Adverum Biotechnologies (ADVM) AI Stock Analysis

• Market Cap: $58.70M
• Dividend Yield: N/A
• Average Volume (3M): 405.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: -72.22%
• EPS Growth: 51.40%
• Country: US
• Employees: 155
• Sector: Healthcare
• Sector Strength: 48
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 20,890,575
• 10 Day Avg. Volume: 636,544
• 30 Day Avg. Volume: 405,117
• PEG Ratio: -0.04
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.11
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $17.50
• Price Target Upside: 545.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Adverum Biotechnologies faces significant financial and operational challenges. The persistent losses, increasing leverage, and negative cash flows are critical issues that need addressing. The technical analysis indicates a weak momentum, and the valuation metrics suggest unattractiveness due to the lack of profitability. The recent subtenant default situation adds further uncertainty, impacting the company's stability and outlook.

Positive Factors

Clinical Trials

The initiation of the Phase 3 ARTEMIS trial for Ixo-vec includes both treatment-naïve and previously treated wet AMD patients, reflecting the broad real-world wet AMD patient population.

Market Potential

Analyst maintains an outperform rating on ADVM due to a bullish view on ixo-vec representing a best-in-class product and a potential global sales opportunity exceeding $2 billion.

Product Efficacy

Ixo-vec has demonstrated differentiated wet AMD treatment burden reduction in hard-to-treat patients with supportive data for more than four years.

Negative Factors

Financial Pressure

The price target has been adjusted from $20 to $16 due to the assumed cost of the newly disclosed first Phase 3 study and current cash considerations.

Funding Concerns

There is a major stock overhang due to management not solving how the Phase 3 ixo-vec program will be funded.

Adverum Biotechnologies Business Overview & Revenue Model

Company Description

Adverum Biotechnologies, Inc. (ADVM) is a biotechnology company focused on discovering and developing gene therapy-based treatments for ocular and rare diseases. Utilizing its proprietary adeno-associated virus (AAV) technology platform, Adverum aims to develop novel therapies that can offer long-term efficacy and safety. The company's core product candidates are designed to address conditions with significant unmet medical needs, such as wet age-related macular degeneration and diabetic macular edema.

How the Company Makes Money

Adverum Biotechnologies generates revenue primarily through collaboration and licensing agreements with other pharmaceutical and biotechnology companies. These partnerships often involve upfront payments, milestones, and royalties based on the successful development and commercialization of product candidates. Additionally, Adverum may receive funding from grants and research contracts to advance its gene therapy programs. The company's earnings are influenced significantly by the progress of its clinical trials and the potential market approval of its therapies.

Adverum Biotechnologies Financial Statement Overview

Summary

Adverum Biotechnologies faces significant financial challenges, with consistent losses impacting profitability and cash flows. While the company's cash reserves provide some financial flexibility, high leverage and declining equity pose risks to long-term sustainability. Strategic adjustments are necessary to improve financial health and reduce dependency on external financing.

Income Statement

Adverum Biotechnologies exhibits weak income statement metrics characterized by negative profitability and declining revenue. The TTM shows a negative gross profit margin and a net profit margin of -3620.04%, indicating substantial losses relative to revenue. Revenue growth is inconsistent, with a significant decline in recent periods, pointing to operational challenges.

Balance Sheet

The balance sheet reveals moderate stability but also significant risk due to high leverage. The debt-to-equity ratio remains elevated, reflecting reliance on debt financing. However, the company maintains a substantial cash position relative to its liabilities, providing some liquidity buffer. Stockholders' equity shows a decreasing trend, impacting financial resilience.

Cash Flow

Cash flow analysis highlights negative operating and free cash flows, indicating cash burn issues. The operating cash flow to net income ratio is negative due to persistent net losses. Although the company generated positive cash flow from financing activities, reliance on external financing could pose future risks if profitability does not improve.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
-2.60M	3.60M	0.00	7.50M	0.00	250.00K
	Gross Profit
-6.45M	-2.04M	-6.53M	2.85M	-4.16M	250.00K
	EBIT
-113.90M	-123.99M	-157.13M	-146.12M	-117.95M	-68.55M
	EBITDA
-97.03M	-118.35M	-147.93M	-140.90M	-112.23M	-62.91M
	Net Income Common Stockholders
-94.11M	-117.17M	-154.54M	-145.54M	-117.51M	-64.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
50.68M	96.53M	185.59M	305.19M	429.73M	166.03M
	Total Assets
51.61M	173.01M	308.37M	439.73M	482.57M	222.73M
	Total Debt
14.00K	75.04M	106.80M	102.99M	30.71M	32.25M
	Net Debt
-50.66M	36.00K	38.37M	68.80M	-31.72M	-33.65M
	Total Liabilities
1.70M	89.54M	126.85M	123.54M	48.22M	47.77M
	Stockholders Equity
49.91M	83.47M	181.52M	316.19M	434.35M	174.96M
Cash Flow		Free Cash Flow
-86.14M	-91.71M	-119.91M	-122.95M	-91.14M	-68.42M
	Operating Cash Flow
-85.62M	-90.90M	-108.09M	-107.83M	-79.29M	-49.17M
	Investing Cash Flow
-47.58M	96.88M	141.72M	78.71M	-280.17M	-68.07M
	Financing Cash Flow
120.01M	69.00K	607.00K	2.40M	355.99M	28.19M

Adverum Biotechnologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADVM, the sentiment is Negative. The current price of 2.71 is below the 20-day moving average (MA) of 3.08, below the 50-day MA of 3.90, and below the 200-day MA of 5.64, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 36.73 is Neutral, neither overbought nor oversold. The STOCH value of 19.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADVM.

Adverum Biotechnologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.21B	3.49	-43.30%	2.83%	14.70%	-0.24%
ADVM	40 Underperform	$58.70M	―	-144.41%	―	-72.22%	51.40%
TCRX	39 Underperform	$77.53M	―	-78.93%	―	-70.15%	―
ADAG	36 Underperform	$80.09M	―	-55.14%	―	-99.43%	-69.40%
ELTX	30 Underperform	$87.58M	―	-9999.00%	―	―	27.65%
IGMS	29 Underperform	$71.13M	―	-155.76%	―	25.77%	32.56%

Adverum Biotechnologies Corporate Events

Adverum Biotechnologies Faces Subtenant Default Situation

Adverum Biotechnologies is dealing with a default situation involving its subtenants, Advanced Medical Partners, LLC, and Jaguar Gene Therapy, LLC, under the sublease for the NC Premises. Despite these challenges, Adverum Biotechnologies expects its financial resources, including cash, cash equivalents, and short-term investments, to sustain its operations into the second half of 2025.