Werewolf Therapeutics (HOWL) AI Stock Analysis

• Market Cap: $48.01M
• Dividend Yield: N/A
• Average Volume (3M): 579.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: -92.95%
• EPS Growth: -50.02%
• Country: US
• Employees: 46
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.40
• Shares Outstanding: 44,873,646
• 10 Day Avg. Volume: 712,179
• 30 Day Avg. Volume: 579,623
• PEG Ratio: 0.70
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.34
• Enterprise Value/Market Cap: -1.16
• Enterprise Value/Revenue: -3.53
• Enterprise Value/Gross Profit: -80.49
• Enterprise Value/Ebitda: 0.25
• 1Y Price Target: $8.20
• Price Target Upside: 666.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 39 Underperform
• Price Target: $1.00 ▼(-6.54%Downside)

Werewolf Therapeutics' stock score is primarily influenced by its poor financial performance and valuation, which are indicative of significant operational and liquidity challenges. The technical analysis suggests bearish market sentiment, while corporate events reveal both compliance risks and potential clinical advancements. The combination of these factors results in a low overall stock score.

Positive Factors

Clinical Progress

WTX-330 demonstrated the first-ever monotherapy IL-12 activity at tolerable doses, with stable disease seen in MSS CRC and PDAC, and a PR in anti–PD-1-experienced melanoma.

Financial Stability

The company ended the quarter with approximately $122.8 million in cash, expected to fund operations until 2Q26, indicating strong financial stability.

Strategic Expansion

Werewolf's strategic expansion of their PREDATOR masking platform to CD3 T-cell engagers is supported by robust clinical validation and industry interest.

Negative Factors

Development Uncertainty

There is uncertainty whether the outcomes of WTX-124’s monotherapy and combination trials will be robust enough to engage an investor base generally disinterested in novel cytokine programs.

Nascent Development Stage

It is unlikely that the new strategic direction with TCE platform will result in significant appreciation for HOWL in the near-term due to its nascent development stage.

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., a biopharmaceutical company, develops therapeutics engineered to stimulate the body's immune system for the treatment of cancer. The company, through its proprietary PREDATOR platform, designs conditionally activated molecules that stimulate adaptive and innate immunity for addressing the limitations of conventional proinflammatory immune therapies. Its lead product candidates are WTX-124, a conditionally activated Interleukin-2 INDUKINE molecule for the treatment of advanced solid tumors; and WTX-330, a conditionally activated Interleukin-12 INDUKINE molecule for the treatment of relapsed or refractory advanced or metastatic solid tumors or lymphoma. The company is also developing WTX-613, a conditionally activated interferon alpha INDUKINE molecule for the treatment of solid tumors and hematologic malignancies. Werewolf Therapeutics, Inc. was incorporated in 2017 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Werewolf Therapeutics makes money primarily through the development and commercialization of its proprietary cancer immunotherapies. The company's revenue model includes licensing agreements, partnerships with other pharmaceutical companies, and potential sales of its therapeutics upon successful clinical development and regulatory approval. Key revenue streams are expected to come from milestone payments, royalties on sales, and potentially direct sales of its products. Strategic partnerships and collaborations play a significant role in supporting research and development activities, providing necessary funding and resources to advance its pipeline of therapeutic candidates.

Werewolf Therapeutics Financial Statement Overview

Summary

Werewolf Therapeutics faces significant financial challenges typical of an early-stage biotechnology firm, with ongoing operating losses, negative cash flows, and reliance on external financing. The declining equity and inconsistent revenue growth highlight the need for strategic focus on operational efficiency and revenue generation.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.14M	1.89M	19.94M	16.40M	0.00	0.00
Gross Profit	689.00K	71.00K	-18.96M	13.89M	-735.00K	-777.00K
EBITDA	-51.01M	-64.05M	-32.47M	-51.30M	-49.25M	-14.26M
Net Income	-72.41M	-70.52M	-37.37M	-51.56M	-49.77M	-14.94M
Balance Sheet
Total Assets	107.24M	126.93M	174.83M	160.25M	179.25M	96.40M
Cash, Cash Equivalents and Short-Term Investments	92.93M	111.00M	134.34M	129.31M	157.53M	92.57M
Total Debt	10.43M	37.09M	51.92M	14.68M	15.66M	2.54M
Total Liabilities	49.93M	53.54M	63.46M	37.91M	26.46M	148.26M
Stockholders Equity	57.31M	73.39M	111.37M	122.34M	152.79M	-51.86M
Cash Flow
Free Cash Flow	-59.98M	-56.44M	-33.38M	-44.21M	-43.37M	-19.18M
Operating Cash Flow	-59.84M	-56.19M	-32.61M	-40.60M	-42.88M	-18.62M
Investing Cash Flow	-143.00K	-254.00K	-769.00K	-3.61M	-498.00K	-560.00K
Financing Cash Flow	-7.18M	13.08M	58.43M	15.91M	109.43M	93.86M

Werewolf Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.07
• 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 HOWL, the sentiment is Negative. The current price of 1.07 is below the 20-day moving average (MA) of 1.22, below the 50-day MA of 1.10, and below the 200-day MA of 1.50, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 43.94 is Neutral, neither overbought nor oversold. The STOCH value of 18.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HOWL.

Werewolf Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATRA	47 Neutral	$53.01M	―	1063.61%	―	475.53%	89.94%
Sector *	46 Neutral	C$194.85M	-4.28	-8.56%	2.84%	13.52%	-1.74%
NRXP	45 Neutral	$64.75M	―	108.28%	―	―	41.01%
XFOR	44 Neutral	$11.46M	0.88	121.75%	―	―	―
KPTI	42 Neutral	$39.83M	―	41.08%	―	1.19%	61.65%
HOWL	39 Underperform	$48.01M	―	-82.81%	―	-92.95%	-50.02%
CAMP		$27.22M	―		―	―	―

Werewolf Therapeutics Corporate Events

Werewolf Therapeutics Adopts New Bylaws and Elects Directors

On June 12, 2025, Werewolf Therapeutics, Inc. adopted new bylaws to clarify procedural mechanics for stockholder nominations and proposals, specify meeting presiders, and make administrative updates. During the same annual meeting, stockholders elected three directors for three-year terms and ratified Ernst & Young LLP as the independent accounting firm for 2025.

The most recent analyst rating on (HOWL) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Werewolf Therapeutics stock, see the HOWL Stock Forecast page.

Werewolf Therapeutics Receives Nasdaq Deficiency Notice

On May 13, 2025, Werewolf Therapeutics received a deficiency letter from Nasdaq indicating that its stock price had fallen below the minimum bid requirement of $1.00 for 30 consecutive business days. This notice does not immediately affect the company’s listing, but Werewolf has 180 days to regain compliance by raising its stock price above $1.00 for at least 10 consecutive days. If unsuccessful, the company may seek an additional compliance period by transferring its listing to the Nasdaq Capital Market, though this involves meeting other criteria and paying a fee. Werewolf is actively monitoring its stock price and exploring options to address the deficiency, but there is no guarantee of success.

The most recent analyst rating on (HOWL) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Werewolf Therapeutics stock, see the HOWL Stock Forecast page.

Werewolf Therapeutics Announces Q1 2025 Financial Results

On May 8, 2025, Werewolf Therapeutics announced its first quarter 2025 financial results and business updates, highlighting significant progress in its clinical programs. The company is on track with its WTX-124 Phase 1/1b trial, expecting data readouts and FDA interactions later in the year, and has initiated a Phase 1b/2 trial for WTX-330. Werewolf is also advancing its INDUCER T cell engager molecules, with a development candidate expected by mid-2025, and maintains a cash runway into the fourth quarter of 2026.