Innoviva (INVA) AI Stock Analysis

• Market Cap: $1.64B
• Dividend Yield: N/A
• Average Volume (3M): 847.86K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.14
• Revenue Growth: 9.76%
• EPS Growth: 88.06%
• Country: US
• Employees: 127
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 1.08
• Shares Outstanding: 74,769,060
• 10 Day Avg. Volume: 1,077,801
• 30 Day Avg. Volume: 847,855
• PEG Ratio: -0.53
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 3.03
• P/FCF Ratio: 5.78
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 3.29
• Enterprise Value/Gross Profit: 3.80
• Enterprise Value/Ebitda: 6.36
• 1Y Price Target: $32.00
• Price Target Upside: 46.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.79
• Revenue Forecast (FY): $393.77M

• Rating: 61 Neutral
• Price Target: $23.50 ▲(7.45% Upside)

Innoviva's overall stock score is driven by a solid financial performance, particularly in cash flow generation and gross profit margins. However, technical indicators suggest the stock may be overbought, and valuation metrics indicate a fair price. The absence of earnings call insights and corporate events limits additional context.

Positive Factors

Cash Flow Generation

Strong cash flow generation indicates efficient operations and provides financial flexibility for strategic investments and debt management.

Revenue Growth

Consistent revenue growth, particularly in royalties, suggests a stable income stream and effective market penetration, supporting long-term business sustainability.

Strategic Investments

Strategic investments in biotech firms enhance Innoviva's portfolio, potentially leading to new revenue streams and competitive advantages.

Negative Factors

Revenue Consistency

Inconsistent revenue growth can hinder long-term planning and investor confidence, impacting the company's ability to sustain operations and growth.

Profitability Margins

Fluctuating profitability margins indicate potential operational inefficiencies, which could affect the company's ability to maintain competitive pricing and reinvest in growth.

Patent Cliff and Revenue Pressures

Facing a patent cliff and revenue pressures could lead to reduced income from key products, necessitating new product development to sustain growth.

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 generates revenue primarily through its partnerships and collaborations with other pharmaceutical companies. The company earns royalties from the sales of its partnered products, leveraging its proprietary technologies and drug delivery systems. Additionally, Innoviva may receive milestone payments associated with the development and commercialization of its products. The company's strategic alliances with larger pharmaceutical firms provide it with access to broader markets and resources, contributing to its earnings while minimizing the risks associated with drug development.

Innoviva Financial Statement Overview

Summary

Innoviva demonstrates a solid financial foundation with strengths in cash flow generation and gross profit margins. However, challenges in revenue consistency and profitability margins suggest areas for improvement. The company's leverage has improved, but maintaining this trajectory is crucial for long-term stability.

Income Statement

Innoviva's income statement shows a mixed performance. The company has maintained a strong gross profit margin, consistently above 88%, indicating effective cost management. However, the net profit margin has fluctuated, with a notable decline in TTM (Trailing-Twelve-Months) compared to previous years. Revenue growth has been inconsistent, with a recent positive trend in TTM after a period of decline. The EBIT margin has been volatile, reflecting operational challenges.

Balance Sheet

Innoviva's balance sheet reveals a moderate financial position. The debt-to-equity ratio has improved in TTM, indicating better leverage management, though it remains a potential risk factor. Return on equity has decreased over time, suggesting reduced profitability from shareholders' investments. The equity ratio is stable, reflecting a balanced asset structure.

Cash Flow

The cash flow statement highlights strong operational cash flow, with a healthy operating cash flow to net income ratio. Free cash flow growth has been positive in TTM, recovering from previous declines. The free cash flow to net income ratio remains robust, indicating efficient cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	388.52M	358.71M	310.46M	331.34M	391.87M	336.79M
Gross Profit	336.15M	322.11M	267.82M	317.55M	391.87M	336.79M
EBITDA	200.84M	85.50M	235.04M	308.32M	464.35M	372.58M
Net Income	127.34M	23.39M	179.72M	213.92M	265.85M	224.40M
Balance Sheet
Total Assets	1.43B	1.30B	1.24B	1.23B	926.39M	999.57M
Cash, Cash Equivalents and Short-Term Investments	533.10M	412.50M	193.51M	291.05M	201.53M	246.49M
Total Debt	323.23M	451.10M	449.08M	544.07M	394.76M	385.52M
Total Liabilities	419.15M	609.90M	568.55M	665.71M	400.46M	391.73M
Stockholders Equity	1.01B	691.16M	674.96M	565.79M	414.74M	539.91M
Cash Flow
Free Cash Flow	196.53M	188.42M	140.65M	201.66M	362.51M	313.10M
Operating Cash Flow	201.66M	188.69M	141.06M	201.73M	363.81M	313.11M
Investing Cash Flow	1.38M	-63.79M	-66.76M	-56.63M	43.72M	-314.94M
Financing Cash Flow	12.85M	-13.45M	-171.84M	-55.57M	-452.50M	-29.79M

Innoviva Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INVA, the sentiment is Positive. The current price of 21.87 is above the 20-day moving average (MA) of 19.64, above the 50-day MA of 18.82, and above the 200-day MA of 18.93, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 74.55 is Negative, neither overbought nor oversold. The STOCH value of 83.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INVA.

Innoviva Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVAC	70 Outperform	$1.19B	5.76	―	―	799.36%	―
INVA	61 Neutral	$1.64B	15.69	15.17%	―	9.76%	88.06%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
XERS	49 Neutral	$1.59B	―	―	―	42.05%	76.50%
LENZ	46 Neutral	$801.02M	―	-28.78%	―	―	70.19%
TRML	45 Neutral	―	―	-29.62%	―	―	6.66%
RAPP	44 Neutral	$1.20B	―	-23.41%	―	―	―

Innoviva Corporate Events

Innoviva Reports Strong Q3 2025 Financial Results

Innoviva, Inc., a diversified holding company, operates in the healthcare sector with a focus on critical care and infectious disease platforms, alongside a robust royalties portfolio and strategic investments in healthcare assets.