Werewolf Therapeutics (HOWL) AI Stock Analysis

• Market Cap: $52.42M
• Dividend Yield: N/A
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.76
• Revenue Growth: -100.00%
• EPS Growth: -8.30%
• Country: US
• Employees: 46
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.36
• Shares Outstanding: 48,540,200
• 10 Day Avg. Volume: 1,746,006
• 30 Day Avg. Volume: 1,221,642
• PEG Ratio: -0.02
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 34.02
• P/FCF Ratio: -1.14
• Enterprise Value/Market Cap: 0.16
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -10.31
• Enterprise Value/Ebitda: -0.13
• 1Y Price Target: $7.00
• Price Target Upside: 554.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: $1.00 ▼(-6.54% Downside)

Werewolf Therapeutics is facing significant financial and operational challenges, with ongoing losses and negative cash flows. The technical indicators suggest bearish momentum, and the valuation metrics reflect the company's lack of profitability. These factors collectively contribute to a low overall stock score.

Positive Factors

Innovative Platform

The PREDATOR platform's innovative approach to tumor-selective activation enhances treatment efficacy and safety, providing a competitive edge in oncology.

Regulatory Progress

Fast Track Designation for WTX-124 accelerates development and review processes, potentially bringing effective cancer therapies to market faster.

Pipeline Development

Advancements in the pipeline, like WTX-1011, indicate robust R&D efforts, enhancing long-term growth prospects through diversified therapeutic offerings.

Negative Factors

Negative Cash Flows

Persistent negative cash flows suggest financial strain, requiring external financing and potentially limiting operational flexibility and growth.

Inconsistent Revenue Growth

Fluctuating revenue growth reflects challenges in achieving stable income streams, impacting financial stability and long-term strategic planning.

Declining Equity

A declining equity ratio can weaken financial health, reducing the company's ability to leverage assets for growth and investment opportunities.

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 generates revenue primarily through a combination of product development partnerships, licensing agreements, and potential future sales of its proprietary therapeutics. The company collaborates with pharmaceutical companies and research institutions to co-develop new therapies, which may involve upfront payments, milestone payments based on development progress, and royalties from future sales. Additionally, the company may pursue grants and funding from governmental and non-governmental organizations aimed at supporting innovative biotech solutions, further contributing to its revenue streams.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	1.89M	19.94M	16.40M	0.00	0.00
Gross Profit	-832.00K	71.00K	18.18M	13.89M	0.00	-777.00K
EBITDA	-66.69M	-64.05M	-32.47M	-51.30M	-49.87M	-14.26M
Net Income	-72.84M	-70.52M	-37.37M	-53.81M	-49.98M	-14.94M
Balance Sheet
Total Assets	79.63M	126.93M	174.83M	160.25M	179.25M	96.40M
Cash, Cash Equivalents and Short-Term Investments	65.71M	111.00M	134.34M	129.31M	157.53M	92.57M
Total Debt	37.30M	37.09M	51.92M	14.68M	15.66M	2.54M
Total Liabilities	50.01M	53.54M	63.46M	37.91M	26.46M	7.18M
Stockholders Equity	29.61M	73.39M	111.37M	122.34M	152.79M	89.22M
Cash Flow
Free Cash Flow	-63.64M	-56.44M	-33.38M	-44.21M	-43.37M	-19.18M
Operating Cash Flow	-63.52M	-56.19M	-32.61M	-40.60M	-42.88M	-18.62M
Investing Cash Flow	-123.00K	-254.00K	-769.00K	-3.61M	-498.00K	-560.00K
Financing Cash Flow	6.21M	13.08M	58.43M	15.91M	109.43M	93.86M

Werewolf Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.07
• 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 1.07 is above the 20-day moving average (MA) of 0.98, below the 50-day MA of 1.24, and below the 200-day MA of 1.23, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 49.77 is Neutral, neither overbought nor oversold. The STOCH value of 66.68 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
CAMP	53 Neutral	$328.64M	-2.91	-172.70%	―	―	5.51%
CRVO	52 Neutral	$77.26M	-2.76	-71.42%	―	-38.81%	-76.96%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NRXP	45 Neutral	$62.17M	-0.97	―	―	―	-9.32%
HOWL	38 Underperform	$52.42M	-0.66	-122.43%	―	-100.00%	-8.30%
KLRS	28 Underperform	$144.95M	-1.41	-63.45%	―	―	63.31%

Werewolf Therapeutics Corporate Events

Werewolf Therapeutics Faces Nasdaq Compliance Challenge

Werewolf Therapeutics announced the passing of Dr. Alon Lazarus, a Board member, on September 30, 2025. His death left the company’s Audit Committee noncompliant with Nasdaq’s listing rules, prompting the company to plan for appointing a new independent director to regain compliance.