Wave Life Sciences (WVE) AI Stock Analysis

• Market Cap: $2.99B
• Dividend Yield: N/A
• Average Volume (3M): 9.71M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: 103.75%
• EPS Growth: 33.84%
• Country: US
• Employees: 287
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.32
• Shares Outstanding: 182,996,750
• 10 Day Avg. Volume: 24,632,854
• 30 Day Avg. Volume: 9,713,741
• 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: 0.35
• Enterprise Value/Revenue: 9.70
• Enterprise Value/Gross Profit: 10.10
• Enterprise Value/Ebitda: -8.49
• 1Y Price Target: $33.00
• Price Target Upside: 112.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): -1.19
• Revenue Forecast (FY): $42.09M

• Rating: 67 Neutral
• Price Target: $18.00 ▲(15.83% Upside)

Wave Life Sciences benefits from strong technical momentum and positive earnings call sentiment, offset by weak financial performance and valuation concerns. The stock's potential is bolstered by clinical advancements and a solid cash position, but profitability and cash flow issues remain significant risks.

Positive Factors

Revenue Growth

The significant revenue growth indicates successful commercialization efforts and strengthens the company's financial foundation, enhancing its ability to invest in R&D and future growth.

Strong Cash Position

A robust cash position provides financial flexibility to fund ongoing R&D, support operational needs, and withstand market fluctuations, ensuring long-term sustainability.

Clinical Advancements

Advancements in clinical trials, such as those for WVE-007, enhance the company's competitive edge and potential market share in the biotechnology sector, driving future revenue opportunities.

Negative Factors

Profitability Concerns

Ongoing profitability issues reflect high operational costs relative to revenue, which may hinder the company's ability to achieve sustainable financial health and investor confidence in the long term.

Cash Flow Challenges

Negative cash flows indicate liquidity challenges, limiting the company's capacity to invest in growth initiatives and potentially impacting its ability to meet financial obligations.

Increased Expenses

Rising R&D expenses, while necessary for innovation, can strain financial resources if not matched by revenue growth, affecting the company's long-term financial stability.

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 the development and commercialization of its therapeutic products. The company secures funding through partnerships with larger pharmaceutical companies, which may involve upfront payments, milestone payments upon achieving specific development goals, and royalties on future sales. Additionally, Wave may receive grants and funding from government and research institutions aimed at supporting innovative medical research. Significant collaborations with industry leaders can enhance its financial stability and provide access to resources necessary for advancing its product pipeline.

Wave Life Sciences Financial Statement Overview

Summary

Wave Life Sciences shows revenue growth but faces significant profitability and cash flow challenges. The negative net profit and EBIT margins, along with negative operating and free cash flows, highlight ongoing financial difficulties. The balance sheet indicates manageable debt but low equity ratio and negative return on equity, pointing to potential financial instability.

Income Statement

Wave Life Sciences shows a mixed performance in its income statement. The company has achieved a positive revenue growth rate of 16.27% in the TTM period, indicating an upward trajectory in sales. However, profitability remains a significant concern, with negative net profit and EBIT margins, reflecting ongoing operational challenges and high costs relative to revenue.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.16, suggesting manageable leverage. However, the return on equity is negative, indicating that the company is not generating profit from shareholders' equity. The equity ratio is also low, pointing to potential financial instability.

Cash Flow

Cash flow analysis highlights significant challenges, with negative operating and free cash flows. The free cash flow to net income ratio is slightly above 1, indicating that cash flow is closely aligned with net income, albeit both are negative. The company faces liquidity issues, as evidenced by the negative free cash flow growth rate.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	109.23M	108.30M	113.31M	3.65M	40.96M	20.08M
Gross Profit	104.87M	108.30M	113.31M	3.65M	40.96M	-110.87M
EBITDA	-124.70M	-101.74M	-58.79M	-152.61M	-117.18M	-145.26M
Net Income	-121.95M	-97.01M	-57.51M	-161.82M	-122.25M	-149.91M
Balance Sheet
Total Assets	241.38M	352.21M	274.95M	146.39M	207.01M	279.24M
Cash, Cash Equivalents and Short-Term Investments	196.22M	302.08M	200.35M	88.50M	150.56M	184.50M
Total Debt	19.77M	25.40M	32.12M	37.61M	29.92M	29.30M
Total Liabilities	116.83M	142.69M	235.32M	191.48M	174.51M	188.59M
Stockholders Equity	124.55M	209.51M	39.63M	-45.09M	32.50M	90.65M
Cash Flow
Free Cash Flow	-198.17M	-151.96M	-20.55M	-129.14M	-89.55M	-117.32M
Operating Cash Flow	-197.37M	-151.03M	-19.43M	-127.78M	-88.99M	-115.98M
Investing Cash Flow	-805.00K	-938.00K	-1.11M	-1.25M	-560.00K	-1.34M
Financing Cash Flow	83.52M	253.89M	132.53M	67.19M	55.83M	154.54M

Wave Life Sciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 15.54 is above the 20-day moving average (MA) of 11.93, above the 50-day MA of 9.36, and above the 200-day MA of 8.07, indicating a bullish trend. The MACD of 2.48 indicates Negative momentum. The RSI at 62.57 is Neutral, neither overbought nor oversold. The STOCH value of 52.43 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
STOK	70 Outperform	$1.88B	48.39	15.02%	―	1128.17%	―
WVE	67 Neutral	$2.99B	-20.79	-86.51%	―	103.75%	33.84%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PGEN	48 Neutral	$1.41B	-2.98	-507.72%	―	59.20%	-155.65%
NUVB	45 Neutral	$2.93B	-14.04	-52.49%	―	1137.19%	70.51%
RAPP	44 Neutral	$1.37B	-11.01	-23.41%	―	―	-37.07%
ORIC	43 Neutral	$800.54M	-4.67	-39.73%	―	―	4.29%

Wave Life Sciences Corporate Events

Wave Life Sciences Announces Public Offering for $402.5 Million

On December 9, 2025, Wave Life Sciences announced an underwritten public offering of 15,789,475 ordinary shares at $19.00 per share and pre-funded warrants for 2,631,578 shares at $18.9999 each, expecting gross proceeds of approximately $402.5 million. The offering, which includes an option for underwriters to purchase additional shares, is anticipated to close on December 11, 2025, and will support the company’s operations into the third quarter of 2028, enhancing its market positioning and financial stability.

Wave Life Sciences Announces Positive Phase 1 Trial Results

On December 8, 2025, Wave Life Sciences announced positive interim data from its Phase 1 INLIGHT trial for WVE-007, a treatment for obesity. The trial showed significant improvements in body composition, including reductions in visceral and total body fat and an increase in lean mass, with a favorable safety profile. These results suggest the potential for WVE-007 to be a transformative obesity treatment with once or twice-yearly dosing, addressing the limitations of current GLP-1 therapies. The company is planning Phase 2 trials and expects further data updates in 2026.

Wave Life Sciences Highlights RNA Platform Advancements

On November 17, 2025, Wave Life Sciences updated its corporate presentation, emphasizing advancements in its RNA medicines platform. The company highlighted its robust pipeline, including the WVE-007 program for obesity, which aims to offer a novel treatment approach with potential benefits over current therapies. This update underscores Wave Life Sciences’ strategic positioning in the RNA medicines market, potentially impacting its competitive stance and offering new opportunities for stakeholders.

Wave Life Sciences Reports Positive INLIGHT Trial Results

On October 29, 2025, Wave Life Sciences announced positive results from its INLIGHT clinical trial of WVE-007 for obesity, showing significant dose-dependent reductions in Activin E levels, which are linked to fat loss. The company also introduced WVE-008, a new RNA editing candidate for liver disease, and highlighted its advancements in RNA editing and silencing technologies, positioning itself as a leader in RNA medicines.

Wave Life Sciences Highlights WVE-007 Obesity Treatment

On September 24, 2025, Wave Life Sciences updated its corporate presentation, highlighting advancements in its RNA medicines pipeline, particularly the development of WVE-007 for obesity treatment. The presentation emphasized the potential of WVE-007, a GalNAc-siRNA targeting INHBE, to offer a novel, long-acting, and muscle-sparing approach to obesity, addressing limitations of current treatments like GLP-1s. Preclinical data showed promising results in reducing body weight and visceral fat without muscle loss, suggesting significant implications for the company’s competitive positioning in the RNA therapeutics market.