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Werewolf Therapeutics (HOWL)
NASDAQ:HOWL
US Market

Werewolf Therapeutics (HOWL) AI Stock Analysis

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Werewolf Therapeutics

(NASDAQ:HOWL)

36Underperform
Werewolf Therapeutics shows significant financial challenges, with ongoing losses and reliance on external financing. The technical analysis supports a bearish outlook with a lack of strong upward momentum. The negative P/E ratio and absence of dividends highlight valuation concerns. Overall, the stock faces considerable risks without notable recent corporate events or earnings call data to offset these challenges.
Positive Factors
Financial Stability
The company ended the quarter with approximately $122.8 million in cash, expected to fund operations until 2Q26, indicating strong financial stability.
Partnerships
Werewolf Therapeutics has a partnership with Jazz Pharmaceuticals, enhancing its potential for growth and development.
Research and Development
Research and development expenses were lower than estimated, which is a positive sign for financial management.
Negative Factors
Earnings
For 4Q24, Werewolf reported no revenues and higher R&D expenses than estimated, resulting in a greater EPS loss than anticipated.
Stock Valuation
The price target for Werewolf Therapeutics has been lowered to $4 from $12 based on a cash/share and platform value analysis.
Treatment Efficacy
There were unconfirmed partial responses that progressed before the second scan, indicating some challenges in treatment efficacy.

Werewolf Therapeutics (HOWL) vs. S&P 500 (SPY)

Werewolf Therapeutics Business Overview & Revenue Model

Company DescriptionWerewolf 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 MoneyWerewolf 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
35
Negative
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
40
Negative
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
30
Negative
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.89M19.94M16.40M0.000.00
Gross Profit
1.89M-18.96M13.89M-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 SheetCash, Cash Equivalents and Short-Term Investments
112.22M134.34M129.31M157.53M92.57M
Total Assets
126.93M174.83M160.25M179.25M96.40M
Total Debt
10.99M51.92M14.68M15.66M2.54M
Net Debt
-101.22M-82.42M-114.63M-141.87M-90.03M
Total Liabilities
53.54M63.46M37.91M26.46M148.26M
Stockholders Equity
73.39M111.37M122.34M152.79M-51.86M
Cash FlowFree 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
13.08M58.43M15.91M109.43M93.86M

Werewolf Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.87
Price Trends
50DMA
1.26
Negative
100DMA
1.49
Negative
200DMA
1.92
Negative
Market Momentum
MACD
-0.09
Positive
RSI
23.80
Positive
STOCH
4.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOWL, the sentiment is Negative. The current price of 0.87 is below the 20-day moving average (MA) of 1.12, below the 50-day MA of 1.26, and below the 200-day MA of 1.92, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 23.80 is Positive, neither overbought nor oversold. The STOCH value of 4.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HOWL.

Werewolf Therapeutics Risk Analysis

Werewolf Therapeutics disclosed 84 risk factors in its most recent earnings report. Werewolf Therapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Werewolf Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
48
Neutral
$6.86B1.11-50.22%2.47%16.71%1.53%
48
Neutral
$1.09B-57.48%13698.99%31.46%
46
Neutral
$50.42M-273.36%194.23%45.50%
45
Neutral
$538.30M49.633.73%188.64%
42
Neutral
$90.54M-54.21%-78.55%-0.92%
41
Neutral
$297.65M-55.13%-86.25%36.10%
36
Underperform
$39.02M-76.33%-90.55%-55.06%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HOWL
Werewolf Therapeutics
0.91
-5.11
-84.88%
FATE
Fate Therapeutics
0.77
-6.24
-89.02%
IOVA
Iovance Biotherapeutics
3.54
-10.47
-74.73%
ADAP
Adaptimmune Therapeutics
0.30
-1.08
-78.26%
ALLO
Allogene Therapeutics
1.44
-2.65
-64.79%
IMTX
Immatics
4.17
-6.37
-60.44%

Werewolf Therapeutics Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Werewolf Therapeutics Appoints Anil Singhal to Board
Neutral
Feb 24, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.