LAVA Therapeutics (LVTX) AI Stock Analysis

• Market Cap: $34.46M
• Dividend Yield: N/A
• Average Volume (3M): 39.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -60.20%
• EPS Growth: 3.85%
• Country: US
• Employees: 34
• Sector: Healthcare
• Sector Strength: 59
• Industry: Biotechnology
• EPS (TTM): -0.13
• Shares Outstanding: 26,305,296
• 10 Day Avg. Volume: 59,690
• 30 Day Avg. Volume: 39,747
• PEG Ratio: 0.07
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.25
• Enterprise Value/Market Cap: -0.12
• Enterprise Value/Revenue: -0.13
• Enterprise Value/Gross Profit: -0.87
• Enterprise Value/Ebitda: 0.04
• 1Y Price Target: $1.25
• Price Target Upside: -4.58% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 54 Neutral
• Price Target: $1.50 ▲(14.50%Upside)

LAVA Therapeutics' score is primarily impacted by significant financial challenges, including persistent losses and declining equity. However, technical indicators show positive short-term trends, and recent corporate events suggest increased confidence in governance. Despite these positives, the valuation remains unattractive due to the negative P/E ratio.

Positive Factors

Clinical Development

The LAVA-1266 study is advancing as planned and is considered a potential upside if it could achieve meaningful clinical milestones.

Financial Performance

The company reported license revenue of $5M and a net loss of $0.14 per share, better than the consensus estimate of revenue of $2.5M and a net loss of 0.30 per share.

Strategic Review

Lava's ongoing strategic review may conclude in a value-accretive outcome for the company.

Negative Factors

Clinical Asset Concerns

There is a lack of confidence that the shortcomings of the company's prior programs will be adequately addressed with different targets and indications.

Revenue and Losses

For 1Q25, the company reported no revenue and a net loss of $0.13 per share.

Strategic Uncertainties

Uncertainties are generated regarding the company’s only clinical asset, LAVA-1266 for hematological malignancies, as it depends on the outcome of the strategic review.

LAVA Therapeutics Business Overview & Revenue Model

Company Description

LAVA Therapeutics N.V., a clinical-stage immuno-oncology company, focuses on developing cancer treatments. The company, through its Gammabody platform, develops a portfolio of novel bispecific antibodies to engage and leverage the potency and precision of gamma delta T cells to elicit an anti-tumor immune response and enhance outcomes for cancer patients. Its lead clinical-stage candidates are LAVA-051, which is in Phase 1/2a clinical trial for blood cancers, including chronic lymphocytic leukemia, multiple myeloma, and acute myeloid leukemia; and LAVA-1207 that is in Phase 1/2a clinical trial for metastatic castration-resistant prostate cancer. The company is also developing other Gammabody drug candidates, which include LAVA-1223, which targets the epidermal growth factor receptor (EGFR) for the treatment of selected solid tumors, as well as LAVA-1266 and LAVA-1278, which are preclinical candidates for the treatment of various hematologic malignancies. LAVA Therapeutics N.V. has a research collaboration and license agreement with Janssen Biotech, Inc. for the potential discovery and development of multi-specific antibody products that are directed to a specified target in various fields of use. The company was incorporated in 2016 and is headquartered in Utrecht, the Netherlands.

How the Company Makes Money

LAVA Therapeutics generates revenue through a combination of research and development collaborations, licensing agreements, and potential milestone payments associated with its proprietary bispecific gamma-delta T cell engaging antibody platform. The company enters partnerships with larger pharmaceutical companies to co-develop and commercialize its therapeutic candidates, which often includes upfront payments, research funding, and royalties on net sales if the products reach the market. Additionally, LAVA may receive government grants or other funding to support its research endeavors.

LAVA Therapeutics Financial Statement Overview

Summary

LAVA Therapeutics is navigating significant financial hurdles typical for early-stage biotech firms. With fluctuating revenue and consistent negative net income, the company struggles with profitability. The low debt usage is a positive aspect, but declining equity and persistent cash flow issues highlight the need for strategic improvement.

Income Statement

LAVA Therapeutics has shown erratic revenue growth, with a drop from 2022 to 2023 followed by a recovery in 2024. However, the company has consistently reported negative net income, leading to negative net profit margins. The EBIT and EBITDA margins are also negative, indicating ongoing operational challenges. Despite a gross profit margin that is positive, the firm struggles to control costs and generate profit.

Balance Sheet

The debt-to-equity ratio has been relatively low, indicating conservative use of debt. However, the stockholders' equity has been declining, and the equity ratio is decreasing, suggesting weakening financial stability. The return on equity remains negative, reflecting the company's inability to generate profit from shareholders' funds.

Cash Flow

Operating cash flow has been negative, though there was a slight improvement in 2024. Free cash flow remains negative, indicating that the company is struggling to generate cash from operations after capital expenditures. The free cash flow to net income ratio is poor, highlighting inefficiencies in converting revenue into cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.99M	11.98M	6.77M	19.39M	5.35M	3.75M
	Gross Profit
4.76M	11.52M	3.29M	19.39M	5.35M	-11.95M
	EBIT
-27.74M	-29.69M	-43.25M	-34.84M	-43.61M	-14.67M
	EBITDA
-23.68M	-23.50M	-40.53M	-30.88M	-41.02M	-14.65M
	Net Income Common Stockholders
-28.04M	-25.11M	-41.97M	-31.91M	-42.35M	-15.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
66.56M	76.58M	95.57M	132.87M	151.01M	19.43M
	Total Assets
71.16M	80.83M	101.71M	143.43M	157.87M	25.16M
	Total Debt
312.00K	5.28M	6.31M	5.45M	5.52M	5.01M
	Net Debt
-39.36M	-29.73M	-37.92M	-94.88M	-145.50M	-14.42M
	Total Liabilities
45.37M	53.09M	50.53M	57.38M	23.67M	15.80M
	Stockholders Equity
25.78M	27.75M	51.18M	86.04M	134.19M	9.36M
Cash Flow		Free Cash Flow
-16.42M	-19.57M	-41.01M	3.46M	-33.34M	-9.81M
	Operating Cash Flow
-16.39M	-19.54M	-38.97M	4.04M	-32.48M	-9.31M
	Investing Cash Flow
26.92M	12.47M	-17.64M	9.35M	-49.37M	-502.00K
	Financing Cash Flow
-569.00K	-569.00K	-571.00K	283.00K	171.37M	18.97M

LAVA Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.31
• 50DMA: Positive
• 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 LVTX, the sentiment is Positive. The current price of 1.31 is above the 20-day moving average (MA) of 1.31, above the 50-day MA of 1.27, and below the 200-day MA of 1.37, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 51.50 is Neutral, neither overbought nor oversold. The STOCH value of 50.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LVTX.

LAVA Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LVTX	54 Neutral	$34.46M	―	-73.11%	―	-60.20%	3.85%
Sector *	54 Neutral	$5.38B	3.27	-45.10%	3.30%	16.81%	0.02%
RPTX	53 Neutral	$62.92M	―	-71.64%	―	-98.90%	-177.17%
ALGS	53 Neutral	$47.15M	―	-60.44%	―	-76.29%	―
GRCE	46 Neutral	$38.96M	―	-22.89%	―	―	75.74%
GBIO	44 Neutral	$25.67M	―	-70.06%	―	146.47%	57.85%
PYPD	41 Neutral	$34.95M	―	-853.05%	―	―	34.97%

LAVA Therapeutics Corporate Events

LAVA Therapeutics Shareholders Approve Key Proposals in Meeting

On June 11, 2025, LAVA Therapeutics N.V. held its annual general meeting of shareholders, where approximately 62.1% of the company’s common shares were represented. During the meeting, shareholders approved all proposals, including the adoption of the 2024 annual accounts, the appointment of KPMG as external auditor for 2025, the release of board members from liability for 2024, and the reappointment of Jay Backstrom and James Noble as non-executive directors. These approvals reflect shareholder confidence in the company’s governance and strategic direction.

The most recent analyst rating on (LVTX) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on LAVA Therapeutics stock, see the LVTX Stock Forecast page.