Entrada Therapeutics Inc (TRDA) AI Stock Analysis

• Market Cap: $304.01M
• Dividend Yield: N/A
• Average Volume (3M): 160.73K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 1.55
• Revenue Growth: 5.74%
• EPS Growth: 24.45%
• Country: US
• Employees: 183
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.42
• Shares Outstanding: 37,953,420
• 10 Day Avg. Volume: 143,475
• 30 Day Avg. Volume: 160,729
• PEG Ratio: 0.34
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $23.67
• Price Target Upside: 195.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Entrada Therapeutics is positioned well in the biotechnology sector with promising developments in its clinical programs, as evidenced by recent regulatory approvals. However, challenges in sustaining revenue growth and managing cash flows are notable risks. The stock's undervalued nature provides potential upside, contingent on overcoming operational challenges and capitalizing on strategic opportunities.

Positive Factors

Clinical Trials

Entrada announced the MHRA had cleared the Phase I/II multiple-ascending dose (MAD) study of ENTR-601-45 to initiate in the U.K. for patients with Duchenne muscular dystrophy (DMD) amenable to exon 45 skipping.

Exon-Skipping Technologies

Interest in Entrada's portfolio of exon skippers is expected to rise as the company advances these candidates through clinical testing.

Regulatory Developments

FDA has lifted the clinical hold on ENTR-601-44 and provided authorization to initiate ELEVATE-44-102, a Phase 1b multiple ascending dose (MAD) clinical study.

Negative Factors

Market Competition

The study will yield important data to inform on positioning relative to peers like Avidity and the utility of Entrada’s EEV-conjugate platform.

Regulatory Challenges

In December 2022, the FDA issued a clinical hold in reference to the IND submission.

Entrada Therapeutics Inc Business Overview & Revenue Model

Company Description

Entrada Therapeutics, Inc., a biotechnology company, develops endosomal escape vehicle (EEV) therapeutics for the treatment of multiple neuromuscular diseases. Its endosomal escape vehicle platform develops a portfolio of oligonucleotide, antibody, and enzyme-based programs. The company's lead product candidate is ENTR-601-44, which is in preclinical trail for the treatment of Duchenne muscular dystrophy and myotonic dystrophy type 1. It also engages in the development of EEV-PMO-CAG for the treatment of myotonic dystrophy type 1. The company was formerly known as CycloPorters, Inc. and changed its name to Entrada Therapeutics, Inc. in October 2017. Entrada Therapeutics, Inc. was incorporated in 2016 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

Entrada Therapeutics makes money by advancing its pipeline of therapeutic candidates through various stages of clinical development, with the ultimate goal of securing regulatory approval and commercializing its products. The company may generate revenue through partnerships and collaborations with other biotech and pharmaceutical companies, which can include milestone payments, royalties, and licensing fees. Additionally, Entrada might receive funding from grants or government programs dedicated to supporting innovative biotech research. The company's ability to successfully develop and market its therapies directly impacts its revenue potential.

Entrada Therapeutics Inc Financial Statement Overview

Summary

Entrada Therapeutics is making considerable strides in revenue growth and has a strong equity position, reflecting financial stability. While profitability and operational efficiency are improving, cash flow management remains a concern, with negative free cash flow highlighting the need for strategic cash management to sustain growth and operations.

Income Statement

Entrada Therapeutics has shown significant revenue growth, from zero revenue in earlier years to $210.78 million in 2024, indicating strong progress in operations or product development. The gross profit margin is excellent at 100%, reflecting efficient cost management. However, the net profit margin, although positive at 31.13%, indicates room for improvement in controlling expenses. The EBIT and EBITDA margins are at 22.30%, suggesting stable operational efficiency.

Balance Sheet

The company has a strong equity position with stockholders' equity significantly higher than total debt, resulting in a low debt-to-equity ratio of 0.14, which suggests low leverage and financial stability. The return on equity is solid at 15.31%, showcasing effective use of equity capital. The equity ratio of 81.43% indicates a robust financial structure, minimizing financial risk.

Cash Flow

Despite a negative operating cash flow in the latest year, the company has demonstrated the ability to secure financing, as seen in the significant positive financing cash flow. Free cash flow is negative, indicating potential cash constraints. The free cash flow to net income ratio is negative, suggesting a need for better cash management strategies to support growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
210.78M	129.01M	0.00	0.00	0.00
	Gross Profit
210.78M	29.13M	-1.90M	-1.12M	-326.00K
	EBIT
47.01M	-3.16M	-97.25M	-51.13M	-26.67M
	EBITDA
47.01M	-321.00K	-95.35M	-50.01M	-26.34M
	Net Income Common Stockholders
65.63M	-6.68M	-87.46M	-50.07M	-26.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
420.00M	351.97M	45.16M	291.06M	39.05M
	Total Assets
526.32M	469.19M	252.06M	305.83M	43.53M
	Total Debt
59.21M	68.23M	25.94M	0.00	0.00
	Net Debt
-42.00M	628.00K	-19.22M	-291.06M	-39.05M
	Total Liabilities
97.64M	226.83M	39.50M	7.12M	85.02M
	Stockholders Equity
428.68M	242.36M	212.55M	298.72M	-41.49M
Cash Flow		Free Cash Flow
-44.72M	134.19M	-96.67M	-55.44M	-27.89M
	Operating Cash Flow
-41.56M	139.80M	-93.79M	-50.86M	-25.57M
	Investing Cash Flow
-27.80M	-138.40M	-148.65M	-4.58M	-2.32M
	Financing Cash Flow
102.96M	21.04M	479.00K	307.46M	50.09M

Entrada Therapeutics Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRDA, the sentiment is Negative. The current price of 8.01 is below the 20-day moving average (MA) of 8.64, below the 50-day MA of 9.04, and below the 200-day MA of 14.21, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 40.52 is Neutral, neither overbought nor oversold. The STOCH value of 27.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRDA.

Entrada Therapeutics Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIGL	75 Outperform	$352.09M	9.51	531.78%	―	68.74%	―
TRDA	62 Neutral	$304.01M	9.91	7.22%	―	5.74%	24.45%
AMLX	57 Neutral	$477.80M	―	-83.24%	―	-100.32%	-197.69%
BNTC	54 Neutral	$348.16M	―	-48.57%	―	-100.00%	83.98%
Sector *	52 Neutral	$5.19B	3.04	-44.64%	2.82%	16.45%	-0.53%
ZBIO	38 Underperform	$438.00M	―	-115.47%	―	―	―
ALLO	36 Underperform	$238.42M	―	-59.60%	―	-100.00%	31.43%

Entrada Therapeutics Inc Corporate Events

Entrada Therapeutics Gains UK Approval for DMD Study

On March 24, 2025, Entrada Therapeutics announced it received authorization from the UK’s Medicines and Healthcare Products Regulatory Agency to initiate ELEVATE-45-201, a Phase 1/2 clinical study of ENTR-601-45 for treating Duchenne muscular dystrophy (DMD) in patients amenable to exon 45 skipping. This study is part of Entrada’s Duchenne franchise, aiming to evaluate the safety, tolerability, and effectiveness of ENTR-601-45. The company plans to start the trial in the UK in the third quarter of 2025, marking a significant step in its strategy to develop three Duchenne programs globally by the end of the year.

Entrada Therapeutics Receives FDA Approval for DMD Study

On February 24, 2025, Entrada Therapeutics announced that the FDA has lifted the clinical hold on ENTR-601-44, granting authorization for a Phase 1b clinical study of the drug aimed at treating Duchenne muscular dystrophy (DMD) in adult patients. This significant regulatory milestone allows Entrada to initiate its ELEVATE-44-102 study in the U.S. and expand its global clinical program, potentially positioning the company as a leader in developing therapies for DMD.