LENZ Therapeutics (LENZ) AI Stock Analysis

• Market Cap: $658.01M
• Dividend Yield: N/A
• Average Volume (3M): 291.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: N/A
• EPS Growth: 68.93%
• Country: US
• Employees: 6
• Sector: Healthcare
• Sector Strength: 73
• Industry: Biotechnology
• EPS (TTM): -4.76
• Shares Outstanding: 27,543,120
• 10 Day Avg. Volume: 346,167
• 30 Day Avg. Volume: 291,052
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -20.10
• 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: $49.00
• Price Target Upside: 112.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

LENZ Therapeutics faces significant financial challenges with persistent losses and negative cash flows, despite a strong equity position. The negative P/E ratio and lack of dividend suggest a high-risk valuation. Technical indicators further highlight bearish sentiment. However, positive strides in regulatory progress and a promising future outlook from the earnings call provide some optimism. Investors should weigh these risks against potential long-term rewards.

Positive Factors

Commercial Strategy

Increasing conviction in the company's commercial strategy, launch readiness, and customer engagement approach.

Product Efficacy and Safety

LNZ100 offers a differentiated aceclidine design that can spare the ciliary muscle during pupil constriction.

Regulatory Progress

The Phase 3 CLARITY program achieved primary and key secondary endpoints with statistically significant ≥3-line BCVA near vision improvement without losing 1-line or more from distance visual acuity.

Negative Factors

Market Launch Delays

LNZ100 sales are expected to commence only in 4Q25, despite the mid-3Q25 PDUFA, due to additional time required for final packaging after approval.

Sales Timing

LNZ100 sales are expected to commence only in 4Q25, despite the mid-3Q25 PDUFA, due to additional time required for final packaging after approval.

LENZ Therapeutics Business Overview & Revenue Model

Company Description

LENZ Therapeutics, Inc., a biopharmaceutical company, focuses on developing and commercializing therapies to improve vision in the United States. Its product candidates include LNZ100 and LNZ101 which are in Phase III clinical trials for the treatment of presbyopia. The company is headquartered in Del Mar, California.

How the Company Makes Money

LENZ Therapeutics makes money primarily through the development and commercialization of its pharmaceutical products designed to treat eye diseases. The company generates revenue by advancing its drug candidates through clinical trials, obtaining regulatory approvals, and subsequently marketing these drugs to healthcare providers and patients. Additionally, LENZ may engage in strategic partnerships or licensing agreements with other pharmaceutical companies, which can provide upfront payments, milestone payments, and royalties based on product sales. These collaborations can significantly contribute to the company's earnings, allowing LENZ to leverage external resources and market reach while focusing on its core research and development activities.

LENZ Therapeutics Financial Statement Overview

Summary

LENZ Therapeutics exhibits significant financial challenges, reflected in persistent losses and negative cash flows. Despite a strong equity position and minimal leverage, the firm's operational difficulties are evident in its income and cash flow statements. The biotechnology industry is inherently high-risk, and LENZ's current financial trajectory highlights the need for strategic pivots to achieve profitability and sustainable growth. Investors should be cautious, considering the ongoing financial instability and liquidity risks.

Income Statement

The income statement reflects a challenging financial landscape for LENZ Therapeutics, as evidenced by consistent net losses and negative EBIT and EBITDA over multiple reporting periods. The absence of total revenue in recent periods signifies a lack of operational income, while net income remains negative, indicating sustained unprofitability. The firm's gross profit margin is also negative, further highlighting financial difficulties. These factors collectively illustrate significant financial hurdles.

Balance Sheet

LENZ Therapeutics shows a strong equity position, with stockholders' equity accounting for a significant portion of its total assets, resulting in a healthy equity ratio. The debt-to-equity ratio is low, indicating minimal leverage and financial risk. While the company maintains substantial cash reserves, the consistent negative net income affects the return on equity. Overall, the balance sheet displays financial stability but is challenged by profitability concerns.

Cash Flow

The cash flow statement reveals significant cash outflows from operating activities, indicating operational challenges. Although financing activities have provided cash inflows, these are not yet translating into positive free cash flow or net income. The negative free cash flow growth rate suggests ongoing operational cash demands, while the operating cash flow to net income ratio reflects insufficient cash generation relative to net losses. These factors underscore liquidity concerns and the need for improved cash management.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	15.00M	0.00	0.00	0.00
	Gross Profit
-33.00K	-2.41M	6.65M	-734.00K	-121.00K	0.00
	EBIT
-58.61M	-73.11M	-105.64M	-60.44M	-13.50M	-29.00K
	EBITDA
-58.55M	-122.24M	-97.29M	-70.03M	-68.21M	-29.00K
	Net Income Common Stockholders
-49.77M	-124.65M	-101.05M	-70.76M	-68.37M	-109.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.82M	185.86M	268.23M	376.98M	19.82M	6.00K
	Total Assets
22.56M	188.46M	321.90M	401.99M	22.56M	6.00K
	Total Debt
0.00	362.00K	5.79M	0.00	0.00	2.21M
	Net Debt
-19.82M	-185.50M	-41.94M	-376.98M	-19.82M	2.20M
	Total Liabilities
32.36M	4.87M	25.61M	12.14M	32.36M	2.22M
	Stockholders Equity
-9.80M	183.58M	296.29M	389.84M	-9.80M	-2.22M
Cash Flow		Free Cash Flow
-59.86M	-100.86M	-94.57M	-58.59M	-10.27M	-19.00K
	Operating Cash Flow
-59.39M	-90.01M	-87.98M	-52.85M	-8.72M	-19.00K
	Investing Cash Flow
-154.48M	226.35M	-241.86M	-5.74M	-1.54M	0.00
	Financing Cash Flow
199.00M	190.00K	597.00K	417.47M	30.08M	0.00

LENZ Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.06
• 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 LENZ, the sentiment is Neutral. The current price of 23.06 is below the 20-day moving average (MA) of 23.64, below the 50-day MA of 23.81, and below the 200-day MA of 25.56, indicating a bearish trend. The MACD of -0.73 indicates Negative momentum. The RSI at 49.77 is Neutral, neither overbought nor oversold. The STOCH value of 77.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LENZ.

LENZ Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	50 Neutral	$5.51B	2.95	-43.70%	2.78%	16.94%	3.59%
PRTA	47 Neutral	$516.20M	―	-23.34%	―	47.92%	17.84%
BCAX	41 Neutral	$620.48M	―	34.94%	―	―	―
REPL	40 Neutral	$593.78M	―	-50.50%	―	―	4.28%
IMNM	40 Underperform	$643.43M	―	-194.63%	―	-35.50%	3.81%
LENZ	36 Underperform	$658.01M	―	-25.68%	―	―	68.93%
RCKT	34 Underperform	$630.18M	―	-54.14%	―	―	6.99%