Nuvalent (NUVL) AI Stock Analysis

• Market Cap: $5.26B
• Dividend Yield: N/A
• Average Volume (3M): 635.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: N/A
• EPS Growth: -81.09%
• Country: US
• Employees: 142
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -3.91
• Shares Outstanding: 66,162,670
• 10 Day Avg. Volume: 544,481
• 30 Day Avg. Volume: 635,944
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -22.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $112.75
• Price Target Upside: 53.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

Nuvalent scores low overall due to its financial performance, which is typical for early-stage biotech companies facing high R&D expenses and lack of revenue. The technical analysis suggests potential downward momentum, and valuation metrics reflect the company's financial challenges, which contribute to a cautious outlook.

Positive Factors

Clinical Advancements

Both studies are de-risked given the positive updated Ph 1 results for both programs that were presented at ESMO.

Financial Stability

NUVL ended the quarter with cash, cash equivalents and marketable securities of $1.2B, which it believes is sufficient to fund its operating plan into 2028.

Market Strategy

A defined strategy to pursue the significant 1L ALK+ NSCLC market and a healthy balance sheet support the company’s long-range plan.

Negative Factors

Commercial Potential

While zidesaminib's clinical profile in ROS1 is well-appreciated by investors, its commercial potential remains under-appreciated.

Safety Concerns

Safety looked not as clean as that of zidesaminib, with 6.5% discontinuations, 29% dose reductions, neurologic AEs, and liver/GI signals including 1% treatment-related deaths across TRUST-I and TRUST-II.

Nuvalent Business Overview & Revenue Model

Company Description

Nuvalent, Inc. is an innovative biotechnology company focused on creating small molecule medicines for patients with cancer. The company specializes in developing precision-targeted therapies for clinically proven kinase targets in cancer treatment. Nuvalent's core products are designed to address the limitations of existing therapies, with a focus on resistance, selectivity, and brain penetration to provide significant improvements for patients.

How the Company Makes Money

Nuvalent makes money through the development and commercialization of its proprietary drug candidates. The company's revenue model primarily involves bringing its pipeline of targeted cancer therapies through clinical trials and regulatory approval to eventually enter the market. Once approved, these therapies can generate income through sales, licensing agreements, and potential partnerships with larger pharmaceutical companies. Additionally, Nuvalent may engage in collaborations that provide milestone payments and royalties, contributing to its earnings.

Nuvalent Financial Statement Overview

Summary

Nuvalent's financial statements reflect a typical early-stage biotechnology company with no revenue and high R&D expenses. The strong cash reserves and lack of debt are positives, but the ongoing losses and reliance on external financing highlight the risks associated with pre-revenue biotech firms. The company's financial health is contingent on its ability to continue attracting investment or achieving scientific breakthroughs that lead to revenue generation.

Income Statement

Nuvalent's income statement reflects a company in the early stages of development with no revenue generation, which is typical for biotechnology firms focused on R&D. The negative EBIT and net income margins highlight ongoing operational and research expenses. The continuous increase in net losses indicates significant investment in research without offsetting revenue.

Balance Sheet

The balance sheet shows a strong cash position with no debt, which provides financial flexibility. However, the absence of revenue and increasing losses raise concerns about long-term sustainability without future capital raises. The company has maintained positive stockholders' equity, which is a positive sign amidst increasing liabilities.

Cash Flow

Nuvalent's cash flow statements reveal negative operating cash flow, consistent with its development stage. The free cash flow is negative, indicating that the company is not yet generating cash from operations. The company relies heavily on financing activities to support its cash flow needs, which presents a potential risk if financing conditions change.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	0.00	0.00	0.00	0.00
	EBIT
-280.37M	-149.49M	-86.11M	-45.82M	-16.91M
	EBITDA
-280.37M	-126.22M	-86.11M	-45.82M	2.35M
	Net Income Common Stockholders
-260.76M	-126.22M	-73.35M	-46.34M	-14.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.12B	719.90M	472.16M	288.11M	10.33M
	Total Assets
1.14B	732.38M	482.46M	293.82M	10.65M
	Total Debt
0.00	0.00	0.00	0.00	2.23M
	Net Debt
-145.69M	-335.39M	-241.81M	-68.53M	-8.10M
	Total Liabilities
71.96M	31.82M	19.48M	8.79M	41.97M
	Stockholders Equity
1.07B	700.56M	462.98M	285.04M	-31.32M
Cash Flow		Free Cash Flow
-185.06M	-99.74M	-64.97M	-40.00M	-14.95M
	Operating Cash Flow
-185.06M	-99.74M	-64.97M	-40.00M	-14.95M
	Investing Cash Flow
-573.51M	-143.53M	-10.66M	-220.03M	0.00
	Financing Cash Flow
568.88M	336.85M	248.92M	318.22M	22.27M

Nuvalent Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 73.48
• 50DMA: Positive
• 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 NUVL, the sentiment is Neutral. The current price of 73.48 is above the 20-day moving average (MA) of 68.87, above the 50-day MA of 72.90, and below the 200-day MA of 83.85, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 54.90 is Neutral, neither overbought nor oversold. The STOCH value of 92.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NUVL.

Nuvalent Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRYS	70 Outperform	$4.86B	56.24	10.34%	―	473.02%	1620.44%
VRNA	56 Neutral	$5.54B	―	-76.51%	―	―	-213.94%
BPMC	55 Neutral	$5.17B	―	-31.26%	―	104.04%	87.80%
RVMD	52 Neutral	$7.21B	―	-29.33%	―	-100.00%	5.49%
Sector *	51 Neutral	$5.32B	3.41	-40.36%	2.89%	17.93%	2.52%
AXSM	46 Neutral	$5.18B	―	-231.63%	―	42.53%	-15.29%
NUVL	35 Underperform	$5.26B	―	-29.46%	―	―	-81.09%

Nuvalent Corporate Events

Nuvalent Board Member Resigns, Joins Advisory Board

On April 11, 2025, D. Gary Gilliland, M.D., Ph.D., announced his resignation from the board of directors of Nuvalent, Inc., effective at the company’s 2025 annual meeting of stockholders. Following his resignation, Dr. Gilliland is expected to join Nuvalent’s scientific advisory board as a consultant, with no disagreements prompting his departure.

Spark’s Take on NUVL Stock

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

Nuvalent’s financial health is in line with early-stage biotech firms, with strong cash reserves but high ongoing losses. Technical indicators suggest a bearish trend, and valuation is challenging due to negative earnings. The company’s future depends on its ability to achieve breakthroughs that can drive revenue or continue securing investment.

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