Werewolf Therapeutics (HOWL) AI Stock Analysis

• Market Cap: $39.93M
• Dividend Yield: N/A
• Average Volume (3M): 253.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: -90.55%
• EPS Growth: -55.06%
• Country: US
• Employees: 46
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -1.63
• Shares Outstanding: 44,827,160
• 10 Day Avg. Volume: 182,235
• 30 Day Avg. Volume: 253,833
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 127.27
• Price to Cash Flow (P/CF): -0.90
• 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: $9.25
• Price Target Upside: 939.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Werewolf Therapeutics is navigating significant financial challenges, including ongoing losses and negative cash flows, which heavily impact its stock score. The technical indicators show a bearish trend without significant momentum. Valuation metrics are stressed, reflecting the financial difficulties. Overall, the stock score is low, indicating substantial risks associated with the company's current financial and market position.

Positive Factors

Clinical Developments

Early anti-tumor activity was observed in WTX-330 with a confirmed partial response in a metastatic melanoma patient, achieving a 46% reduction in tumor size.

Investment Opportunity

Werewolf Therapeutics has a partnership with Jazz Pharmaceuticals and a cash position of $122.8 million, representing an interesting investment opportunity given its enterprise value of $5.3 million.

Negative Factors

Financial Performance

For 4Q24, Werewolf reported no revenues and higher R&D expenses than estimated, resulting in a greater EPS loss than anticipated.

Revenue Concerns

Werewolf reported no revenues for 4Q24 as expected, and R&D expenses were higher than estimated.

Werewolf Therapeutics Business Overview & Revenue Model

Company Description

Werewolf Therapeutics, Inc. (HOWL) is a biotechnology company focused on the development of innovative immune-oncology therapies. Leveraging its proprietary PREDATOR platform, the company is dedicated to creating next-generation biologic treatments designed to selectively activate the immune system within the tumor microenvironment. Werewolf Therapeutics aims to provide effective and targeted cancer therapies, advancing the field of immunotherapy to improve patient outcomes.

How the Company Makes Money

Werewolf Therapeutics generates revenue primarily through strategic partnerships, collaborations, and licensing agreements centered around its proprietary PREDATOR platform and therapeutic candidates. The company collaborates with other pharmaceutical and biotechnology firms to co-develop and commercialize its innovative therapies, sharing in potential profits derived from successful treatments. Additionally, the company may receive milestone payments and royalties based on the achievement of specific clinical, regulatory, and commercial objectives. Werewolf Therapeutics also invests in research and development activities aimed at expanding its pipeline and enhancing the value of its intellectual property portfolio.

Werewolf Therapeutics Financial Statement Overview

Summary

Werewolf Therapeutics faces significant financial challenges typical of a biotechnology firm in early stages, with ongoing operating losses and negative cash flows. The reliance on financing suggests potential liquidity risks, while inconsistent revenue growth and declining equity pose challenges for future stability and expansion. Strategic focus on improving operational efficiency and revenue generation is crucial.

Income Statement

Werewolf Therapeutics has shown inconsistent revenue figures over the years with a recent drop from 2023 to 2024. Gross profit margins are highly volatile, and the company has been operating with negative net profit margins consistently, indicating ongoing losses. EBIT and EBITDA margins are negative, reflecting operating inefficiencies and high operational costs relative to revenue.

Balance Sheet

The company has a moderate debt-to-equity ratio, which has improved over time due to a reduction in total debt. However, the equity ratio has been declining, indicating a decrease in equity relative to assets. Return on equity is negative, as losses have been persistent. The financial stability is moderate with a reasonable cash position compared to liabilities, yet the trend is concerning with shrinking equity.

Cash Flow

Operating cash flows have been negative, indicating cash burn, and free cash flows have also been consistently negative, showing challenges in generating cash from operations. Financing cash flows have been positive, suggesting reliance on external financing to support operations. The ratios of cash flows to net income highlight issues in converting revenue into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.89M	19.94M	16.40M	0.00	0.00
	Gross Profit
1.89M	-18.96M	13.89M	-735.00K	-777.00K
	EBIT
-73.59M	-40.50M	-56.06M	-50.09M	-22.40M
	EBITDA
-64.05M	-32.47M	-51.30M	-49.25M	-14.26M
	Net Income Common Stockholders
-70.52M	-37.37M	-51.56M	-49.77M	-14.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
112.22M	134.34M	129.31M	157.53M	92.57M
	Total Assets
126.93M	174.83M	160.25M	179.25M	96.40M
	Total Debt
10.99M	51.92M	14.68M	15.66M	2.54M
	Net Debt
-101.22M	-82.42M	-114.63M	-141.87M	-90.03M
	Total Liabilities
53.54M	63.46M	37.91M	26.46M	148.26M
	Stockholders Equity
73.39M	111.37M	122.34M	152.79M	-51.86M
Cash Flow		Free Cash Flow
-56.44M	-33.38M	-44.21M	-43.37M	-19.18M
	Operating Cash Flow
-56.19M	-32.61M	-40.60M	-42.88M	-18.62M
	Investing Cash Flow
-254.00K	-769.00K	-3.61M	-498.00K	-560.00K
	Financing Cash Flow
13.08M	58.43M	15.91M	109.43M	93.86M

Werewolf Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.89
• 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 HOWL, the sentiment is Neutral. The current price of 0.89 is above the 20-day moving average (MA) of 0.83, below the 50-day MA of 1.08, and below the 200-day MA of 1.79, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 49.15 is Neutral, neither overbought nor oversold. The STOCH value of 77.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HOWL.

Werewolf Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.32B	3.32	-40.25%	2.90%	17.93%	2.14%
NRXP	45 Neutral	$34.68M	―	108.28%	―	―	41.01%
XFOR	43 Neutral	$33.00M	―	-102.26%	―	―	69.37%
HOWL	42 Neutral	$39.93M	―	-76.33%	―	-90.55%	-55.06%
KPTI	34 Underperform	$48.16M	―	41.08%	―	-0.55%	49.85%
ATRA	31 Underperform	$42.89M	―	1063.61%	―	1404.02%	59.49%

Werewolf Therapeutics Corporate Events

Werewolf Therapeutics Appoints Anil Singhal to Board

On February 19, 2025, Derek DiRocco, M.D., announced his resignation from the Board of Directors of Werewolf Therapeutics, effective at the company’s 2025 annual meeting of stockholders. His departure was not due to any disagreement with the company. Concurrently, Anil Singhal, Ph.D., was appointed as a new director and member of the Audit Committee. Dr. Singhal brings over three decades of experience in the biopharmaceutical industry, having previously led Trishula Therapeutics and Adicet Bio. His appointment is expected to strengthen Werewolf Therapeutics’ leadership and strategic direction, potentially impacting its market positioning and stakeholder interests.