Innoviva (INVA) AI Stock Analysis

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Innoviva

(NASDAQ:INVA)

73Outperform

Innoviva's strong financial performance, characterized by revenue growth and robust cash flow, is a key strength for future growth. Technical analysis indicates positive momentum, though caution is advised due to potential overbought conditions. The high P/E ratio suggests overvaluation, which is a significant factor impacting the overall score. The absence of earnings call and corporate events data limits additional insights.

Innoviva (INVA) vs. S&P 500 (SPY)

Market Cap

$1.15B

Dividend YieldN/A

Average Volume (3M)934.45K

Price to Earnings (P/E)87.9

Beta (1Y)0.37

Revenue Growth14.88%

EPS Growth-86.70%

CountryUS

Employees127

SectorHealthcare

Sector Strength70

IndustryBiotechnology

Share Statistics

EPS (TTM)0.21

Shares Outstanding62,771,152

10 Day Avg. Volume786,989

30 Day Avg. Volume934,453

Financial Highlights & Ratios

PEG Ratio1.12

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.30

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit4.18

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$55.00

Price Target Upside199.24% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Innoviva Business Overview & Revenue Model

Company DescriptionInnoviva, 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 MoneyInnoviva generates revenue primarily through royalty payments derived from its collaborations with pharmaceutical partners. The company holds economic interests in the royalties tied to certain healthcare products, particularly in the respiratory medicine space. A significant portion of Innoviva's income is derived from its partnership with GlaxoSmithKline (GSK), through which it receives royalties on sales of products like RELVAR/BREO ELLIPTA and ANORO ELLIPTA. The company's earnings are heavily influenced by the commercial success and market penetration of these products, as well as its strategic management of its royalty portfolio.

Innoviva Financial Statement Overview

Summary

Innoviva shows strong financial health with a high balance sheet score of 82 and cash flow score of 85, indicating robust cash generation and low leverage. The income statement score is slightly lower at 77 due to a drop in net profit margin and missing EBITDA data. Overall, the company has consistent revenue growth and a solid equity base.

Income Statement

Positive

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

Very Positive

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

Very Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
358.71M	310.46M	331.34M	391.87M	336.79M
	Gross Profit
358.71M	261.06M	317.55M	378.03M	335.01M
	EBIT
229.37M	176.71M	209.99M	375.10M	321.12M
	EBITDA
85.50M	248.96M	322.25M	478.18M	386.42M
	Net Income Common Stockholders
23.39M	179.72M	213.92M	368.84M	224.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
304.96M	193.51M	291.05M	201.53M	246.49M
	Total Assets
1.30B	1.24B	1.23B	926.39M	999.57M
	Total Debt
192.03M	449.08M	637.88M	394.65M	385.52M
	Net Debt
-112.94M	255.56M	346.83M	193.13M	139.03M
	Total Liabilities
609.90M	568.55M	665.71M	400.46M	391.73M
	Stockholders Equity
691.16M	674.96M	565.79M	414.74M	539.91M
Cash Flow		Free Cash Flow
188.42M	140.65M	201.66M	362.51M	313.10M
	Operating Cash Flow
188.69M	141.06M	201.73M	363.81M	313.11M
	Investing Cash Flow
-63.79M	-66.76M	-56.63M	43.72M	-314.94M
	Financing Cash Flow
-13.45M	-171.84M	-55.57M	-452.50M	-29.79M

Innoviva Technical Analysis

Technical Analysis Sentiment

Positive

Last Price18.38

Price Trends

50DMA

17.79

Positive

100DMA

18.02

Positive

200DMA

18.55

Negative

Market Momentum

MACD

0.18

Negative

RSI

60.25

Neutral

STOCH

72.95

Neutral

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 18.38 is above the 20-day moving average (MA) of 17.96, above the 50-day MA of 17.79, and below the 200-day MA of 18.55, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 60.25 is Neutral, neither overbought nor oversold. The STOCH value of 72.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INVA.

Innoviva Risk Analysis

Innoviva disclosed 73 risk factors in its most recent earnings report. Innoviva reported the most risks in the “Legal & Regulatory” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Innoviva Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INVA	73 Outperform	$1.15B	87.86	3.42%	―	14.88%	-86.70%
AUPH	69 Neutral	$1.12B	211.92	1.52%	―	33.97%	―
ARDX	57 Neutral	$1.28B	―	-23.01%	―	168.06%	44.66%
Sector *	51 Neutral	$5.35B	3.41	-40.48%	2.89%	17.92%	2.25%
CLDX	47 Neutral	$1.42B	―	-26.84%	―	1.99%	15.95%
NVAX	46 Neutral	$1.08B	―	30.06%	―	-30.65%	77.62%
ADPT	42 Neutral	$1.15B	―	-62.41%	―	5.10%	30.45%

* Healthcare Sector Average

Performance Comparison

INVA

Innoviva

18.38

3.27

21.64%

CLDX

Celldex

21.36

-16.06

-42.92%

NVAX

Novavax

6.42

2.09

48.27%

ARDX

Ardelyx

5.35

-1.05

-16.41%

AUPH

Aurinia Pharmaceuticals

8.00

2.91

57.17%

ADPT

Adaptive Biotechnologies

7.77

5.15

196.56%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.