Verve Therapeutics (VERV) AI Stock Analysis

• Market Cap: $302.79M
• Dividend Yield: N/A
• Average Volume (3M): 1.52M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.43
• Revenue Growth: 174.98%
• EPS Growth: 25.06%
• Country: US
• Employees: 274
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -2.35
• Shares Outstanding: 88,795,770
• 10 Day Avg. Volume: 1,956,509
• 30 Day Avg. Volume: 1,520,094
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 15.24
• Price to Cash Flow (P/CF): -3.00
• 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: $21.43
• Price Target Upside: 528.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

Verve Therapeutics shows potential in revenue growth; however, significant challenges in achieving profitability and generating positive cash flows weigh heavily on its financial health. The bearish technical indicators reflect a lack of positive momentum, and the negative valuation metrics further indicate the stock is currently unattractive for risk-averse investors. Overall, the stock is rated low due to high financial uncertainty and market volatility.

Positive Factors

Regulatory Approval

VERVE-102 IND approval reflects FDA's positive view on the benefit/risk profile and unmet need in HeFH and premature Coronary artery disease.

Safety Profile

Verve Therapeutics has not seen treatment-related serious adverse events or clinically significant lab abnormalities, indicating positive safety for the initial doses of VERVE-102.

Strategic Decisions

LLY's opt-in decision is seen as a major inflection point for VERV, with broad and long-term implications.

Negative Factors

Competitive Pressure

The success of competing treatments like inclisiran poses a challenge to VERVE-102's market potential.

Market Uncertainty

The need for further validation and data updates from heart-2 trials adds an element of uncertainty to the financial outlook.

Verve Therapeutics Business Overview & Revenue Model

Company Description

Verve Therapeutics, Inc., a genetic medicines company, engages in developing gene editing medicines for patients to treat cardiovascular diseases. Its lead product candidate is VERVE-101, a single-course gene editing treatment that permanently turns off the PCSK9 gene in the liver. The company also engages in the development of ANGPTL3 program to permanently turn off the ANGPTL3 gene in the liver. It has a collaboration and license agreement with Beam Therapeutics Inc.; a development and option agreement with Acuitas Therapeutics, Inc.; and a Cas9 license agreement with The Broad Institute and the President and Fellows of Harvard College. The company was formerly known as Endcadia, Inc. and changed its name to Verve Therapeutics, Inc. in January 2019. Verve Therapeutics, Inc. was incorporated in 2018 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Verve Therapeutics makes money primarily through the development and commercialization of its innovative gene editing therapies. The company's revenue streams include potential milestone payments and royalties from partnerships with larger pharmaceutical companies, licensing agreements for its proprietary technologies, and future sales of its therapeutic products once they receive regulatory approval. Verve may also engage in strategic collaborations to advance its research and development efforts, which can provide additional funding and resources to support its operational and clinical endeavors.

Verve Therapeutics Financial Statement Overview

Summary

Verve Therapeutics displays strong revenue growth potential in the biotechnology sector. However, operating losses, negative cash flows, and reliance on external financing highlight financial instability. The balance sheet remains relatively strong with low leverage, but profitability remains a key challenge.

Income Statement

Verve Therapeutics shows strong revenue growth, increasing from $1.9M in 2022 to $32.3M in 2024. However, the company continues to operate at a loss with a negative EBIT and net income margins, indicating high operational costs and challenges in achieving profitability.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.14 in 2024, suggesting manageable leverage. However, the negative net income affects ROE, and equity ratio is moderate at 76.2%, reflecting a solid equity base.

Cash Flow

Verve Therapeutics has struggled with generating positive operating cash flow. Although free cash flow improved, it's still non-positive, indicating the company is heavily reliant on financing for operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
32.33M	11.76M	1.94M	0.00	0.00
	Gross Profit
32.33M	6.30M	-4.77M	-3.38M	-1.33M
	EBIT
-228.66M	-223.12M	-165.69M	-87.07M	-40.63M
	EBITDA
-228.66M	-217.67M	-162.88M	-85.53M	-39.30M
	Net Income Common Stockholders
-198.71M	-200.07M	-157.39M	-118.64M	-45.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
524.28M	623.95M	554.81M	360.44M	72.11M
	Total Assets
647.39M	752.69M	679.22M	384.12M	78.41M
	Total Debt
69.98M	74.91M	81.92M	1.96M	125.16M
	Net Debt
-102.58M	-131.27M	-33.49M	-62.38M	116.17M
	Total Liabilities
153.99M	153.19M	128.29M	26.77M	142.32M
	Stockholders Equity
493.40M	599.50M	550.93M	357.35M	-63.91M
Cash Flow		Free Cash Flow
-161.43M	-158.83M	-135.56M	-82.24M	-38.69M
	Operating Cash Flow
-157.69M	-149.55M	-122.33M	-77.88M	-35.27M
	Investing Cash Flow
74.88M	27.69M	-155.96M	-239.10M	-51.13M
	Financing Cash Flow
49.20M	212.58M	328.96M	377.09M	92.63M

Verve Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.41
• 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 VERV, the sentiment is Negative. The current price of 3.41 is below the 20-day moving average (MA) of 4.93, below the 50-day MA of 6.33, and below the 200-day MA of 5.93, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 26.42 is Positive, neither overbought nor oversold. The STOCH value of 3.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VERV.

Verve Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.36B	1.24	-44.94%	2.70%	18.33%	1.47%
CRSP	46 Neutral	$3.01B	―	-19.20%	―	-89.95%	-123.71%
NTLA	41 Neutral	$732.90M	―	-54.00%	―	59.55%	3.09%
EDIT	39 Underperform	$96.27M	―	-98.10%	―	-58.64%	-40.05%
BEAM	39 Underperform	$1.63B	―	-43.94%	―	-83.18%	-144.95%
VERV	36 Underperform	$302.79M	―	-36.36%	―	174.98%	25.06%
SGMO	35 Underperform	$158.85M	―	-187.83%	―	-67.20%	64.66%