HCW Biologics (HCWB) AI Stock Analysis

• Market Cap: $3.30M
• Dividend Yield: N/A
• Average Volume (3M): 53.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: -87.93%
• EPS Growth: 65.26%
• Country: US
• Employees: 36
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -4.13
• Shares Outstanding: 2,701,607
• 10 Day Avg. Volume: 81,487
• 30 Day Avg. Volume: 53,575
• PEG Ratio: -2.31
• Price to Book (P/B): -102.22
• Price to Sales (P/S): 269.62
• P/FCF Ratio: -47.76
• Enterprise Value/Market Cap: 4.48
• Enterprise Value/Revenue: 34.99
• Enterprise Value/Gross Profit: -164.98
• Enterprise Value/Ebitda: -1.69
• 1Y Price Target: $8.00
• Price Target Upside: 100.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -4.13
• Revenue Forecast (FY): $900.00K

• Rating: 42 Neutral
• Price Target: $1.00 ▼(-74.94% Downside)

The score is held down primarily by poor financial performance (losses, cash burn, and balance-sheet strain) and bearish technicals (below major moving averages with negative momentum). Positive corporate actions to improve equity/compliance and a Phase 1 trial start provide some offset, but valuation is difficult to assess meaningfully with negative earnings and no dividend support.

Positive Factors

Phase 1 Trial Initiation

The initiation of a Phase 1 trial for HCW9302 represents progress in the company's pipeline, potentially leading to new revenue streams if successful.

Nasdaq Compliance Efforts

Efforts to regain Nasdaq compliance by improving equity position enhance financial stability and market confidence, supporting long-term viability.

Strategic Partnerships

The partnership with Trimmune provides financial resources and shared development costs, aiding HCW's strategic growth and product development.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in product sales or market penetration, potentially impacting long-term growth and profitability.

Negative Cash Flow

Negative cash flow from operations suggests difficulty in sustaining business activities without external financing, posing a risk to financial health.

High Leverage Risk

High leverage and negative equity increase financial risk, limiting flexibility and potentially leading to solvency issues if not addressed.

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 therapeutic products. The company earns money by licensing its technology and products to pharmaceutical companies, receiving milestone payments, and royalties based on sales of these therapies. Additionally, HCWB may engage in collaborative partnerships with other biotech firms or research institutions to co-develop products, which can provide funding and shared resources. Grants and government funding for research initiatives may also contribute to its revenue stream, particularly in early-stage development phases.

HCW Biologics Financial Statement Overview

Summary

HCW Biologics faces significant financial challenges with declining revenues, high operational losses, and significant leverage. The negative equity and cash flow issues highlight financial instability, requiring urgent operational and financial restructuring.

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	422.02K	2.57M	2.84M	6.72M	0.00	4.10M
Gross Profit	-89.50K	959.40K	560.36K	2.59M	-543.60K	4.10M
EBITDA	-8.72M	-27.68M	-23.58M	-14.06M	-12.32M	-5.25M
Net Income	-12.05M	-30.02M	-24.99M	-14.90M	-12.86M	-5.78M
Balance Sheet
Total Assets	25.45M	30.24M	28.51M	46.81M	53.51M	15.40M
Cash, Cash Equivalents and Short-Term Investments	1.10M	4.67M	3.60M	32.06M	36.71M	8.46M
Total Debt	7.50M	13.69M	6.30M	6.41M	0.00	567.31K
Total Liabilities	27.55M	37.01M	15.05M	9.38M	2.32M	1.00M
Stockholders Equity	-2.11M	-6.77M	13.46M	37.43M	51.19M	14.40M
Cash Flow
Free Cash Flow	-12.98M	-14.49M	-28.72M	-20.66M	-11.02M	-10.62M
Operating Cash Flow	-12.87M	-14.23M	-22.51M	-10.39M	-10.98M	-10.43M
Investing Cash Flow	-113.41K	-261.62K	3.80M	14.71M	-35.02M	-186.68K
Financing Cash Flow	13.08M	15.57M	-14.53K	6.27M	49.27M	11.72M

HCW Biologics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3.99 is above the 20-day moving average (MA) of 1.48, above the 50-day MA of 2.19, and below the 200-day MA of 4.88, indicating a bearish trend. The MACD of -0.30 indicates Negative momentum. The RSI at 32.70 is Neutral, neither overbought nor oversold. The STOCH value of 44.34 is Neutral, 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 *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ADXN	46 Neutral	$10.07M	-0.92	-71.27%	―	-72.15%	-223.62%
KPRX	44 Neutral	$8.04M	-0.89	-32.58%	―	-100.00%	-463.97%
CLDI	44 Neutral	$8.31M	-0.13	―	―	―	87.42%
MTNB	43 Neutral	$4.65M	-0.21	-157.24%	―	―	25.19%
HCWB	42 Neutral	$3.30M	―	―	―	-87.93%	65.26%
XBIO	42 Neutral	$5.01M	-1.07	-57.43%	―	13.30%	22.70%

HCW Biologics Corporate Events

HCW Biologics Restructures Obligations to Regain Nasdaq Compliance

On August 19, 2025, HCW Biologics Inc. was notified by Nasdaq that it was not in compliance with the exchange’s $2.5 million minimum stockholders’ equity requirement for continued listing, leading to a September 25, 2025 hearing and an October 13, 2025 decision granting the company until December 31, 2025 to regain compliance with the equity threshold and until February 17, 2026 to demonstrate continued compliance with all listing criteria. To bolster its equity position, the company completed a warrant inducement transaction on November 19, 2025 that generated approximately $3.8 million in net proceeds, raised an additional $363,858 through its Standby Equity Line of Credit in the fourth quarter of 2025, and on December 30, 2025 executed a settlement of about $7.4 million in legal fee payables that is expected to increase stockholders’ equity by roughly $5.4 million as of December 31, 2025; based on these actions, HCW Biologics now believes its stockholders’ equity exceeds $2.5 million and is awaiting Nasdaq’s formal determination on its compliance status.

The most recent analyst rating on (HCWB) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on HCW Biologics stock, see the HCWB Stock Forecast page.

HCW Biologics Secures $4M Through Warrant Exercise

On November 19, 2025, HCW Biologics Inc. entered into an inducement agreement with an institutional investor to reduce the exercise price of outstanding warrants, leading to the immediate exercise of these warrants and generating approximately $4.0 million in gross proceeds. In exchange, the company issued new warrants to the investor, which are immediately exercisable, and agreed to file a registration statement with the SEC for the resale of shares. This transaction, advised by Maxim Group LLC, is expected to enhance HCW Biologics’ financial position and support its ongoing development of immunotherapies.

The most recent analyst rating on (HCWB) stock is a Sell with a $3.00 price target. To see the full list of analyst forecasts on HCW Biologics stock, see the HCWB Stock Forecast page.

HCW Biologics Amends License Agreement with Trimmune

On November 17, 2025, HCW Biologics Inc. and Beijing Trimmune Biotech Co., Ltd. entered into an Amended and Restated License, Research and Co-Development Agreement. This agreement involves restructuring the original license to include rights assignment to Trimmune, a $3.5M cash payment, and an equity transfer. HCW retains an option to recapture rights in the Americas post-Phase 1 trials, while Trimmune handles all development costs in its territory. If the deal doesn’t close by January 16, 2026, rights revert to HCW.

The most recent analyst rating on (HCWB) stock is a Sell with a $3.00 price target. To see the full list of analyst forecasts on HCW Biologics stock, see the HCWB Stock Forecast page.

HCW Biologics Begins Phase 1 Trial for HCW9302

On November 18, 2025, HCW Biologics announced the dosing of the first patient in a Phase 1 clinical trial for its lead product candidate, HCW9302, aimed at treating alopecia areata, an autoimmune disorder. This trial marks a significant milestone in the company’s efforts to develop treatments for autoimmune diseases, with HCW9302 showing potential to activate regulatory T cells to reduce inflammation without broad immunosuppression. The study aims to establish a safe dose for Phase 2 trials, with future plans to explore HCW9302’s efficacy in other inflammatory conditions.

The most recent analyst rating on (HCWB) stock is a Sell with a $3.00 price target. To see the full list of analyst forecasts on HCW Biologics stock, see the HCWB Stock Forecast page.

HCW Biologics Granted Nasdaq Compliance Extension

On August 19, 2025, HCW Biologics Inc. received notice from Nasdaq that it was non-compliant with the Equity Rule for continued listing. Following a hearing on September 25, 2025, the Nasdaq Hearings Panel granted the company an extension to regain compliance, requiring it to meet all listing rules by February 16, 2026. The company must also notify Nasdaq of significant events affecting compliance and file necessary documentation for review.

The most recent analyst rating on (HCWB) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on HCW Biologics stock, see the HCWB Stock Forecast page.