HCW Biologics (HCWB) AI Stock Analysis

• Market Cap: $8.94M
• Dividend Yield: N/A
• Average Volume (3M): 6.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: -9.68%
• EPS Growth: -13.26%
• Country: US
• Employees: 36
• Sector: Healthcare
• Sector Strength: 64
• Industry: Biotechnology
• EPS (TTM): -31.50
• Shares Outstanding: 1,123,353
• 10 Day Avg. Volume: 11,864
• 30 Day Avg. Volume: 6,121
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.29
• Price to Cash Flow (P/CF): -1.00
• 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: $3.00
• Price Target Upside: -62.31% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

HCW Biologics faces substantial financial difficulties, with declining revenue and significant leverage posing risks to its stability. The stock is showing a bearish technical trend, trading well below key moving averages. While the FDA clearance for a clinical trial is a positive development, it does not offset the core financial and operational challenges, resulting in a low overall score.

Positive Factors

Clinical Trial Progress

HCW Biologics announced the clearance of HCW9302 to enter a Phase 1 clinical trial in patients with moderate to severe alopecia areata.

Partnership Validation

A $7M upfront deal validates the potential of HCW Biologics' new discovery platform for multifunctional cytokines.

Pipeline Advancement

The company raised $6.9M from a registered direct offering, providing operational breathing room and allowing pipeline advancement.

Negative Factors

Financial Challenges

Despite recent capital influx, HCW Biologics has remaining legal expenses of $14.4M and may require further capital.

Net Loss

HCW Biologics reported a net loss and, despite recent capital influx, further capital will be required due to remaining legal expenses.

HCW Biologics Business Overview & Revenue Model

Company Description

HCW Biologics Inc. (HCWB) is a biotechnology company focused on the discovery and development of novel immunotherapies designed to delay or mitigate age-related diseases. It specializes in the development of proprietary immunotherapeutic technology platforms aimed at improving the immune system's ability to fight cancer and other chronic diseases. The company's core products involve innovative biologic molecules that target specific pathways to enhance treatment efficacy.

How the Company Makes Money

HCW Biologics generates revenue primarily through the development and commercialization of its proprietary biologics and immunotherapy products. Key revenue streams include licensing agreements, partnerships with pharmaceutical companies, and government or private grants to support research and development. Significant partnerships with larger biotechnology and pharmaceutical firms enable HCW Biologics to leverage their platforms for wider distribution and access to established markets. The company also potentially earns milestone payments and royalties from partners who utilize its technology in their own drug development projects.

HCW Biologics Financial Statement Overview

Summary

HCW Biologics faces financial difficulties with declining revenues, high operational losses, and significant leverage. The income statement shows negative growth and profitability, the balance sheet is burdened with high debt and negative equity, while cash flow statements reflect cash burn from operations.

Income Statement

HCW Biologics has experienced declining revenue over the past year, with a negative revenue growth rate. The gross profit margin is positive but very low, indicating challenges in managing costs or pricing. The net profit margin is deeply negative, reflecting significant losses in operations, compounded by negative EBIT and EBITDA margins, which highlight inefficiencies in core business operations.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio due to negative equity, indicating potential financial distress. The return on equity is also negative, reflecting losses. The equity ratio is negative, a sign of financial instability and potential risk for creditors. Overall, the balance sheet suggests significant leverage and financial challenges.

Cash Flow

HCW Biologics has negative operating cash flow, indicating cash burn from core operations. The free cash flow is also negative, showing cash outflows exceeding inflows. However, financing activities have provided a cash influx, slightly offsetting cash burn. The operating cash flow to net income ratio is negative, suggesting challenges in converting revenue into cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.50M	2.57M	2.84M	6.72M	0.00	4.10M
	Gross Profit
615.04K	959.40K	560.36K	2.59M	-543.60K	4.10M
	EBIT
-37.09M	-29.48M	-25.72M	-15.08M	-13.37M	-5.82M
	EBITDA
-36.17M	-29.48M	-23.58M	-14.18M	-12.82M	-5.25M
	Net Income Common Stockholders
-37.33M	-30.02M	-24.99M	-14.72M	-12.36M	-5.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.36M	4.67M	3.60M	32.06M	36.71M	8.46M
	Total Assets
0.00	30.24M	28.51M	46.81M	53.51M	15.40M
	Total Debt
0.00	6.31M	6.30M	6.41M	0.00	567.31K
	Net Debt
7.36M	1.64M	2.71M	-15.92M	-11.73M	-7.89M
	Total Liabilities
0.00	37.01M	15.05M	9.38M	2.32M	1.00M
	Stockholders Equity
9.00M	-6.77M	13.46M	37.43M	51.19M	14.40M
Cash Flow		Free Cash Flow
-19.15M	-14.49M	-28.72M	-20.66M	-11.02M	-10.62M
	Operating Cash Flow
-15.29M	-14.23M	-22.51M	-10.39M	-10.98M	-10.43M
	Investing Cash Flow
-3.86M	-261.62K	3.80M	14.71M	-35.02M	-186.68K
	Financing Cash Flow
8.93M	15.57M	-14.53K	6.27M	49.27M	11.72M

HCW Biologics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCWB, the sentiment is Negative. The current price of 7.96 is below the 20-day moving average (MA) of 9.71, below the 50-day MA of 12.56, and below the 200-day MA of 18.18, indicating a bearish trend. The MACD of -1.43 indicates Positive momentum. The RSI at 32.63 is Neutral, neither overbought nor oversold. The STOCH value of 19.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HCWB.

HCW Biologics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.20B	3.26	-40.34%	2.93%	17.68%	1.94%
DWTX	43 Neutral	$10.43M	―	-200.48%	―	―	-57.84%
APRE	38 Underperform	$8.49M	―	-66.65%	―	157.63%	40.52%
HCWB	36 Underperform	$8.94M	―	-897.37%	―	-9.68%	-13.26%
TSBX	34 Underperform	$7.16M	―	-108.87%	―	-100.00%	-27.44%
CARM	15 Underperform	$8.85M	―	-362.79%	―	31.59%	57.94%

HCW Biologics Corporate Events

HCW Biologics Announces Reverse Stock Split Approval

On March 31, 2025, HCW Biologics’ stockholders approved a 1-for-40 reverse stock split of its common stock, which was subsequently authorized by the Board of Directors. This move, effective April 11, 2025, aims to increase the stock’s per-share bid price above $1.00 to regain compliance with Nasdaq’s listing requirements. The reverse stock split will reduce the number of outstanding shares from approximately 44.9 million to about 1.1 million, without altering the total number of authorized shares. The adjustment will affect all stockholders uniformly, with fractional shares being rounded up to the nearest whole share. The company’s operations and stakeholder interests remain largely unchanged, aside from the necessary adjustments to stock options and warrants.

HCW Biologics Advances with FDA Clearance for Trial

On February 3, 2025, HCW Biologics announced that the FDA has cleared its Investigational New Drug Application for HCW9302, allowing the company to proceed with a Phase 1 clinical trial in patients with moderate to severe alopecia areata. This trial marks a significant milestone for the company, aiming to establish a safe dose of HCW9302, which leverages a novel IL-2 fusion protein to activate Treg cells, potentially transforming treatments for autoimmune diseases while minimizing immunosuppression.