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CureVac (CVAC)
NASDAQ:CVAC
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CureVac
(NASDAQ:CVAC)
Rating:78Outperform
Price Target:
$6.50
▲(16.70%Upside)
Positive Factors
Acquisition
The acquisition deal is expected to close without antitrust concerns, as CVAC does not have a commercial product despite its early pipeline and IP.
Financial Performance
CureVac ended 2024 with €482M and reiterated an operating runway into 2028.
Patent Validity
The European Patent Office confirmed the validity of CVAC patent EP 4 023 755 B1, which is a foundational technology for the company.
Negative Factors
Operating Loss
Operating loss was significantly higher than both the company and consensus estimates.
Patent Litigation
CVAC is currently dealing with ongoing patent litigation, which adds a layer of complexity to its operations.
Pipeline Challenges
Nine severe treatment-related adverse events, including four serious adverse events, will be something to watch in the readouts for CVGBM.
CureVac (CVAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.25B
Dividend YieldN/A
Average Volume (3M)1.57M
Price to Earnings (P/E)6.1
Beta (1Y)1.11
Revenue Growth799.36%
EPS GrowthN/A
CountryUS
Employees825
SectorHealthcare
Sector Strength58
IndustryBiotechnology
Share Statistics
EPS (TTM)N/A
Shares Outstanding225,155,870
10 Day Avg. Volume3,209,221
30 Day Avg. Volume1,567,021
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)2.00
Price to Sales (P/S)0.00
P/FCF Ratio-2.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.50Price Target Upside-1.26% Downside
Rating ConsensusHold
Number of Analyst Covering5
CureVac Business Overview & Revenue Model
Company DescriptionCureVac N.V. is a biotechnology company that specializes in the development of messenger RNA (mRNA) technology for medical purposes. Based in Germany, the company is involved in the fields of prophylactic and therapeutic vaccination, cancer immunotherapy, and molecular therapy. CureVac's core products and services revolve around its innovative mRNA technology platform, which is designed to use the body's own machinery to produce proteins that can fight diseases.
How the Company Makes MoneyCureVac makes money primarily through the development and commercialization of its mRNA-based therapeutics and vaccines. The company's revenue streams include partnerships and collaborations with other pharmaceutical and biotechnology companies, where they co-develop products and share in the revenue generated from successful products. Additionally, CureVac earns income from licensing agreements, providing access to its proprietary mRNA technology to partners in exchange for upfront payments, milestone payments, and royalties on sales. Significant partnerships with industry leaders and investments in research and development also contribute to CureVac's revenue model, as the company leverages these collaborations to advance its pipeline and bring new products to market.
CureVac Earnings Call Summary
Earnings Call Date:May 20, 2025
(Q4-2024)
| % Change Since: 43.93%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
CureVac has demonstrated strong financial health with a solid cash runway and strategic partnerships, particularly with GSK. Significant progress in oncology and patent validation are positive indicators. However, operational challenges, including a major restructuring and associated costs, pose concerns.Q4-2024 Updates
Positive Updates
Strong Financial Position
CureVac closed 2024 with a cash position of EUR482 million, providing a solid expected financial runway into 2028.
Strategic Collaboration with GSK
Licensing agreement with GSK valued up to EUR1.45 billion plus royalties, significant upfront payment of EUR400 million received.
Pipeline Advancements in Oncology
Progress in glioblastoma and squamous non-small cell lung cancer programs with anticipated new data and regulatory milestones.
Patent Office Ruling
European Patent Office upheld the validity of CureVac's split poly-A tail 668 patent in amended forms.
Negative Updates
Operational Challenges
Completion of a strategic corporate restructuring involving a headcount reduction of approximately 30%.
Impairment Costs
Impairment of a large-scale production facility, with extraordinary payments amounting to EUR137 million related to past commitments and patent litigation.
Company Guidance
During CureVac's Fourth Quarter and Full Year 2024 financial results and business update call, several key metrics and strategic developments were highlighted. The company ended 2024 with a strong cash position of EUR 482 million, providing a financial runway into 2028. Key achievements included the completion of a strategic restructuring, which involved a 30% reduction in workforce, anticipated to decrease operating expenses by over 30% and reduce personnel costs by EUR 25 million. CureVac's collaboration with GSK, valued at up to EUR 1.45 billion plus royalties, generated a EUR 400 million upfront payment and a EUR 10 million milestone payment in the fourth quarter. In oncology, CureVac's Phase 1 glioblastoma study demonstrated promising results, and the company plans to advance to Phase 2 pending further data in the second half of 2025. In infectious diseases, a licensing agreement with GSK continues to progress, with a combined Phase 1/2 study for a seasonal influenza and COVID combination vaccine underway. The company also emphasized progress in its IP litigation, with the European Patent Office upholding the validity of a critical patent, reinforcing CureVac's leadership in mRNA technology.CureVac Financial Statement Overview
Summary
CureVac shows a remarkable turnaround in profitability with a net profit margin of 30.29% in 2024 and substantial revenue growth of 896.06%. The balance sheet is strong with a low debt-to-equity ratio and high equity ratio, while cash flows have improved significantly. However, past volatility in revenue and profitability remains a risk.Income Statement
CureVac shows a remarkable turnaround in profitability with a net profit margin of 30.29% in 2024, compared to previous losses. The gross profit margin has also improved significantly. Revenue growth rate from 2023 to 2024 is substantial at 896.06%, indicating strong top-line growth. However, past volatility in revenue and profitability could pose a risk.65
Positive
Balance Sheet
The balance sheet of CureVac demonstrates a solid financial position with a low debt-to-equity ratio of 0.06 and a high equity ratio of 86.79% in 2024, indicating financial stability and low leverage. Return on equity is 23.29% in 2024, showcasing efficient use of equity. However, past fluctuations in stockholders' equity and liabilities suggest potential volatility.75
Positive
Cash Flow
CureVac has shown significant improvement in free cash flow, growing from a loss in 2023 to a positive 83.41 million in 2024. The operating cash flow to net income ratio of 0.63 indicates decent cash generation efficiency. However, historical cash flow volatility and negative cash flows in prior years highlight potential risks.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 535.18M | 53.76M | 67.42M | 102.99M | 48.90M | Gross Profit |
| 429.35M | -70.61M | -116.57M | -135.21M | 34.73M | EBIT |
| 177.68M | -274.21M | -249.46M | -412.26M | -124.00M | EBITDA |
| 209.69M | -234.09M | -209.39M | -386.49M | -123.09M | Net Income Common Stockholders |
| 162.19M | -260.17M | -249.03M | -411.72M | -129.07M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 485.37M | 405.11M | 500.28M | 816.11M | 1.33B | Total Assets |
| 802.83M | 788.25M | 860.47M | 1.16B | 1.51B | Total Debt |
| 38.97M | 41.82M | 42.09M | 28.89M | 30.09M | Net Debt |
| -442.78M | -360.63M | -453.71M | -782.57M | -1.29B | Total Liabilities |
| 106.22M | 271.31M | 327.22M | 469.77M | 800.01M | Stockholders Equity |
| 696.61M | 516.94M | 533.25M | 688.48M | 711.35M |
| Cash Flow | Free Cash Flow | |||
| 83.41M | -323.09M | -379.40M | -861.03M | 475.05M | Operating Cash Flow |
| 101.85M | -267.89M | -286.18M | -733.13M | 522.40M | Investing Cash Flow |
| -18.44M | -55.20M | -93.50M | -127.90M | -45.27M | Financing Cash Flow |
| -5.11M | 230.89M | 63.17M | 344.96M | 819.83M |
CureVac Technical Analysis
Positive
5.57
Price Trends
3.72
Positive
3.51
Positive
3.30
Positive
Market Momentum
0.37
Negative
71.30
Negative
61.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVAC, the sentiment is Positive. The current price of 5.57 is above the 20-day moving average (MA) of 4.43, above the 50-day MA of 3.72, and above the 200-day MA of 3.30, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 71.30 is Negative, neither overbought nor oversold. The STOCH value of 61.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVAC.
CureVac Risk Analysis
CureVac disclosed 97 risk factors in its most recent earnings report. CureVac 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 3 New Risks
1.
If we cannot maintain our corporate culture, we could lose the innovation, teamwork and passion that we believe contribute to our success. Q4, 2023
2.
If we are not successful in discovering, developing and commercializing additional products, our ability to expand our business and achieve our strategic objectives would be impaired. Q4, 2023
3.
The increasing use of social media platforms presents risks and challenges. Q4, 2023
CureVac Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.25B | 6.13 | 34.46% | ― | 799.36% | ― | |
60 Neutral | $909.49M | ― | -64.16% | ― | -30.25% | -5.92% | |
56 Neutral | $955.15M | ― | -15.59% | ― | -35.41% | -12.26% | |
54 Neutral | $902.35M | ― | -63.56% | ― | 270.02% | 32.69% | |
54 Neutral | $5.37B | 3.26 | -45.10% | 3.30% | 16.81% | 0.02% | |
52 Neutral | $654.06M | ― | -33.48% | ― | -25.88% | -29.16% | |
50 Neutral | $721.60M | ― | -44.59% | ― | -73.79% | -5.24% |
* Healthcare Sector Average
Performance Comparison
CVAC
CureVac
5.57
2.09
60.06%
XNCR
Xencor
9.19
-10.33
-52.92%
VIR
Vir Biotechnology
5.22
-3.96
-43.14%
NRIX
Nurix Therapeutics
11.93
-3.36
-21.98%
PRAX
Praxis Precision Medicines
44.30
7.75
21.20%
ABCL
AbCellera Biologics
3.20
0.14
4.58%
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.