Immatics (IMTX) AI Stock Analysis

• Market Cap: $491.06M
• Dividend Yield: N/A
• Average Volume (3M): 810.62K
• Price to Earnings (P/E): 49.3
• Beta (1Y): 1.41
• Revenue Growth: 188.64%
• EPS Growth: N/A
• Country: US
• Employees: 554
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): 0.08
• Shares Outstanding: 121,550,170
• 10 Day Avg. Volume: 1,061,543
• 30 Day Avg. Volume: 810,615
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 8.75
• Price to Cash Flow (P/CF): N/A
• 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: $15.50
• Price Target Upside: 290.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Immatics' strong revenue growth is overshadowed by its operational inefficiencies and negative cash flow, impacting its overall financial health. The stock's bearish technical indicators and high P/E ratio suggest caution. The lack of recent earnings call data or corporate events leaves the score driven primarily by fundamental and technical analyses.

Positive Factors

Clinical Data

Impressive data was reported for IMA203, with a 62% overall response rate and a 92% disease control rate in a heavily pre-treated metastatic melanoma patient group.

Financial Position

IMTX ended 4Q24 with $628.0M in cash and equivalents, providing a cash runway into 2H27.

Partnerships

Immatics N.V. continues to have ongoing partnerships with Editas Medicine and Moderna Therapeutics, which investors may view as an important source of external validation.

Pipeline Progress

IMTX confirmed that the Phase III SUPRAME study evaluating IMA203 in cutaneous melanoma has started to enroll patients and remains on track to complete enrollment by the end of 2026.

Negative Factors

Collaboration Termination

The termination by Bristol Myers Squibb of a collaboration with Immatics N.V. is seen as an incremental negative for the stock.

Equity Financing

IMTX shares dropped 16%, suspected to be related to the surprising decision to announce an equity financing.

Immatics Business Overview & Revenue Model

Company Description

Immatics N.V., a clinical-stage biopharmaceutical company, focuses on the discovery and development of T cell receptor (TCR) based immunotherapies for the treatment of cancer in the United States. The company is developing targeted immunotherapies with a focus on treating solid tumors through two distinct treatment modalities, such as adoptive cell therapies (ACT) and antibody-like TCR Bispecifics. Its ACTengine product candidates are in Phase I clinical trials, which include IMA201 that targets melanoma-associated antigen 4 or 8 in patients with solid tumors; IMA202 that targets melanoma-associated antigen 1 in patients with various solid tumors, including squamous non-small cell lung carcinoma and hepatocellular carcinoma; and IMA203 that targets preferentially expressed antigen in melanoma in adult patients with relapsed and/or refractory solid tumors, as well as IMA204, which is in preclinical studies that targets tumor stroma cell. The company's TCR Bispecifics product candidates, which are in preclinical studies include IMA401, a cancer testis antigen for the treatment of solid tumors; and IMA402 for the treatment of solid tumors. It also develops IMA101 for the treatment of cancer; and IMA301, an allogenic cellular therapy product candidate. The company has a strategic collaboration agreement with GlaxoSmithKline Intellectual Property Development Limited to develop novel adoptive cell therapies targeting multiple cancer indications; MD Anderson Cancer Center to develop multiple T cell and TCR-based adoptive cellular therapies; Celgene Switzerland LLC to develop novel adoptive cell therapies targeting multiple cancers; and Genmab A/S to develop T cell engaging bispecific immunotherapies targeting multiple cancer indications. Immatics N.V. is headquartered in Tübingen, Germany.

How the Company Makes Money

Immatics makes money primarily through a combination of research and development collaborations, licensing agreements, and milestone payments from its strategic partnerships with pharmaceutical companies. These partnerships often involve the co-development of TCR-based therapies where Immatics receives upfront payments, research funding, and potential future royalties based on sales if the therapies are successfully commercialized. Additionally, the company may earn revenue through government grants and funding for specific research initiatives. The success of its revenue model is largely dependent on the progress of its clinical trials and the ability to bring its therapies to market.

Immatics Financial Statement Overview

Summary

Immatics is experiencing financial difficulties typical of biotech firms. Despite strong revenue growth of 188.5%, profitability challenges persist with a net profit margin of 9.8% and negative EBIT margin of -24.8%. The balance sheet is strong with a low debt-to-equity ratio of 0.03 and an equity ratio of 82.6%, but low return on equity at 2.6% indicates limited profitability. Additionally, cash flow issues are significant with negative free cash flow and a reliance on external funding.

Income Statement

Immatics has shown significant volatility in its income statement. The revenue growth from 2023 to 2024 was substantial at 188.5%, but profitability remains an issue with a net profit margin of 9.8% in 2024, despite the previous year's net loss. The gross profit margin improved drastically from negative to 100% in 2024, indicating effective cost management. However, the negative EBIT margin of -24.8% highlights ongoing operational challenges.

Balance Sheet

The balance sheet of Immatics indicates strong equity and liquidity positions with a debt-to-equity ratio of 0.03, which is low for the industry. The equity ratio improved significantly to 82.6% in 2024, reflecting a solid foundation. However, the company's return on equity of 2.6% suggests limited profitability relative to its equity base.

Cash Flow

Immatics faces challenges in generating positive cash flow, as seen in the negative free cash flow of -$174.5 million in 2024, a deterioration from previous years. The operating cash flow to net income ratio is negative, indicating inefficiencies in cash generation from operations. The reliance on financing activities highlights a need for external funding.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
155.84M	54.00M	172.83M	34.76M	31.25M
	Gross Profit
155.84M	-64.67M	66.05M	-52.81M	-35.83M
	EBIT
-38.62M	-101.72M	29.95M	-86.29M	-69.72M
	EBITDA
34.46M	-88.93M	50.04M	-83.56M	-64.44M
	Net Income Common Stockholders
15.22M	-96.99M	37.51M	-95.06M	-229.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
604.45M	425.89M	362.20M	145.12M	231.98M
	Total Assets
696.15M	509.96M	407.82M	174.65M	254.65M
	Total Debt
16.20M	15.40M	14.56M	9.85M	6.19M
	Net Debt
-220.54M	-203.07M	-133.96M	-123.14M	-201.34M
	Total Liabilities
121.30M	284.88M	194.66M	150.58M	150.39M
	Stockholders Equity
574.84M	225.08M	213.16M	24.06M	104.26M
Cash Flow		Free Cash Flow
-174.51M	-12.73M	93.92M	-87.44M	-93.13M
	Operating Cash Flow
-158.03M	18.23M	100.13M	-81.78M	-85.61M
	Investing Cash Flow
-152.39M	-31.39M	-209.79M	7.49M	-15.95M
	Financing Cash Flow
319.68M	84.52M	123.71M	-2.61M	207.88M

Immatics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.97
• 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 IMTX, the sentiment is Negative. The current price of 3.97 is below the 20-day moving average (MA) of 4.45, below the 50-day MA of 4.69, and below the 200-day MA of 8.49, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 33.37 is Neutral, neither overbought nor oversold. The STOCH value of 11.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IMTX.

Immatics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.36B	1.28	-45.04%	2.64%	19.24%	1.69%
IMTX	45 Neutral	$491.06M	49.26	3.73%	―	188.64%	―
KURA	45 Neutral	$482.11M	―	-42.91%	―	―	2.90%
BCYC	43 Neutral	$475.14M	―	-29.06%	―	30.27%	44.12%
SVRA	39 Underperform	$473.01M	―	-61.50%	―	―	-44.25%
QURE	35 Underperform	$495.34M	―	-238.46%	―	71.17%	23.89%
COGT	35 Underperform	$507.77M	―	-99.54%	―	―	-2.53%