Entrada Therapeutics Inc (TRDA) AI Stock Analysis

• Market Cap: $193.61M
• Dividend Yield: N/A
• Average Volume (3M): 259.83K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 1.63
• Revenue Growth: -66.80%
• EPS Growth: -157.68%
• Country: US
• Employees: 183
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.04
• Shares Outstanding: 38,037,080
• 10 Day Avg. Volume: 275,065
• 30 Day Avg. Volume: 259,831
• 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: -0.11
• Enterprise Value/Revenue: -0.27
• Enterprise Value/Gross Profit: -0.28
• Enterprise Value/Ebitda: 0.23
• 1Y Price Target: $18.50
• Price Target Upside: 233.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 41 Neutral
• Price Target: $5.00 ▼(-9.91% Downside)

Entrada Therapeutics Inc. has a low overall stock score due to significant financial challenges, including negative profitability and cash flow issues. The technical analysis indicates bearish momentum, and the valuation metrics are poor with a negative P/E ratio. These factors collectively contribute to the low score.

Positive Factors

Proprietary Technology

Entrada's TET platform offers a unique competitive advantage by enabling effective delivery of therapeutic agents directly into cells, potentially improving treatment outcomes for genetic and rare disorders.

Partnerships and Collaborations

Strategic partnerships provide Entrada with milestone payments and royalties, enhancing revenue potential and supporting drug development, which is crucial for long-term growth in the biotech sector.

Manageable Debt Levels

Low debt levels provide Entrada with financial flexibility, reducing risk and allowing the company to invest in R&D and strategic initiatives without significant financial strain.

Negative Factors

Negative Profitability

Persistent negative profitability indicates challenges in achieving sustainable financial performance, which could hinder Entrada's ability to fund operations and growth initiatives over the long term.

Revenue Decline

Significant revenue decline suggests potential issues in market demand or product pipeline, which could impact Entrada's ability to scale and achieve long-term financial stability.

Cash Flow Challenges

Ongoing cash flow issues may limit Entrada's ability to invest in R&D and operational activities, potentially affecting its capacity to bring new therapies to market and achieve sustainable growth.

Entrada Therapeutics Inc Business Overview & Revenue Model

Company Description

Entrada Therapeutics Inc (TRDA) is a biotechnology company focused on developing transformative therapies for patients with serious diseases, particularly in the field of genetic and rare disorders. The company utilizes its proprietary Transduction Enabled Therapeutics (TET) platform to create drug candidates that can effectively deliver therapeutic agents directly into cells, thereby addressing the underlying causes of diseases. Entrada operates primarily in the biopharmaceutical sector, with a commitment to advancing innovative treatments that leverage its unique technology for improved patient outcomes.

How the Company Makes Money

Entrada Therapeutics generates revenue through a combination of product development partnerships, grants, and potential future product sales. The company collaborates with pharmaceutical firms and research organizations to develop its therapies, often receiving milestone payments and royalties from these partnerships. Additionally, Entrada may receive funding from government and non-profit organizations aimed at supporting research in rare and genetic diseases. As the company advances its drug candidates through clinical trials, it may also attract further investments and partnerships, enhancing its revenue potential.

Entrada Therapeutics Inc Financial Statement Overview

Summary

Entrada Therapeutics Inc. has shown impressive revenue growth and improving profitability over the past years, positioning it well in the biotechnology sector. The company's balance sheet is healthy, characterized by strong equity and low leverage. However, recent declines in revenue and net income, coupled with negative cash flow, highlight the need for strategic management to sustain growth and financial stability. Continued focus on operational efficiency and cash flow management will be crucial.

Income Statement

Entrada Therapeutics Inc. has demonstrated significant revenue growth over recent years, with a notable increase in total revenue from $0 in 2021 to $210.78 million in 2024. The company achieved a positive net income of $65.63 million in 2024, indicating improving profitability. However, the TTM data shows a decline in revenue to $172.22 million and net income to $24.78 million, suggesting recent challenges. Gross profit margins have been strong, and the EBIT and EBITDA margins indicate operational efficiency improvements. Despite these, the recent dip in revenue and earnings raises concerns about sustaining growth momentum.

Balance Sheet

The balance sheet reveals a solid equity position with a stockholders' equity of $417.26 million in the latest TTM. The debt-to-equity ratio remains low, indicating prudent financial leverage. The company's total assets have grown significantly, and cash reserves are robust, reflecting strong liquidity. However, the stability of equity amidst fluctuating liabilities warrants attention. Overall, the balance sheet showcases financial stability, though vigilance is needed to maintain a low leverage profile.

Cash Flow

Cash flow analysis shows a volatile operating cash flow, with the latest TTM indicating a negative figure of $-54.55 million. Free cash flow has also been negative, reflecting high capital expenditures relative to cash generated from operations. The substantial financing cash flow suggests reliance on external funding to support operations. While capital investments are necessary for growth, the persistent cash outflows pose a risk if not offset by future revenue increases.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	79.48M	210.78M	129.01M	0.00	0.00	0.00
Gross Profit	76.48M	210.78M	29.13M	-1.90M	-1.12M	-326.00K
EBITDA	-94.23M	47.01M	-321.00K	-95.35M	-50.01M	-26.34M
Net Income	-73.35M	65.63M	-6.68M	-87.46M	-50.07M	-26.38M
Balance Sheet
Total Assets	448.78M	526.32M	469.19M	252.06M	305.83M	43.53M
Cash, Cash Equivalents and Short-Term Investments	354.01M	420.00M	351.97M	45.16M	291.06M	39.05M
Total Debt	54.74M	59.21M	68.23M	25.94M	0.00	0.00
Total Liabilities	69.28M	97.64M	226.83M	39.50M	7.12M	85.02M
Stockholders Equity	379.50M	428.68M	242.36M	212.55M	298.72M	-41.49M
Cash Flow
Free Cash Flow	-126.56M	-44.72M	134.19M	-96.67M	-55.44M	-27.89M
Operating Cash Flow	-123.87M	-41.56M	139.80M	-93.79M	-50.86M	-25.57M
Investing Cash Flow	9.02M	-27.80M	-138.40M	-148.65M	-4.58M	-2.32M
Financing Cash Flow	2.08M	102.96M	21.04M	479.00K	307.46M	50.09M

Entrada Therapeutics Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRDA, the sentiment is Neutral. The current price of 5.55 is above the 20-day moving average (MA) of 5.42, below the 50-day MA of 5.74, and below the 200-day MA of 9.95, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 52.22 is Neutral, neither overbought nor oversold. The STOCH value of 35.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TRDA.

Entrada Therapeutics Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIGL	74 Outperform	613.82M	6.49	119.39%	―	105.62%	0.00%
ZBIO	58 Neutral	802.83M	-4.60	-50.24%	―	0.00%	0.00%
AMLX	57 Neutral	1.36B	-5.30	-183.14%	―	-100.08%	-2.45%
BNTC	47 Neutral	359.63M	-8.85	0.00%	―	-100.00%	83.98%
ALLO	46 Neutral	250.73M	-1.09	-61.01%	―	-100.00%	30.91%
TRDA	41 Neutral	$193.61M	7.36	-18.12%	―	-66.80%	-157.68%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Entrada Therapeutics Inc Corporate Events

Entrada Therapeutics Holds Virtual Annual Stockholders Meeting

On June 11, 2025, Entrada Therapeutics, Inc. held its Annual Meeting of Stockholders virtually, where a quorum was established with 30,259,526 shares represented. During the meeting, stockholders elected three Class I directors to the Board and ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

Entrada Therapeutics Appoints New Board Member

On May 30, 2025, Entrada Therapeutics expanded its Board of Directors from six to seven members, appointing Maha Radhakrishnan, M.D., as a Class III director and a member of the Audit Committee, effective June 1, 2025. Dr. Radhakrishnan brings extensive experience in global drug development, which is expected to support Entrada’s clinical momentum, particularly in advancing its Duchenne muscular dystrophy programs. Her appointment is seen as a strategic move to enhance the company’s capability in delivering innovative therapies for serious illnesses.