Nuvalent (NUVL) AI Stock Analysis

• Market Cap: $5.85B
• Dividend Yield: N/A
• Average Volume (3M): 538.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: N/A
• EPS Growth: -81.09%
• Country: US
• Employees: 162
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): -1.18
• Shares Outstanding: 66,373,510
• 10 Day Avg. Volume: 624,639
• 30 Day Avg. Volume: 538,528
• PEG Ratio: 0.00
• Price to Book (P/B): -52.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -93.92
• Enterprise Value/Market Cap: 0.15
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -0.86
• 1Y Price Target: $115.86
• Price Target Upside: 42.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 43 Neutral
• Price Target: ―

Nuvalent's overall score reflects the typical high-risk, high-reward nature of early-stage biotech firms. Strengths include a solid cash position and no debt, while significant risks arise from the lack of revenue and dependency on external financing. Technical indicators suggest positive short-term momentum, but overbought conditions may present challenges. Valuation metrics are not favorable due to negative earnings.

Positive Factors

Drug Efficacy and Safety

Zidesamtinib has demonstrated a best-in-class efficacy and safety profile in ROS1+ NSCLC in Ph. 1/2 studies.

Financial Stability

Nuvalent reported cash and cash equivalents of approximately $1.1B, which is believed to be sufficient to fund operations for the foreseeable future.

Regulatory Pathway

The company plans to submit a rolling NDA for zidesamtinib to the FDA under the Real-Time Oncology Review program.

Negative Factors

Competitor Safety Concerns

The FDA label included fatal adverse event cases, such as cardiac events and hepatotoxicity, which pose significant safety concerns.

Drug Liabilities

Taletrectinib has notable liabilities, including hepatotoxicity and QTc interval prolongation, with higher rates of AST/ALT increases than previously reported.

Unmet Medical Need

Despite multiple approved agents, ROS1 NSCLC remains an indication with a high unmet need for a safer, more tolerable treatment option.

Nuvalent Business Overview & Revenue Model

Company Description

Nuvalent, Inc., a clinical stage biopharmaceutical company, develops therapies for patients with cancer. Its lead product candidates are NVL-520, a brain-penetrant ROS1-selective inhibitor to inhibit ROS1 fusions that express the normal ROS1 kinase domain without any drug-resistant mutations and remain active in the presence of mutations conferring resistance to approved and investigational ROS1 inhibitors, which is under Phase I development; and NVL-655, a brain-penetrant ALK-selective inhibitor, to address the clinical challenges of emergent treatment resistance, central nervous system-related adverse events, and brain metastases that might limit the use of first-, second-, and third-generation ALK inhibitors that is under Phase I/II clinical trial. The company was incorporated in 2017 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Nuvalent makes money through the development and commercialization of its proprietary drug candidates. The company's revenue model primarily involves bringing its pipeline of targeted cancer therapies through clinical trials and regulatory approval to eventually enter the market. Once approved, these therapies can generate income through sales, licensing agreements, and potential partnerships with larger pharmaceutical companies. Additionally, Nuvalent may engage in collaborations that provide milestone payments and royalties, contributing to its earnings.

Nuvalent Financial Statement Overview

Summary

Nuvalent's financial performance is typical for an early-stage biotech, with no revenue and high R&D expenses. It has strong cash reserves and no debt, but ongoing losses and reliance on external financing pose risks.

Income Statement

Nuvalent's income statement reflects a company in the early stages of development with no revenue generation, which is typical for biotechnology firms focused on R&D. The negative EBIT and net income margins highlight ongoing operational and research expenses. The continuous increase in net losses indicates significant investment in research without offsetting revenue.

Balance Sheet

The balance sheet shows a strong cash position with no debt, which provides financial flexibility. However, the absence of revenue and increasing losses raise concerns about long-term sustainability without future capital raises. The company has maintained positive stockholders' equity, which is a positive sign amidst increasing liabilities.

Cash Flow

Nuvalent's cash flow statements reveal negative operating cash flow, consistent with its development stage. The free cash flow is negative, indicating that the company is not yet generating cash from operations. The company relies heavily on financing activities to support its cash flow needs, which presents a potential risk if financing conditions change.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00	0.00	0.00
EBITDA	-322.59M	-280.37M	-126.22M	-86.11M	-45.82M	2.35M
Net Income	-300.86M	-260.76M	-126.22M	-81.85M	-46.34M	-14.56M
Balance Sheet
Total Assets	1.11B	1.14B	732.38M	482.46M	293.82M	10.65M
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.12B	719.90M	472.16M	288.11M	10.33M
Total Debt	0.00	0.00	0.00	0.00	0.00	2.23M
Total Liabilities	94.75M	71.96M	31.82M	19.48M	8.79M	41.97M
Stockholders Equity	1.01B	1.07B	700.56M	462.98M	285.04M	-31.32M
Cash Flow
Free Cash Flow	-203.80M	-185.06M	-99.74M	-64.97M	-40.00M	-14.95M
Operating Cash Flow	-203.80M	-185.06M	-99.74M	-64.97M	-40.00M	-14.95M
Investing Cash Flow	-341.33M	-573.51M	-143.53M	-10.66M	-220.03M	0.00
Financing Cash Flow	567.44M	568.88M	336.85M	248.92M	318.22M	22.27M

Nuvalent Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 81.50
• 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 NUVL, the sentiment is Positive. The current price of 81.5 is above the 20-day moving average (MA) of 77.98, above the 50-day MA of 75.61, and below the 200-day MA of 82.50, indicating a neutral trend. The MACD of 1.24 indicates Negative momentum. The RSI at 60.18 is Neutral, neither overbought nor oversold. The STOCH value of 57.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NUVL.

Nuvalent Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRYS	80 Outperform	$4.30B	36.06	13.90%	―	247.53%	118.34%
VRNA	68 Neutral	$7.39B	―	-72.73%	―	―	-157.53%
RVMD	52 Neutral	$6.79B	―	-36.68%	―	-100.00%	5.49%
BPMC	50 Neutral	$8.30B	―	-47.71%	―	99.19%	48.43%
AXSM	49 Neutral	$5.34B	―	-282.16%	―	72.16%	9.65%
Sector *	46 Neutral	C$200.35M	-3.25	-23.22%	2.71%	21.07%	-1.26%
NUVL	43 Neutral	$5.85B	―	-35.69%	―	―	-81.09%

Nuvalent Corporate Events

Nuvalent Board Member Resigns, Joins Advisory Board

On April 11, 2025, D. Gary Gilliland, M.D., Ph.D., announced his resignation from the board of directors of Nuvalent, Inc., effective at the company’s 2025 annual meeting of stockholders. Following his resignation, Dr. Gilliland is expected to join Nuvalent’s scientific advisory board as a consultant, with no disagreements prompting his departure.

Spark’s Take on NUVL Stock

According to Spark, TipRanks’ AI Analyst, NUVL is a Underperform.

Nuvalent’s financial health is in line with early-stage biotech firms, with strong cash reserves but high ongoing losses. Technical indicators suggest a bearish trend, and valuation is challenging due to negative earnings. The company’s future depends on its ability to achieve breakthroughs that can drive revenue or continue securing investment.

To see Spark’s full report on NUVL stock, click here.