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Arcturus Therapeutics (ARCT)
:ARCT
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Arcturus Therapeutics
(NASDAQ:ARCT)
51Neutral
Positive Factors
Clinical Development
The company expects to present interim data from its Phase II LunairCF study, showing progress in clinical development of ARCT-032 for cystic fibrosis treatment.
Funding and Support
ARCT-2304's development is currently fully funded by the U.S. HHS through the Administration for Strategic Preparedness and Response and BARDA.
Regulatory Approvals
The company's proprietary STARR and LUNAR technologies have received recent regulatory approvals, which could bolster its credibility and potential market reach.
Negative Factors
Collaborative Revenues
Collaborative revenue for Arcturus in 2025 is reduced from $138.4 million to $65 million reflecting the winding down of Kostaive clinical development efforts.
Investor Sentiment
Questions on vaccine sentiment and commercial prospects have waned investor interest more broadly.
Key Risks
Key risks to the rating and price target include unforeseen safety or tolerability issues with ARCT-154, ARCT-810, or ARCT-032.
Arcturus Therapeutics (ARCT) vs. S&P 500 (SPY)
Market Cap
$347.96M
Dividend YieldN/A
Average Volume (3M)426.11K
Price to Earnings (P/E)―
Beta (1Y)2.36
Revenue Growth-13.98%
EPS Growth-200.43%
CountryUS
Employees174
SectorHealthcare
Sector Strength56
IndustryBiotechnology
Share Statistics
EPS (TTM)-3.00
Shares Outstanding27,120,604
10 Day Avg. Volume352,531
30 Day Avg. Volume426,106
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.56
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.28
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$66.00Price Target Upside414.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Arcturus Therapeutics Business Overview & Revenue Model
Company DescriptionArcturus Therapeutics (ARCT) is a biotechnology company specializing in the development of RNA-based medicines using its proprietary technologies. The company focuses on leveraging its innovative platforms to create therapies for rare diseases and infectious diseases. Arcturus' core products include mRNA therapeutics and vaccines, designed to address unmet medical needs in a variety of therapeutic areas.
How the Company Makes MoneyArcturus Therapeutics generates revenue primarily through strategic partnerships and collaborations with other pharmaceutical companies, leveraging its proprietary RNA-based technologies. These partnerships often involve upfront payments, milestone payments, and potential royalties on product sales. Additionally, Arcturus may engage in licensing agreements, allowing other companies to use its technology in exchange for fees, contributing further to its revenue streams. The company's ability to monetize its innovative platforms and demonstrate clinical success in its development programs are key factors influencing its earnings.
Arcturus Therapeutics Financial Statement Overview
Summary
Arcturus Therapeutics is facing a challenging financial landscape with volatile revenue growth and persistent losses impacting profitability metrics. While the company benefits from a strong cash position and moderate leverage, its inconsistent cash flow performance and negative net income indicate areas that require strategic improvement to achieve financial stability.Income Statement
Arcturus Therapeutics has shown volatile revenue growth with a recent decline from 2023 to 2024. The company has maintained a high gross profit margin, but the net profit margin remains negative due to persistent losses. The EBIT and EBITDA margins have also deteriorated, reflecting operational challenges.45
Neutral
Balance Sheet
The balance sheet displays a strong cash position and a negative net debt, indicating significant cash reserves. However, the debt-to-equity ratio has increased slightly, suggesting a moderate level of leverage. The equity ratio remains stable, reflecting a solid capital structure.55
Neutral
Cash Flow
The operating cash flow has been inconsistent, with a significant drop in 2024. Free cash flow has also been volatile and negative, pointing to challenges in generating cash from operations. The company needs to improve its cash flow management to support growth.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 152.31M | 157.75M | 205.75M | 12.36M | 9.54M | Gross Profit |
| 152.31M | 154.79M | 62.70M | -159.50M | -46.41M | EBIT |
| -95.67M | -78.20M | 12.18M | -202.85M | -71.52M | EBITDA |
| -77.40M | -24.17M | 13.70M | -201.66M | -70.64M | Net Income Common Stockholders |
| -80.94M | -29.73M | 9.35M | -206.86M | -71.36M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 237.03M | 292.00M | 391.88M | 370.49M | 462.89M | Total Assets |
| 344.07M | 429.40M | 450.39M | 392.81M | 476.46M | Total Debt |
| 25.00M | 30.22M | 90.87M | 67.61M | 17.87M | Net Debt |
| -212.03M | -261.79M | -301.01M | -302.88M | -445.02M | Total Liabilities |
| 103.09M | 150.89M | 180.07M | 164.60M | 79.90M | Stockholders Equity |
| 240.98M | 278.51M | 270.31M | 228.21M | 396.55M |
| Cash Flow | Free Cash Flow | |||
| -60.40M | -21.00M | 24.27M | -138.45M | -44.60M | Operating Cash Flow |
| -59.75M | -18.10M | 31.99M | -135.04M | -42.86M | Investing Cash Flow |
| -648.00K | -2.90M | -7.73M | -3.41M | -1.74M | Financing Cash Flow |
| 5.42M | -24.09M | -2.86M | 48.02M | 436.14M |
Arcturus Therapeutics Technical Analysis
Positive
12.83
Price Trends
12.77
Positive
14.91
Negative
17.64
Negative
Market Momentum
0.21
Negative
58.38
Neutral
69.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARCT, the sentiment is Positive. The current price of 12.83 is above the 20-day moving average (MA) of 11.15, above the 50-day MA of 12.77, and below the 200-day MA of 17.64, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 58.38 is Neutral, neither overbought nor oversold. The STOCH value of 69.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARCT.
Arcturus Therapeutics Risk Analysis
Arcturus Therapeutics disclosed 60 risk factors in its most recent earnings report. Arcturus Therapeutics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arcturus Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $5.35B | 3.81 | -42.57% | 2.86% | 17.10% | 1.33% | |
51 Neutral | $347.96M | ― | -31.16% | ― | -13.98% | -200.43% | |
45 Neutral | $299.69M | ― | -62.43% | ― | -0.90% | -89.51% | |
45 Neutral | $266.14M | ― | -24.56% | ― | -62.28% | 75.12% | |
44 Neutral | $382.57M | ― | -526.33% | ― | ― | 14.39% | |
43 Neutral | $309.15M | ― | -46.01% | ― | ― | 9.22% | |
41 Neutral | $400.99M | ― | -28.19% | ― | ― | -48.01% |
* Healthcare Sector Average
Performance Comparison
ARCT
Arcturus Therapeutics
12.83
-14.49
-53.04%
ORKA
Oruka Therapeutics
10.71
-10.07
-48.46%
VSTM
Verastem
7.43
-4.41
-37.25%
ATAI
ATAI Life Sciences
1.50
-0.62
-29.25%
TSVT
2seventy bio
5.00
0.05
1.01%
AURA
Aura Biosciences Inc
6.15
-1.55
-20.13%
Arcturus Therapeutics Earnings Call Summary
Earnings Call Date:Mar 06, 2025
(Q4-2024)
| % Change Since: -19.66%|
Next Earnings Date:May 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for Arcturus Therapeutics. While there were significant achievements such as the European approval of KOSTAIVE and progress in various clinical programs, these were offset by financial challenges including decreased revenue and increased net loss. The company's strong cash position and expected cash runway provide some reassurance.Q4-2024 Updates
Positive Updates
European Commission Approval for KOSTAIVE
Arcturus Therapeutics received European Commission approval for KOSTAIVE, the world's first approved self-amplifying mRNA COVID-19 vaccine, covering all 27 EU member states and 3 additional European economic area countries.
Significant Gross Profit from KOSTAIVE
Arcturus' share of gross profit from the sale of KOSTAIVE during Q4 2024 was approximately $28 million, which will offset development costs.
Initiation of Phase I Study for ARCT-2304
Initiated a Phase I study of ARCT-2304, a self-amplifying mRNA vaccine candidate for H5N1, fully funded by BARDA with interim data expected in the second half of 2025.
Continued Progress in Cystic Fibrosis Program
Dosed the first participant in a Phase II study of ARCT-032 for cystic fibrosis, with interim data expected by the end of Q2 2025.
Strong Cash Position
Cash and cash equivalents were $293.9 million as of December 31, 2024, with a cash runway expected until the end of Q1 2027.
Negative Updates
Decrease in Revenue
Revenues for the year ended 2024 decreased by $14.5 million to $152.3 million compared to 2023, primarily due to lower milestone achievements from the CSL agreement.
Increased Net Loss
Reported a net loss of approximately $80.9 million for the year ended 2024, compared to a net loss of $29.7 million in 2023.
Increased Operating Expenses
Total operating expenses for 2024 increased to $248 million from $245 million in 2023, driven by higher clinical trial costs.
Company Guidance
During the Arcturus Therapeutics Fourth and Full Year 2024 Earnings Call, several key metrics and updates were shared. For the fiscal year ending December 31, 2024, the company reported revenues of $152.3 million, a decrease from $166.8 million in 2023, largely due to lower milestone achievements from the CSL agreement. However, revenues for the fourth quarter of 2024 amounted to $22.8 million. Operating expenses for 2024 were $248 million, up slightly from $245 million in 2023, with research and development expenses rising to $195.2 million. The company reported a net loss of $80.9 million for 2024. Importantly, Arcturus achieved a significant milestone with the European Commission's approval of KOSTAIVE, the world's first approved self-amplifying mRNA COVID-19 vaccine, and recorded a $28 million gross profit share from its sale. The company anticipates continued revenue from ongoing clinical programs and maintains a strong cash position of $293.9 million as of December 31, 2024, supporting a cash runway extending to the end of Q1 2027. Additionally, Arcturus is progressing with its pipeline, including a Phase I study of ARCT-2304 for H5N1 influenza and a Phase II study for ARCT-032 in cystic fibrosis, with key data readouts expected in 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.