LAVA Therapeutics (LVTX) AI Stock Analysis

• Market Cap: $33.14M
• Dividend Yield: N/A
• Average Volume (3M): 43.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: -60.20%
• EPS Growth: 3.85%
• Country: US
• Employees: 34
• Sector: Healthcare
• Sector Strength: 43
• Industry: Biotechnology
• EPS (TTM): -0.13
• Shares Outstanding: 26,305,296
• 10 Day Avg. Volume: 38,074
• 30 Day Avg. Volume: 43,830
• PEG Ratio: -0.15
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.68
• Enterprise Value/Market Cap: 0.09
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 0.27
• Enterprise Value/Ebitda: -0.03
• 1Y Price Target: $1.25
• Price Target Upside: -5.30% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

LAVA Therapeutics is confronting financial instability, marked by negative income and cash flow challenges, typical for biotech firms in their growth stage. The technical indicators are neutral, offering no clear momentum signal. The company's valuation is constrained by ongoing losses, and recent restructuring plans introduce uncertainty but aim to stabilize finances and explore strategic opportunities.

Positive Factors

Clinical Trials

The LAVA-1266 study is advancing as planned and is considered a potential upside if it could achieve meaningful clinical milestones.

Financial Performance

The company reported license revenue of $5M and a net loss of $0.14 per share, better than the consensus estimate of revenue of $2.5M and a net loss of 0.30 per share.

Negative Factors

Revenue Challenges

For 1Q25, the company reported no revenue and a net loss of $0.13 per share.

Uncertain Future of Assets

Uncertainties are generated regarding the company’s only clinical asset, LAVA-1266 for hematological malignancies, as it depends on the outcome of the strategic review.

Workforce Reduction

In February, the company announced a workforce reduction of approximately 30% and initiated a strategic review.

LAVA Therapeutics Business Overview & Revenue Model

Company Description

LAVA Therapeutics N.V., a clinical-stage immuno-oncology company, focuses on developing cancer treatments. The company, through its Gammabody platform, develops a portfolio of novel bispecific antibodies to engage and leverage the potency and precision of gamma delta T cells to elicit an anti-tumor immune response and enhance outcomes for cancer patients. Its lead clinical-stage candidates are LAVA-051, which is in Phase 1/2a clinical trial for blood cancers, including chronic lymphocytic leukemia, multiple myeloma, and acute myeloid leukemia; and LAVA-1207 that is in Phase 1/2a clinical trial for metastatic castration-resistant prostate cancer. The company is also developing other Gammabody drug candidates, which include LAVA-1223, which targets the epidermal growth factor receptor (EGFR) for the treatment of selected solid tumors, as well as LAVA-1266 and LAVA-1278, which are preclinical candidates for the treatment of various hematologic malignancies. LAVA Therapeutics N.V. has a research collaboration and license agreement with Janssen Biotech, Inc. for the potential discovery and development of multi-specific antibody products that are directed to a specified target in various fields of use. The company was incorporated in 2016 and is headquartered in Utrecht, the Netherlands.

How the Company Makes Money

LAVA Therapeutics generates revenue through a combination of research and development collaborations, licensing agreements, and potential milestone payments associated with its proprietary bispecific gamma-delta T cell engaging antibody platform. The company enters partnerships with larger pharmaceutical companies to co-develop and commercialize its therapeutic candidates, which often includes upfront payments, research funding, and royalties on net sales if the products reach the market. Additionally, LAVA may receive government grants or other funding to support its research endeavors.

LAVA Therapeutics Financial Statement Overview

Summary

LAVA Therapeutics is facing significant financial challenges typical of many biotechnology firms in their growth phase. The company needs to address its cost structure and improve revenue generation to achieve profitability. While leverage remains low, the declining equity and persistent losses are concerns that need strategic focus.

Income Statement

LAVA Therapeutics has shown erratic revenue growth, with a drop from 2022 to 2023 followed by a recovery in 2024. However, the company has consistently reported negative net income, leading to negative net profit margins. The EBIT and EBITDA margins are also negative, indicating ongoing operational challenges. Despite a gross profit margin that is positive, the firm struggles to control costs and generate profit.

Balance Sheet

The debt-to-equity ratio has been relatively low, indicating conservative use of debt. However, the stockholders' equity has been declining, and the equity ratio is decreasing, suggesting weakening financial stability. The return on equity remains negative, reflecting the company's inability to generate profit from shareholders' funds.

Cash Flow

Operating cash flow has been negative, though there was a slight improvement in 2024. Free cash flow remains negative, indicating that the company is struggling to generate cash from operations after capital expenditures. The free cash flow to net income ratio is poor, highlighting inefficiencies in converting revenue into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.98M	6.77M	19.39M	5.35M	3.75M
	Gross Profit
11.52M	3.29M	19.39M	5.35M	-11.95M
	EBIT
-29.69M	-43.25M	-34.84M	-43.61M	-14.67M
	EBITDA
-23.50M	-40.42M	-30.88M	-41.02M	-14.65M
	Net Income Common Stockholders
-25.11M	-41.97M	-31.91M	-42.35M	-15.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
76.58M	95.57M	132.87M	151.01M	19.43M
	Total Assets
80.83M	101.71M	143.43M	157.87M	25.16M
	Total Debt
5.28M	6.31M	5.45M	5.52M	5.01M
	Net Debt
-29.73M	-37.92M	-94.88M	-145.50M	-14.42M
	Total Liabilities
53.09M	50.53M	57.38M	23.67M	15.80M
	Stockholders Equity
27.75M	51.18M	86.04M	134.19M	9.36M
Cash Flow		Free Cash Flow
-19.57M	-39.70M	3.46M	-33.34M	-13.42M
	Operating Cash Flow
-19.54M	-38.97M	4.04M	-32.48M	-12.77M
	Investing Cash Flow
12.47M	-17.64M	9.35M	-49.37M	―
	Financing Cash Flow
-569.00K	-571.00K	283.00K	171.37M	24.20M

LAVA Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LVTX, the sentiment is Positive. The current price of 1.32 is above the 20-day moving average (MA) of 1.27, above the 50-day MA of 1.26, and below the 200-day MA of 1.41, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.62 is Neutral, neither overbought nor oversold. The STOCH value of 58.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LVTX.

LAVA Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPTX	53 Neutral	$59.19M	―	-71.64%	―	-98.90%	-177.17%
Sector *	52 Neutral	$5.19B	3.04	-44.20%	2.82%	16.59%	-0.39%
GRCE	46 Neutral	$41.02M	―	-22.89%	―	―	75.74%
ALGS	45 Neutral	$36.02M	―	-60.44%	―	-76.29%	―
LVTX	45 Neutral	$33.14M	―	-73.11%	―	-60.20%	3.85%
PYPD	41 Neutral	$28.64M	―	-853.05%	―	―	34.97%
GBIO	39 Underperform	$26.93M	―	-70.06%	―	146.47%	57.85%

LAVA Therapeutics Corporate Events

LAVA Therapeutics Announces Restructuring Plan for 2025

On February 20, 2025, LAVA Therapeutics announced a restructuring plan to extend its capital resources and evaluate strategic alternatives, including a 30% workforce reduction expected to be completed by July 31, 2025. The company aims to maximize shareholder value by exploring various strategic options such as in-licensing, sales, or mergers, while continuing its clinical study of LAVA-1266 and maintaining partnerships with Pfizer and Johnson & Johnson.