NextCure (NXTC) AI Stock Analysis

• Market Cap: $12.70M
• Dividend Yield: N/A
• Average Volume (3M): 274.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: N/A
• EPS Growth: 22.63%
• Country: US
• Employees: 43
• Sector: Healthcare
• Sector Strength: 46
• Industry: Biotechnology
• EPS (TTM): -0.39
• Shares Outstanding: 28,050,192
• 10 Day Avg. Volume: 572,843
• 30 Day Avg. Volume: 274,272
• PEG Ratio: 1.41
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.70
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 1.56
• Enterprise Value/Gross Profit: -27.98
• Enterprise Value/Ebitda: -0.09
• 1Y Price Target: $3.00
• Price Target Upside: 566.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• 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

Clinical Trial Progress

The progress on the dose escalation portion of the Phase 1 trial for LNCB74 is viewed as a positive signal of safety with no dose-limiting toxicities noted.

Patient Enrollment

The increase in the number of active trial sites is expected to boost enrollment speed and assist NextCure in achieving its plan for a proof-of-concept data readout.

Preclinical Efficacy

NextCure's LNCB74 has demonstrated superior efficacy in preclinical results compared to similar competitors, indicating potential for better outcomes.

Negative Factors

Benchmark for Success

Initial data in the B7-H4 ADC class have shown objective response rates of approximately 20-25% across all solid tumors, which is considered a benchmark for success.

Competitive Landscape

The B7-H4 ADC landscape remains competitive with several clinical stage players, posing a challenge for NextCure.

NextCure Business Overview & Revenue Model

Company Description

NextCure, Inc., a clinical-stage biopharmaceutical company, engages in discovering and developing novel immunomedicines to treat cancer and other immune-related diseases by restoring normal immune function. Its lead product candidate is NC318, which is in Phase II clinical trials for the treatment of advanced or metastatic solid tumors. The company is also developing NC410, which is in Phase I for novel immunomedicine designed to block immune suppression mediated by an immune modulator called Leukocyte-Associated Immunoglobulin-like Receptor 1; NC762, an immunomedicine targeting a molecule called human B7 homolog 4 protein, or B7-H4; and NC525, a novel LAIR-1 antibody which is in Preclinical trails that targets acute myeloid leukemia, blast cells, and leukemic stem cells. Its discovery and research programs include an antibody in preclinical evaluation of other potential novel immunomodulatory molecules. The company has a license agreement with Yale University. NextCure, Inc. was incorporated in 2015 and is headquartered in Beltsville, Maryland.

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
0.00	0.00	0.00	0.00	0.00	22.38M
	Gross Profit
-701.00K	0.00	-3.68M	-4.48M	-4.30M	22.33M
	EBIT
-53.07M	-59.75M	-67.64M	-75.91M	-70.77M	-41.23M
	EBITDA
-50.34M	-52.79M	-59.04M	-70.25M	-65.01M	-37.81M
	Net Income Common Stockholders
-49.52M	-55.65M	-62.72M	-69.43M	-69.39M	-33.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
55.86M	68.62M	108.30M	159.91M	219.59M	283.45M
	Total Assets
67.14M	80.86M	128.04M	184.16M	242.39M	306.64M
	Total Debt
4.91M	5.95M	6.61M	7.12M	0.00	3.47M
	Net Debt
-16.91M	-21.78M	-6.48M	-19.51M	-12.34M	-29.30M
	Total Liabilities
11.28M	15.39M	13.62M	16.63M	9.00M	12.92M
	Stockholders Equity
55.85M	65.47M	114.42M	167.53M	233.39M	293.72M
Cash Flow		Free Cash Flow
-41.63M	-41.28M	-53.79M	-56.00M	-59.60M	-52.09M
	Operating Cash Flow
-41.19M	-40.80M	-52.97M	-53.89M	-57.24M	-44.95M
	Investing Cash Flow
44.52M	55.31M	39.27M	67.98M	36.60M	43.52M
	Financing Cash Flow
143.00K	144.00K	154.00K	200.00K	-3.27M	-1.42M

NextCure Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.45
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXTC, the sentiment is Negative. The current price of 0.45 is below the 20-day moving average (MA) of 0.52, above the 50-day MA of 0.45, and below the 200-day MA of 0.88, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 43.69 is Neutral, neither overbought nor oversold. The STOCH value of 3.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NXTC.

NextCure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$5.24B	3.26	-44.35%	6.48%	16.78%	-0.10%
CARM	49 Neutral	$20.99M	―	-362.79%	―	32.45%	39.31%
SABS	49 Neutral	$16.54M	―	-92.35%	―	-85.48%	45.13%
MBRX	44 Neutral	$8.24M	―	-214.79%	―	―	52.82%
HOOK	44 Neutral	$15.92M	―	-105.79%	―	-82.54%	-12.53%
CBIO	40 Underperform	$9.43M	―	11.62%	―	-100.00%	-0.58%
NXTC	36 Underperform	$12.70M	―	-63.94%	―	―	22.63%

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.