Wave Life Sciences (WVE) AI Stock Analysis

• Market Cap: $1.11B
• Dividend Yield: N/A
• Average Volume (3M): 1.41M
• 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: 44
• Industry: Biotechnology
• EPS (TTM): -0.29
• Shares Outstanding: 154,134,140
• 10 Day Avg. Volume: 1,112,952
• 30 Day Avg. Volume: 1,407,464
• 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: 0.45
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 4.78
• Enterprise Value/Ebitda: -1.15
• 1Y Price Target: $18.40
• Price Target Upside: 155.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 53 Neutral
• Price Target: $7.50 ▲(4.31%Upside)

Wave Life Sciences' overall stock score is influenced primarily by financial challenges and valuation concerns. Despite positive corporate developments, significant operational and financial hurdles remain. Improvement in financial metrics and continued success in clinical trials are crucial for enhancing the stock's attractiveness.

Positive Factors

Clinical Trials

Enrollment in the Phase 1 study of WVE-007 for obesity has been completed, showing advancement in their clinical trials.

Research Progress

WVE has narrowed the timing for expected data updates in their alpha-1-antitrypsin deficiency program, indicating progress in their research.

Strategic Interest

WVE is receiving strategic interest for their Huntington's disease treatment, suggesting confidence in their ongoing research and development efforts.

Negative Factors

Approval Risks

A potential ‘hidden’ catalyst in the form of PTCT's HD update could be very important for WVE.

Regulatory Concerns

Concerns on the accelerated approval pathway for the DMD and HD programs after recent FDA changes.

Value Proposition Uncertainty

The value proposition of the obesity target INHBE is uncertain, with low conviction in profound weight loss.

Wave Life Sciences Business Overview & Revenue Model

Company Description

Wave Life Sciences (WVE) is a biotechnology company focused on developing transformative therapies using its proprietary stereopure oligonucleotide platform. The company operates primarily in the healthcare sector, specializing in the design and development of precision medicines aimed at treating genetic diseases. Wave Life Sciences leverages its unique platform to create stereopure therapeutics that have the potential for enhanced efficacy, safety, and delivery compared to traditional oligonucleotide approaches.

How the Company Makes Money

Wave Life Sciences generates revenue primarily through strategic partnerships and collaborations with other pharmaceutical companies. These alliances often involve milestone payments, research funding, and potential royalties on commercialized products. Additionally, the company may receive government grants and funding to support its research endeavors. As Wave Life Sciences advances its pipeline of therapeutic candidates through clinical trials, potential revenue streams could also include sales of approved therapies. The company's ability to progress its drug candidates through development stages and secure regulatory approvals is crucial for its long-term financial success.

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
	EBIT
-159.52M	-110.40M	-68.00M	-162.72M	-127.02M	-153.38M
	EBITDA
-153.94M	-101.74M	-58.79M	-152.61M	-117.18M	-143.39M
	Net Income Common Stockholders
-146.65M	-97.01M	-57.51M	-161.82M	-122.25M	-149.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
287.57M	302.08M	200.35M	88.50M	150.56M	184.50M
	Total Assets
430.61M	352.21M	274.95M	146.39M	207.01M	279.24M
	Total Debt
34.70M	25.40M	32.12M	37.61M	29.92M	29.30M
	Net Debt
-252.87M	-276.67M	-168.23M	-50.88M	-120.65M	-155.19M
	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: 7.19
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 7.19 is above the 20-day moving average (MA) of 6.46, above the 50-day MA of 6.55, and below the 200-day MA of 9.99, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 59.40 is Neutral, neither overbought nor oversold. The STOCH value of 83.00 is Negative, 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	64 Neutral	$1.26B	―	-49.41%	―	4.86%	10.13%
Sector *	54 Neutral	$5.38B	3.40	-45.06%	3.28%	16.75%	-0.02%
WVE	53 Neutral	$1.11B	―	-105.50%	―	-7.06%	-57.17%
GERN	51 Neutral	$1.02B	―	-45.35%	―	22264.23%	39.09%
SNDX	48 Neutral	$967.17M	―	-93.70%	―	―	-25.83%
DYN	43 Neutral	$1.68B	―	-64.01%	―	―	14.93%
GPCR	31 Underperform	$1.26B	―	-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.

Wave Life Sciences Reports Positive Phase 2 Trial Results

On March 26, 2025, Wave Life Sciences announced positive results from their Phase 2 FORWARD-53 clinical trial for WVE-N531, a treatment for exon 53 amenable Duchenne muscular dystrophy. The trial showed significant improvements in muscle health and function, with a notable 3.8-second improvement in Time-to-Rise and a reduction in muscle damage indicators. The company plans to file a New Drug Application in 2026 for accelerated approval, aiming to position WVE-N531 as a first-line treatment for exon 53 skipping in DMD, potentially addressing a significant unmet need in the market.