Evommune, Inc. (EVMN) AI Stock Analysis

• Market Cap: $597.07M
• Dividend Yield: N/A
• Average Volume (3M): 272.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.79
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 45
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 31,524,094
• 10 Day Avg. Volume: 66,840
• 30 Day Avg. Volume: 272,690
• PEG Ratio: -0.09
• Price to Book (P/B): -4.22
• Price to Sales (P/S): 86.92
• P/FCF Ratio: -10.44
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 34.26
• Enterprise Value/Gross Profit: 37.31
• Enterprise Value/Ebitda: -7.66
• 1Y Price Target: $39.17
• Price Target Upside: 135.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $18.00 ▲(8.04% Upside)

The score is primarily held down by weak financial performance: widening losses, accelerating cash burn, and a highly leveraged balance sheet with negative equity. Technicals provide some offset with positive near-term momentum (price above DMA20 and positive MACD), but valuation cannot be meaningfully assessed due to missing P/E and dividend yield data.

Positive Factors

High Gross Margins & Revenue Growth

Sustained ~80–82% gross margins alongside revenue growth indicate scalable unit economics and durable product-level profitability. This margin cushion can fund incremental R&D or commercialization as revenue scales, improving operating leverage and long-term viability if growth continues.

Focused Therapeutic Strategy

A concentrated focus on immune-mediated inflammatory diseases targets a large, persistent clinical market with ongoing unmet needs. This strategic clarity supports efficient R&D prioritization, clearer development pathways, and potential long-term commercial opportunities if clinical programs advance successfully.

Cash Outflow Aligns with Reported Losses

Free cash flow tracking net loss suggests operating cash burn largely reflects ongoing business activity rather than volatile noncash charges. That alignment improves predictability of financing needs and supports more reliable runway and capital planning over the medium term.

Negative Factors

Worsening Negative Equity & Rising Debt

Deepening negative equity and sharply higher debt materially erode financial flexibility. Elevated leverage increases refinancing, covenant and dilution risks, constrains strategic choices, and raises the likelihood that future capital raises will be required under unfavorable terms.

Accelerating Cash Burn

A near-doubling of operating cash outflows shortens runway and forces prioritization of programs or near-term external financing. Accelerating burn elevates execution risk for development timelines and increases the probability of dilutive capital raises if operational improvements or new funding aren't secured.

Deepening Operating & Net Losses

Materially larger operating and net losses show the fixed cost base far exceeds current revenue, limiting the company's ability to self-fund development. Persistent negative margins make long-term progress dependent on external capital or major cost restructuring, increasing strategic risk.

Evommune, Inc. Business Overview & Revenue Model

Company Description

Evommune, Inc. operates as a clinical-stage biotechnology company in the United States. It develops therapies that target key drivers of chronic inflammatory diseases, with initial clinical development programs focusing on chronic spontaneous urticaria, atopic dermatitis, and ulcerative colitis. Its products includes EVO756 for the treatment of CSU and AD; and EVO301 for the treatment of AD and UC. The company was incorporated in 2020 and is based in Palo Alto, California.

How the Company Makes Money

Evommune, Inc. Financial Statement Overview

Summary

Despite revenue growth ($5.0M to $7.0M) and strong gross margins (~80–82%), operating and net losses widened significantly (net loss about -$34.1M to about -$66.8M). The balance sheet is highly stressed with worsening negative equity (about -$77.7M to about -$144.2M) and rising debt (~$150.6M to ~$193.3M), while cash burn accelerated (operating cash flow about -$30.0M to about -$58.2M), elevating funding and dilution/refinancing risk.

Income Statement

Revenue increased from $5.0M (2023) to $7.0M (2024), and gross margin stayed strong (~80–82%), indicating solid pricing or cost structure on reported revenue. However, profitability is very weak: losses widened materially (net loss ~$34.1M to ~$66.8M) and operating losses deepened, with net margins extremely negative due to a cost base that far exceeds current revenue.

Balance Sheet

The balance sheet is highly stressed: stockholders’ equity is negative and deteriorated further (about -$77.7M in 2023 to about -$144.2M in 2024), while total debt rose sharply (~$150.6M to ~$193.3M). With negative equity, leverage is effectively very high and financial flexibility appears limited, increasing refinancing and dilution risk.

Cash Flow

Cash burn is heavy and accelerating: operating cash flow declined from about -$30.0M (2023) to about -$58.2M (2024), with free cash flow similarly negative. A modest positive is that cash outflow broadly tracks reported losses (free cash flow roughly in line with net loss), but the magnitude of ongoing burn raises funding risk unless capital is raised or spending moderates.

Breakdown	TTM	Dec 2024	Dec 2023
Income Statement
Total Revenue	13.00M	7.00M	5.00M
Gross Profit	11.94M	5.71M	4.00M
EBITDA	-58.17M	-65.49M	-32.99M
Net Income	-58.92M	-66.81M	-34.05M
Balance Sheet
Total Assets	84.54M	76.06M	82.25M
Cash, Cash Equivalents and Short-Term Investments	76.06M	72.04M	79.08M
Total Debt	257.77M	193.31M	150.63M
Total Liabilities	267.68M	220.29M	159.96M
Stockholders Equity	-183.14M	-144.24M	-77.71M
Cash Flow
Free Cash Flow	-82.24M	-58.28M	-30.09M
Operating Cash Flow	-82.11M	-58.20M	-29.97M
Investing Cash Flow	-4.24M	-3.99M	-48.43M
Financing Cash Flow	88.71M	49.42M	63.75M

Evommune, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIR	55 Neutral	$1.04B	-1.91	-49.06%	―	-78.55%	7.74%
OCGN	54 Neutral	$462.32M	-6.14	-289.93%	―	14.26%	-23.34%
ALT	52 Neutral	$642.44M	-4.60	-52.61%	―	-61.54%	31.25%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EVMN	49 Neutral	$597.07M	―	―	―	―	―
VALN	48 Neutral	$846.30M	-6.81	-54.42%	―	14.86%	-1440.45%
ARCT	46 Neutral	$208.28M	-2.85	-27.43%	―	-41.53%	-11.32%