Wave Life Sciences (WVE) AI Stock Analysis

• Market Cap: $1.01B
• Dividend Yield: N/A
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• Revenue Growth: -7.06%
• EPS Growth: -57.17%
• Country: US
• Employees: 287
• Sector: Healthcare
• Sector Strength: 47
• Industry: Biotechnology
• EPS (TTM): -0.29
• Shares Outstanding: 155,562,670
• 10 Day Avg. Volume: 1,134,845
• 30 Day Avg. Volume: 1,022,317
• PEG Ratio: 0.26
• Price to Book (P/B): -12.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.27
• Enterprise Value/Market Cap: 0.49
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 4.78
• Enterprise Value/Ebitda: -1.15
• 1Y Price Target: $18.20
• Price Target Upside: 169.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 50 Neutral
• Price Target: $7.00 ▲(3.70%Upside)

Wave Life Sciences' overall stock score reflects significant financial challenges, including declining revenues and persistent losses. However, positive corporate events, such as progress in clinical trials and a strong cash position, provide a more optimistic outlook. Technical indicators are mixed, and valuation metrics highlight ongoing financial struggles.

Positive Factors

Clinical development

Wave Life Sciences plans to announce additional RNA editing candidates and start a pivotal trial in Huntington's disease this year, indicating a strong pipeline and future growth potential.

Commercial prospects

The clean safety profile and convenient dosing are notable commercial differentiators for Wave Life Sciences' treatment.

Partnerships

Wave Life Sciences is collaborating with GSK, a partnership which is seen as beneficial due to GSK's strong respiratory franchise and ability to conduct substantial lung outcomes trials.

Negative Factors

Clinical expectations

KOL thinks 20 μM is the bogey for serum AAT, indicating that the current 10.8 μM might not meet clinician expectations.

Investor sentiment

The stock has been under pressure with a mixed reception from investors and skepticism on the registrational path forward.

Wave Life Sciences Business Overview & Revenue Model

Company Description

Wave Life Sciences Ltd., a clinical stage genetic medicine company, designs, optimizes, and produces novel stereopure oligonucleotides through PRISM, a discovery and drug developing platform. It is developing oligonucleotides target ribonucleic acid to reduce the expression of disease-promoting proteins or restore the production of functional proteins, or modulate protein expression. The company also develops WVE-004, a C9orf72 molecule for the treatment of amyotrophic lateral sclerosis and frontotemporal dementia; WVE-003, a mutant huntingtin SNP3 molecule for the treatment of Huntington's disease; WVE-N531, an Exon 53 molecule for the treatment of Duchenne muscular dystrophy; and ATXN3, a discovery stage program for the treatment of spinocerebellar ataxia 3, as well as multiple preclinical programs for CNS disorders. In addition, it focuses on developing GalNAc-conjugated AIMers to treat hepatic indications comprising Alpha-1 antitrypsin deficiency (AATD); and two preclinical programs, such as Usher syndrome type 2A (USH2A) and retinitis pigmentosa due to a P23H mutation in the RHO gene (RhoP23H) for the treatment of retinal diseases. It has collaboration agreements with Pfizer Inc., Takeda Pharmaceutical Company Limited, University of Oxford, University of Massachusetts, Western Washington University, Grenoble Institute of Neurosciences, IRBM S.p.A, University of Louisville, and University College London. The company was incorporated in 2012 and is based in Singapore.

How the Company Makes Money

Wave Life Sciences makes money primarily through the research and development of its proprietary oligonucleotide therapeutics, which are designed to target specific genetic mutations. The company generates revenue through collaborations and partnerships with other biopharmaceutical companies, which may include licensing agreements, milestone payments, and royalties from the commercialization of co-developed products. Additionally, Wave Life Sciences may receive funding and grants from research institutions and governmental bodies to support their ongoing development programs. These strategic partnerships and funding opportunities are critical to supporting the company's research initiatives and advancing its pipeline of potential treatments.

Wave Life Sciences Financial Statement Overview

Summary

Wave Life Sciences faces significant financial challenges, including persistent losses and negative cash flows. Despite manageable debt levels and some cash reserves, profitability and cash generation are concerning. The biotechnology sector's volatility and high R&D expenses contribute to these issues.

Income Statement

Wave Life Sciences has shown significant volatility in its income statement. The gross profit margin is consistently positive, indicating the company can cover its cost of goods sold. However, the net profit margin is negative, reflecting ongoing losses, and there is a downward trend in revenue growth, particularly in the latest TTM period. The EBIT and EBITDA margins are also negative, highlighting operational challenges. Despite some revenue growth in earlier periods, the company's profitability remains a concern.

Balance Sheet

The balance sheet reflects a mixed financial position. The debt-to-equity ratio is relatively manageable, but a declining equity ratio raises concerns about financial stability. Return on Equity (ROE) is not favorable due to ongoing losses, impacting shareholder value. The company's total assets have decreased over time, which could indicate potential liquidity issues. While the company has a reasonable amount of cash and short-term investments, financial leverage and equity position need improvement.

Cash Flow

Wave Life Sciences' cash flow statement shows challenges in maintaining positive cash flow. The operating cash flow is negative, indicating cash outflows from core operations. There is a substantial reliance on financing activities to support cash flow needs. However, the free cash flow to net income ratio suggests the company is managing its cash burn rate reasonably well. Despite these efforts, the overall cash flow situation requires close monitoring to ensure sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.41M	108.30M	113.31M	3.65M	40.96M	20.08M
Gross Profit	-120.01M	108.30M	104.10M	-6.46M	-80.91M	-104.09M
EBITDA	-153.94M	-101.74M	-58.79M	-152.61M	-117.18M	-143.39M
Net Income	-146.65M	-97.01M	-57.51M	-161.82M	-122.25M	-149.91M
Balance Sheet
Total Assets	430.61M	352.21M	274.95M	146.39M	207.01M	279.24M
Cash, Cash Equivalents and Short-Term Investments	287.57M	302.08M	200.35M	88.50M	150.56M	184.50M
Total Debt	34.70M	25.40M	32.12M	37.61M	29.92M	29.30M
Total Liabilities	233.76M	142.69M	235.32M	191.48M	174.51M	196.46M
Stockholders Equity	196.86M	209.51M	39.63M	-45.09M	32.50M	82.78M
Cash Flow
Free Cash Flow	-32.80M	-151.96M	-20.55M	-129.14M	-89.55M	-117.32M
Operating Cash Flow	-22.86M	-151.03M	-19.43M	-127.78M	-88.99M	-115.98M
Investing Cash Flow	-9.94M	-938.00K	-1.11M	-1.25M	-560.00K	-1.34M
Financing Cash Flow	65.09M	253.89M	132.53M	67.19M	55.83M	154.54M

Wave Life Sciences Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.75
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WVE, the sentiment is Neutral. The current price of 6.75 is below the 20-day moving average (MA) of 6.86, above the 50-day MA of 6.72, and below the 200-day MA of 10.07, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.08 is Neutral, neither overbought nor oversold. The STOCH value of 31.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WVE.

Wave Life Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRDN	55 Neutral	$1.18B	―	-49.41%	―	4.86%	10.13%
Sector *	51 Neutral	$7.55B	0.30	-61.90%	2.27%	17.11%	1.58%
WVE	50 Neutral	$1.01B	―	-105.50%	―	-7.06%	-57.17%
SNDX	48 Neutral	$758.94M	―	-93.70%	―	―	-25.83%
GERN	45 Neutral	$878.95M	―	-45.35%	―	22264.23%	39.09%
DYN	43 Neutral	$986.63M	―	-64.01%	―	―	14.93%
GPCR	31 Underperform	$1.18B	―	-22.88%	―	―	7.57%

Wave Life Sciences Corporate Events

Wave Life Sciences Reports Q1 2025 Financial Results

On May 8, 2025, Wave Life Sciences reported its first quarter financial results and provided a business update, highlighting significant progress in its clinical trials. The company completed dosing in the first two cohorts of its INLIGHT trial for obesity and advanced its RestorAATion-2 trial for alpha-1 antitrypsin deficiency. Additionally, Wave delivered positive data from its FORWARD-53 trial for Duchenne muscular dystrophy and plans to submit a new drug application in 2026. The company also announced a cash runway expected to last into 2027, reflecting its strong financial position.