Innoviva (INVA) AI Stock Analysis

• Market Cap: $1.32B
• Dividend Yield: N/A
• Average Volume (3M): 846.72K
• Price to Earnings (P/E): 63.0
• Beta (1Y): 0.33
• Revenue Growth: 11.54%
• EPS Growth: -72.73%
• Country: US
• Employees: 127
• Sector: Healthcare
• Sector Strength: 49
• Industry: Biotechnology
• EPS (TTM): 0.77
• Shares Outstanding: 63,021,015
• 10 Day Avg. Volume: 968,791
• 30 Day Avg. Volume: 846,722
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 4.64
• Enterprise Value/Gross Profit: 5.25
• Enterprise Value/Ebitda: 15.39
• 1Y Price Target: $36.60
• Price Target Upside: 74.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 62 Neutral
• Price Target: $22.00 ▲(5.16% Upside)

Innoviva's overall stock score is driven by strong financial performance, particularly in profitability and cash flow, despite challenges in revenue growth and return on equity. Technical indicators suggest a positive trend, but caution is advised due to overbought signals. The high P/E ratio raises concerns about valuation, impacting the overall score.

Positive Factors

Analyst Rating

Analyst reiterates Buy rating, while raising 12-month price target to $45 from $40, reflecting moderately higher growth expectations for several of Innoviva's proprietary marketed products.

Financial Performance

Innoviva's financial results demonstrate strong underlying operational performance, with multiple revenue streams exceeding expectations.

Regulatory Approval

An 85% probability of approval is assigned to zoliflodacin based on favorable clinical data, drawing attention to a potential near-term regulatory decision.

Negative Factors

Valuation Concerns

Innoviva's current valuation may not adequately account for the net present value of the respiratory product royalties that the firm may receive.

Innoviva Business Overview & Revenue Model

Company Description

Innoviva, Inc. is a biotechnology company focused on the commercialization of innovative medicines for patients with respiratory diseases, as well as products for other therapeutic areas. The company operates primarily in the pharmaceutical sector, leveraging partnerships and collaborations to develop and market its core products, which include a portfolio of therapies for chronic obstructive pulmonary disease (COPD) and asthma.

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 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	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: Positive
• Last Price: 20.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 20.92 is above the 20-day moving average (MA) of 19.11, above the 50-day MA of 19.86, and above the 200-day MA of 18.78, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 69.47 is Neutral, neither overbought nor oversold. The STOCH value of 97.16 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
AUPH	78 Outperform	$1.59B	28.70	17.33%	―	25.59%	―
INVA	62 Neutral	$1.32B	63.05	5.60%	―	11.54%	-72.73%
ADPT	62 Neutral	$1.97B	―	-57.55%	―	21.60%	44.48%
CLDX	59 Neutral	$1.66B	―	-27.17%	―	-30.25%	-9.70%
ARDX	59 Neutral	$1.41B	―	-39.36%	―	83.88%	15.24%
NVAX	59 Neutral	$1.53B	4.18	30.06%	―	9.22%	―
Sector *	51 Neutral	$7.46B	-0.16	-46.00%	2.25%	22.82%	-2.28%

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.