LENZ Therapeutics (LENZ) AI Stock Analysis

• Market Cap: $891.39M
• Dividend Yield: N/A
• Average Volume (3M): 307.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: N/A
• EPS Growth: 68.93%
• Country: US
• Employees: 6
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.53
• Shares Outstanding: 28,146,154
• 10 Day Avg. Volume: 244,139
• 30 Day Avg. Volume: 307,082
• PEG Ratio: -0.30
• Price to Book (P/B): 4.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.91
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -32.14K
• Enterprise Value/Ebitda: -3.48
• 1Y Price Target: $48.67
• Price Target Upside: 58.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• 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

Clinical Efficacy

Phase II and Phase III studies of LNZ100 showed impressive efficacy, indicating a potential blockbuster opportunity for the product.

Financial Performance

Lenz has signed multiple international license and commercialization agreements for LNZ100, including over $195 million in upfront and milestone payments and double-digit royalties on net sales.

Regulatory Progress

The FDA’s review of the LNZ100 NDA continues to progress with no delays or interruptions to date.

Negative Factors

Market Competition

LNZ100's novel aceclidine-based formulation must demonstrate durable all-day efficacy with a well-tolerated safety profile to gain strong support from key opinion leaders.

Operational Risk

Management continues to focus on on-boarding the sales force and continuing the unbranded campaign to raise awareness about presbyopia to prepare for launch.

LENZ Therapeutics Business Overview & Revenue Model

Company Description

LENZ Therapeutics (LENZ) is a biopharmaceutical company focused on developing innovative treatments for eye diseases. The company operates in the healthcare sector, specifically targeting ophthalmology, with a primary emphasis on developing therapies for presbyopia and other vision-related disorders. LENZ leverages cutting-edge science and technology to create novel therapeutics that address unmet medical needs in the field of eye care.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	15.00M	0.00	0.00
Gross Profit	-58.00K	-2.41M	6.65M	-734.00K	-121.00K
EBITDA	-49.71M	-122.24M	-97.29M	-70.03M	-68.21M
Net Income	-49.77M	-124.65M	-101.05M	-70.76M	-68.37M
Balance Sheet
Total Assets	215.30M	188.46M	321.90M	401.99M	22.56M
Cash, Cash Equivalents and Short-Term Investments	209.03M	185.86M	268.23M	376.98M	19.82M
Total Debt	1.38M	362.00K	5.79M	0.00	0.00
Total Liabilities	11.22M	4.87M	25.61M	12.14M	32.36M
Stockholders Equity	204.08M	183.58M	296.29M	389.84M	-9.80M
Cash Flow
Free Cash Flow	-59.86M	-60.41M	-94.57M	-58.59M	-10.27M
Operating Cash Flow	-59.39M	-60.38M	-87.98M	-52.85M	-8.72M
Investing Cash Flow	-154.48M	-29.62M	-241.86M	-5.74M	-1.54M
Financing Cash Flow	199.00M	80.70M	597.00K	417.47M	30.08M

LENZ Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.76
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LENZ, the sentiment is Neutral. The current price of 30.76 is below the 20-day moving average (MA) of 32.93, below the 50-day MA of 30.85, and above the 200-day MA of 28.18, indicating a neutral trend. The MACD of 0.29 indicates Positive momentum. The RSI at 43.97 is Neutral, neither overbought nor oversold. The STOCH value of 10.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LENZ.

LENZ Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMNM	52 Neutral	$922.33M	―	-69.21%	―	-13.76%	57.73%
PRTA	51 Neutral	$373.02M	―	-23.46%	―	54.55%	36.41%
Sector *	50 Neutral	AU$2.65B	3.33	-57.47%	2.67%	36.37%	14.48%
BCAX	48 Neutral	$626.62M	―	34.94%	―	―	―
LENZ	46 Neutral	$891.39M	―	-24.47%	―	―	68.93%
REPL	42 Neutral	$291.78M	―	-62.58%	―	―	4.28%
RCKT	40 Underperform	$335.06M	―	-60.45%	―	―	6.99%

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.