Travere Therapeutics (TVTX) AI Stock Analysis

• Market Cap: $1.41B
• Dividend Yield: N/A
• Average Volume (3M): 1.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: 49.29%
• EPS Growth: 44.52%
• Country: US
• Employees: 385
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.47
• Shares Outstanding: 88,804,820
• 10 Day Avg. Volume: 2,078,277
• 30 Day Avg. Volume: 1,777,432
• PEG Ratio: -0.25
• Price to Book (P/B): 53.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.10
• 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: $34.54
• Price Target Upside: 118.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 52 Neutral
• Price Target: $17.00 ▲( 7.32% Upside)

Travere Therapeutics demonstrates significant growth potential with strong sales performance and regulatory advancements for FILSPARI. However, the company's high leverage, sustained losses, and challenging valuation metrics pose financial risks. Technical indicators are mixed, and while the earnings call and corporate events provide positive signals, overall financial instability and competitive pressures temper the outlook, leading to a cautious score.

Positive Factors

Financial Performance

Filspari's Q1 revenue was in line with consensus at $56MM, showing 13% quarter-over-quarter growth, maintaining momentum from an impressive Q4.

Market Opportunity

The large upside with FSGS approval is seen as a significant opportunity for TVTX, with competitors being at least 2-3 years behind.

Regulatory Progress

The FDA accepted the supplemental New Drug Application for Filspari for the treatment of focal segmental glomerulosclerosis.

Negative Factors

Regulatory Concerns

The standard review timeline and intention to hold an AdCom can be perceived negatively, as it reflects FDA's cautiousness and potential resource issues.

Regulatory Uncertainty

Investors never like AdCom meetings, as they introduce some regulatory uncertainty.

Travere Therapeutics Business Overview & Revenue Model

Company Description

Travere Therapeutics, Inc., a biopharmaceutical company, focuses on the identification, development, commercialization, and delivering of therapies for the treatment of rare diseases. Its marketed products include Chenodal, a synthetic oral form of chenodeoxycholic acid for the treatment of radiolucent stones in gallbladders; Cholbam, a cholic acid capsule to treat pediatric and adult patients with bile acid synthesis disorders due to single enzyme defects, as well as for adjunctive treatment of patients with peroxisomal disorders; and Thiola and Thiola EC, a tiopronin tablet for the treatment of homozygous cystinuria. The company's product candidates also consist of Sparsentan, which is in Phase III clinical trial for the treatment of focal segmental glomerulosclerosis and immunoglobulin A nephropathy; and TVT-058, a novel investigational human enzyme replacement candidate, which is in Phase I/II clinical trials for the treatment of classical homocystinuria. It has a cooperative research and development agreement with National Institutes of Health's National Center for Advancing Translational Sciences and patient advocacy organizations, CDG Care, and Alagille Syndrome Alliance for the identification of potential small molecule therapeutics for NGLY1 deficiency and Alagille syndrome. The company was formerly known as Retrophin, Inc. and changed its name to Travere Therapeutics, Inc. in November 2020. Travere Therapeutics, Inc. was incorporated in 2008 and is headquartered in San Diego, California.

How the Company Makes Money

Travere Therapeutics generates revenue primarily through the sale of its commercial products, which include FDA-approved therapies for rare diseases. The company's revenue model involves the commercialization of these therapies, which are often priced at a premium due to their specialized nature and the small patient populations they serve. Travere also engages in strategic partnerships and collaborations with other pharmaceutical companies, which can provide additional revenue streams through milestone payments, royalties, and licensing agreements. These partnerships can be crucial for expanding the company's reach and enhancing its research and development capabilities. Key factors contributing to Travere's earnings include successful product launches, the expansion of its product portfolio, and the ability to navigate regulatory pathways effectively to bring new therapies to market.

Travere Therapeutics Financial Statement Overview

Summary

Travere Therapeutics is experiencing growth in revenue, but profitability remains a significant challenge with continuous losses. The high debt levels and decreasing equity raise concerns about financial stability. Cash flow improvements are noted, but reliance on external financing remains high. Overall, the company exhibits a mixed financial outlook with potential risks associated with high leverage and sustained losses.

Income Statement

Travere Therapeutics has shown a consistent increase in total revenue, particularly in the TTM period with a growth of 17% from the previous year. However, the company continues to operate at a loss with a negative net profit margin of -82.9% in TTM, indicating significant profitability challenges. Negative EBIT and EBITDA margins further highlight the ongoing operational inefficiencies.

Balance Sheet

The company's financial structure shows high leverage with a debt-to-equity ratio of 12.20 in the TTM, reflecting potential financial risk. Stockholders' equity has decreased significantly, leading to a low equity ratio of 5.98% in TTM. These factors pose concerns about financial stability in the long term.

Cash Flow

Operating cash flow has improved in the TTM compared to the previous year, but remains negative, indicating cash flow challenges. The free cash flow has also improved but is still negative, showing the company is not generating sufficient cash to cover expenses. There is a positive trend in cash flow from financing activities, which suggests reliance on external funding.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
273.53M	233.18M	145.24M	212.02M	227.49M	198.32M
	Gross Profit
252.27M	225.43M	133.79M	204.43M	220.71M	192.19M
	EBIT
-223.77M	-320.63M	-376.74M	-251.56M	-139.50M	-75.38M
	EBITDA
-168.21M	-265.77M	-326.25M	-299.42M	-186.68M	-143.95M
	Net Income Common Stockholders
-226.71M	-321.55M	-111.40M	-278.48M	-180.09M	-169.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
322.24M	370.70M	566.85M	450.25M	552.88M	361.59M
	Total Assets
548.80M	594.13M	788.91M	672.59M	776.63M	607.44M
	Total Debt
400.46M	401.58M	404.78M	407.49M	261.99M	215.34M
	Net Debt
338.57M	343.05M	346.61M	345.80M	96.23M	130.57M
	Total Liabilities
515.98M	535.05M	588.10M	629.73M	474.52M	396.23M
	Stockholders Equity
32.82M	59.08M	200.81M	42.85M	302.11M	211.21M
Cash Flow		Free Cash Flow
-175.26M	-338.69M	-322.28M	-214.85M	-38.94M	-162.59M
	Operating Cash Flow
-160.66M	-237.47M	-280.02M	-186.29M	-14.79M	-42.74M
	Investing Cash Flow
35.72M	99.33M	55.78M	-32.55M	-137.62M	-61.33M
	Financing Cash Flow
143.66M	139.42M	218.75M	117.57M	231.68M	127.71M

Travere Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.84
• 50DMA: Negative
• 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 TVTX, the sentiment is Negative. The current price of 15.84 is below the 20-day moving average (MA) of 19.42, below the 50-day MA of 18.27, and below the 200-day MA of 17.22, indicating a bearish trend. The MACD of -0.46 indicates Positive momentum. The RSI at 37.13 is Neutral, neither overbought nor oversold. The STOCH value of 4.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TVTX.

Travere Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCRX	66 Neutral	$2.22B	―	18.68%	―	41.67%	75.79%
IMCR	63 Neutral	$1.56B	―	-5.78%	―	25.50%	64.63%
Sector *	53 Neutral	$5.14B	3.03	-44.09%	2.83%	16.75%	-0.06%
TVTX	52 Neutral	$1.41B	―	-422.66%	―	49.29%	44.52%
CGON	49 Neutral	$1.94B	―	-16.57%	―	―	―
IRON	43 Neutral	$1.64B	―	-23.34%	―	―	-14.19%
VERA	39 Underperform	$1.25B	―	-39.49%	―	―	-20.03%

Travere Therapeutics Corporate Events

Travere Therapeutics Holds Annual Meeting, Elects Directors

On May 15, 2025, Travere Therapeutics held its Annual Meeting where stockholders voted on several proposals. The company elected ten directors to serve until the 2026 Annual Meeting, approved an amendment to increase shares under the 2018 Equity Incentive Plan, approved executive compensation, and ratified Ernst & Young LLP as the independent auditor for the fiscal year ending December 31, 2025. These decisions reflect the company’s ongoing governance and strategic planning efforts.

The most recent analyst rating on (TVTX) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Travere Therapeutics stock, see the TVTX Stock Forecast page.

Travere Therapeutics’ FDA Acceptance for FILSPARI Application

On May 15, 2025, Travere Therapeutics announced that the FDA accepted its supplemental New Drug Application for FILSPARI® (sparsentan) for treating focal segmental glomerulosclerosis (FSGS), with a target action date set for January 13, 2026. If approved, FILSPARI could become the first FDA-approved treatment for FSGS, a rare kidney disorder affecting over 40,000 patients in the U.S. The application is supported by the Phase 3 DUPLEX Study and Phase 2 DUET Study, which demonstrated significant benefits in reducing proteinuria and improving remission rates in FSGS patients.

The most recent analyst rating on (TVTX) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Travere Therapeutics stock, see the TVTX Stock Forecast page.