Dynavax (DVAX) AI Stock Analysis

• Market Cap: $1.58B
• Dividend Yield: N/A
• Average Volume (3M): 2.62M
• Price to Earnings (P/E): 73.7
• Beta (1Y): 0.26
• Revenue Growth: 19.36%
• EPS Growth: N/A
• Country: US
• Employees: 405
• Sector: Healthcare
• Sector Strength: 78
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.17
• Shares Outstanding: 124,070,830
• 10 Day Avg. Volume: 1,934,010
• 30 Day Avg. Volume: 2,622,642
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.18
• Price to Cash Flow (P/CF): 8.10
• P/FCF Ratio: 8.10
• 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: $25.25
• Price Target Upside: 96.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Dynavax shows strong potential with positive revenue growth and market leadership in the hepatitis B vaccine sector. The company's solid cash flow and technical indicators suggest positive momentum. However, profitability challenges and high valuation metrics temper the score, with risks associated with pending product approvals and rising R&D expenses.

Positive Factors

Financial Performance

Dynavax announced a $200M share repurchase program, boosting investor confidence.

Market Share

Heplisav-B is expected to capture at least 60% of the adult hepatitis B vaccine market share, driving company growth.

Profitability

Heplisav-B gross margin was 82% in 4Q24, indicating strong profitability from the product.

Negative Factors

Market Competition

Despite being the only two-dose adult Hepatitis B vaccine, increased competition could challenge Heplisav's market share.

Sales Decline

Heplisav experienced a 10% quarter-over-quarter sales decline in Q4 due to seasonality.

Dynavax Business Overview & Revenue Model

Company Description

Dynavax Technologies Corporation, a biopharmaceutical company, focuses on developing and commercializing novel vaccines in the United States. The company markets HEPLISAV-B, a hepatitis B vaccine for prevention of infection caused by all known subtypes of hepatitis B virus in age 18 years and older in the United States and Europe. It also manufactures and sells CpG 1018, the adjuvant used in HEPLISAV-B. Dynavax Technologies Corporation has a collaboration agreement with Valneva Scotland Limited; agreement with Serum Institute of India Pvt. Ltd.; and sublicense agreement with Merck, Sharp & Dohme Corp. The company was formerly known as Double Helix Corporation and changed its name to Dynavax Technologies Corporation in September 1996. Dynavax Technologies Corporation was incorporated in 1996 and is headquartered in Emeryville, California.

How the Company Makes Money

Dynavax makes money primarily through the sale and distribution of HEPLISAV-B, its FDA-approved hepatitis B vaccine for adults. The company generates revenue by marketing this vaccine to healthcare providers, clinics, and government entities. Key revenue streams include product sales, which are driven by demand in both the private and public healthcare sectors. Additionally, Dynavax may receive revenue from partnerships and collaborations with other pharmaceutical companies or government agencies for the development of new vaccines or immunotherapy solutions. These collaborations can provide upfront payments, milestone payments, and royalties on future sales, contributing to the company's earnings.

Dynavax Financial Statement Overview

Summary

Dynavax has shown positive revenue growth and a healthy gross margin, but profitability remains a concern with negative EBIT and EBITDA margins. The balance sheet is stable with a strong equity position but carries some leverage risk. Cash flow performance is solid, with efficient cash generation and management, supporting the company's operations despite ongoing profitability challenges.

Income Statement

Dynavax shows a growth in revenue from the previous year, with a revenue growth rate of 19.34% in the latest period. However, the company has struggled with profitability, as seen in the negative EBIT and EBITDA margins, indicating operational challenges. The gross profit margin is healthy at 100% due to the total revenue equating to gross profit, but net profit margin is modest at 9.85% due to net income being relatively low compared to total revenue.

Balance Sheet

The balance sheet reflects a strong equity base with an equity ratio of 60.50%, indicating financial stability. However, the debt-to-equity ratio is relatively high at 0.42, suggesting some leverage risk. Return on equity is low at 4.58%, suggesting that the company is not generating substantial returns on shareholders' equity.

Cash Flow

Dynavax shows strong operating cash flow relative to net income, with a robust free cash flow growth rate of 6.90%. The operating cash flow to net income ratio is 2.43, reflecting efficient cash generation. The company's free cash flow to net income ratio is also strong at 2.20, indicating effective cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
277.25M	232.28M	722.68M	439.44M	46.55M
	Gross Profit
277.25M	182.12M	460.53M	265.87M	32.64M
	EBIT
-4.12M	-37.03M	283.52M	134.49M	-75.22M
	EBITDA
45.70M	9.67M	307.70M	95.71M	-46.84M
	Net Income Common Stockholders
27.31M	-6.39M	293.16M	76.71M	-91.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
713.83M	742.30M	624.39M	545.95M	165.04M
	Total Assets
986.26M	997.10M	985.85M	1.04B	353.27M
	Total Debt
250.24M	256.91M	258.01M	257.38M	217.85M
	Net Debt
154.36M	106.64M	56.01M	-178.81M	185.77M
	Total Liabilities
389.46M	375.02M	404.84M	816.87M	294.58M
	Stockholders Equity
596.80M	622.07M	581.01M	222.37M	58.69M
Cash Flow		Free Cash Flow
60.16M	96.46M	55.58M	326.05M	-103.32M
	Operating Cash Flow
66.51M	100.56M	62.72M	335.53M	-92.25M
	Investing Cash Flow
-18.04M	-153.93M	-316.00M	14.22M	-26.53M
	Financing Cash Flow
-102.02M	1.39M	19.52M	55.78M	109.50M

Dynavax Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DVAX, the sentiment is Negative. The current price of 12.85 is below the 20-day moving average (MA) of 13.71, below the 50-day MA of 13.36, and above the 200-day MA of 12.06, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 34.82 is Neutral, neither overbought nor oversold. The STOCH value of 15.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DVAX.

Dynavax Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DVAX	69 Neutral	$1.58B	73.67	4.48%	―	19.36%	―
BNTX	54 Neutral	$21.67B	―	-3.38%	―	-27.64%	-172.62%
VXRT	49 Neutral	$84.91M	―	-114.71%	―	288.94%	39.45%
Sector *	48 Neutral	$6.86B	1.11	-50.22%	2.47%	16.71%	1.53%
MRNA	48 Neutral	$10.48B	―	-28.77%	―	-52.75%	25.00%
NVAX	39 Underperform	$965.07M	―	30.06%	―	-30.65%	77.62%
VAXX	26 Underperform	$7.03M	―	-0.42%	―	―	―

Dynavax Corporate Events

Dynavax Appoints New Principal Accounting Officer

On February 10, 2025, Dynavax Technologies Corporation entered into a new Supply Agreement with West Pharmaceutical Services, Inc. for the manufacture and supply of syringe stoppers for its HEPLISAV-B® vaccine, replacing a prior agreement from 2016. This new agreement, effective for four years with possible extensions, outlines volume-based pricing subject to changes according to a specified price index and includes provisions for termination due to breach or insolvency. Additionally, on February 13, 2025, the company’s Board of Directors appointed Kelly MacDonald as the principal accounting officer, expanding her responsibilities as the Chief Financial Officer.

Dynavax Announces Leadership Transition Following Resignation

On February 3, 2025, Justin Burgess announced his resignation from Dynavax Technologies Corporation, where he served as the principal accounting officer, effective on or around March 3, 2025. The company plans to appoint Kelly MacDonald, the current Chief Financial Officer, as the new principal accounting officer without changing her compensation, indicating a seamless transition in leadership roles within the company.

Dynavax Announces New Board Appointments and Adjustments

Dynavax Technologies Corporation has appointed two new directors, Lauren Silvernail and Emilio Emini, Ph.D., effective February 3, 2025. Lauren Silvernail will serve as a Class I Director until the 2025 Annual Meeting and chair the Audit Committee, while Emilio Emini will serve as a Class III Director until the 2027 Annual Meeting. Both will receive stock options and restricted stock units as part of their compensation, with Silvernail also receiving additional compensation for her role in the Audit Committee. The appointments follow the retirement and resignation of directors Peggy V. Phillips and Julie Eastland, and the Board’s decision to adjust the number of directors accordingly.

Dynavax Reports Revenue Growth and Defense Contract

Dynavax announced a 26% year-over-year increase in net product revenue for HEPLISAV-B in 2024, reaching approximately $268 million. The company also secured a $30 million contract with the U.S. Department of Defense to advance its plague vaccine program. The financial growth strengthens Dynavax’s market position, allowing it to focus on strategic growth pillars, including maximizing HEPLISAV-B’s market share and advancing its clinical pipeline.