Inventiva (IVA) AI Stock Analysis

• Market Cap: €536.06M
• Dividend Yield: N/A
• Average Volume (3M): 416.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: -12.84%
• EPS Growth: -81.94%
• Country: FR
• Employees: 114
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.38
• Shares Outstanding: 145,951,280
• 10 Day Avg. Volume: 620,713
• 30 Day Avg. Volume: 416,066
• PEG Ratio: -0.03
• Price to Book (P/B): -1.22
• Price to Sales (P/S): 8.85
• P/FCF Ratio: -1.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €10.00
• Price Target Upside: 203.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: €3.50 ▲(6.06% Upside)

Inventiva's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues, persistent losses, and high leverage. Technical analysis provides a slightly more positive outlook with some longer-term support, but short-term indicators are bearish. The valuation is unattractive due to a negative P/E ratio and no dividend yield.

Positive Factors

Innovative Drug Discovery

Inventiva's focus on innovative therapies for metabolic diseases and fibrosis positions it well to address unmet medical needs, potentially leading to successful product development and commercialization.

Partnership Revenue Potential

Collaborations with larger firms can provide Inventiva with milestone payments and royalties, offering a sustainable revenue stream and reducing dependency on direct sales.

High Gross Profit Margin

A high gross profit margin indicates efficient production and pricing strategies, which can support long-term profitability once revenue growth stabilizes.

Negative Factors

Financial Instability

Negative equity suggests liabilities exceed assets, raising concerns about solvency and long-term financial health, which may limit growth opportunities.

Negative Cash Flow

Negative cash flow from operations indicates that Inventiva is not generating sufficient cash from its core activities, potentially impacting future investments and sustainability.

Declining Revenue

Declining revenue growth reflects challenges in maintaining market share and sales, which could hinder long-term profitability and business expansion.

Inventiva Business Overview & Revenue Model

Company Description

Inventiva S.A., a clinical-stage biopharmaceutical company, focuses on the development of oral small molecule therapies for the treatment of non-alcoholic steatohepatitis (NASH), mucopolysaccharidoses (MPS), and other diseases. Its lead product candidate is Lanifibranor, which has completed Phase IIb clinical trial to treat NASH. The company also develops Odiparcil, which has completed Phase IIa clinical trial for the treatment of MPS VI subtype disease. In addition, it has a pipeline of earlier stage programs in oncology and other diseases. The company has strategic collaboration with AbbVie for the treatment of autoimmune diseases; and Boehringer Ingelheim International GmbH for developing new treatments for idiopathic pulmonary fibrosis. Inventiva S.A. was founded in 2011 and is based in Daix, France.

How the Company Makes Money

Inventiva generates revenue primarily through the development and commercialization of its pharmaceutical products. The company may earn income from partnerships and collaborations with larger pharmaceutical firms, which often include milestone payments, royalties, and upfront payments in exchange for access to its drug candidates. Additionally, Inventiva may receive funding through research grants and public subsidies aimed at supporting innovative healthcare solutions. The success of its clinical trials and the subsequent approval of its products for market can lead to significant revenue through direct sales as well.

Inventiva Financial Statement Overview

Summary

Inventiva faces considerable financial challenges, with declining revenues, persistent losses, and high leverage. The balance sheet shows negative equity, raising concerns about long-term sustainability. While the company has managed to secure financing, the reliance on external capital and negative cash flows highlight the need for strategic improvements to stabilize and grow the business.

Income Statement

Inventiva's income statement shows a concerning trajectory with declining revenues from 2023 to 2024 and persistent negative net income, indicating operational challenges. The gross profit margin is consistently high, as expected for the industry, but the negative net profit margin and EBIT margin highlight significant profitability issues. The company's revenue growth has turned negative, suggesting difficulties in sustaining sales momentum.

Balance Sheet

The balance sheet reflects financial instability with negative stockholders' equity, indicating that liabilities exceed assets. The increasing debt-to-equity ratio is a major concern, suggesting high financial leverage and potential solvency risks. Despite these challenges, the company has maintained a consistent level of cash and short-term investments, which could provide some liquidity buffer.

Cash Flow

Cash flow analysis reveals significant negative operating cash flow, indicating that the company is not generating sufficient cash from its core operations. The free cash flow is also negative, which could impact future investments and growth. However, the high financing cash flow in recent years suggests reliance on external funding to sustain operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.44M	14.72M	17.48M	12.18M	4.19M	372.00K
Gross Profit	14.21M	9.20M	17.50M	11.18M	3.18M	-474.00K
EBITDA	-212.16M	-96.69M	-102.04M	-57.72M	-52.27M	-31.77M
Net Income	-311.06M	-184.21M	-110.43M	-54.27M	-49.64M	-33.62M
Balance Sheet
Total Assets	178.52M	118.97M	69.56M	116.00M	121.98M	138.92M
Cash, Cash Equivalents and Short-Term Investments	122.08M	96.56M	26.99M	87.02M	86.55M	105.69M
Total Debt	57.13M	54.33M	37.49M	34.51M	10.12M	10.06M
Total Liabilities	187.87M	225.61M	101.59M	70.53M	33.12M	27.71M
Stockholders Equity	-9.35M	-106.65M	-32.03M	45.48M	88.87M	111.21M
Cash Flow
Free Cash Flow	-140.21M	-86.26M	-82.15M	-45.49M	-48.16M	-30.88M
Operating Cash Flow	-139.82M	-85.93M	-81.61M	-44.93M	-47.63M	-30.59M
Investing Cash Flow	-24.97M	8.74M	-7.73M	8.87M	-1.79M	-8.56M
Financing Cash Flow	227.97M	145.59M	29.08M	37.27M	25.45M	111.67M

Inventiva Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:IVA, the sentiment is Negative. The current price of 3.3 is below the 20-day moving average (MA) of 3.45, below the 50-day MA of 4.17, and above the 200-day MA of 3.22, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 40.65 is Neutral, neither overbought nor oversold. The STOCH value of 51.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:IVA.

Inventiva Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNFT	60 Neutral	$179.33M	-4.62	-51.06%	―	-45.41%	-273.69%
ABVX	55 Neutral	€6.87B	-31.59	―	―	―	18.52%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DBV	50 Neutral	€470.02M	-2.76	-241.12%	―	―	3.09%
VLA	45 Neutral	€683.56M	-9.63	-38.01%	―	30.21%	-76.83%
IPH	41 Neutral	$148.02M	-2.92	-271.32%	―	-75.86%	-30.54%
IVA	41 Neutral	€536.06M	-0.98	―	―	-12.84%	-81.94%