Inventiva (IVA) AI Stock Analysis

• Market Cap: €397.47M
• Dividend Yield: N/A
• Average Volume (3M): 62.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: -47.37%
• EPS Growth: -26.56%
• Country: FR
• Employees: 114
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -1.68
• Shares Outstanding: 139,151,280
• 10 Day Avg. Volume: 119,769
• 30 Day Avg. Volume: 62,967
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• 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: €10.00
• Price Target Upside: 259.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: €2.50 ▼(-10.07% Downside)

Inventiva's overall stock score is primarily influenced by its challenging financial performance, characterized by negative equity and cash flow issues. The positive sentiment from the earnings call, highlighting strategic advancements and a robust cash position, provides some balance, though technical indicators and valuation metrics remain weak.

Positive Factors

Drug Approval Progress

Enrollment for the Phase 3 NATIV3 MASH trial is complete with a significant number of patients, indicating progress towards potential drug approval.

Financial Stability

Cash reserves and additional financing provide an operational runway until the third quarter of 2026, ensuring financial stability for ongoing projects.

Regulatory Support

The company has received authorization to implement its pipeline prioritization plan, demonstrating regulatory support for its strategic decisions.

Negative Factors

Financial Performance

IVA reported a FY24 net loss of €184M, highlighting challenges in achieving profitability.

Workforce Reduction

A 50% reduction in workforce and pausing of all preclinical research reflects a strategic shift and potential risks due to narrowed focus.

Inventiva Business Overview & Revenue Model

Company Description

Inventiva S.A., a clinical-stage biopharmaceutical company, focuses on the development of oral small molecule therapies for the treatment of non-alcoholic steatohepatitis (NASH), mucopolysaccharidoses (MPS), and other diseases. Its lead product candidate is Lanifibranor, which has completed Phase IIb clinical trial to treat NASH. The company also develops Odiparcil, which has completed Phase IIa clinical trial for the treatment of MPS VI subtype disease. In addition, it has a pipeline of earlier stage programs in oncology and other diseases. The company has strategic collaboration with AbbVie for the treatment of autoimmune diseases; and Boehringer Ingelheim International GmbH for developing new treatments for idiopathic pulmonary fibrosis. Inventiva S.A. was founded in 2011 and is based in Daix, France.

How the Company Makes Money

Inventiva makes money through a combination of research and development collaborations, milestone payments, and potential future product sales. As a clinical-stage company, Inventiva does not yet have products on the market but relies on partnerships with larger pharmaceutical companies to fund its research efforts. These partnerships often involve upfront payments, as well as milestone payments tied to the achievement of specific developmental, regulatory, or commercial targets. Additionally, Inventiva may generate revenue from licensing agreements, which grant other companies the rights to develop and commercialize its drug candidates. The company's long-term revenue model anticipates income from the commercialization of successfully developed therapies, pending regulatory approval.

Inventiva Financial Statement Overview

Summary

Inventiva faces considerable financial challenges, with declining revenues, persistent losses, and high leverage. The balance sheet shows negative equity, raising concerns about long-term sustainability. While the company has managed to secure financing, the reliance on external capital and negative cash flows highlight the need for strategic improvements to stabilize and grow the business.

Income Statement

Inventiva's income statement shows a concerning trajectory with declining revenues from 2023 to 2024 and persistent negative net income, indicating operational challenges. The gross profit margin is consistently high, as expected for the industry, but the negative net profit margin and EBIT margin highlight significant profitability issues. The company's revenue growth has turned negative, suggesting difficulties in sustaining sales momentum.

Balance Sheet

The balance sheet reflects financial instability with negative stockholders' equity, indicating that liabilities exceed assets. The increasing debt-to-equity ratio is a major concern, suggesting high financial leverage and potential solvency risks. Despite these challenges, the company has maintained a consistent level of cash and short-term investments, which could provide some liquidity buffer.

Cash Flow

Cash flow analysis reveals significant negative operating cash flow, indicating that the company is not generating sufficient cash from its core operations. The free cash flow is also negative, which could impact future investments and growth. However, the high financing cash flow in recent years suggests reliance on external funding to sustain operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.72M	17.48M	12.18M	4.19M	372.00K
Gross Profit	9.20M	17.50M	11.18M	3.18M	-474.00K
EBITDA	-96.69M	-102.04M	-57.11M	-52.27M	-31.77M
Net Income	-184.21M	-110.43M	-54.27M	-49.64M	-31.62M
Balance Sheet
Total Assets	118.97M	69.56M	116.00M	121.98M	138.92M
Cash, Cash Equivalents and Short-Term Investments	96.56M	26.99M	87.78M	95.38M	113.02M
Total Debt	54.33M	37.49M	34.51M	10.12M	13.25M
Total Liabilities	225.61M	101.59M	70.53M	33.12M	27.71M
Stockholders Equity	-106.65M	-32.03M	45.48M	88.87M	111.21M
Cash Flow
Free Cash Flow	-86.26M	-82.15M	-45.49M	-48.16M	-30.88M
Operating Cash Flow	-85.93M	-81.61M	-44.93M	-47.63M	-30.59M
Investing Cash Flow	8.74M	-7.73M	8.87M	-1.79M	-8.56M
Financing Cash Flow	145.59M	29.08M	37.27M	25.45M	111.67M

Inventiva Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.78
• 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 FR:IVA, the sentiment is Positive. The current price of 2.78 is below the 20-day moving average (MA) of 2.79, below the 50-day MA of 2.79, and above the 200-day MA of 2.63, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.61 is Neutral, neither overbought nor oversold. The STOCH value of 49.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:IVA.

Inventiva Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VLA	61 Neutral	€590.12M	―	-44.11%	―	21.64%	-196.47%
ABVX	58 Neutral	€4.53B	―	-148.98%	―	―	18.52%
GNFT	55 Neutral	€165.16M	105.97	2.17%	―	134.56%	―
Sector *	51 Neutral	$7.39B	0.36	-62.86%	2.37%	15.48%	-2.68%
DBV	50 Neutral	€232.38M	―	-152.03%	―	―	-40.10%
IVA	46 Neutral	€397.47M	―		―	-47.37%	-26.56%