Innoviva (INVA) AI Stock Analysis

• Market Cap: $1.20B
• Dividend Yield: N/A
• Average Volume (3M): 609.67K
• Price to Earnings (P/E): 89.4
• Beta (1Y): 0.33
• Revenue Growth: 17.90%
• EPS Growth: -133.73%
• Country: US
• Employees: 127
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.74
• Shares Outstanding: 62,775,173
• 10 Day Avg. Volume: 609,540
• 30 Day Avg. Volume: 609,674
• PEG Ratio: -0.76
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.18
• 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: $55.00
• Price Target Upside: 187.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $20.50 ▲(7.22%Upside)

Innoviva's overall stock score reflects a strong financial foundation with robust revenue growth and cash flow, albeit with declining net income and ROE. The technical analysis suggests a stable market position with slight upward momentum. However, valuation concerns arise from a negative P/E ratio and lack of dividend yield, slightly offsetting the positive financial performance.

Innoviva Business Overview & Revenue Model

Company Description

Innoviva, Inc. is a biopharmaceutical company primarily focused on the development, commercialization, and management of a portfolio of royalties. The company operates in the healthcare sector and collaborates with pharmaceutical companies to bring innovative therapies to market. Its core involvement is in the development and commercialization of respiratory medicines.

How the Company Makes Money

Innoviva generates revenue primarily through royalty payments derived from its collaborations with pharmaceutical partners. The company holds economic interests in the royalties tied to certain healthcare products, particularly in the respiratory medicine space. A significant portion of Innoviva's income is derived from its partnership with GlaxoSmithKline (GSK), through which it receives royalties on sales of products like RELVAR/BREO ELLIPTA and ANORO ELLIPTA. The company's earnings are heavily influenced by the commercial success and market penetration of these products, as well as its strategic management of its royalty portfolio.

Innoviva Financial Statement Overview

Summary

Innoviva shows strong financial health with a high balance sheet score of 82 and cash flow score of 85, indicating robust cash generation and low leverage. The income statement score is slightly lower at 77 due to a drop in net profit margin and missing EBITDA data. Overall, the company has consistent revenue growth and a solid equity base.

Income Statement

Innoviva's income statement shows a strong gross profit margin of 100% for 2024, indicating effective cost management. Net profit margin decreased to 6.5% from the previous year's 57.9%, primarily due to a significant reduction in net income. Revenue grew by 15.5% from 2023 to 2024, reflecting positive growth trajectory. However, the lack of EBITDA data for 2024 weakens the analysis.

Balance Sheet

Innoviva's balance sheet is strong with a debt-to-equity ratio of 0.28, showcasing low leverage and financial stability. The equity ratio stands at 53.1% in 2024, affirming a solid equity base. Return on equity (ROE) has decreased to 3.4% in 2024 from 26.6% in 2023, indicating reduced profitability.

Cash Flow

Cash flow analysis reveals a robust free cash flow growth of 33.9% from 2023 to 2024, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is high at 8.1, indicating efficient operations. However, the free cash flow to net income ratio is very high at 8.1, suggesting potential reinvestment challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
358.71M	310.46M	331.34M	391.87M	336.79M
	Gross Profit
358.71M	261.06M	317.55M	378.03M	335.01M
	EBIT
229.37M	176.71M	209.99M	375.10M	321.12M
	EBITDA
85.50M	248.96M	322.25M	478.18M	386.42M
	Net Income Common Stockholders
23.39M	179.72M	213.92M	368.84M	224.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
304.96M	193.51M	291.05M	201.53M	246.49M
	Total Assets
1.30B	1.24B	1.23B	926.39M	999.57M
	Total Debt
192.03M	449.08M	637.88M	394.65M	385.52M
	Net Debt
-112.94M	255.56M	346.83M	193.13M	139.03M
	Total Liabilities
609.90M	568.55M	665.71M	400.46M	391.73M
	Stockholders Equity
691.16M	674.96M	565.79M	414.74M	539.91M
Cash Flow		Free Cash Flow
188.42M	140.65M	201.66M	362.51M	313.10M
	Operating Cash Flow
188.69M	141.06M	201.73M	363.81M	313.11M
	Investing Cash Flow
-63.79M	-66.76M	-56.63M	43.72M	-314.94M
	Financing Cash Flow
-13.45M	-171.84M	-55.57M	-452.50M	-29.79M

Innoviva Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INVA, the sentiment is Positive. The current price of 19.12 is above the 20-day moving average (MA) of 18.68, above the 50-day MA of 18.17, and above the 200-day MA of 18.62, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 64.84 is Neutral, neither overbought nor oversold. The STOCH value of 86.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INVA.

Innoviva Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INVA	73 Outperform	$1.20B	89.44	-8.84%	―	17.90%	-133.73%
AUPH	70 Outperform	$1.10B	28.89	11.23%	―	29.20%	―
NVAX	64 Neutral	$1.20B	2.61	30.06%	―	25.92%	―
ADPT	62 Neutral	$1.39B	―	-60.96%	―	8.61%	35.36%
ARDX	57 Neutral	$949.84M	―	-36.26%	―	127.33%	21.31%
Sector *	53 Neutral	$5.19B	3.33	-45.04%	2.83%	17.58%	-0.66%
CLDX	46 Neutral	$1.31B	―	-23.20%	―	24.49%	5.14%

Innoviva Corporate Events

Innoviva Elects Board Members and Approves Compensation

At the Annual Meeting of Stockholders on May 19, 2025, Innoviva, Inc. elected five board members for a one-year term and approved executive compensation on a non-binding advisory basis. Additionally, stockholders ratified Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (INVA) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Innoviva stock, see the INVA Stock Forecast page.