Innoviva (INVA) AI Stock Analysis

• Market Cap: $1.24B
• Dividend Yield: N/A
• Average Volume (3M): 986.75K
• Price to Earnings (P/E): 89.4
• Beta (1Y): 0.33
• Revenue Growth: 17.90%
• EPS Growth: -133.73%
• Country: US
• Employees: 127
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.74
• Shares Outstanding: 62,775,173
• 10 Day Avg. Volume: 1,041,543
• 30 Day Avg. Volume: 986,751
• PEG Ratio: -0.82
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.58
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 3.94
• Enterprise Value/Ebitda: 3.33
• 1Y Price Target: $55.00
• Price Target Upside: 183.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: $21.50 ▲(10.82%Upside)

Innoviva's strong financial performance, characterized by consistent revenue growth and robust cash flow, is the most significant factor supporting the stock. However, the technical analysis indicates overbought conditions, and valuation metrics are concerning due to negative earnings and lack of dividend yield. These factors collectively moderate the overall stock score.

Innoviva Business Overview & Revenue Model

Company Description

Innoviva, Inc. engages in the development and commercialization of pharmaceuticals in the United States and internationally. Its products include RELVAR/BREO ELLIPTA, a once-daily combination medicine consisting of a LABA, vilanterol (VI), an inhaled corticosteroid (ICS), and fluticasone furoate; ANORO ELLIPTA, a once-daily medicine combining a long-acting muscarinic antagonist (LAMA), umeclidinium bromide (UMEC), with a LABA, and VI; and TRELEGY ELLIPTA, a once-daily combination medicine consisting of an ICS, LAMA, and LABA. Innoviva, Inc. has a strategic partnership with Sarissa Capital Management LP. The company has long-acting beta2 agonist (LABA) collaboration agreement with Glaxo Group Limited to develop and commercialize once-daily products for the treatment of chronic obstructive pulmonary disease and asthma. The company was formerly known as Theravance, Inc. and changed its name to Innoviva, Inc. in January 2016. Innoviva, Inc. was incorporated in 1996 and is headquartered in Burlingame, California.

How the Company Makes Money

Innoviva primarily generates revenue through royalty payments derived from its collaborations with pharmaceutical companies. The company's flagship products, developed in partnership with GlaxoSmithKline (GSK), include inhalation therapies like Trelegy Ellipta, Anoro Ellipta, and Breo Ellipta. These products are marketed and sold by GSK, and Innoviva receives royalties based on the net sales of these medicines. The company's revenue model is heavily reliant on the performance of these products in the market, and it leverages its strategic partnerships to expand its product offerings and enhance its revenue streams.

Innoviva Financial Statement Overview

Summary

Innoviva demonstrates strong financial health with consistent revenue growth and robust cash flow generation. Despite a drop in net income and ROE, the company maintains low leverage and a solid equity base, positioning it well for future growth. The absence of EBITDA data for 2024 limits comprehensive profitability analysis.

Income Statement

Innoviva's income statement shows a strong gross profit margin of 100% for 2024, indicating effective cost management. Net profit margin decreased to 6.5% from the previous year's 57.9%, primarily due to a significant reduction in net income. Revenue grew by 15.5% from 2023 to 2024, reflecting positive growth trajectory. However, the lack of EBITDA data for 2024 weakens the analysis.

Balance Sheet

Innoviva's balance sheet is strong with a debt-to-equity ratio of 0.28, showcasing low leverage and financial stability. The equity ratio stands at 53.1% in 2024, affirming a solid equity base. Return on equity (ROE) has decreased to 3.4% in 2024 from 26.6% in 2023, indicating reduced profitability.

Cash Flow

Cash flow analysis reveals a robust free cash flow growth of 33.9% from 2023 to 2024, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is high at 8.1, indicating efficient operations. However, the free cash flow to net income ratio is very high at 8.1, suggesting potential reinvestment challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	373.30M	358.71M	310.46M	331.34M	391.87M	336.79M
Gross Profit	322.35M	322.11M	261.06M	317.55M	378.03M	335.01M
EBITDA	4.16M	99.45M	248.96M	322.25M	478.18M	386.42M
Net Income	-59.72M	23.39M	179.72M	213.92M	368.84M	224.40M
Balance Sheet
Total Assets	1.25B	1.30B	1.24B	1.23B	926.39M	999.57M
Cash, Cash Equivalents and Short-Term Investments	446.88M	412.50M	193.51M	291.05M	201.53M	246.49M
Total Debt	451.26M	451.10M	449.08M	637.88M	394.65M	385.52M
Total Liabilities	607.49M	609.90M	568.55M	665.71M	400.46M	391.73M
Stockholders Equity	646.90M	691.16M	674.96M	565.79M	414.74M	539.91M
Cash Flow
Free Cash Flow	195.99M	188.42M	140.65M	201.66M	362.51M	313.10M
Operating Cash Flow	200.26M	188.69M	141.06M	201.73M	363.81M	313.11M
Investing Cash Flow	-55.42M	-63.79M	-66.76M	-56.63M	43.72M	-314.94M
Financing Cash Flow	-4.11M	-13.45M	-171.84M	-55.57M	-452.50M	-29.79M

Innoviva Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INVA, the sentiment is Neutral. The current price of 19.4 is below the 20-day moving average (MA) of 20.93, below the 50-day MA of 19.65, and above the 200-day MA of 18.84, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 34.88 is Neutral, neither overbought nor oversold. The STOCH value of 8.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for INVA.

Innoviva Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUPH	69 Neutral	$1.01B	27.12	11.23%	―	29.20%	―
ADPT	66 Neutral	$1.74B	―	-60.96%	―	8.61%	35.36%
ARDX	62 Neutral	$1.00B	―	-36.26%	―	127.33%	21.31%
NVAX	61 Neutral	$1.09B	2.55	30.06%	―	25.92%	―
Sector *	59 Neutral	£5.93B	9.05	-57.69%	4.70%	15.15%	-8.16%
INVA	57 Neutral	$1.24B	89.44	-8.84%	―	17.90%	-133.73%
CLDX	52 Neutral	$1.41B	―	-23.20%	―	24.49%	5.14%

Innoviva Corporate Events

Innoviva Elects Board Members and Approves Compensation

At the Annual Meeting of Stockholders on May 19, 2025, Innoviva, Inc. elected five board members for a one-year term and approved executive compensation on a non-binding advisory basis. Additionally, stockholders ratified Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (INVA) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Innoviva stock, see the INVA Stock Forecast page.