Edgewise Therapeutics (EWTX) AI Stock Analysis

• Market Cap: $2.97B
• Dividend Yield: N/A
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.32
• Revenue Growth: N/A
• EPS Growth: -5.73%
• Country: US
• Employees: 117
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.39
• Shares Outstanding: 105,868,430
• 10 Day Avg. Volume: 1,406,942
• 30 Day Avg. Volume: 1,555,455
• PEG Ratio: 2.41
• Price to Book (P/B): 5.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -22.36
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -17.78
• 1Y Price Target: $36.83
• Price Target Upside: 25.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $30.00 ▲(2.18% Upside)

The score is held back primarily by weak operating fundamentals (pre-revenue, widening losses, and heavy cash burn) despite a strong, low-leverage balance sheet. Technicals are a relative positive with an established uptrend, but valuation remains challenging due to ongoing losses and no dividend.

Positive Factors

Strong Balance Sheet

Very low leverage and materially expanded assets provide durable capital support for multi-year R&D programs. A conservative capital structure reduces near-term refinancing risk and extends the development runway, enabling steady investment in clinical development even without product revenue.

Experienced CFO Hire

A seasoned life-sciences CFO strengthens financial planning, fundraising execution, and commercialization readiness. Over the medium term this can improve capital allocation, lower financing friction, and better align funding strategy with late-stage development and launch milestones.

Commercial Expertise on Board

Adding board-level commercial and launch experience is a structural positive as the company transitions toward potential product commercialization and Phase 3 programs. This expertise aids durable go-to-market planning, regulatory strategy, and product launch execution.

Negative Factors

Pre-Revenue Profile

No product revenues mean the company cannot internally fund operations; widening net losses erode runway and increase reliance on external capital. This structural absence of cash-generating products keeps profitability and margin sustainability uncertain over the next several quarters.

High Cash Burn

Persistent, rising operating cash outflows create an enduring funding need. Large negative operating and free cash flows force frequent capital raises or partner dependency, increasing dilution risk and limiting strategic flexibility for trial execution and pipeline advancement.

Financing Dependence

Structural reliance on equity raises and milestone-based collaborations introduces timing and execution risk for continuous development. Dependence on capital markets and partner payments can delay trials or commercialization if funding conditions worsen, constraining long-term program delivery.

Edgewise Therapeutics Business Overview & Revenue Model

Company Description

Edgewise Therapeutics, Inc., a biopharmaceutical company, develops small molecule therapies for musculoskeletal diseases. The Company's lead product candidate, EDG-5506, is an orally administered small molecule designed to address the root cause of dystrophinopathies including Duchenne muscular dystrophy and Becker muscular dystrophy which has completed Phase 1 clinical trial. It develops a pipeline of precision medicine product candidates that target key muscle proteins and modulators to address genetically defined muscle disorders. Edgewise Therapeutics, Inc. was incorporated in 2017 and is headquartered in Boulder, Colorado.

How the Company Makes Money

Edgewise Therapeutics generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company makes money by conducting clinical trials, gaining regulatory approvals, and ultimately marketing its therapies to healthcare providers and patients. Revenue streams include upfront payments, milestone payments, and royalties from licensing agreements with strategic partners. Edgewise may also engage in collaborations with larger pharmaceutical companies to co-develop or co-market its products, which can provide additional funding and resources to support its research and development efforts. However, as a clinical-stage company, Edgewise may primarily rely on funding from investors and strategic partnerships until its products reach the market.

Edgewise Therapeutics Financial Statement Overview

Summary

Overall financials are mixed: a strong, low-leverage balance sheet (very low debt vs. equity) supports ongoing R&D, but the company is still pre-revenue with widening net losses and significant, rising cash burn, increasing financing dependence.

Income Statement

The company remains pre-revenue (revenue is $0 across the period provided), so losses are driven by operating spend rather than gross margin performance. Profitability has deteriorated over time, with net loss widening from about -$17.1M (2020) to -$133.8M (2024) and -$157.2M in TTM (Trailing-Twelve-Months), indicating rising expense intensity. A positive is that there is no sign of revenue contraction risk (since there is no revenue base yet), but the lack of commercialization makes earnings quality and near-term visibility weak.

Balance Sheet

The balance sheet is strong for a biotechnology company: leverage is very low, with total debt of ~$4.2M in TTM (Trailing-Twelve-Months) against stockholders’ equity of ~$558.6M (very low debt-to-equity). Total assets have also expanded meaningfully from ~$285.2M (2021) to ~$583.5M in TTM (Trailing-Twelve-Months), suggesting substantial capital support. The main weakness is negative returns on equity (loss-making profile), though the capital structure itself looks conservatively positioned.

Cash Flow

Cash burn is significant and rising: operating cash flow was -$109.0M (2024) and -$132.2M in TTM (Trailing-Twelve-Months), with free cash flow similarly negative at -$110.3M (2024) and -$132.6M TTM (Trailing-Twelve-Months). Free cash flow has been volatile year-to-year, including a reported positive growth figure in TTM (Trailing-Twelve-Months), but the absolute level of cash outflow remains large. A modest positive is that free cash flow broadly tracks net losses (free cash flow to net income around ~1x), suggesting losses are not being masked by large non-cash add-backs—however, the ongoing funding requirement remains the core risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00	0.00	-185.00K
EBITDA	-172.50M	-156.54M	-112.63M	-71.12M	-42.94M	-17.01M
Net Income	-157.24M	-133.81M	-100.16M	-67.64M	-42.81M	-17.05M
Balance Sheet
Total Assets	583.47M	486.82M	340.04M	367.10M	285.23M	131.14M
Cash, Cash Equivalents and Short-Term Investments	563.34M	470.17M	318.39M	351.95M	280.79M	129.09M
Total Debt	4.18M	4.74M	5.41M	4.41M	0.00	160.21M
Total Liabilities	24.82M	27.60M	21.20M	20.39M	10.85M	164.56M
Stockholders Equity	558.65M	459.22M	318.83M	346.72M	274.38M	-33.42M
Cash Flow
Free Cash Flow	-132.64M	-110.34M	-97.69M	-58.18M	-34.17M	-14.84M
Operating Cash Flow	-132.18M	-109.03M	-91.95M	-52.63M	-33.51M	-14.63M
Investing Cash Flow	-61.63M	-184.66M	102.89M	-70.58M	-242.23M	-24.38M
Financing Cash Flow	195.01M	249.25M	53.17M	129.64M	186.38M	120.28M

Edgewise Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EWTX, the sentiment is Positive. The current price of 29.36 is above the 20-day moving average (MA) of 26.19, above the 50-day MA of 24.53, and above the 200-day MA of 17.20, indicating a bullish trend. The MACD of 1.52 indicates Negative momentum. The RSI at 61.73 is Neutral, neither overbought nor oversold. The STOCH value of 74.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EWTX.

Edgewise Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRDN	60 Neutral	$3.16B	-9.49	-47.40%	―	23340.07%	18.06%
PHVS	56 Neutral	$1.77B	-8.45	-51.81%	―	―	-20.08%
VERA	56 Neutral	$3.31B	-11.72	-73.25%	―	―	-53.44%
EWTX	55 Neutral	$2.97B	-18.62	-30.02%	―	―	-5.73%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
JANX	49 Neutral	$880.56M	―	-12.48%	―	-23.37%	-42.45%
BHVN	48 Neutral	$1.85B	-1.67	-522.08%	―	―	18.76%

Edgewise Therapeutics Corporate Events

Edgewise Therapeutics Appoints Christopher Martin to Board

Edgewise Therapeutics announced the appointment of Christopher Martin to its Board of Directors on November 19, 2025. Martin, a seasoned biotech executive, previously served as Chief Commercial Officer at Verona Pharma, which was acquired by Merck & Co. His expertise is expected to be instrumental as Edgewise prepares for its first commercial launch in Becker muscular dystrophy and advances its cardiovascular asset to Phase 3.

The most recent analyst rating on (EWTX) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Edgewise Therapeutics stock, see the EWTX Stock Forecast page.

Edgewise Therapeutics Appoints New Chief Financial Officer

On November 10, 2025, Edgewise Therapeutics announced the appointment of Michael Nofi as Chief Financial Officer, succeeding Michael Carruthers who is retiring. Mr. Nofi, with over 30 years of experience in the life sciences sector, joins Edgewise at a crucial time as the company advances its late-stage clinical development and prepares for commercialization, bringing expertise in financial operations and strategic growth.

The most recent analyst rating on (EWTX) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Edgewise Therapeutics stock, see the EWTX Stock Forecast page.