NextCure (NXTC) AI Stock Analysis

• Market Cap: $11.12M
• Dividend Yield: N/A
• Average Volume (3M): 90.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: N/A
• EPS Growth: 11.66%
• Country: US
• Employees: 43
• Sector: Healthcare
• Sector Strength: 79
• Industry: Biotechnology
• EPS (TTM): -1.99
• Shares Outstanding: 28,006,683
• 10 Day Avg. Volume: 151,167
• 30 Day Avg. Volume: 90,714
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -0.60
• 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: 669.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

NextCure's overall stock score reflects significant financial strain and negative market momentum. The company's lack of revenue generation and ongoing cash burn present substantial risks. Technical indicators suggest a bearish outlook, although oversold conditions might signal a potential rebound. The valuation metrics are less meaningful given the company's current financial state, underscoring the importance of strategic actions to address liquidity and operational challenges.

Positive Factors

Clinical development

The speed of clinical development and encouraging preclinical data are viewed positively for NextCure's LNCB74.

Competitive advantage

NextCure's proprietary glucuronidase linker is believed to demonstrate superior efficacy compared to similar constructs, particularly in ovarian and breast cancer models.

Safety and efficacy

LNCB74 is engineered to minimize uptake and toxicity to immune cells, making it a promising candidate in its class.

Negative Factors

Competition

The B7-H4 ADC landscape is competitive with several other clinical stage players, highlighting the challenges LNCB74 may face.

Financial outlook

Analyst is lowering the price target to $3, given Nextcure no longer has any programs in active clinical studies.

Program discontinuation

Nextcure has decided to halt further enrollment for NC410's Phase Ib study in CRC and ovarian cancer in order to prioritize resources on LNCB74.

NextCure Business Overview & Revenue Model

Company Description

NextCure, Inc. (NXTC) is a clinical-stage biopharmaceutical company dedicated to discovering and developing novel, first-in-class immunomedicines to treat cancer and other immune-related diseases. The company's approach is centered around its proprietary Functional, Integrated, NextCure Discovery in Immuno-Oncology (FIND-IO) platform, which enables the identification of targets for new immunotherapies. NextCure's core products focus on addressing unmet medical needs in oncology through innovative therapeutic solutions.

How the Company Makes Money

NextCure primarily generates revenue through strategic collaborations and partnerships with other pharmaceutical and biotechnology companies. These partnerships often involve joint development agreements, where NextCure provides its proprietary technology and expertise in exchange for research funding, milestone payments, and potential royalties on future product sales. Additionally, the company may receive revenue from government grants supporting specific research initiatives. However, as a clinical-stage company, NextCure has not yet achieved commercial sales of its products, which means its revenue streams are largely dependent on these collaborative and developmental agreements.

NextCure Financial Statement Overview

Summary

NextCure's financials indicate a focus on development with no current revenue, which is typical for biotech firms in pre-commercial phases. The balance sheet shows low leverage, but persistent negative cash flows highlight a critical need for revenue generation or additional funding to sustain operations.

Income Statement

NextCure's income statement shows a lack of revenue generation with consistent negative EBIT and net income, reflecting operational challenges. The absence of revenue growth and negative margins indicate significant financial strain, typical of early-stage biotech companies focused on R&D without marketable products.

Balance Sheet

The balance sheet reflects a strong equity position and low debt levels, with a favorable equity ratio. However, declining total assets and equity over the years pose concerns about sustainability. The company's reliance on cash reserves for funding operations highlights potential liquidity risks if revenue streams don't materialize.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows with no signs of improvement, suggesting ongoing cash burn. The company's cash reserves have decreased substantially, although the ability to generate positive investing cash flow offers some relief. This trend indicates a need for external financing or strategic shifts to ensure long-term viability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	22.38M
	Gross Profit
0.00	-3.68M	-4.48M	-4.30M	22.33M
	EBIT
-59.75M	-67.64M	-75.91M	-70.77M	-41.23M
	EBITDA
-54.34M	-59.04M	-70.25M	-65.01M	-37.81M
	Net Income Common Stockholders
-55.65M	-62.72M	-69.43M	-69.39M	-33.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
68.62M	108.30M	159.91M	219.59M	283.45M
	Total Assets
80.86M	128.04M	184.16M	242.39M	306.64M
	Total Debt
5.15M	6.61M	7.12M	0.00	3.47M
	Net Debt
-22.57M	-6.48M	-19.51M	-12.34M	-29.30M
	Total Liabilities
15.39M	13.62M	16.63M	9.00M	12.92M
	Stockholders Equity
65.47M	114.42M	167.53M	233.39M	293.72M
Cash Flow		Free Cash Flow
-41.28M	-53.79M	-56.00M	-59.60M	-52.09M
	Operating Cash Flow
-40.80M	-52.97M	-53.89M	-57.24M	-44.95M
	Investing Cash Flow
55.31M	39.27M	67.98M	36.60M	43.52M
	Financing Cash Flow
144.00K	154.00K	200.00K	-3.27M	-1.42M

NextCure Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXTC, the sentiment is Negative. The current price of 0.39 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.68, and below the 200-day MA of 1.17, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 24.43 is Positive, neither overbought nor oversold. The STOCH value of 6.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NXTC.

NextCure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.86B	1.11	-50.22%	2.47%	16.71%	1.53%
SABS	39 Underperform	$10.96M	―	-81.92%	―	-40.94%	51.90%
NXTC	37 Underperform	$11.12M	―	-61.87%	―	―	11.66%
HOOK	34 Underperform	$10.26M	―	-61.68%	―	118.32%	61.16%
MBRX	32 Underperform	$12.27M	―	-135.80%	―	―	52.82%
GLYC	31 Underperform	$11.94M	―	-173.25%	―	-100.00%	-0.58%
CARM	23 Underperform	$8.03M	―	-362.79%	―	31.59%	57.94%

NextCure Corporate Events

NextCure Advances with New Cancer Drug Application

NextCure, Inc. is making strides in the financial markets with its new Investigational New Drug Application for LNCB74, targeting breast, endometrial, and ovarian cancers. This innovative antibody-drug conjugate employs a unique glucuronidase linker for enhanced safety and efficacy. With promising preclinical results and a strategic collaboration with LegoChemBio, the company is poised to initiate Phase 1 trials in early 2025, potentially offering a significant investment opportunity for those interested in groundbreaking cancer therapies.

NextCure to Discuss Innovative Cancer Therapies

NextCure is set to engage with the investment community on November 8, 2024, focusing on their innovative therapeutic developments. Their ADC candidate, LNCB74, targets B7-H4 in women’s cancers and showcases promising preclinical results with enhanced safety and efficacy due to a unique glucuronidase linker. The company anticipates filing an IND by the end of 2024, with clinical trials poised to further evaluate its potential against breast, ovarian, and endometrial cancers.