Lexeo Therapeutics, Inc. (LXEO) AI Stock Analysis

• Market Cap: $147.73M
• Dividend Yield: N/A
• Average Volume (3M): 654.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.38
• Revenue Growth: N/A
• EPS Growth: -24.18%
• Country: US
• Employees: 75
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): -0.99
• Shares Outstanding: 33,197,000
• 10 Day Avg. Volume: 553,924
• 30 Day Avg. Volume: 654,938
• PEG Ratio: -0.24
• Price to Book (P/B): -2.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.47
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -371.10
• Enterprise Value/Ebitda: -0.49
• 1Y Price Target: $16.25
• Price Target Upside: 265.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 38 Underperform
• Price Target: ―

Lexeo Therapeutics' overall score is primarily hindered by its poor financial performance, characterized by no revenue and increasing losses. Technical analysis reflects a bearish trend, and valuation metrics are weak due to the company's unprofitability. However, recent positive trial results offer a glimmer of hope for future prospects, slightly balancing the risks. The company's reliance on external financing remains a critical risk factor.

Positive Factors

Clinical Trials

Lexeo's LX2020 has demonstrated a remarkable safety profile with no treatment-related serious adverse events to date across both dose cohorts.

Financial Stability

The private placement agreement extends cash runway into 2028, providing financial stability for the company.

Regulatory Progress

Lexeo recently aligned with the FDA on additional elements of the accelerated development pathway for LX2006 in FA cardiomyopathy, which seems generally favorable based on available data.

Negative Factors

Market Sentiment

LXEO trades at negative enterprise value, reflecting poor sentiment in gene therapy and broader market sell-off.

Regulatory Uncertainty

There are ongoing debates on regulatory uncertainty with new leadership at the FDA's Center for Biologics Evaluation and Research.

Stock Performance

Shares have underperformed significantly compared to the broader index, highlighting investor concerns.

Lexeo Therapeutics, Inc. Business Overview & Revenue Model

Company Description

Lexeo Therapeutics, Inc. operates as a clinical-stage genetic medicine company that focuses on hereditary and acquired diseases. The company develops LX2006, which is an AAVrh10-based gene therapy candidate for the treatment of Friedreich's ataxia (FA) cardiomyopathy; LX2020, an AAVrh10-based gene therapy candidate for the treatment of arrhythmogenic cardiomyopathy; LX2021, a gene therapy candidate for the treatment of DSP cardiomyopathy associated with it; and LX2022, a gene therapy candidate for the treatment of HCM caused by TNNI3 mutations. It also develops LX1001, an AAVrh10-based gene therapy candidate for the treatment of APOE4 homozygous; LX1020, a gene therapy candidate for the treatment of APOE4 homozygous; LX1021 for the treatment of APOE4 homozygotes; and LX1004 for the treatment of CLN2 Batten disease. The company was incorporated in 2017 and is based in New York, New York.

How the Company Makes Money

Lexeo Therapeutics, Inc. generates revenue primarily through the development and commercialization of its gene therapy products. The company may earn income from licensing agreements, research and development collaborations, and partnerships with pharmaceutical companies. Additionally, Lexeo may receive funding through grants, government contracts, or milestone payments related to the clinical progression and commercialization of its therapies. Strategic alliances and partnerships with larger pharmaceutical companies could also contribute to Lexeo's revenue stream, providing access to broader distribution networks and additional resources for product development.

Lexeo Therapeutics, Inc. Financial Statement Overview

Summary

Lexeo Therapeutics faces significant operational risks with no revenue and growing losses, as reflected by its income statement. While the balance sheet shows improved equity positions, high liabilities remain a concern. The cash flow situation indicates a heavy reliance on external financing, posing long-term sustainability risks.

Income Statement

Over the last five years, Lexeo Therapeutics has consistently reported no revenue, highlighting the challenges in revenue generation typical in the biotech industry. The company has faced substantial net losses, with a deteriorating net income trend from -$5.15 million in 2020 to -$98.33 million in 2024. The absence of EBIT and EBITDA margins further underscores the company's struggle to achieve profitability. This trend indicates a high-risk profile with substantial room for improvement in operational efficiency and revenue generation.

Balance Sheet

Lexeo Therapeutics maintains a relatively strong equity position with stockholders' equity increasing from a negative position in 2020 to $116.84 million in 2024. The debt-to-equity ratio has improved due to reduced liabilities and increased equity, indicating prudent financial management. However, the company’s total assets have only seen modest growth, limiting its expansion potential. The equity ratio is positive, but the high liabilities relative to assets remain a concern.

Cash Flow

The cash flow statement shows a consistent trend of negative operating cash flow, with a significant increase in cash outflow from operations in 2024 compared to previous years. Free cash flow remains negative, indicating ongoing challenges in cash generation. The company relies heavily on financing activities, as seen from the positive financing cash flows, to sustain its operations. This reliance poses risks if external funding sources diminish.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	654.00K	1.66M	518.48K
Gross Profit	-496.00K	0.00	-1.84M	-491.00K	1.64M	518.48K
EBITDA	-109.51M	-96.22M	-66.67M	-58.04M	-50.62M	-4.59M
Net Income	-109.31M	-98.33M	-66.39M	-59.28M	-50.62M	-5.15M
Balance Sheet
Total Assets	125.69M	146.94M	139.81M	97.08M	136.86M	29.41M
Cash, Cash Equivalents and Short-Term Investments	99.83M	121.52M	121.47M	77.33M	135.86M	29.37M
Total Debt	9.40M	9.92M	11.64M	13.48M	0.00	3.01M
Total Liabilities	37.58M	30.10M	26.27M	210.03M	192.46M	34.95M
Stockholders Equity	88.11M	116.84M	113.53M	-112.95M	-55.60M	-5.54M
Cash Flow
Free Cash Flow	-88.28M	-81.63M	-59.66M	-55.46M	-44.37M	-3.13M
Operating Cash Flow	-88.00M	-81.15M	-59.50M	-54.56M	-44.18M	-3.13M
Investing Cash Flow	-78.28M	-94.08M	-165.00K	-901.00K	-188.00K	0.00
Financing Cash Flow	133.00K	88.78M	103.79M	189.00K	150.86M	32.38M

Lexeo Therapeutics, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LXEO, the sentiment is Positive. The current price of 4.45 is above the 20-day moving average (MA) of 4.12, above the 50-day MA of 3.59, and below the 200-day MA of 5.46, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 62.69 is Neutral, neither overbought nor oversold. The STOCH value of 82.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LXEO.

Lexeo Therapeutics, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$7.50B	0.31	-61.87%	2.27%	17.10%	1.59%
IVVD	44 Neutral	$88.18M	―	-122.69%	―	―	20.91%
LXEO	38 Underperform	$147.73M	―	-80.65%	―	―	-24.18%
ABOS	36 Underperform	$70.27M	―	-55.68%	―	―	-57.45%
BMEA	35 Underperform	$94.66M	―	-156.81%	―	―	-10.99%
UNCY	28 Underperform	$58.73M	―	-2355.27%	―	-100.00%	52.65%
GNTA		$69.50M	―	-54.30%	―	―	―

Lexeo Therapeutics, Inc. Corporate Events

Lexeo Therapeutics Reports Positive Interim Trial Results

On April 7, 2025, Lexeo Therapeutics announced positive interim results from their Phase 1/2 clinical trial of LX2006, a potential first-in-class treatment for Friedreich ataxia cardiomyopathy. The data showed significant improvements in cardiac biomarkers, including a 25% reduction in Left Ventricular Mass Index (LVMI) among participants with abnormal baseline levels, and demonstrated the treatment’s safety and efficacy. This progress aligns with FDA guidelines for an accelerated approval pathway, positioning Lexeo to initiate a registrational study by late 2025 or early 2026.