flow	459.23M	218.59M	513.11M	117.83M	23.87M	157.92M

89bio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETNB, the sentiment is Positive. The current price of 14.79 is below the 20-day moving average (MA) of 14.79, above the 50-day MA of 12.07, and above the 200-day MA of 9.63, indicating a neutral trend. The MACD of 0.68 indicates Positive momentum. The RSI at 76.18 is Negative, neither overbought nor oversold. The STOCH value of 48.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ETNB.

89bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRMY	78 Outperform	$1.51B	9.54	27.58%	―	17.74%	59.96%
TVTX	55 Neutral	$2.45B	―	-705.73%	―	87.94%	57.84%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IMVT	45 Neutral	$3.35B	―	-77.58%	―	―	-48.38%
IRON	43 Neutral	$3.26B	―	-26.36%	―	―	-22.19%
DYN	43 Neutral	$2.38B	―	-61.32%	―	―	-7.71%
ETNB	42 Neutral	$2.19B	―	-86.86%	―	―	-82.75%

89bio Corporate Events

89bio Updates on Pegozafermin Clinical Progress

On April 9, 2025, 89bio released an updated corporate presentation detailing the progress of their product candidate, pegozafermin, which is currently in late-stage clinical trials for MASH and SHTG. The company highlights pegozafermin’s potential as a best-in-class therapy with a favorable safety profile and robust market opportunities. The presentation outlines the anticipated timelines for clinical trial results and commercialization, emphasizing a strong financial position with significant cash reserves to support ongoing development and operations.

Spark’s Take on ETNB Stock

According to Spark, TipRanks’ AI Analyst, ETNB is a Neutral.

89bio’s stock reflects the high-risk, high-reward nature typical of early-stage biotech companies. The financial performance score is hampered by the lack of revenue and ongoing operational losses, despite a strong cash position. Technical analysis indicates bearish momentum, with potential volatility. The valuation score is low due to negative earnings and no dividend yield, common for firms in the R&D phase. Investors should be mindful of the company’s future reliance on successful R&D outcomes or additional financing.

To see Spark’s full report on ETNB stock, click here.