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Carisma Therapeutics (CARM)
NASDAQ:CARM
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Carisma Therapeutics (CARM) AI Stock Analysis

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CARM

Carisma Therapeutics

(NASDAQ:CARM)

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Neutral 43 (OpenAI - 4o)
Rating:43Neutral
Price Target:
$0.50
▲(100.00% Upside)
Carisma Therapeutics' overall stock score is primarily impacted by its poor financial performance and weak valuation. The company's financial instability, negative equity, and liquidity issues are significant concerns. Technical analysis suggests a bearish trend, with some potential for stabilization. The lack of earnings call data and corporate events means these factors do not influence the score.
Positive Factors
Proprietary Technology
Carisma's CAR-M technology represents a significant competitive advantage in the biopharmaceutical industry, potentially leading to breakthrough therapies that could transform cancer treatment and improve patient outcomes.
Strategic Partnerships
Strategic alliances with pharmaceutical companies and research institutions provide Carisma with financial resources and collaborative opportunities, supporting its R&D efforts and enhancing its market position in the long term.
High Gross Profit Margin
A high gross profit margin indicates effective cost management and pricing power, which can support sustainable profitability as the company scales its operations and commercializes its therapies.
Negative Factors
Financial Instability
Negative equity and financial instability pose significant risks, limiting Carisma's ability to invest in growth opportunities and potentially affecting its long-term viability if not addressed.
Liquidity Issues
Persistent liquidity issues can constrain Carisma's operational flexibility and its ability to fund R&D and strategic initiatives, impacting its capacity to achieve long-term growth objectives.
Declining Revenue Trend
A declining revenue trend suggests challenges in market penetration or product adoption, which could hinder Carisma's ability to achieve sustainable growth and improve its financial health over time.

Carisma Therapeutics (CARM) vs. SPDR S&P 500 ETF (SPY)

Carisma Therapeutics Business Overview & Revenue Model

Company DescriptionCarisma Therapeutics (CARM) is a biopharmaceutical company focused on developing innovative cell-based therapies for the treatment of cancer and other serious diseases. The company specializes in its proprietary CAR-M (Chimeric Antigen Receptor Macrophage) technology, which harnesses the power of macrophages to target and destroy tumor cells. By leveraging its expertise in immunotherapy, Carisma aims to create breakthrough therapies that improve patient outcomes and transform the landscape of cancer treatment.
How the Company Makes MoneyCarisma Therapeutics generates revenue primarily through partnerships and collaborations with pharmaceutical companies and research institutions. The company often engages in strategic alliances to co-develop its therapies, which can involve upfront payments, milestone payments based on clinical and regulatory achievements, and royalties on future sales of products developed through these partnerships. Additionally, Carisma may receive funding from grants and government programs aimed at advancing innovative cancer treatments, and it could also explore public or private investment to support its research and development efforts.

Carisma Therapeutics Financial Statement Overview

Summary
Carisma Therapeutics is facing significant financial challenges. The income statement shows persistent losses, the balance sheet reveals financial instability with negative equity, and cash flow statements indicate liquidity issues. These issues reflect operational inefficiencies and high costs, posing risks to long-term sustainability.
Income Statement
35
Negative
Carisma Therapeutics has shown a declining revenue trend with a significant drop in profitability. The TTM (Trailing-Twelve-Months) gross profit margin is relatively high at 95.38%, but the company is struggling with negative EBIT and net profit margins, indicating operational inefficiencies and high costs relative to revenue. The revenue growth rate is modest at 1.69% from the previous year, but the persistent net losses are concerning.
Balance Sheet
25
Negative
The balance sheet reveals a challenging financial position with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is not applicable due to negative equity, and the equity ratio is also negative, reflecting financial instability. The company's high liabilities and negative equity pose significant risks.
Cash Flow
30
Negative
Carisma Therapeutics has negative operating and free cash flows, indicating cash outflows exceed inflows. The operating cash flow to net income ratio is 0.94, suggesting cash flow issues. Although there is a slight improvement in free cash flow growth rate, the overall cash flow position remains weak, raising concerns about liquidity.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.77M19.63M14.92M9.83M26.54M11.24M
Gross Profit9.74M-40.04M-59.21M3.74M26.46M11.24M
EBITDA-42.34M-57.12M-85.89M-51.99M-40.11M-27.93M
Net Income-49.38M-60.48M-86.88M-61.23M-40.78M-28.35M
Balance Sheet
Total Assets5.01M30.46M89.55M72.15M35.45M58.46M
Cash, Cash Equivalents and Short-Term Investments2.00M17.91M77.61M52.00M28.55M51.79M
Total Debt1.70M2.48M3.12M40.16M2.63M3.44M
Total Liabilities51.02M58.37M63.02M101.28M9.43M8.31M
Stockholders Equity-46.01M-27.91M26.53M-49.26M11.63M35.76M
Cash Flow
Free Cash Flow-37.34M-60.04M-82.31M-12.23M-39.20M-27.45M
Operating Cash Flow-37.34M-59.92M-81.18M-7.57M-37.33M-27.01M
Investing Cash Flow687.00K-123.00K72.41M-32.56M-1.87M-440.00K
Financing Cash Flow-1.71M344.00K62.18M35.77M15.96M72.26M

Carisma Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.25
Price Trends
50DMA
0.33
Negative
100DMA
0.32
Negative
200DMA
0.37
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
39.69
Neutral
STOCH
2.38
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CARM, the sentiment is Negative. The current price of 0.25 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.33, and below the 200-day MA of 0.37, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.69 is Neutral, neither overbought nor oversold. The STOCH value of 2.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CARM.

Carisma Therapeutics Risk Analysis

Carisma Therapeutics disclosed 82 risk factors in its most recent earnings report. Carisma Therapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Carisma Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
8.69M-0.770.00%-100.00%49.47%
49
Neutral
9.57M-0.270.00%0.00%-219.97%
43
Neutral
$13.13M-362.79%-48.01%33.60%
39
Underperform
6.50M-0.380.00%0.00%53.79%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CARM
Carisma Therapeutics
0.25
-0.71
-73.96%
KPRX
Kiora Pharmaceuticals
2.53
-1.09
-30.11%
DWTX
Dogwood Therapeutics
5.01
0.15
3.09%
ACXP
Acurx Pharmaceuticals
4.10
-33.30
-89.04%
CDT
Conduit Pharmaceuticals
0.72
-188.73
-99.62%
TSBX
Turnstone Biologics Corp.
0.36
-0.26
-41.94%

Carisma Therapeutics Corporate Events

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Carisma Therapeutics Announces Merger with OrthoCellix
Positive
Aug 29, 2025

On August 29, 2025, Carisma Therapeutics Inc. announced a significant merger agreement with OrthoCellix, a subsidiary of Ocugen, Inc. This merger will see OrthoCellix become a wholly-owned subsidiary of Carisma, with plans for a concurrent investment of at least $25 million, including a $5 million investment from Ocugen. The merger aims to strengthen Carisma’s market position and expand its operational capabilities. Additionally, Carisma has amended its employment agreement with CEO Steven Kelly, ensuring leadership continuity post-merger. The merger and investment are subject to customary closing conditions and shareholder approval.

Shareholder MeetingsStock Split
Carisma Therapeutics Approves Reverse Stock Split
Neutral
Aug 8, 2025

On August 5, 2025, Carisma Therapeutics Inc. held a Special Meeting of Stockholders where they approved a reverse stock split of the company’s common stock, with the exact ratio to be determined by the Board of Directors. The meeting also addressed the potential adjournment to solicit more proxies, which was deemed unnecessary as there were sufficient votes to approve the reverse split proposal.

Delistings and Listing ChangesShareholder MeetingsStock Split
Carisma Therapeutics Transfers Listing to Nasdaq Capital Market
Negative
Jul 15, 2025

On January 6, 2025, Carisma Therapeutics was notified by Nasdaq that it failed to meet the minimum bid price requirement for continued listing on the Nasdaq Global Market. Despite being given a grace period until July 7, 2025, the company did not regain compliance, leading to a potential delisting threat. Following a hearing, Nasdaq allowed Carisma to transfer its listing to the Nasdaq Capital Market effective June 12, 2025, with a deadline to meet all listing criteria by October 7, 2025. To address this, Carisma scheduled a special stockholders’ meeting for August 5, 2025, to approve a reverse stock split aimed at increasing its share price and maintaining its listing status.

M&A Transactions
Carisma Therapeutics Announces Merger with OrthoCellix
Neutral
Jun 23, 2025

On June 22, 2025, Carisma Therapeutics announced a merger agreement with OrthoCellix, a subsidiary of Ocugen, to create a Nasdaq-listed company focused on regenerative cell therapies for orthopedic diseases. The merger will result in OrthoCellix owning approximately 90% of the combined entity, with plans to initiate a Phase 3 clinical trial for its NeoCart® technology by the end of 2025, potentially impacting the market for cartilage repair solutions.

Delistings and Listing ChangesRegulatory Filings and Compliance
Carisma Therapeutics Secures Nasdaq Listing Approval
Neutral
Jun 12, 2025

On June 10, 2025, Carisma Therapeutics received approval from a Nasdaq Hearings Panel to continue its listing on Nasdaq, with the listing being transferred to the Nasdaq Capital Market effective June 12, 2025. Despite previous non-compliance with Nasdaq’s listing rules, the company has been granted an extension until October 7, 2025, to meet specific conditions, including maintaining a minimum bid price and completing a strategic transaction, to ensure continued listing.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 18, 2025