Zevra Therapeutics (ZVRA) AI Stock Analysis

• Market Cap: $548.44M
• Dividend Yield: N/A
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: 158.57%
• EPS Growth: 96.76%
• Country: US
• Employees: 59
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 1.21
• Shares Outstanding: 56,135,090
• 10 Day Avg. Volume: 3,128,588
• 30 Day Avg. Volume: 1,946,987
• 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: 0.62
• Enterprise Value/Revenue: 5.52
• Enterprise Value/Gross Profit: 7.67
• Enterprise Value/Ebitda: -2.97
• 1Y Price Target: $24.00
• Price Target Upside: 151.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 58 Neutral
• Price Target: $9.50 ▼(-0.42% Downside)

Zevra Therapeutics' overall stock score is driven by strong revenue growth and strategic financial maneuvers highlighted in the earnings call. However, financial performance is hindered by negative operating margins and cash flow issues. Technical indicators are mixed, and valuation metrics suggest potential overvaluation. The company's strategic initiatives and strong cash position are positive, but operational challenges need addressing.

Positive Factors

Revenue Growth

Strong revenue growth from MIPLYFFA indicates robust demand and effective market penetration, supporting long-term financial stability.

European Expansion

European expansion for arimoclomol represents a strategic move to access new markets, potentially increasing revenue streams and global presence.

Strong Cash Position

A strong cash position enhances financial flexibility, enabling further investment in R&D and strategic initiatives, supporting long-term growth.

Negative Factors

Negative Cash Flow

Persistent negative cash flow can limit operational capabilities and investment potential, posing a risk to sustained business operations.

Increased SG&A Expenses

Rising SG&A expenses can strain profitability, reducing the ability to reinvest in growth and potentially impacting long-term financial health.

Slow OLPRUVA Adoption

Slow adoption of OLPRUVA suggests challenges in market acceptance, potentially limiting revenue growth and impacting strategic objectives.

Zevra Therapeutics Business Overview & Revenue Model

Company Description

Zevra Therapeutics, Inc., a rare disease company melding science, discovers and develops various proprietary prodrugs to treat serious medical conditions in the United States. The company utilizes its Ligand Activated Therapy technology to generate improved prodrug versions of FDA-approved drugs, as well as to generate prodrug versions of existing compounds that may have applications for new disease indications. Its prodrug product candidate pipeline is focused on the high need areas of attention deficit hyperactivity disorder, stimulant use disorder, and CNS rare diseases, including idiopathic hypersomnia (IH). The company's lead product candidate KP1077, which is under Phase II clinical trial for the treatment of IH and narcolepsy, is based on its prodrug of d-methylphenidate, known as serdexmethylphenidate. It is also developing KP879, a prodrug product candidate for the treatment of stimulant use disorder and is under Phase II clinical trial. In addition, the company has received FDA approval for AZSTARYS, a once-daily treatment for attention deficit hyperactivity disorder in patents age six years and older, and for APADAZ, an immediate-release combination product containing benzhydrocodone, a prodrug of hydrocodone, and acetaminophen. The company's product pipeline include, arimoclomol It has collaboration and license agreement with KVK-Tech, Inc. and Commave Therapeutics SA. The company was formerly known as KemPharm, Inc. and changed its name to Zevra Therapeutics, Inc. in February 2023. Zevra Therapeutics, Inc. was incorporated in 2006 and is headquartered in Celebration, Florida.

How the Company Makes Money

Zevra Therapeutics generates revenue primarily through the commercialization of its pharmaceutical products, which involves selling approved therapies to healthcare providers and patients. The company may also engage in licensing agreements and partnerships with larger pharmaceutical companies for the co-development and distribution of its drugs, providing additional revenue streams through upfront payments, milestone payments, and royalties on future sales. Additionally, funding from government grants and research institutions to support clinical trials can contribute to its earnings. As Zevra advances its drug candidates through clinical trials and regulatory approvals, successful product launches and market penetration are critical for driving its financial performance.

Zevra Therapeutics Financial Statement Overview

Summary

Zevra Therapeutics shows strong revenue growth and a solid gross profit margin, indicating potential for future profitability. However, challenges with negative operating margins and cash flow difficulties could impact financial stability. Improved debt-to-equity ratio suggests better leverage management, but overall profitability remains a concern.

Income Statement

Zevra Therapeutics shows a strong revenue growth rate of 52.8% in the TTM, indicating robust top-line expansion. The gross profit margin is healthy at 71.96%, reflecting efficient cost management. However, the company struggles with profitability, as evidenced by negative EBIT and EBITDA margins, suggesting operational challenges. The net profit margin has improved to 4.26% in the TTM, showing some progress in controlling expenses.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.53 in the TTM, indicating a more balanced capital structure compared to previous periods. Return on equity is modest at 3.95%, reflecting limited profitability relative to shareholder equity. The equity ratio stands at 45.74%, suggesting a stable financial position with a reasonable proportion of assets financed by equity.

Cash Flow

Zevra Therapeutics faces challenges with negative operating and free cash flows in the TTM, indicating cash flow difficulties. The free cash flow to net income ratio is slightly above 1, suggesting that the company is generating cash flow in line with its net income. However, the negative free cash flow growth rate of -24.74% highlights ongoing cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.02M	23.61M	27.46M	10.16M	28.65M	13.29M
Gross Profit	44.63M	16.20M	24.52M	9.94M	26.59M	11.98M
EBITDA	-115.16M	-76.40M	-43.54M	-25.53M	-7.89M	-5.43M
Net Income	2.64M	-105.51M	-46.05M	-26.77M	-8.55M	-12.76M
Balance Sheet
Total Assets	256.28M	178.13M	172.33M	115.53M	132.94M	11.21M
Cash, Cash Equivalents and Short-Term Investments	47.71M	69.50M	67.74M	82.85M	112.35M	4.21M
Total Debt	62.28M	60.30M	43.77M	14.12M	1.61M	70.35M
Total Liabilities	139.05M	138.46M	110.46M	40.22M	5.82M	77.62M
Stockholders Equity	117.23M	39.67M	61.86M	75.12M	127.12M	-66.41M
Cash Flow
Free Cash Flow	-46.53M	-69.67M	-33.83M	-18.81M	10.34M	-1.97M
Operating Cash Flow	-46.21M	-69.67M	-33.53M	-18.72M	10.44M	-1.94M
Investing Cash Flow	-14.35M	-22.16M	-17.39M	-36.72M	-15.52M	-33.00K
Financing Cash Flow	68.55M	82.11M	28.46M	8.35M	113.11M	2.74M

Zevra Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZVRA, the sentiment is Positive. The current price of 9.54 is above the 20-day moving average (MA) of 8.37, below the 50-day MA of 9.65, and above the 200-day MA of 8.70, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 59.36 is Neutral, neither overbought nor oversold. The STOCH value of 85.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZVRA.

Zevra Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UPB	61 Neutral	$930.48M	-8.42	-13.37%	―	―	―
MAZE	59 Neutral	$1.18B	-16.03	―	―	―	―
ZVRA	58 Neutral	$548.44M	―	3.53%	―	158.57%	96.76%
RLAY	55 Neutral	$891.37M	-2.65	-43.42%	―	-76.27%	22.77%
OMER	40 Underperform	$303.53M	-2.12	―	―	―	10.15%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%