Vera Therapeutics (VERA) AI Stock Analysis

• Market Cap: $1.39B
• Dividend Yield: N/A
• Average Volume (3M): 2.33M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.76
• Revenue Growth: N/A
• EPS Growth: -20.03%
• Country: US
• Employees: 152
• Sector: Healthcare
• Sector Strength: 55
• Industry: Biotechnology
• EPS (TTM): -0.81
• Shares Outstanding: 63,774,160
• 10 Day Avg. Volume: 4,547,676
• 30 Day Avg. Volume: 2,325,718
• PEG Ratio: 0.00
• Price to Book (P/B): -1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.78
• Enterprise Value/Market Cap: 0.03
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -0.06
• 1Y Price Target: $67.42
• Price Target Upside: 208.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• 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

Clinical Data

Strong topline data from the ongoing Phase 3 ORIGIN study evaluating atacicept for the treatment of immunoglobulin A nephropathy (IgAN) was announced.

Market Potential

The IgAN market is considered large enough to support multiple products, offering growth potential for Vera Therapeutics.

Safety Profile

Safety data for VERA's treatment was favorable, with no serious infections reported, which addresses a common concern among doctors about long-term use of B cell modulators.

Negative Factors

Competitive Landscape

There will be pressure on VERA shares as there are increased questions regarding atacicept’s position in the evolving IgAN landscape.

Data Uncertainty

Uncertainty exists about whether Vera and Otsuka used the same statistical methodology and imputation of missing data in their respective analyses.

Market Reaction

The market price of VERA reacted negatively, with the stock declining ~30% after Otsuka presented data from its Phase 3 VISIONARY study.

Vera Therapeutics Business Overview & Revenue Model

Company Description

Vera Therapeutics (VERA) is a biotechnology company focused on developing transformative treatments for serious immunological diseases. With a strong emphasis on research and development, the company's core product pipeline includes innovative therapies aimed at addressing unmet needs in the treatment of kidney diseases and other immune-related conditions.

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 faces financial instability with consistent net losses and negative EBIT margins. Although there is a positive trend in gross profit, cash flow challenges remain due to negative free cash flows and reliance on financing. The balance sheet shows a strong equity position with low debt leverage, but fluctuations in the equity ratio indicate potential asset management volatility.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	1.86M	0.00	0.00	0.00
	Gross Profit
0.00	0.00	1.86M	846.00K	-176.00K	-251.00K
	EBIT
-193.25M	-167.17M	-102.01M	-90.90M	-34.40M	-52.24M
	EBITDA
-175.16M	-167.17M	-102.01M	-90.90M	-34.23M	-52.99M
	Net Income Common Stockholders
-175.46M	-152.15M	-95.99M	-89.06M	-32.61M	-53.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
589.83M	640.85M	160.72M	114.65M	79.67M	53.65M
	Total Assets
610.17M	655.68M	175.55M	131.44M	83.75M	54.55M
	Total Debt
54.47M	54.64M	53.71M	31.29M	4.92M	2.00K
	Net Debt
-625.00K	-38.01M	8.03M	-83.37M	-74.75M	-53.65M
	Total Liabilities
75.17M	78.53M	73.86M	54.53M	14.16M	143.90M
	Stockholders Equity
535.00M	577.15M	101.69M	76.91M	69.59M	-89.35M
Cash Flow		Free Cash Flow
-156.41M	-135.65M	-92.24M	-67.66M	-23.71M	-34.91M
	Operating Cash Flow
-155.25M	-134.68M	-92.18M	-67.60M	-23.71M	-34.81M
	Investing Cash Flow
-190.43M	-425.03M	-39.43M	-70.55M	-4.20M	-42.00K
	Financing Cash Flow
331.67M	606.67M	133.54M	101.93M	53.88M	85.29M

Vera Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.85
• 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 VERA, the sentiment is Negative. The current price of 21.85 is below the 20-day moving average (MA) of 23.04, below the 50-day MA of 22.51, and below the 200-day MA of 34.32, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 44.39 is Neutral, neither overbought nor oversold. The STOCH value of 11.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VERA.

Vera Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NAMS	64 Neutral	$2.22B	―	-31.51%	―	―	―
KYMR	61 Neutral	$3.05B	―	-32.17%	―	-25.85%	-23.89%
IMCR	61 Neutral	$1.65B	―	-5.78%	―	25.50%	64.63%
Sector *	54 Neutral	$5.34B	3.27	-45.10%	3.30%	16.80%	0.02%
TVTX	51 Neutral	$1.29B	―	-422.66%	―	49.29%	44.52%
IRON	43 Neutral	$1.80B	―	-23.34%	―	―	-14.19%
VERA	39 Underperform	$1.39B	―	-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.