Assembly Biosciences (ASMB) AI Stock Analysis

• Market Cap: $83.44M
• Dividend Yield: N/A
• Average Volume (3M): 25.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: 298.16%
• EPS Growth: 50.72%
• Country: US
• Employees: 65
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -6.71
• Shares Outstanding: 7,503,385
• 10 Day Avg. Volume: 16,791
• 30 Day Avg. Volume: 25,092
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.47
• Price to Cash Flow (P/CF): -1.20
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Assembly Biosciences faces substantial financial challenges, with consistent revenue declines, net losses, and negative cash flows undermining profitability and liquidity. The stock's bearish technical indicators and negative valuation metrics further reinforce a cautious outlook, resulting in a low overall stock score.

Positive Factors

Financial Investment

Assembly received $30.1M in cash infusions from Gilead.

Market Potential

The HSV market, including recurrent cases, seems solid and could potentially be worth over $1 billion.

Safety and Tolerability

ABI-5366 was safe and well-tolerated with up to 70 days of exposure with healthy volunteers in Phase 1a.

Negative Factors

Operational Risks

Key risks include failed or equivocal trial results, unforeseen safety or tolerability issues, meaningful delays to expected timelines, and inability to sufficiently fund operations.

Regulatory Uncertainty

There is current uncertainty on the efficacy of Assembly's programs including ABI-5366, ABI-4334, and ABI-6250, at a level that could potentially support their advancement towards regulatory approvals.

Trial Delays

Data readout for ABI-5366, originally expected in the first half of 2025, has been delayed to Fall 2025.

Assembly Biosciences Business Overview & Revenue Model

Company Description

Assembly Biosciences, Inc., a clinical-stage biotechnology company, discovers and develops therapeutic candidates for the treatment of hepatitis B virus (HBV) infection in the United States. The company's lead product candidate is Vebicorvir, which as completed Phase 2 clinical trials to treat patients with chronic HBV infection. It is also developing ABI-H3733 that has completed Phase 1a clinical study, and ABI-4334, which is in pre-clinical trials for the treatment of HBV. The company has collaboration agreements with BeiGene, Ltd. and Arbutus Biopharma Corporation; and Antios Therapeutics, Inc. to evaluate a triple combination treatment in patients with chronic hepatitis B virus infection. It also has strategic license agreements with Indiana University Research and Technology Corporation; and Door Pharmaceuticals, LLC. The company was formerly known as Ventrus Biosciences, Inc. and changed its name to Assembly Biosciences, Inc. in June 2014. Assembly Biosciences, Inc. was incorporated in 2005 and is headquartered in South San Francisco, California.

How the Company Makes Money

Assembly Biosciences makes money through the development and commercialization of its proprietary drug candidates. The company generates revenue by entering into strategic collaborations and partnerships with larger pharmaceutical companies, which may involve milestone payments, licensing fees, and royalties on future sales. Additionally, Assembly Biosciences seeks to advance its drug candidates through clinical trials, aiming for regulatory approval to bring these treatments to market, which would further contribute to its revenue through direct sales or additional partnerships.

Assembly Biosciences Financial Statement Overview

Summary

Assembly Biosciences is facing financial challenges with significant revenue growth but ongoing negative profitability. The company shows improving cash flow but struggles with operational inefficiencies and declining equity ratios, impacting shareholder value.

Income Statement

Assembly Biosciences shows a challenging revenue growth trajectory, with TTM revenue significantly higher than previous years but still negative profit margins. The gross profit margin for the TTM period was high at 99.48%, but net profit and EBIT margins are negative, indicating persistent losses and operational challenges. Revenue growth was robust at 295.37% from 2023, but sustainability is uncertain given recurring negative net income.

Balance Sheet

The company's balance sheet reflects moderate financial leverage with a debt-to-equity ratio of 0.06, indicating low reliance on debt. However, the equity ratio has decreased to 25.94%, suggesting reduced financial flexibility. Return on equity is negative, driven by consistent net losses, which raises concerns about shareholder value creation.

Cash Flow

Positive operating cash flow and free cash flow in the TTM period indicate improved cash management, with a free cash flow growth of 1.56% from 2023. The operating cash flow to net income ratio is -0.56, reflecting some ability to generate cash despite losses. However, sustaining positive cash flow remains a challenge given ongoing operational losses.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
28.33M	7.16M	0.00	6.25M	79.11M	15.96M
	Gross Profit
28.18M	-41.74M	-498.00K	5.79M	79.00M	15.88M
	EBIT
-46.44M	-64.65M	-94.11M	-132.69M	-64.78M	-102.71M
	EBITDA
-46.26M	-64.20M	-92.59M	-91.93M	-64.78M	-102.71M
	Net Income Common Stockholders
-40.80M	-61.23M	-92.07M	-129.85M	-59.53M	-97.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
218.08M	130.25M	91.61M	146.63M	216.41M	274.04M
	Total Assets
268.05M	136.82M	101.79M	191.06M	283.25M	339.91M
	Total Debt
0.00	2.34M	3.46M	6.48M	10.13M	12.27M
	Net Debt
-41.47M	-17.50M	-48.95M	-39.15M	-49.31M	-34.46M
	Total Liabilities
57.39M	95.73M	19.13M	22.13M	42.68M	66.69M
	Stockholders Equity
210.65M	41.10M	82.66M	168.93M	240.58M	273.22M
Cash Flow		Free Cash Flow
22.84M	22.49M	-84.56M	-96.49M	-65.18M	-85.62M
	Operating Cash Flow
22.94M	22.74M	-84.46M	-93.40M	-62.96M	-84.07M
	Investing Cash Flow
-42.79M	-69.14M	90.64M	26.52M	68.07M	-50.32M
	Financing Cash Flow
21.65M	13.82M	614.00K	53.06M	7.60M	139.65M

Assembly Biosciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.12
• 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 ASMB, the sentiment is Negative. The current price of 11.12 is below the 20-day moving average (MA) of 11.51, below the 50-day MA of 12.90, and below the 200-day MA of 14.96, indicating a bearish trend. The MACD of -0.62 indicates Negative momentum. The RSI at 42.27 is Neutral, neither overbought nor oversold. The STOCH value of 55.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASMB.

Assembly Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GILD	75 Outperform	$132.93B	279.95	2.28%	2.88%	6.16%	-91.54%
NBIX	68 Neutral	$11.16B	35.13	14.16%	―	24.81%	33.67%
IONS	49 Neutral	$5.23B	―	-93.03%	―	-10.48%	-18.79%
Sector *	49 Neutral	$6.94B	0.66	-52.58%	2.47%	22.65%	0.94%
ARWR	47 Neutral	$2.03B	―	-600.68%	―	-98.62%	-86.21%
ENTA	46 Neutral	$134.61M	―	-69.10%	―	-9.55%	24.57%
ASMB	27 Underperform	$83.44M	―	-107.92%	―	298.16%	50.72%