Vera Therapeutics (VERA) AI Stock Analysis

• Market Cap: $1.21B
• Dividend Yield: N/A
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.77
• Revenue Growth: N/A
• EPS Growth: -20.03%
• Country: US
• Employees: 152
• Sector: Healthcare
• Sector Strength: 42
• Industry: Biotechnology
• EPS (TTM): -0.81
• Shares Outstanding: 63,774,160
• 10 Day Avg. Volume: 1,051,556
• 30 Day Avg. Volume: 1,165,365
• PEG Ratio: 0.97
• Price to Book (P/B): 2.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.98
• 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: $67.36
• Price Target Upside: 112.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 39 Underperform
• Price Target: ―

Vera Therapeutics' overall stock score is driven by ongoing financial challenges, including consistent losses and negative cash flows, despite a strong equity position. Technical analysis indicates bearish momentum, with the stock underperforming key moving averages. The valuation is unattractive due to a negative P/E ratio and no dividend yield.

Positive Factors

Drug Efficacy

Atacicept phase III interim results showed a significant reduction in UPCR, surpassing previous expectations and enhancing the drug's competitive appeal.

Financial Position

The company's cash position is strong at approximately $590 million, positioning it well for an IgAN-focused market launch.

Market Potential

There is a large and growing commercial opportunity in IgAN with room for multiple winners, highlighting the potential market for atacicept.

Negative Factors

Market Competition

VERA shares have come under pressure due to competitive updates and the broader macro environment.

Regulatory Uncertainty

There is uncertainty regarding the inclusion of phase III 36-week eGFR data in the FDA meeting discussions, which is a key value proposition for B-cell modulators.

Stock Valuation

There is a meaningful dislocation between the Company’s current valuation and atacicept’s clinical/commercial potential in IgAN, suggesting an undervaluation of the stock.

Vera Therapeutics Business Overview & Revenue Model

Company Description

Vera Therapeutics, Inc., a clinical stage biotechnology company, focuses on developing and commercializing treatments for patients with serious immunological diseases in the United States. Its lead product candidate is atacicept, a fusion protein self-administered as a subcutaneous injection that is in Phase IIb clinical trial for patients with immunoglobulin A nephropathy. It is also developing MAU868, a monoclonal antibody for the treatment of BK viremia infections and is under Phase 2 clinical trial. The company was formerly known as Trucode Gene Repair, Inc. and changed its name to Vera Therapeutics, Inc. in April 2020. Vera Therapeutics, Inc. was incorporated in 2016 and is headquartered in Brisbane, California.

How the Company Makes Money

Vera Therapeutics makes money primarily through the development and commercialization of its proprietary drug candidates. The company's revenue model includes licensing agreements, research collaborations, and eventually, sales of approved therapies. Key revenue streams involve upfront payments, milestone payments, and royalties from commercial partnerships with larger pharmaceutical companies. Significant partnerships with industry leaders and research organizations play a crucial role in advancing their drug development programs and contributing to potential future earnings.

Vera Therapeutics Financial Statement Overview

Summary

Vera Therapeutics is in a challenging phase, marked by consistent net losses and negative cash flows. Despite a low debt-to-equity ratio and some positive trends in equity, the company faces significant financial instability due to its ongoing losses and cash management issues.

Income Statement

Vera Therapeutics has faced a challenging period with consistent net losses and negative EBIT margins over the years. The absence of revenue growth and a significant increase in net losses highlight financial instability. However, the improvements in gross profit from negative to positive values in recent years offer a slight positive trajectory.

Balance Sheet

The company demonstrates a strong equity position with a growing stockholders' equity, minimizing debt leverage. The debt-to-equity ratio remains low, indicating prudent financial management. However, the overall equity ratio has fluctuated, reflecting potential volatility in asset management.

Cash Flow

Vera Therapeutics experiences negative free cash flows, with operating cash flow consistently below net income, highlighting cash management challenges. A positive note is the significant financing inflows that bolster cash reserves, although relying on financing isn't sustainable long-term.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	1.86M	0.00	0.00	0.00
	Gross Profit
0.00	1.86M	846.00K	-176.00K	-251.00K
	EBIT
-167.17M	-102.01M	-90.90M	-34.40M	-52.24M
	EBITDA
-167.17M	-102.01M	-90.90M	-34.23M	-52.99M
	Net Income Common Stockholders
-152.15M	-95.99M	-89.06M	-32.61M	-53.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
640.85M	160.72M	114.65M	79.67M	53.65M
	Total Assets
655.68M	175.55M	131.44M	83.75M	54.55M
	Total Debt
54.64M	53.71M	31.29M	4.92M	2.00K
	Net Debt
-38.01M	8.03M	-83.37M	-74.75M	-53.65M
	Total Liabilities
78.53M	73.86M	54.53M	14.16M	143.90M
	Stockholders Equity
577.15M	101.69M	76.91M	69.59M	-89.35M
Cash Flow		Free Cash Flow
-135.65M	-92.24M	-67.66M	-23.71M	-34.91M
	Operating Cash Flow
-134.68M	-92.18M	-67.60M	-23.71M	-34.81M
	Investing Cash Flow
-425.03M	-39.43M	-70.55M	-4.20M	-42.00K
	Financing Cash Flow
606.67M	133.54M	101.93M	53.88M	85.29M

Vera Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VERA, the sentiment is Positive. The current price of 31.74 is above the 20-day moving average (MA) of 21.61, above the 50-day MA of 22.56, and below the 200-day MA of 35.09, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 74.66 is Negative, neither overbought nor oversold. The STOCH value of 45.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VERA.

Vera Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KYMR	67 Neutral	$2.81B	―	-32.17%	―	-25.85%	-23.89%
IMCR	65 Neutral	$1.94B	―	-5.78%	―	25.50%	64.63%
NAMS	56 Neutral	$2.13B	―	-31.51%	―	―	―
Sector *	53 Neutral	$5.24B	3.28	-44.98%	2.81%	16.82%	-0.32%
TVTX	52 Neutral	$1.38B	―	-422.66%	―	49.29%	44.52%
IRON	43 Neutral	$1.65B	―	-23.34%	―	―	-14.19%
VERA	39 Underperform	$1.21B	―	-39.49%	―	―	-20.03%

Vera Therapeutics Corporate Events

Vera Therapeutics Highlights Atacicept Progress at Conference

Vera Therapeutics announced an updated corporate presentation at the J.P. Morgan Healthcare Conference, highlighting the progress of their lead therapy, atacicept, in clinical trials. The company is positioned strongly with $677 million in cash and marketable securities, and is focused on potential commercial launch plans, bolstered by breakthrough therapy designation from the FDA for atacicept in treating IgAN. The company aims to expand atacicept’s indications to other autoimmune and kidney diseases, with several clinical trials underway.