Wave Life Sciences (WVE) AI Stock Analysis

• Market Cap: $1.30B
• Dividend Yield: N/A
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.77
• Revenue Growth: -7.06%
• EPS Growth: -57.17%
• Country: US
• Employees: 287
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.29
• Shares Outstanding: 155,562,670
• 10 Day Avg. Volume: 1,950,861
• 30 Day Avg. Volume: 1,321,971
• PEG Ratio: 1.73
• Price to Book (P/B): 7.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.56
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 2.60
• Enterprise Value/Gross Profit: 9.34
• Enterprise Value/Ebitda: -2.24
• 1Y Price Target: $17.90
• Price Target Upside: 127.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 58 Neutral
• Price Target: $8.00 ▲(1.65%Upside)

Wave Life Sciences presents a mixed investment potential. The primary concerns are financial instability and negative valuation metrics, reflecting significant operational challenges. However, technical analysis shows short-term positive momentum, and recent corporate events provide an optimistic outlook due to clinical progress and a solid cash runway.

Positive Factors

Financial Stability

Wave's cash on hand is sufficient into 2027, providing ample runway for the company to achieve multiple key catalysts.

Innovative Developments

Wave Life Sciences is focused on developing a pipeline of novel, multi-modal RNA medicines for rare and common diseases, indicating innovative approaches in their field.

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 Data Concerns

There is minimal clinical data from WVE, but mouse models indicate multiple dosing could potentially increase M-AAT over time.

Competitive Secrecy

WVE has been fairly secretive about what to expect next from their RNA editing program, due to the highly competitive nature of the field.

Expectations Management

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

Wave Life Sciences Business Overview & Revenue Model

Company Description

Wave Life Sciences (WVE) is a biotechnology company focused on the development of stereopure oligonucleotide therapeutics for the treatment of genetic diseases. The company operates in the healthcare sector, specifically within the biopharmaceutical industry. Wave Life Sciences leverages its proprietary platform to design, develop, and commercialize innovative genetic medicines with an emphasis on precision and efficacy. Their core products aim to address rare genetic disorders, including neurological and neuromuscular diseases.

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

Wave Life Sciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 7.87 is above the 20-day moving average (MA) of 7.30, above the 50-day MA of 6.85, and below the 200-day MA of 10.13, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 58.83 is Neutral, neither overbought nor oversold. The STOCH value of 71.63 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
WVE	58 Neutral	$1.30B	―	-105.50%	―	-7.06%	-57.17%
VRDN	55 Neutral	$1.35B	―	-49.41%	―	4.86%	10.13%
SNDX	48 Neutral	$814.01M	―	-93.70%	―	―	-25.83%
Sector *	46 Neutral	C$195.87M	-3.29	-23.14%	1.84%	20.75%	-0.36%
DYN	43 Neutral	$1.30B	―	-64.01%	―	―	14.93%
GERN	42 Neutral	$789.78M	―	-45.35%	―	22264.23%	39.09%
GPCR	31 Underperform	$1.11B	―	-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.