IO Biotech (IOBT) AI Stock Analysis

• Market Cap: $60.79M
• Dividend Yield: N/A
• Average Volume (3M): 198.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: N/A
• EPS Growth: 32.77%
• Country: US
• Employees: 80
• Sector: Healthcare
• Sector Strength: 65
• Industry: Biotechnology
• EPS (TTM): -1.45
• Shares Outstanding: 65,880,910
• 10 Day Avg. Volume: 96,406
• 30 Day Avg. Volume: 198,052
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -0.80
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $9.00
• Price Target Upside: 857.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

IO Biotech faces significant challenges due to its financial instability and lack of revenue. However, the progress in clinical trials and secured financing improve its future prospects, though it remains speculative. The technical analysis suggests neutral momentum, and the valuation highlights typical risks associated with biotech stocks awaiting commercialization.

Positive Factors

Analyst Confidence

The analyst's Buy rating and $12 price target are based on a discounted cash flow analysis, indicating confidence in the company's future potential.

Clinical Trials

The Phase 1 study showed a median PFS of 22.5 months with IO102-IO103 + nivolumab, compared to the expected 11-12 months with checkpoint inhibitors alone.

Financial Performance

The company ended 2024 with $60 million in cash and equivalents, which is projected to be sufficient to fund operations into 2026.

Negative Factors

Clinical Risks

The company faces risks such as safety signals in clinical programs, lower-than-expected efficacy, and greater-than-expected commercial competition.

Delisting Risk

There is a risk of delisting if the company's shares go under $1.

Operating Expenses

The company's operating expenses are expected to increase significantly due to launch readiness for Cylembio and continuation of the Phase 3 study.

IO Biotech Business Overview & Revenue Model

Company Description

IO Biotech (IOBT) is a biotechnology company focused on the development of immune-modulating cancer therapies. The company leverages its proprietary T-win technology platform to create novel immune therapies intended to treat various types of cancer by activating the immune system against tumor cells. IO Biotech operates within the pharmaceutical and biotechnology sector, working towards innovative solutions to improve cancer treatment outcomes.

How the Company Makes Money

IO Biotech makes money primarily through the development and commercialization of its immune-modulating cancer therapies. The company's revenue streams include potential product sales, licensing agreements, and collaborations with larger pharmaceutical companies. These partnerships often involve upfront payments, milestone payments, and royalties on future sales. Additionally, IO Biotech may receive funding from grants and research collaborations with academic institutions and healthcare organizations, which contribute to its earnings and support ongoing research and development activities.

IO Biotech Financial Statement Overview

Summary

IO Biotech is experiencing significant financial challenges typical of early-stage biotech firms. The company has reported substantial net losses and negative cash flows, highlighting ongoing struggles to achieve profitability. However, a healthy equity position provides some financial stability.

Income Statement

IO Biotech's income statement indicates significant financial challenges. The company has reported negative net income consistently, with a large net loss of -$90.34 million in the latest TTM period. The gross profit margin is positive but low at 43.6% due to modest revenue generation. There are no signs of revenue growth as the company had zero revenue in previous years, indicating a nascent stage or challenges in commercialization.

Balance Sheet

The balance sheet shows a relatively healthy equity position with a substantial stockholders' equity of $72.57 million against total liabilities of $17.38 million, resulting in a low debt-to-equity ratio. Despite these positive signs, the company has seen a decline in total assets and cash reserves, reflecting potential liquidity concerns.

Cash Flow

The cash flow analysis reveals negative operating and free cash flows, indicating the company is heavily reliant on financing to sustain operations. With a negative free cash flow of -$85.66 million in the TTM, the company faces challenges in achieving positive cash flow, which is critical for its long-term sustainability.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.11M	0.00	0.00	0.00	0.00	0.00
	Gross Profit
484.00K	-756.00K	-540.00K	0.00	0.00	0.00
	EBIT
-96.42M	-91.44M	-71.42M	-41.23M	-10.14M	-9.91M
	EBITDA
-93.23M	-91.23M	-69.34M	-67.45M	0.00	-824.00K
	Net Income Common Stockholders
-90.34M	-86.08M	-71.46M	-67.88M	-12.07M	-10.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.85M	143.19M	142.59M	211.53M	3.40M	7.85M
	Total Assets
0.00	150.72M	151.81M	222.29M	5.65M	9.42M
	Total Debt
0.00	2.49M	2.79M	0.00	0.00	8.66M
	Net Debt
7.85M	-140.70M	-139.80M	-211.53M	-3.40M	817.00K
	Total Liabilities
0.00	17.56M	12.95M	10.36M	40.96M	32.95M
	Stockholders Equity
-1.47M	133.16M	138.85M	211.92M	-35.30M	-23.53M
Cash Flow		Free Cash Flow
-85.66M	-72.06M	-60.42M	-40.80M	-9.96M	-8.89M
	Operating Cash Flow
-85.52M	-71.74M	-59.73M	-40.65M	-9.96M	-8.89M
	Investing Cash Flow
-145.00K	-323.00K	-690.00K	-153.00K	0.00	0.00
	Financing Cash Flow
-10.00K	71.86M	0.00	252.95M	5.10M	9.01M

IO Biotech Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.94
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IOBT, the sentiment is Neutral. The current price of 0.94 is below the 20-day moving average (MA) of 0.95, below the 50-day MA of 0.96, and below the 200-day MA of 1.05, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 48.34 is Neutral, neither overbought nor oversold. The STOCH value of 71.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IOBT.

IO Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.31B	3.33	-39.82%	2.92%	17.95%	1.84%
ADAP	45 Neutral	$67.13M	―	-273.36%	―	194.23%	45.50%
KRON	45 Neutral	$52.49M	―	-69.80%	―	56.62%	26.48%
IOBT	43 Neutral	$60.79M	―	-106.00%	―	―	32.77%
CABA	39 Underperform	$62.41M	―	-59.64%	―	―	-40.59%
AVTX	37 Underperform	$57.42M	―	-50.06%	―	-77.09%	63.49%
BMEA	35 Underperform	$65.75M	―	-125.38%	―	―	-10.99%

IO Biotech Corporate Events

IO Biotech Advances Phase 3 Trial and Secures Financing

On March 4, 2025, IO Biotech announced significant progress in its clinical trials and financial position. The company completed enrollment for its Phase 3 trial of Cylembio, an investigational cancer vaccine, and plans to submit a Biologics License Application to the FDA by the end of 2025. Additionally, IO Biotech secured up to €57.5 million in debt financing from the European Investment Bank, which is expected to extend its cash runway into the second quarter of 2026. These developments position IO Biotech for potential commercialization of its therapeutic cancer vaccine in 2026, pending FDA approval.