Cabaletta Bio (CABA) AI Stock Analysis

• Market Cap: $68.00M
• Dividend Yield: N/A
• Average Volume (3M): 889.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.28
• Revenue Growth: N/A
• EPS Growth: -40.59%
• Country: US
• Employees: 161
• Sector: Healthcare
• Sector Strength: 60
• Industry: Biotechnology
• EPS (TTM): -0.65
• Shares Outstanding: 50,743,100
• 10 Day Avg. Volume: 596,603
• 30 Day Avg. Volume: 889,008
• PEG Ratio: N/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 Ratio: 0.00
• Enterprise Value/Market Cap: -0.51
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 24.13
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.50
• Price Target Upside: 1110.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Cabaletta Bio's overall score is low primarily due to its financial performance, marked by no revenue and increasing losses. The technical analysis indicates a bearish trend, further impacting the score. However, the recent positive clinical trial data provides a glimmer of hope, slightly improving future outlook. Despite this, the stock's valuation remains a concern, making it a risky investment at this stage.

Positive Factors

Clinical Data

CABA-201 demonstrated encouraging efficacy with responses deepening over time and naïve B cell repopulation with consistent safety.

Clinical Progress

Rapid enrollment continues across the CABA-201 RESET clinical program with 56 sites now active.

Regulatory Advancement

Cabaletta anticipates meeting with the FDA to discuss the design of a potential registrational trial of rese-cel.

Negative Factors

Capital Concerns

CABA's cash reserves expected to last until 1H26 may not be sufficient to achieve significant milestones, raising concerns about access to capital.

Market Sentiment

CABA shares have decreased significantly compared to the broader market due to concerns about rese-cel's safety and competition.

Safety Concerns

The occurrence of a new Grade 3 ICANS event in the SSc trial raises concerns about the safety and potential of rese-cel.

Cabaletta Bio Business Overview & Revenue Model

Company Description

Cabaletta Bio, Inc., a clinical-stage biotechnology company, focuses on the discovery and development of engineered T cell therapies for patients with B cell-mediated autoimmune diseases. Its proprietary technology utilizes chimeric autoantibody receptor (CAAR) T cells that are designed to selectively bind and eliminate B cells, which produce disease-causing autoantibodies or pathogenic B cells. The company's lead product candidate is DSG3-CAART, which is in Phase I clinical trial for the treatment of mucosal pemphigus vulgaris, an autoimmune blistering skin disease, and Hemophilia A with Factor VIII alloantibodies. Its product candidate pipeline also includes MuSK-CAART, a preclinical stage product to treat a subset of patients with myasthenia gravis; FVIII-CAART, a discovery stage product to treat a subset of patients with Hemophilia A; and DSG3/1-CAART, a discovery stage product for the treatment of mucocutaneous pemphigus vulgaris. It has a collaboration with the University of Pennsylvania; and research agreement with The Regents of the University of California. The company was formerly known as Tycho Therapeutics, Inc. and changed its name to Cabaletta Bio, Inc. in August 2018. Cabaletta Bio, Inc. was incorporated in 2017 and is headquartered in Philadelphia, Pennsylvania.

How the Company Makes Money

Cabaletta Bio generates revenue primarily through the development and potential commercialization of its CAAR T cell therapies. The company may earn income from collaborations and partnerships with other pharmaceutical or biotechnology firms for research, development, and commercialization efforts. Additionally, Cabaletta Bio might receive milestone payments, licensing fees, or royalties related to its technology and products. The company's financial performance is significantly influenced by the progress of its clinical trials, regulatory approvals, and the successful commercialization of its therapies.

Cabaletta Bio Financial Statement Overview

Summary

Cabaletta Bio shows promising revenue growth with a strong equity position, yet persistent net losses and negative cash flows highlight ongoing profitability and cash management challenges. The company needs to focus on improving operational efficiency and achieving a sustainable cash flow to secure its financial future in the competitive biotechnology industry.

Income Statement

Cabaletta Bio experienced a significant increase in revenue to $4.01 million TTM, marking a notable improvement from no revenue in previous years. However, gross profit margin stands at 71.3%, net profit margin is negative due to substantial net losses, and both EBIT and EBITDA margins are also negative, indicating challenges in profitability and operational efficiency.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 85.2% TTM, showing financial stability. However, the debt-to-equity ratio is relatively low at 0.09, suggesting minimal leverage, which could both reduce financial risk and limit potential growth via debt financing. Return on equity remains negative due to persistent net losses.

Cash Flow

Cabaletta Bio's free cash flow is negative, which is a concern for long-term sustainability. The operating cash flow to net income ratio is slightly negative, reflecting inefficiencies in converting net income to cash flow from operations. Financing activities have been a primary source of cash, but this reliance could pose risks if external financing conditions change.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
-1.43M	-3.68M	-733.00K	-354.00K	-104.00K
	EBIT
-74.66M	-54.14M	-46.31M	-33.83M	-18.68M
	EBITDA
-73.23M	-52.96M	-45.58M	-33.48M	-18.68M
	Net Income Common Stockholders
-67.67M	-51.81M	-45.53M	-32.49M	-15.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
241.25M	106.55M	122.22M	108.66M	136.20M
	Total Assets
253.65M	116.97M	126.34M	114.72M	141.47M
	Total Debt
5.02M	5.14M	0.00	0.00	0.00
	Net Debt
-188.22M	-76.47M	-122.22M	-101.43M	-136.20M
	Total Liabilities
17.45M	12.45M	8.38M	5.18M	3.15M
	Stockholders Equity
236.20M	104.52M	117.96M	109.54M	138.32M
Cash Flow		Free Cash Flow
-54.24M	-48.83M	-35.27M	-27.41M	-16.74M
	Operating Cash Flow
-53.55M	-46.38M	-34.11M	-26.77M	-16.05M
	Investing Cash Flow
-22.45M	-27.22M	6.00M	-7.98M	-693.00K
	Financing Cash Flow
187.63M	32.98M	48.90M	-24.00K	119.92M

Cabaletta Bio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CABA, the sentiment is Negative. The current price of 1.28 is above the 20-day moving average (MA) of 1.21, below the 50-day MA of 1.49, and below the 200-day MA of 3.30, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 46.88 is Neutral, neither overbought nor oversold. The STOCH value of 51.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CABA.

Cabaletta Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.35B	3.83	-41.61%	2.85%	17.10%	1.22%
SAVA	43 Neutral	$77.78M	―	-17.19%	―	―	81.00%
CABA	39 Underperform	$68.00M	―	-59.64%	―	―	-40.59%
VTGN	39 Underperform	$68.55M	―	-46.28%	―	-33.00%	54.91%
VTVT	38 Underperform	$71.64M	―	-121.97%	―	―	65.54%
JSPR	35 Underperform	$81.27M	―	-101.73%	―	―	21.40%

Cabaletta Bio Corporate Events

Cabaletta Bio Unveils Promising Clinical Data in RESET Trials

On February 18, 2025, Cabaletta Bio announced new and updated clinical data from its trials involving resecabtagene autoleucel (rese-cel) in the RESET program. Significant findings include promising results for patients with conditions such as dermatomyositis, systemic lupus erythematosus, and systemic sclerosis. The trials showed potential for drug-free remission and improved clinical responses off immunosuppressants and steroids. Cabaletta’s trials aim to evaluate rese-cel’s safety and efficacy, with positive initial outcomes suggesting potential transformative impacts for autoimmune disease treatments.