Willow Biosciences Inc (WLLW) AI Stock Analysis

• Market Cap: C$1.45M
• Dividend Yield: N/A
• Average Volume (3M): 526.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: 80.10%
• EPS Growth: 51.13%
• Country: CA
• Employees: 19
• Sector: Healthcare
• Sector Strength: 78
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.05
• Shares Outstanding: 144,846,540
• 10 Day Avg. Volume: 1,107,362
• 30 Day Avg. Volume: 526,908
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.51
• Price to Cash Flow (P/CF): -1.20
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

The overall stock score for Willow Biosciences Inc is low due to significant financial performance challenges, including high operating losses and declining equity. Technical indicators suggest a bearish trend with potential oversold conditions, but valuation metrics highlight ongoing profitability struggles. Immediate focus on improving financial stability and operational efficiency is essential.

Willow Biosciences Inc Business Overview & Revenue Model

Company Description

Willow Biosciences Inc. is a biotechnology company focused on the production of high-purity, plant-derived compounds through synthetic biology. Operating primarily in the pharmaceutical and personal care sectors, the company leverages advanced bioengineering techniques to produce cannabinoids and other complex organic molecules that are traditionally difficult to manufacture using conventional methods.

How the Company Makes Money

Willow Biosciences Inc. generates revenue by producing and selling high-purity, bio-based compounds to pharmaceutical, personal care, and consumer product companies. The company utilizes a proprietary yeast-based fermentation process to produce these compounds in a scalable and cost-effective manner. Key revenue streams include contracts and partnerships with companies seeking sustainable and reliable sources of cannabinoids and other plant-derived compounds. Additionally, Willow Biosciences may engage in licensing agreements, providing access to its technology and processes in exchange for royalties or milestone payments.

Willow Biosciences Inc Financial Statement Overview

Summary

Willow Biosciences Inc faces significant challenges in maintaining financial stability and profitability. Despite revenue growth, high operating losses and declining equity impact overall financial health. Improving operational efficiency and cash flow management are critical for future sustainability.

Income Statement

Willow Biosciences Inc shows a notable increase in revenue over the years, particularly in the latest TTM. However, the company struggles with negative profit margins, as evidenced by a negative net profit margin and EBIT margin, indicating ongoing challenges in achieving profitability. The gross profit margin has improved significantly, but the persistent operating losses weigh heavily on financial performance.

Balance Sheet

The balance sheet reflects high leverage with a concerning debt-to-equity ratio due to declining equity. The equity ratio has also decreased, reflecting a weaker financial position. Although total debt has been managed relatively well, the low stockholders' equity raises concerns about the company's ability to sustain its operations without external financing.

Cash Flow

Cash flow from operations continues to be negative, affecting the company's liquidity position. The operating cash flow to net income ratio reflects operational inefficiencies, while free cash flow remains negative, indicating a need for improved cash management strategies to support business growth.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.87M	1.17M	821.00K	133.00K	10.00K	4.58K
	Gross Profit
1.79M	-659.00K	-6.65M	-11.40M	10.00K	4.58K
	EBIT
-7.67M	-13.18M	-18.39M	-23.33M	-23.06M	-46.15M
	EBITDA
-5.79M	-11.06M	-12.09M	-2.92M	-30.72M	-43.93M
	Net Income Common Stockholders
-7.71M	-13.03M	-14.81M	-6.17M	-33.99M	-44.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
63.50K	3.17M	15.03M	30.12M	15.89M	19.73M
	Total Assets
1.52M	6.67M	18.15M	35.02M	21.86M	33.88M
	Total Debt
0.00	2.16M	664.00K	802.00K	869.00K	1.20M
	Net Debt
-28.50K	-989.00K	-10.34M	-29.32M	-15.03M	-18.45M
	Total Liabilities
1.14M	3.24M	1.77M	5.33M	22.42M	11.87M
	Stockholders Equity
377.72K	3.44M	16.37M	29.68M	-559.00K	22.01M
Cash Flow		Free Cash Flow
-4.53M	-11.54M	-14.54M	-19.99M	-13.78M	-15.87M
	Operating Cash Flow
-4.46M	-10.92M	-13.86M	-18.23M	-12.78M	-9.16M
	Investing Cash Flow
31.00K	3.46M	-4.55M	-1.67M	-837.00K	-6.83M
	Financing Cash Flow
1.33M	-318.00K	-723.00K	34.13M	9.89M	35.26M

Willow Biosciences Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WLLW, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 20.99 is Positive, neither overbought nor oversold. The STOCH value of 12.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WLLW.

Willow Biosciences Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LABS	51 Neutral	C$35.29M	―	-22.31%	―	32.16%	39.05%
Sector *	48 Neutral	$6.26B	1.17	-46.80%	2.68%	17.23%	1.28%
WLLW	36 Underperform	C$1.45M	―	-422.31%	―	80.10%	51.13%

Willow Biosciences Inc Corporate Events

Willow Biosciences Initiates Strategic Review Amidst Market Challenges

Willow Biosciences Inc. has initiated a strategic review process to explore various potential strategic alternatives, including sales, mergers, or joint ventures, in light of challenging capital market conditions. This move aims to maximize the value of its assets and benefit shareholders, although there are no guarantees of a resulting transaction.

Willow Biosciences Shifts to Less-Dilutive Financing

Willow Biosciences Inc. has decided to cancel its previously announced non-brokered private placement offering in favor of pursuing less-dilutive financing alternatives. The company is in late-stage negotiations with third parties to sell commercial rights on its development programs, aiming to support its capital requirements.

Willow Biosciences Launches $2M Private Placement

Willow Biosciences Inc. is launching a non-brokered private placement to raise up to C$2.0 million, aiming to boost working capital and advance key projects in their development pipeline. The funds will support innovative processes for producing pharmaceutical ingredients in a more sustainable and cost-effective manner.

Willow Biosciences Sees Record Q3 Revenue Growth

Willow Biosciences Inc. reports a record revenue of $1.7 million in the third quarter of 2024 and anticipates further growth with new partnerships and increased revenue guidance to over $4.5 million for the year. The company’s strategic collaborations in the biopesticides sector and enzyme development projects underscore its expansion into high-growth industrial markets.

Willow Biosciences Partners for Ingredient Development

Willow Biosciences Inc. has entered into a new partnership with a global ingredient manufacturer to develop and commercialize a high-value ingredient. This collaboration is expected to lead to research and development payments for Willow and a share in future profits, targeting a billion-dollar market currently dominated by synthetic products.