Entrada Therapeutics Inc (TRDA) AI Stock Analysis

• Market Cap: $308.94M
• Dividend Yield: N/A
• Average Volume (3M): 133.99K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.57
• Revenue Growth: 5.74%
• EPS Growth: 24.45%
• Country: US
• Employees: 183
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): -0.42
• Shares Outstanding: 37,953,420
• 10 Day Avg. Volume: 144,068
• 30 Day Avg. Volume: 133,985
• PEG Ratio: 0.34
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.83
• 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: $20.50
• Price Target Upside: 151.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 64 Neutral
• Price Target: $8.50 ▲(4.42%Upside)

Entrada Therapeutics Inc. has a mixed outlook with strong recent corporate developments and undervaluation balancing the challenges indicated by technical analysis and recent financial performance. The stock shows potential for growth, contingent on addressing cash flow and operational challenges.

Positive Factors

Clinical Trials

Entrada Therapeutics received authorization from the Health Authorities and Ethics Committees of multiple countries under the European Union Clinical Trial Regulation to initiate a Phase 1/2 clinical study for ENTR-601-45.

Regulatory Approvals

Key regulatory clearances obtained, clearing path for multiple global clinical development programs to advance.

Strategic Partnerships

Entrada closed a research and worldwide license agreement with Vertex for VX-670, its candidate for DM1.

Negative Factors

Clinical Data Risks

Risks include failure to generate favorable mid-stage clinical data, inability to advance lead candidates into pivotal trials in a timely manner, negative data from pivotal studies, partnership risks, and long-term dilution risk.

Regulatory Challenges

In December 2022, the FDA issued a clinical hold in reference to the IND submission.

Entrada Therapeutics Inc Business Overview & Revenue Model

Company Description

Entrada Therapeutics Inc (TRDA) is a biotechnology company focused on developing novel therapeutics for the treatment of rare, genetic diseases. The company leverages its proprietary Endosomal Escape Vehicle (EEV) technology to enable the intracellular delivery of biologics, which has the potential to address a wide range of previously inaccessible disease targets. Entrada Therapeutics is committed to advancing its pipeline of innovative therapies to improve patient outcomes.

How the Company Makes Money

Entrada Therapeutics makes money by advancing its pipeline of therapeutic candidates through various stages of clinical development, with the ultimate goal of securing regulatory approval and commercializing its products. The company may generate revenue through partnerships and collaborations with other biotech and pharmaceutical companies, which can include milestone payments, royalties, and licensing fees. Additionally, Entrada might receive funding from grants or government programs dedicated to supporting innovative biotech research. The company's ability to successfully develop and market its therapies directly impacts its revenue potential.

Entrada Therapeutics Inc Financial Statement Overview

Summary

Entrada Therapeutics is making considerable strides in revenue growth and has a strong equity position, reflecting financial stability. While profitability and operational efficiency are improving, cash flow management remains a concern, with negative free cash flow highlighting the need for strategic cash management to sustain growth and operations.

Income Statement

Entrada Therapeutics has shown significant revenue growth, from zero revenue in earlier years to $210.78 million in 2024, indicating strong progress in operations or product development. The gross profit margin is excellent at 100%, reflecting efficient cost management. However, the net profit margin, although positive at 31.13%, indicates room for improvement in controlling expenses. The EBIT and EBITDA margins are at 22.30%, suggesting stable operational efficiency.

Balance Sheet

The company has a strong equity position with stockholders' equity significantly higher than total debt, resulting in a low debt-to-equity ratio of 0.14, which suggests low leverage and financial stability. The return on equity is solid at 15.31%, showcasing effective use of equity capital. The equity ratio of 81.43% indicates a robust financial structure, minimizing financial risk.

Cash Flow

Despite a negative operating cash flow in the latest year, the company has demonstrated the ability to secure financing, as seen in the significant positive financing cash flow. Free cash flow is negative, indicating potential cash constraints. The free cash flow to net income ratio is negative, suggesting a need for better cash management strategies to support growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
210.78M	129.01M	0.00	0.00	0.00
	Gross Profit
210.78M	29.13M	-1.90M	-1.12M	-326.00K
	EBIT
47.01M	-3.16M	-97.25M	-51.13M	-26.67M
	EBITDA
47.01M	-321.00K	-95.35M	-50.01M	-26.34M
	Net Income Common Stockholders
65.63M	-6.68M	-87.46M	-50.07M	-26.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
420.00M	351.97M	45.16M	291.06M	39.05M
	Total Assets
526.32M	469.19M	252.06M	305.83M	43.53M
	Total Debt
59.21M	68.23M	25.94M	0.00	0.00
	Net Debt
-42.00M	628.00K	-19.22M	-291.06M	-39.05M
	Total Liabilities
97.64M	226.83M	39.50M	7.12M	85.02M
	Stockholders Equity
428.68M	242.36M	212.55M	298.72M	-41.49M
Cash Flow		Free Cash Flow
-44.72M	134.19M	-96.67M	-55.44M	-27.89M
	Operating Cash Flow
-41.56M	139.80M	-93.79M	-50.86M	-25.57M
	Investing Cash Flow
-27.80M	-138.40M	-148.65M	-4.58M	-2.32M
	Financing Cash Flow
102.96M	21.04M	479.00K	307.46M	50.09M

Entrada Therapeutics Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRDA, the sentiment is Neutral. The current price of 8.14 is above the 20-day moving average (MA) of 8.08, below the 50-day MA of 8.47, and below the 200-day MA of 13.86, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 50.17 is Neutral, neither overbought nor oversold. The STOCH value of 58.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TRDA.

Entrada Therapeutics Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIGL	75 Outperform	$360.13M	9.72	531.78%	―	68.74%	―
TRDA	64 Neutral	$308.94M	10.19	7.22%	―	5.74%	24.45%
AMLX	57 Neutral	$454.62M	―	-83.24%	―	-100.32%	-197.69%
BNTC	54 Neutral	$399.62M	―	-48.57%	―	-100.00%	83.98%
Sector *	53 Neutral	$5.23B	3.23	-44.27%	2.82%	16.82%	0.11%
ZBIO	49 Neutral	$420.85M	―	-115.47%	―	―	―
ALLO	36 Underperform	$277.79M	―	-59.60%	―	-100.00%	31.43%

Entrada Therapeutics Inc Corporate Events

Entrada Therapeutics Appoints New Board Member

On May 30, 2025, Entrada Therapeutics expanded its Board of Directors from six to seven members, appointing Maha Radhakrishnan, M.D., as a Class III director and a member of the Audit Committee, effective June 1, 2025. Dr. Radhakrishnan brings extensive experience in global drug development, which is expected to support Entrada’s clinical momentum, particularly in advancing its Duchenne muscular dystrophy programs. Her appointment is seen as a strategic move to enhance the company’s capability in delivering innovative therapies for serious illnesses.

The most recent analyst rating on (TRDA) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Entrada Therapeutics Inc stock, see the TRDA Stock Forecast page.

Entrada Therapeutics Gains UK Approval for DMD Study

On March 24, 2025, Entrada Therapeutics announced it received authorization from the UK’s Medicines and Healthcare Products Regulatory Agency to initiate ELEVATE-45-201, a Phase 1/2 clinical study of ENTR-601-45 for treating Duchenne muscular dystrophy (DMD) in patients amenable to exon 45 skipping. This study is part of Entrada’s Duchenne franchise, aiming to evaluate the safety, tolerability, and effectiveness of ENTR-601-45. The company plans to start the trial in the UK in the third quarter of 2025, marking a significant step in its strategy to develop three Duchenne programs globally by the end of the year.