NextCure (NXTC) AI Stock Analysis

• Market Cap: $14.85M
• Dividend Yield: N/A
• Average Volume (3M): 18.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: N/A
• EPS Growth: 1.66%
• Country: US
• Employees: 43
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -11.29
• Shares Outstanding: 2,676,110
• 10 Day Avg. Volume: 14,222
• 30 Day Avg. Volume: 18,470
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -1.14
• Enterprise Value/Revenue: -5.15
• Enterprise Value/Gross Profit: 48.83
• Enterprise Value/Ebitda: 0.27
• 1Y Price Target: $17.50
• Price Target Upside: 209.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 36 Underperform
• Price Target: ―

NextCure's overall stock score reflects significant financial challenges, including a lack of revenue and ongoing cash burn typical of early-stage biotech firms. The technical analysis suggests a bearish trend with potential volatility, while valuation metrics are unfavorable due to negative earnings. Despite a positive corporate event related to clinical trials, the company must urgently address its financial sustainability through partnerships or additional funding to enhance its long-term prospects.

Positive Factors

Strong Equity Position

A strong equity position with low debt enhances financial stability, providing a solid foundation for future growth and investment in R&D.

Strategic Partnerships

Strategic partnerships provide essential funding and expertise, facilitating R&D progress and potential revenue streams from milestone payments and royalties.

Pipeline Advancement

Advancing clinical trials like LNCB74 demonstrates NextCure's commitment to innovation and addressing unmet medical needs, potentially enhancing market position.

Negative Factors

Lack of Revenue

The absence of revenue generation poses a challenge to financial sustainability, requiring reliance on external funding and partnerships to continue operations.

Cash Burn

Ongoing cash burn without revenue generation stresses financial resources, necessitating additional funding to maintain operations and support R&D efforts.

Declining Assets

Decreasing assets and equity indicate potential liquidity issues, which could limit NextCure's ability to invest in future growth and innovation.

NextCure Business Overview & Revenue Model

Company Description

NextCure, Inc. (NXTC) is a clinical-stage biopharmaceutical company dedicated to discovering and developing novel, first-in-class immunomedicines to treat cancer and other immune-related diseases. The company's approach is centered around its proprietary Functional, Integrated, NextCure Discovery in Immuno-Oncology (FIND-IO) platform, which enables the identification of targets for new immunotherapies. NextCure's core products focus on addressing unmet medical needs in oncology through innovative therapeutic solutions.

How the Company Makes Money

NextCure primarily generates revenue through strategic collaborations and partnerships with other pharmaceutical and biotechnology companies. These partnerships often involve joint development agreements, where NextCure provides its proprietary technology and expertise in exchange for research funding, milestone payments, and potential royalties on future product sales. Additionally, the company may receive revenue from government grants supporting specific research initiatives. However, as a clinical-stage company, NextCure has not yet achieved commercial sales of its products, which means its revenue streams are largely dependent on these collaborative and developmental agreements.

NextCure Financial Statement Overview

Summary

NextCure's financials reflect a typical early-stage biotech company with no revenue generation and a focus on research and development. The income statement shows operational challenges with negative EBIT and net income. The balance sheet is stable due to a strong equity position and low debt, but declining assets pose sustainability concerns. Cash flow analysis indicates significant cash burn and reliance on cash reserves, highlighting the need for additional funding or revenue generation.

Income Statement

NextCure's income statement shows a lack of revenue generation with consistent negative EBIT and net income, reflecting operational challenges. The absence of revenue growth and negative margins indicate significant financial strain, typical of early-stage biotech companies focused on R&D without marketable products.

Balance Sheet

The balance sheet reflects a strong equity position and low debt levels, with a favorable equity ratio. However, declining total assets and equity over the years pose concerns about sustainability. The company's reliance on cash reserves for funding operations highlights potential liquidity risks if revenue streams don't materialize.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows with no signs of improvement, suggesting ongoing cash burn. The company's cash reserves have decreased substantially, although the ability to generate positive investing cash flow offers some relief. This trend indicates a need for external financing or strategic shifts to ensure long-term viability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.28M	0.00	0.00	0.00	0.00	22.38M
Gross Profit	-346.00K	-2.87M	-3.68M	-4.48M	-4.30M	22.33M
EBITDA	-61.84M	-54.34M	-59.04M	-70.25M	-65.01M	-37.81M
Net Income	-60.93M	-55.65M	-62.72M	-69.43M	-69.39M	-36.60M
Balance Sheet
Total Assets	47.69M	80.86M	128.04M	184.16M	242.39M	306.64M
Cash, Cash Equivalents and Short-Term Investments	35.31M	68.62M	108.30M	159.91M	219.59M	283.45M
Total Debt	4.67M	5.95M	6.61M	7.12M	0.00	3.47M
Total Liabilities	16.04M	15.39M	13.62M	16.63M	9.00M	12.92M
Stockholders Equity	29.65M	65.47M	114.42M	167.53M	233.39M	293.72M
Cash Flow
Free Cash Flow	-54.27M	-41.28M	-53.79M	-56.00M	-59.60M	-52.09M
Operating Cash Flow	-54.13M	-40.80M	-52.97M	-53.89M	-57.24M	-44.95M
Investing Cash Flow	36.12M	55.31M	39.27M	67.98M	36.60M	43.52M
Financing Cash Flow	2.06M	144.00K	154.00K	200.00K	-3.27M	-1.42M

NextCure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXTC, the sentiment is Positive. The current price of 5.66 is above the 20-day moving average (MA) of 5.17, above the 50-day MA of 5.14, and below the 200-day MA of 7.17, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 64.27 is Neutral, neither overbought nor oversold. The STOCH value of 78.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NXTC.

NextCure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SABS	48 Neutral	26.86M	-0.70	-131.33%	―	-95.87%	35.25%
MBRX	44 Neutral	11.93M	-0.09	0.00%	―	0.00%	60.64%
CARM	43 Neutral	13.13M	-0.24	216.69%	―	-48.01%	33.60%
HOOK	40 Underperform	11.21M	-0.15	-84.94%	―	-82.54%	-12.53%
NXTC	36 Underperform	$14.85M	―	-104.07%	―	―	1.66%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

NextCure Corporate Events

NextCure Updates Presentation on LNCB74 Clinical Trial

On April 10, 2025, NextCure updated its corporate presentation to provide insights into its ongoing clinical trial of LNCB74, a differentiated antibody-drug conjugate (ADC) targeting B7-H4, which is being developed in partnership with LigaChem Biosciences. The trial, which began in January 2025, is focused on breast, ovarian, and endometrial cancers, with data readouts expected in the first half of 2026. This development highlights NextCure’s strategic focus on advancing its pipeline of ADCs, leveraging its expertise in B7-H4, and addressing unmet needs in oncology, potentially enhancing its industry positioning and offering new opportunities for stakeholders.

Spark’s Take on NXTC Stock

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

NextCure’s overall stock score is low, reflecting significant financial challenges with no current revenue and ongoing cash burn. Technical analysis shows a bearish trend, and the negative P/E ratio highlights the company’s pre-commercial phase with no earnings. The company must urgently address these issues through strategic partnerships or additional funding to improve its financial stability.

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