HCW Biologics (HCWB) AI Stock Analysis

• Market Cap: $9.98M
• Dividend Yield: N/A
• Average Volume (3M): 142.16K
• Price to Earnings (P/E): ―
• Beta (1Y): >-0.01
• Revenue Growth: -9.68%
• EPS Growth: -13.26%
• Country: US
• Employees: 36
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -0.79
• Shares Outstanding: 44,934,120
• 10 Day Avg. Volume: 192,104
• 30 Day Avg. Volume: 142,156
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.29
• Price to Cash Flow (P/CF): -1.00
• 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: $3.00
• Price Target Upside: 1328.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

HCW Biologics' stock score is low due to significant financial challenges, including declining revenues and high leverage. Technical indicators suggest weak momentum, though oversold signals might offer some hope for reversal. Valuation metrics are unattractive due to unprofitability. However, FDA clearance for a clinical trial provides a positive outlook, yet the overall risks and current performance weigh heavily on the score.

Positive Factors

Market Positioning

The key value driver here is that it places the company in the highly active immune cell engager space which has drawn significant attention from investors and Pharma.

Partnerships and Validations

A $7M upfront deal validates the potential of HCW Biologics' new discovery platform for multifunctional cytokines.

Pipeline Advancement

The company raised $6.9M from a registered direct offering, providing operational breathing room and allowing pipeline advancement.

Negative Factors

Financial Constraints

Despite recent capital influx, HCW Biologics has remaining legal expenses of $14.4M and may require further capital.

Financial Performance

HCW Biologics reported a net loss and, despite recent capital influx, further capital will be required due to remaining legal expenses.

HCW Biologics Business Overview & Revenue Model

Company Description

HCW Biologics Inc., a preclinical stage biopharmaceutical company, focuses on discovering and developing novel immunotherapies for chronic, low-grade inflammation, and age-related diseases. The company's lead products include HCW9218, which is an injectable immunotherapeutic for patients with pancreatic, ovarian, breast, prostate, and colorectal cancers, as well as pulmonary fibrosis; and HCW9302 for auto-immune diseases, such as alopecia areata and metabolic diseases. It also develops HCW9201, a cell-based therapy that is in Phase II clinical trials for the treatment of patients with relapsed/refractory acute myeloid leukemia; and HCW9206 for the treatment of acute myeloid leukemia. The company was incorporated in 2018 and is headquartered in Miramar, Florida.

How the Company Makes Money

HCW Biologics generates revenue primarily through the development and commercialization of its proprietary biologics and immunotherapy products. Key revenue streams include licensing agreements, partnerships with pharmaceutical companies, and government or private grants to support research and development. Significant partnerships with larger biotechnology and pharmaceutical firms enable HCW Biologics to leverage their platforms for wider distribution and access to established markets. The company also potentially earns milestone payments and royalties from partners who utilize its technology in their own drug development projects.

HCW Biologics Financial Statement Overview

Summary

HCW Biologics faces financial difficulties with declining revenues, high operational losses, and significant leverage. The income statement shows negative growth and profitability, the balance sheet is burdened with high debt and negative equity, while cash flow statements reflect cash burn from operations.

Income Statement

HCW Biologics has experienced declining revenue over the past year, with a negative revenue growth rate. The gross profit margin is positive but very low, indicating challenges in managing costs or pricing. The net profit margin is deeply negative, reflecting significant losses in operations, compounded by negative EBIT and EBITDA margins, which highlight inefficiencies in core business operations.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio due to negative equity, indicating potential financial distress. The return on equity is also negative, reflecting losses. The equity ratio is negative, a sign of financial instability and potential risk for creditors. Overall, the balance sheet suggests significant leverage and financial challenges.

Cash Flow

HCW Biologics has negative operating cash flow, indicating cash burn from core operations. The free cash flow is also negative, showing cash outflows exceeding inflows. However, financing activities have provided a cash influx, slightly offsetting cash burn. The operating cash flow to net income ratio is negative, suggesting challenges in converting revenue into cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.50M	2.57M	2.84M	6.72M	0.00	4.10M
	Gross Profit
615.04K	959.40K	560.36K	2.59M	-543.60K	4.10M
	EBIT
-37.09M	-29.48M	-25.72M	-15.08M	-13.37M	-5.82M
	EBITDA
-36.17M	-29.48M	-23.58M	-14.18M	-12.82M	-5.25M
	Net Income Common Stockholders
-37.33M	-30.02M	-24.99M	-14.72M	-12.36M	-5.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.36M	4.67M	3.60M	32.06M	36.71M	8.46M
	Total Assets
0.00	30.24M	28.51M	46.81M	53.51M	15.40M
	Total Debt
0.00	6.31M	6.30M	6.41M	0.00	567.31K
	Net Debt
7.36M	1.64M	2.71M	-15.92M	-11.73M	-7.89M
	Total Liabilities
0.00	37.01M	15.05M	9.38M	2.32M	1.00M
	Stockholders Equity
9.00M	-6.77M	13.46M	37.43M	51.19M	14.40M
Cash Flow		Free Cash Flow
-19.15M	-14.49M	-28.72M	-20.66M	-11.02M	-10.62M
	Operating Cash Flow
-15.29M	-14.23M	-22.51M	-10.39M	-10.98M	-10.43M
	Investing Cash Flow
-3.86M	-261.62K	3.80M	14.71M	-35.02M	-186.68K
	Financing Cash Flow
8.93M	15.57M	-14.53K	6.27M	49.27M	11.72M

HCW Biologics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCWB, the sentiment is Negative. The current price of 0.21 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.35, and below the 200-day MA of 0.47, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 31.02 is Neutral, neither overbought nor oversold. The STOCH value of 14.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HCWB.

HCW Biologics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.36B	1.24	-44.94%	2.70%	18.33%	1.47%
ADAP	46 Neutral	$65.62M	―	-273.36%	―	194.23%	45.50%
IMTX	45 Neutral	$447.30M	43.67	3.73%	―	188.64%	―
FATE	42 Neutral	$104.21M	―	-54.21%	―	-78.55%	-0.92%
ALLO	41 Neutral	$310.69M	―	-55.13%	―	-86.25%	36.10%
HCWB	39 Underperform	$9.98M	―	-897.37%	―	-9.68%	-13.26%
BHVN	25 Underperform	$1.83B	―	-198.83%	―	―	-65.63%

HCW Biologics Corporate Events

HCW Biologics Announces Reverse Stock Split Approval

On March 31, 2025, HCW Biologics’ stockholders approved a 1-for-40 reverse stock split of its common stock, which was subsequently authorized by the Board of Directors. This move, effective April 11, 2025, aims to increase the stock’s per-share bid price above $1.00 to regain compliance with Nasdaq’s listing requirements. The reverse stock split will reduce the number of outstanding shares from approximately 44.9 million to about 1.1 million, without altering the total number of authorized shares. The adjustment will affect all stockholders uniformly, with fractional shares being rounded up to the nearest whole share. The company’s operations and stakeholder interests remain largely unchanged, aside from the necessary adjustments to stock options and warrants.

HCW Biologics Advances with FDA Clearance for Trial

On February 3, 2025, HCW Biologics announced that the FDA has cleared its Investigational New Drug Application for HCW9302, allowing the company to proceed with a Phase 1 clinical trial in patients with moderate to severe alopecia areata. This trial marks a significant milestone for the company, aiming to establish a safe dose of HCW9302, which leverages a novel IL-2 fusion protein to activate Treg cells, potentially transforming treatments for autoimmune diseases while minimizing immunosuppression.