HCW Biologics (HCWB) AI Stock Analysis

• Market Cap: $5.40M
• Dividend Yield: N/A
• Average Volume (3M): 104.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• 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: 229,487
• 30 Day Avg. Volume: 104,456
• 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: 2.73
• Enterprise Value/Revenue: 34.99
• Enterprise Value/Gross Profit: -164.98
• Enterprise Value/Ebitda: -1.69
• 1Y Price Target: $35.00
• Price Target Upside: 777.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -2.52
• Revenue Forecast (FY): $7.00M

• Rating: 39 Underperform
• Price Target: $3.00 ▼(-24.81% Downside)

HCW Biologics is facing severe financial difficulties with declining revenues and high operational losses. The technical indicators suggest a bearish trend, and the negative P/E ratio highlights valuation concerns. The absence of earnings call insights or corporate events leaves these financial and technical challenges as the primary factors influencing the low score.

Positive Factors

Innovative Product Development

The development of advanced therapies like HCW11-040 demonstrates HCW Biologics' commitment to innovation, potentially improving treatment efficacy and expanding market opportunities in cancer therapies.

Expansion of Therapeutic Indications

By broadening the range of conditions treatable with its TCEs, HCW Biologics can tap into larger markets, enhancing its long-term growth prospects and competitive positioning.

Advanced Platform Technology

The TRBC platform's versatility in drug development positions HCW Biologics to create novel therapies, sustaining its competitive edge and fostering long-term growth in the biotechnology sector.

Negative Factors

Declining Revenue

Declining revenue signals potential challenges in product adoption or market competition, which could hinder the company's ability to sustain operations and invest in future growth.

High Leverage

High leverage increases financial risk, limiting the company's flexibility to invest in R&D or withstand economic downturns, potentially impacting long-term viability.

Negative Cash Flow

Negative cash flow from operations suggests difficulties in generating sufficient cash to cover expenses, which could lead to liquidity issues and constrain future business expansion.

HCW Biologics Business Overview & Revenue Model

Company Description

HCW Biologics (HCWB) is a biotechnology company focused on the development and commercialization of innovative therapies for various diseases, particularly those related to cancer and immune disorders. The company specializes in biologics, utilizing advanced technologies to create targeted treatments that harness the body's immune system to fight diseases. HCWB operates in the healthcare sector with a commitment to improving patient outcomes through its cutting-edge research and development efforts.

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: Positive
• RSI: Positive
• 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 3.99 is above the 20-day moving average (MA) of 3.17, above the 50-day MA of 3.78, and below the 200-day MA of 6.97, indicating a bearish trend. The MACD of -0.46 indicates Positive momentum. The RSI at 26.56 is Positive, neither overbought nor oversold. The STOCH value of 4.22 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
KPRX	56 Neutral	$8.14M	-0.72	-32.58%	―	-100.00%	-463.97%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MTNB	45 Neutral	$6.46M	-0.33	-157.24%	―	―	25.19%
ADXN	44 Neutral	$10.45M	―	-61.65%	―	-80.31%	-293.92%
XBIO	43 Neutral	$6.49M	-1.43	-57.43%	―	13.30%	22.70%
HCWB	39 Underperform	$5.40M	―	―	―	-87.93%	65.26%
CLDI	37 Underperform	$7.35M	-0.20	―	―	―	87.42%

HCW Biologics Corporate Events

HCW Biologics Advances Alopecia Areata Treatment with Phase 1 Study of HCW9302

Study Overview: HCW Biologics, Inc. is conducting a Phase 1 study titled ‘A Phase 1 Study of HCW9302, an IL-2 Fusion Protein, for Alopecia Areata.’ The study aims to evaluate the safety and efficacy of HCW9302 in treating Alopecia Areata (AA), a condition causing hair loss. This study is significant as it explores a novel treatment option for AA, potentially addressing an unmet medical need.

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.

HCW Biologics Extends License Fee Payment Deadline

HCW Biologics Inc. and WY Biotech Co., Ltd. have agreed to extend the payment date for a $7.0 million upfront license fee under their worldwide exclusive license agreement to September 30, 2025. However, WY Biotech has not finalized necessary agreements with its partners and may not meet the new deadline, prompting ongoing negotiations for further revisions to the agreement.

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.

HCW Biologics Faces Nasdaq Non-Compliance Notice

On June 26, 2025, HCW Biologics Inc. announced that it had received formal notice from Nasdaq confirming its compliance with the Equity Rule for continued listing on the Nasdaq Capital Market. However, the company remains under a Panel Monitor until June 23, 2026, and must request a hearing to address any future non-compliance. On August 19, 2025, HCW Biologics was notified of non-compliance as of June 30, 2025, risking suspension of its securities from trading on Nasdaq unless a hearing is requested by August 26, 2025. The company plans to request a hearing to stay the suspension and is exploring options to regain compliance, though there is no assurance of success.

The most recent analyst rating on (HCWB) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on HCW Biologics stock, see the HCWB Stock Forecast page.

HCW Biologics Delays Q2 10-Q Filing

HCW Biologics Inc. has announced a delay in filing its Form 10-Q (Quarter Report) for the financial period ending on June 30, 2025. The primary reason for this delay is the additional time required to prepare the financial statements for the quarter. The company has assured stakeholders that the report will be filed within the five-day grace period allowed by the Securities Exchange Act of 1934. HCW Biologics anticipates significant changes in its financial results compared to the previous year, largely due to a substantial decrease in legal fees from $10.4 million in Q2 2024 to $142,452 in Q2 2025, following the settlement of a long-running arbitration. The notification was signed by Rebecca Byam, the Chief Financial Officer, who confirmed the company’s commitment to compliance and timely filing.

The most recent analyst rating on (HCWB) stock is a Buy 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 Equity Purchase Agreement

On August 14, 2025, HCW Biologics Inc. and Square Gate Capital Master Fund, LLC- Series 4 amended their Equity Purchase Agreement to allow multiple purchases and sales of shares on the same trading day. This amendment could enhance the company’s financial flexibility by enabling more dynamic trading of its shares, potentially impacting its market positioning and stakeholder interests.

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