Emmaus Life Sciences (EMMA) AI Stock Analysis

• Market Cap: $897.31K
• Dividend Yield: N/A
• Average Volume (3M): 8.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 55.12
• Revenue Growth: -34.70%
• EPS Growth: 10.06%
• Country: US
• Employees: 34
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.04
• Shares Outstanding: 63,865,570
• 10 Day Avg. Volume: 21,767
• 30 Day Avg. Volume: 8,112
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.42
• Enterprise Value/Market Cap: 36.27
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 2.12
• Enterprise Value/Ebitda: 104.63
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Emmaus Life Sciences' stock is rated poorly due to significant financial challenges, including declining revenues, persistent net losses, and high leverage. Technical indicators suggest the stock is currently oversold, but valuation metrics reflect high risk and lack of profitability, offering little incentive for investors. The absence of positive corporate events or earnings call insights further emphasizes the current vulnerabilities.

Emmaus Life Sciences Business Overview & Revenue Model

Company Description

Emmaus Life Sciences, Inc., a commercial-stage biopharmaceutical company, discovers, develops, markets, and sells treatments and therapies primarily for rare and orphan diseases in the United States and internationally. The company's lead candidate is Endari, an L-glutamine oral powder to reduce the acute complications of sickle cell disease in adult and pediatric patients five years of age and older. It has a collaboration agreement with Kainos Medicine, Inc. for the preclinical development of Kainos' patented IRAK4 inhibitor (KM10544) as an anti-cancer drug. The company was formerly known as Emmaus Holdings, Inc. and changed its name to Emmaus Life Sciences, Inc. in September 2011. Emmaus Life Sciences, Inc. was founded in 2000 and is headquartered in Torrance, California.

How the Company Makes Money

Emmaus Life Sciences primarily generates revenue through the sales of its core product, Endari, which is commercially available in the United States and other international markets. The company also seeks to expand its revenue streams by pursuing regulatory approvals and commercial partnerships in additional regions. Furthermore, Emmaus may engage in research collaborations, licensing agreements, and strategic partnerships to fund and advance its pipeline of potential treatments, contributing to its overall revenues.

Emmaus Life Sciences Financial Statement Overview

Summary

Emmaus Life Sciences faces significant financial challenges characterized by declining revenues and persistent losses. The high gross profit margin is a positive indicator of operational efficiency, but the negative net income and equity position highlight ongoing financial instability. The company's high leverage and negative cash flows pose risks to its financial health and long-term viability.

Income Statement

The company has experienced a significant decline in revenue from $29.6 million in 2023 to $16.7 million in 2024, indicating a negative revenue growth rate. Gross profit margin remains high at approximately 92.8% in 2024, suggesting efficient cost management. However, the net profit margin is deeply negative due to substantial net losses, highlighting ongoing profitability challenges.

Balance Sheet

The balance sheet shows high leverage with a negative equity position, as indicated by a debt-to-equity ratio that cannot be calculated meaningfully due to negative equity. The substantial total debt of $33.1 million in 2024 is concerning given the negative stockholders' equity, suggesting financial instability and potential solvency risks.

Cash Flow

Operating cash flow is consistently negative, though the free cash flow improved slightly from -$1.52 million in 2023 to -$2.30 million in 2024. The operating cash flow to net income ratio suggests that cash outflows are less than the net losses, reflecting some control over cash management despite ongoing cash burn.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
16.55M	16.65M	29.60M	18.39M	20.61M	23.17M
	Gross Profit
15.38M	15.45M	28.25M	15.80M	17.30M	20.92M
	EBIT
-134.00K	-1.89M	3.54M	-6.59M	-6.13M	-43.00K
	EBITDA
549.00K	-910.00K	3.57M	-5.50M	-12.76M	28.00K
	Net Income Common Stockholders
-4.43M	-6.45M	-3.73M	-10.69M	-15.95M	1.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.33M	1.39M	2.55M	2.02M	2.28M	2.49M
	Total Assets
22.48M	23.60M	35.18M	48.23M	56.73M	59.27M
	Total Debt
32.98M	33.13M	32.65M	25.10M	29.91M	18.99M
	Net Debt
31.64M	31.74M	30.10M	23.08M	27.64M	16.50M
	Total Liabilities
81.08M	80.08M	82.94M	82.32M	78.18M	64.69M
	Stockholders Equity
-58.60M	-56.48M	-47.76M	-34.09M	-21.45M	-5.42M
Cash Flow		Free Cash Flow
-2.15M	-2.30M	-1.52M	-5.10M	-1.33M	-28.63M
	Operating Cash Flow
-2.15M	-2.29M	-1.50M	-5.07M	-1.25M	-2.45M
	Investing Cash Flow
2.50M	2.50M	-432.00K	-2.39M	-6.38M	5.47M
	Financing Cash Flow
-743.00K	-1.35M	2.48M	7.23M	7.41M	-2.31M

Emmaus Life Sciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EMMA, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 11.22 is Positive, neither overbought nor oversold. The STOCH value of -46.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EMMA.

Emmaus Life Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.15B	3.02	-44.64%	2.83%	16.44%	-0.47%
GRI	45 Neutral	$3.21M	―	-468.00%	―	―	98.55%
EMMA	39 Underperform	$897.31K	―	6.50%	―	-34.70%	10.06%
ONCO	33 Underperform	$3.76M	―	-233.77%	―	―	-97.16%
SLRX	30 Underperform	$1.77M	―	-300.16%	―	―	79.57%
PCSA	29 Underperform	$2.79M	―	-192.72%	―	―	56.26%
SCPX	23 Underperform	$520.28K	―	-174.06%	―	-10.75%	82.25%