LENZ Therapeutics (LENZ) AI Stock Analysis

• Market Cap: $888.64M
• Dividend Yield: N/A
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: N/A
• EPS Growth: 70.19%
• Country: US
• Employees: 6
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.59
• Shares Outstanding: 31,289,968
• 10 Day Avg. Volume: 1,636,498
• 30 Day Avg. Volume: 1,384,608
• PEG Ratio: 0.15
• Price to Book (P/B): 3.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.26
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 64.47
• Enterprise Value/Gross Profit: 65.07
• Enterprise Value/Ebitda: -17.22
• 1Y Price Target: $57.60
• Price Target Upside: 102.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -2.59
• Revenue Forecast (FY): $18.93M

• Rating: 46 Neutral
• Price Target: ―

LENZ Therapeutics is navigating significant financial challenges with ongoing losses and negative cash flows, underscoring the need for strategic improvement to achieve profitability. While the earnings call highlights positive regulatory and commercial developments, the stock is burdened by a weak valuation profile due to negative earnings. The technical analysis presents a neutral to slightly bearish outlook, which, combined with financial hurdles, results in a cautious overall score.

Positive Factors

Regulatory Progress

Regulatory progress without significant issues positions LENZ well for FDA approval, enhancing its ability to bring LNZ100 to market and capture market share.

Strong Financial Position

A robust cash position provides LENZ with the financial runway necessary to support its pre-launch activities and strategic initiatives, reducing liquidity risks.

Intellectual Property Strength

A strong patent portfolio protects LENZ's innovations, ensuring competitive advantage and potential market exclusivity until at least 2044.

Negative Factors

Persistent Financial Losses

Ongoing financial losses highlight operational challenges, affecting LENZ's ability to achieve profitability and requiring strategic pivots for sustainable growth.

Delayed Product Availability

Delays in product availability post-approval could hinder revenue generation and market penetration, impacting LENZ's growth trajectory.

Increased Operating Expenses

Rising operating expenses due to increased headcount and pre-launch activities may pressure margins, necessitating efficient cost management.

LENZ Therapeutics Business Overview & Revenue Model

Company Description

LENZ Therapeutics, Inc., a biopharmaceutical company, focuses on developing and commercializing therapies to improve vision in the United States. Its product candidates include LNZ100 and LNZ101 which are in Phase III clinical trials for the treatment of presbyopia. The company is headquartered in Del Mar, California.

How the Company Makes Money

LENZ Therapeutics makes money primarily through the development and commercialization of its pharmaceutical products designed to treat eye diseases. The company generates revenue by advancing its drug candidates through clinical trials, obtaining regulatory approvals, and subsequently marketing these drugs to healthcare providers and patients. Additionally, LENZ may engage in strategic partnerships or licensing agreements with other pharmaceutical companies, which can provide upfront payments, milestone payments, and royalties based on product sales. These collaborations can significantly contribute to the company's earnings, allowing LENZ to leverage external resources and market reach while focusing on its core research and development activities.

LENZ Therapeutics Financial Statement Overview

Summary

LENZ Therapeutics faces significant financial challenges, including persistent losses and negative cash flows, despite a strong equity position and minimal leverage. The biotechnology industry is inherently high-risk, and LENZ's current financial trajectory highlights the need for strategic pivots to achieve profitability and sustainable growth. Investors should be cautious, considering the ongoing financial instability and liquidity risks.

Income Statement

The income statement reflects a challenging financial landscape for LENZ Therapeutics, as evidenced by consistent net losses and negative EBIT and EBITDA over multiple reporting periods. The absence of total revenue in recent periods signifies a lack of operational income, while net income remains negative, indicating sustained unprofitability. The firm's gross profit margin is also negative, further highlighting financial difficulties. These factors collectively illustrate significant financial hurdles.

Balance Sheet

LENZ Therapeutics shows a strong equity position, with stockholders' equity accounting for a significant portion of its total assets, resulting in a healthy equity ratio. The debt-to-equity ratio is low, indicating minimal leverage and financial risk. While the company maintains substantial cash reserves, the consistent negative net income affects the return on equity. Overall, the balance sheet displays financial stability but is challenged by profitability concerns.

Cash Flow

The cash flow statement reveals significant cash outflows from operating activities, indicating operational challenges. Although financing activities have provided cash inflows, these are not yet translating into positive free cash flow or net income. The negative free cash flow growth rate suggests ongoing operational cash demands, while the operating cash flow to net income ratio reflects insufficient cash generation relative to net losses. These factors underscore liquidity concerns and the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.50M	0.00	0.00	15.00M	0.00	0.00
Gross Profit	17.34M	-58.00K	0.00	15.00M	-734.00K	-121.00K
EBITDA	-65.51M	-49.71M	-72.41M	-10.47M	-70.03M	-68.21M
Net Income	-58.88M	-49.77M	-69.97M	-10.81M	-70.76M	-68.37M
Balance Sheet
Total Assets	210.70M	215.30M	70.38M	46.95M	18.34M	22.56M
Cash, Cash Equivalents and Short-Term Investments	202.17M	209.03M	65.79M	44.44M	18.31M	19.82M
Total Debt	461.00K	1.38M	329.00K	250.00K	0.00	0.00
Total Liabilities	16.78M	11.22M	163.09M	71.12M	32.55M	32.36M
Stockholders Equity	193.93M	204.08M	-92.71M	-24.17M	-14.21M	-9.80M
Cash Flow
Free Cash Flow	-46.16M	-59.86M	-60.41M	-94.57M	-58.59M	-10.27M
Operating Cash Flow	-45.22M	-59.39M	-60.38M	-87.98M	-52.85M	-8.72M
Investing Cash Flow	2.28M	-154.48M	-29.62M	-241.86M	-5.74M	-1.54M
Financing Cash Flow	27.18M	199.00M	80.70M	597.00K	417.47M	30.08M

LENZ Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LENZ, the sentiment is Negative. The current price of 28.4 is above the 20-day moving average (MA) of 27.41, below the 50-day MA of 36.15, and below the 200-day MA of 30.94, indicating a neutral trend. The MACD of -2.78 indicates Negative momentum. The RSI at 45.68 is Neutral, neither overbought nor oversold. The STOCH value of 89.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LENZ.

LENZ Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVAC	70 Outperform	$1.18B	5.75	―	―	799.36%	―
STOK	60 Neutral	$1.63B	43.16	15.02%	―	1128.17%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SNDX	48 Neutral	$1.45B	―	-129.32%	―	597.19%	0.45%
LENZ	46 Neutral	$888.64M	―	-28.78%	―	―	70.19%
TRML	45 Neutral	―	―	-29.62%	―	―	6.66%
RAPP	44 Neutral	$1.28B	―	-23.41%	―	―	―

LENZ Therapeutics Corporate Events

LENZ Therapeutics Hosts Commercial Day for LNZ100

LENZ Therapeutics is hosting a Commercial Day on April 15, 2025, to provide updates on the potential approval and launch of LNZ100. The event will cover commercialization strategies, supply chain readiness, and insights from Key Opinion Leaders and Eye Care Professionals.

Spark’s Take on LENZ Stock

According to Spark, TipRanks’ AI Analyst, LENZ is a Underperform.

LENZ Therapeutics faces significant financial challenges with persistent losses and negative cash flows, despite a strong equity position. The negative P/E ratio and lack of dividend suggest a high-risk valuation. Technical indicators further highlight bearish sentiment. However, positive strides in regulatory progress and a promising future outlook from the earnings call provide some optimism. Investors should weigh these risks against potential long-term rewards.

To see Spark’s full report on LENZ stock, click here.