Wave Life Sciences (WVE) AI Stock Analysis

• Market Cap: $1.34B
• Dividend Yield: N/A
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.83
• Revenue Growth: -14.98%
• EPS Growth: -51.76%
• Country: US
• Employees: 287
• Sector: Healthcare
• Sector Strength: 43
• Industry: Biotechnology
• EPS (TTM): -0.31
• Shares Outstanding: 159,140,460
• 10 Day Avg. Volume: 1,530,977
• 30 Day Avg. Volume: 1,592,836
• PEG Ratio: -0.60
• Price to Book (P/B): 8.16
• Price to Sales (P/S): 15.79
• P/FCF Ratio: -11.26
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 9.44
• Enterprise Value/Gross Profit: 9.44
• Enterprise Value/Ebitda: -6.58
• 1Y Price Target: $17.46
• Price Target Upside: 99.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 50 Neutral
• Price Target: $8.00 ▼(-8.68% Downside)

Wave Life Sciences faces significant financial challenges with declining revenues and persistent losses, heavily impacting its overall score. However, technical indicators show moderate strength, and recent corporate events and earnings call highlight promising advancements in clinical programs. Valuation remains a concern with negative P/E ratio and no dividend yield, but strategic initiatives and potential in RNA-based therapies provide some optimism for future growth.

Positive Factors

Clinical Trials

The completion of dosing in the study of WVE-006 and the expansion in the study of WVE-007 indicate a strong progression in clinical trials.

Obesity Treatment

WVE-007's weight loss kinetics may have the distinct advantage of targeting fat exclusively, sparing muscle mass.

RNA Editing Technology

WVE-006's positive data should provide strong validation for WVE's RNA editing technology to support additional AIMer programs targeting several million patients.

Negative Factors

Biotech Industry Risks

WVE is subject to the standard risks that apply to the entire biotech industry, in particular financing, regulatory, and clinical risk.

Stock Performance

The stock's performance has been fairly lackluster, driven by a perceived lack of catalysts as WVE has been executing on these programs.

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 generates revenue primarily through collaborations and partnerships with pharmaceutical companies, where they receive upfront payments, milestone payments upon achieving specific development targets, and royalties on future sales of partnered products. Additionally, the company may earn revenue from research grants and funding aimed at advancing its proprietary drug development programs. Their strategic collaborations with larger pharmaceutical firms also help mitigate risks and provide essential funding for the development of their drug candidates.

Wave Life Sciences Financial Statement Overview

Summary

Wave Life Sciences is facing financial challenges characterized by declining revenues, persistent losses, and reliance on external financing. While the company maintains a manageable debt level, its profitability and cash flow generation are areas of concern. Strategic improvements in revenue generation and cost management are essential for financial stability.

Income Statement

Wave Life Sciences shows a volatile revenue trend with a significant drop in revenue from 2023 to TTM. The gross profit margin is positive, but the company is operating at a loss with negative EBIT and net profit margins. The revenue growth rate is unstable, indicating potential challenges in sustaining revenue streams.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, indicating manageable leverage. However, the equity ratio is relatively low, suggesting limited equity financing. The company has a negative net income, impacting its return on equity.

Cash Flow

The cash flow statement reveals negative free cash flow and operating cash flow, indicating cash outflows exceeding inflows. The company relies heavily on financing activities to support operations, which could pose risks if external funding becomes constrained.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	93.95M	108.30M	113.31M	3.65M	40.96M	20.08M
Gross Profit	93.95M	108.30M	104.10M	-6.46M	-80.91M	-104.09M
EBITDA	-134.84M	-101.74M	-58.79M	-152.61M	-117.18M	-143.39M
Net Income	-129.87M	-97.01M	-57.51M	-161.82M	-122.25M	-149.91M
Balance Sheet
Total Assets	252.35M	352.21M	274.95M	146.39M	207.01M	279.24M
Cash, Cash Equivalents and Short-Term Investments	208.48M	302.08M	200.35M	88.50M	150.56M	184.50M
Total Debt	21.71M	25.40M	32.12M	37.61M	29.92M	29.30M
Total Liabilities	105.22M	142.69M	235.32M	191.48M	174.51M	196.46M
Stockholders Equity	147.14M	209.51M	39.63M	-45.09M	32.50M	82.78M
Cash Flow
Free Cash Flow	-200.12M	-151.96M	-20.55M	-129.14M	-89.55M	-117.32M
Operating Cash Flow	-199.18M	-151.03M	-19.43M	-127.78M	-88.99M	-115.98M
Investing Cash Flow	-940.00K	-938.00K	-1.11M	-1.25M	-560.00K	-1.34M
Financing Cash Flow	254.57M	253.89M	132.53M	67.19M	55.83M	154.54M

Wave Life Sciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.76
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 8.76 is above the 20-day moving average (MA) of 8.37, above the 50-day MA of 7.61, and below the 200-day MA of 9.90, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 63.55 is Neutral, neither overbought nor oversold. The STOCH value of 68.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WVE.

Wave Life Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRDN	61 Neutral	$1.47B	―	-62.99%	―	5.90%	-0.36%
GERN	54 Neutral	$861.32M	―	-31.09%	―	11877.28%	63.14%
Sector *	51 Neutral	$7.44B	-0.22	-45.45%	2.27%	23.06%	-2.29%
WVE	50 Neutral	$1.34B	―	-171.41%	―	-14.98%	-51.76%
SNDX	48 Neutral	$1.12B	―	-113.22%	―	2133.71%	-15.38%
DYN	43 Neutral	$1.65B	―	-61.32%	―	―	-7.71%
GPCR	31 Underperform	$1.08B	―	-21.19%	―	―	-39.64%

Wave Life Sciences Corporate Events

Wave Life Sciences Shareholders Approve Key Proposals

On August 5, 2025, Wave Life Sciences Ltd. held its Annual General Meeting where shareholders approved several key proposals, including an amendment to the 2021 Equity Incentive Plan, increasing authorized shares by 8,000,000. The meeting also saw the re-election of nine directors, the re-appointment of KPMG LLP as the company’s auditor, and approval of compensation plans for non-employee directors and executive officers, reflecting strong shareholder support for the company’s strategic initiatives.

The most recent analyst rating on (WVE) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Wave Life Sciences stock, see the WVE Stock Forecast page.

Wave Life Sciences Highlights RNA Platform Advancements

On August 5, 2025, Wave Life Sciences updated its corporate presentation, highlighting advancements in their RNA medicines platform. The presentation emphasized the development of WVE-007, a GalNAc-siRNA targeting INHBE for obesity treatment, which shows promise in reducing weight and visceral fat without muscle loss. This advancement positions Wave Life Sciences as a leader in RNA-based therapies, potentially impacting the treatment landscape for obesity and related metabolic diseases.

The most recent analyst rating on (WVE) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Wave Life Sciences stock, see the WVE Stock Forecast page.