Wave Life Sciences (WVE) AI Stock Analysis

• Market Cap: $1.07B
• Dividend Yield: N/A
• Average Volume (3M): 2.16M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• Revenue Growth: -14.98%
• EPS Growth: -51.76%
• Country: US
• Employees: 287
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.31
• Shares Outstanding: 159,140,460
• 10 Day Avg. Volume: 1,736,832
• 30 Day Avg. Volume: 2,155,692
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 9.44
• Enterprise Value/Gross Profit: 9.44
• Enterprise Value/Ebitda: -6.58
• 1Y Price Target: $18.23
• Price Target Upside: 168.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 48 Neutral
• Price Target: $8.00 ▲(17.65% Upside)

Wave Life Sciences faces significant financial challenges, which heavily weigh down the overall score. However, promising clinical advancements and positive corporate events provide potential upside. Technical indicators suggest the stock may be oversold, offering a possible entry point for investors.

Positive Factors

Clinical Advancements

The positive results from the RestorAATion-2 study highlight the potential of WVE-006 as a transformative treatment for AATD, showcasing Wave's innovative RNA editing capabilities and reinforcing its position in precision medicine.

Strategic Collaborations

Strategic collaborations provide essential funding and risk mitigation, enabling Wave to advance its drug pipeline and leverage larger firms' resources, crucial for long-term growth in the biotech sector.

Shareholder Support

Strong shareholder support for strategic initiatives, such as increasing authorized shares, reflects confidence in management's direction and provides flexibility for future growth and development.

Negative Factors

Revenue Decline

The significant decline in revenue suggests challenges in achieving consistent income from collaborations, which could impact the company's ability to fund R&D and sustain operations long-term.

Increased Net Loss

Rising net losses highlight operational inefficiencies and increased R&D expenses, posing a risk to financial stability and potentially limiting investment in future projects.

Cash Flow Challenges

Persistent cash flow challenges indicate difficulties in covering operational costs, which could constrain the company's ability to invest in growth initiatives and sustain long-term operations.

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 significant financial challenges, with declining revenues and persistent losses impacting profitability. While leverage is low, the company struggles with negative returns on equity and cash flow issues. The biotechnology industry often involves high R&D costs, which may contribute to these financial pressures. The company needs to improve its revenue trajectory and operational efficiency to enhance financial stability.

Income Statement

Wave Life Sciences has faced declining revenues with a negative revenue growth rate of -10.48% in the TTM. The company shows a high gross profit margin of 90.74%, but this is overshadowed by negative net profit and EBIT margins, indicating significant operational challenges. The consistent negative net profit margin suggests ongoing profitability issues.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.16, suggesting manageable leverage. However, the negative return on equity of -78.45% indicates that the company is not generating returns for shareholders. The equity ratio is not explicitly calculated, but the balance sheet shows a moderate level of equity relative to assets.

Cash Flow

Wave Life Sciences has a negative operating cash flow and free cash flow, with a slight improvement in free cash flow growth of 10.37% in the TTM. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. The free cash flow to net income ratio is slightly above 1, indicating that free cash flow is covering net losses, but overall cash flow health remains weak.

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: Negative
• Last Price: 6.80
• 50DMA: Negative
• 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 Negative. The current price of 6.8 is below the 20-day moving average (MA) of 7.43, below the 50-day MA of 8.29, and below the 200-day MA of 8.94, indicating a bearish trend. The MACD of -0.52 indicates Positive momentum. The RSI at 32.75 is Neutral, neither overbought nor oversold. The STOCH value of 25.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WVE.

Wave Life Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STOK	68 Neutral	1.32B	28.57	15.67%	―	1218.82%	―
PGEN	61 Neutral	1.05B	-8.19	-189.17%	―	-1.12%	20.77%
WVE	48 Neutral	$1.07B	―	-171.41%	―	-14.98%	-51.76%
NUVB	45 Neutral	1.10B	-5.10	―	―	900.35%	70.25%
RAPP	44 Neutral	1.23B	-10.80	―	―	―	―
ORIC	43 Neutral	1.08B	-5.88	―	―	―	-7.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Wave Life Sciences Corporate Events

Wave Life Sciences Announces Positive Results for WVE-006 Study

On September 3, 2025, Wave Life Sciences announced positive results from its ongoing Phase 1b/2a RestorAATion-2 study of WVE-006, aimed at treating alpha-1 antitrypsin deficiency (AATD). The data demonstrated durable production of serum AAT protein at levels associated with reduced risk of liver and lung diseases, following repeat doses of WVE-006. The study showed that WVE-006 was well tolerated with a favorable safety profile, and the results support a monthly or less frequent dosing regimen. This development represents a significant milestone for RNA editing in treating AATD and highlights the potential of WVE-006 as a transformative treatment option.

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.

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.