Innoviva (INVA) AI Stock Analysis

• Market Cap: $1.11B
• Dividend Yield: N/A
• Average Volume (3M): 707.86K
• Price to Earnings (P/E): 53.2
• Beta (1Y): 0.37
• Revenue Growth: 11.54%
• EPS Growth: -72.73%
• Country: US
• Employees: 127
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.77
• Shares Outstanding: 63,021,015
• 10 Day Avg. Volume: 777,850
• 30 Day Avg. Volume: 707,860
• 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: 1.54
• Enterprise Value/Revenue: 4.64
• Enterprise Value/Gross Profit: 5.25
• Enterprise Value/Ebitda: 15.39
• 1Y Price Target: $35.60
• Price Target Upside: 101.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 55 Neutral
• Price Target: $19.50 ▲(10.42% Upside)

Innoviva's overall stock score is primarily influenced by its mixed financial performance and bearish technical indicators. The strong cash flow and profitability metrics are offset by declining revenue growth and operational efficiency challenges. The technical analysis indicates a bearish trend, and the high P/E ratio suggests potential overvaluation. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Cash Flow Health

Strong cash flow health supports operational and strategic initiatives, providing financial flexibility and resilience.

Profitability

High profitability margins indicate efficient cost management and pricing power, supporting long-term financial stability.

Stable Balance Sheet

A stable balance sheet with moderate leverage provides a solid foundation for future growth and financial stability.

Negative Factors

Declining Revenue Growth

Declining revenue growth may hinder the company's ability to expand market share and achieve long-term sales targets.

Operational Efficiency Challenges

Decreasing operational efficiency could impact profitability and competitiveness, necessitating improvements in cost management.

Low Return on Equity

Low ROE suggests declining shareholder returns, which may affect investor confidence and long-term investment appeal.

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 royalties from its partnered products, particularly those developed in collaboration with other pharmaceutical companies. A significant portion of their earnings comes from royalties on sales of the drug Trelegy Ellipta, a combination therapy for COPD, which is marketed by GlaxoSmithKline (GSK). Additionally, Innoviva may engage in milestone payments from its partners based on the achievement of certain development and sales targets. The company also explores other revenue opportunities through licensing agreements and collaborations that enhance its product offerings and expand its market reach.

Innoviva Financial Statement Overview

Summary

Innoviva presents a mixed financial picture. While profitability and cash flow metrics are strong, the declining revenue growth and reduced return on equity highlight potential challenges. The balance sheet remains stable with moderate leverage, providing a solid foundation for future growth. The company should focus on revitalizing revenue growth and improving operational efficiency to enhance overall financial performance.

Income Statement

Innoviva's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data reveals a decline in revenue growth rate, indicating potential challenges in maintaining sales momentum. However, the company maintains a healthy gross profit margin of 88.34% and a net profit margin of 10.44%, showcasing strong profitability. The EBIT and EBITDA margins are also positive, though they have decreased compared to previous years, suggesting some pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.63, indicating moderate leverage. The return on equity (ROE) is 5.68%, which is relatively low compared to previous years, suggesting a decline in shareholder returns. The equity ratio stands at 53.58%, highlighting a solid equity base relative to total assets. Overall, the balance sheet suggests stability but with room for improvement in profitability.

Cash Flow

Innoviva's cash flow statement is strong, with a positive free cash flow growth rate of 18.1% in the TTM period. The operating cash flow to net income ratio is 0.81, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is high at 0.98, reflecting effective cash management. These metrics suggest robust cash flow health, supporting the company's operational and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	370.23M	358.71M	310.46M	331.34M	391.87M	336.79M
Gross Profit	327.08M	322.11M	261.06M	317.55M	378.03M	335.01M
EBITDA	111.53M	99.45M	248.96M	322.25M	478.18M	386.42M
Net Income	38.65M	23.39M	179.72M	213.92M	368.84M	224.40M
Balance Sheet
Total Assets	1.33B	1.30B	1.24B	1.23B	926.39M	999.57M
Cash, Cash Equivalents and Short-Term Investments	497.73M	412.50M	193.51M	291.05M	201.53M	246.49M
Total Debt	450.90M	451.10M	449.08M	637.88M	394.65M	385.52M
Total Liabilities	618.75M	609.90M	568.55M	665.71M	400.46M	391.73M
Stockholders Equity	714.82M	691.16M	674.96M	565.79M	414.74M	539.91M
Cash Flow
Free Cash Flow	196.34M	188.42M	140.65M	201.66M	362.51M	313.10M
Operating Cash Flow	200.62M	188.69M	141.06M	201.73M	363.81M	313.11M
Investing Cash Flow	-22.30M	-63.79M	-66.76M	-56.63M	43.72M	-314.94M
Financing Cash Flow	2.21M	-13.45M	-171.84M	-55.57M	-452.50M	-29.79M

Innoviva Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INVA, the sentiment is Negative. The current price of 17.66 is below the 20-day moving average (MA) of 19.24, below the 50-day MA of 19.46, and below the 200-day MA of 18.83, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 29.71 is Positive, neither overbought nor oversold. The STOCH value of 19.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INVA.

Innoviva Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVAC	74 Outperform	$1.21B	5.94	33.02%	―	799.36%	―
INVA	55 Neutral	$1.11B	53.21	5.60%	―	11.54%	-72.73%
XERS	55 Neutral	$1.34B	-39.11	165.76%	―	35.62%	49.58%
LENZ	46 Neutral	$1.38B	-25.45	―	―	―	79.90%
TRML	45 Neutral	$1.23B	-13.93	―	―	―	6.66%
RAPP	44 Neutral	$1.32B	-11.59	―	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%