Entrada Therapeutics Inc (TRDA) AI Stock Analysis

• Market Cap: $400.38M
• Dividend Yield: N/A
• Average Volume (3M): 119.23K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 1.44
• Revenue Growth: 63.38%
• EPS Growth: N/A
• Country: US
• Employees: 159
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): 1.91
• Shares Outstanding: 37,594,630
• 10 Day Avg. Volume: 155,270
• 30 Day Avg. Volume: 119,228
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.87
• Price to Cash Flow (P/CF): -3.10
• 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: $24.33
• Price Target Upside: 128.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Entrada Therapeutics shows strong revenue growth and solid financial stability. However, the negative cash flow and weak technical indicators present challenges. The stock appears undervalued, with significant corporate events like FDA and UK trial approvals boosting future prospects. These factors collectively contribute to a balanced stock score.

Positive Factors

Clinical Data

Previously reported positive preliminary data from a Phase 1 trial showed no serious adverse events, supporting the potential of ENTR-601-44 as a treatment option.

Regulatory Approval

The FDA has lifted the clinical hold on ENTR-601-44, allowing Entrada Therapeutics to initiate a Phase 1b clinical study for the potential treatment of Duchenne muscular dystrophy.

Negative Factors

Regulatory Delays

The FDA remains conservative, requesting dosing of adults and generating data prior to dosing pediatrics, which is seen as a delay in earlier intervention for better patient outcomes.

Entrada Therapeutics Inc Business Overview & Revenue Model

Company Description

Entrada Therapeutics Inc mission is to transform the treatment of devastating diseases and improve patients quality of life by developing intracellular biologics. Leveraging its proprietary Endosomal Escape Vehicle platform, Entrada is creating a diverse and expanding pipeline of oligonucleotide, antibody, enzyme, protein and peptide programs to efficiently target and engage underlying drivers of diseases.

How the Company Makes Money

Entrada Therapeutics makes money by advancing its pipeline of therapeutic candidates through various stages of clinical development, with the ultimate goal of securing regulatory approval and commercializing its products. The company may generate revenue through partnerships and collaborations with other biotech and pharmaceutical companies, which can include milestone payments, royalties, and licensing fees. Additionally, Entrada might receive funding from grants or government programs dedicated to supporting innovative biotech research. The company's ability to successfully develop and market its therapies directly impacts its revenue potential.

Entrada Therapeutics Inc Financial Statement Overview

Summary

Entrada Therapeutics is making considerable strides in revenue growth and has a strong equity position, reflecting financial stability. While profitability and operational efficiency are improving, cash flow management remains a concern, with negative free cash flow highlighting the need for strategic cash management to sustain growth and operations.

Income Statement

Entrada Therapeutics has shown significant revenue growth, from zero revenue in earlier years to $210.78 million in 2024, indicating strong progress in operations or product development. The gross profit margin is excellent at 100%, reflecting efficient cost management. However, the net profit margin, although positive at 31.13%, indicates room for improvement in controlling expenses. The EBIT and EBITDA margins are at 22.30%, suggesting stable operational efficiency.

Balance Sheet

The company has a strong equity position with stockholders' equity significantly higher than total debt, resulting in a low debt-to-equity ratio of 0.14, which suggests low leverage and financial stability. The return on equity is solid at 15.31%, showcasing effective use of equity capital. The equity ratio of 81.43% indicates a robust financial structure, minimizing financial risk.

Cash Flow

Despite a negative operating cash flow in the latest year, the company has demonstrated the ability to secure financing, as seen in the significant positive financing cash flow. Free cash flow is negative, indicating potential cash constraints. The free cash flow to net income ratio is negative, suggesting a need for better cash management strategies to support growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
210.78M	129.01M	0.00	0.00	0.00
	Gross Profit
210.78M	29.13M	-1.90M	-1.12M	-326.00K
	EBIT
47.01M	-3.16M	-97.25M	-51.13M	-26.67M
	EBITDA
47.01M	-321.00K	-95.35M	-50.01M	-26.34M
	Net Income Common Stockholders
65.63M	-6.68M	-87.46M	-50.07M	-26.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
420.00M	351.97M	45.16M	291.06M	39.05M
	Total Assets
526.32M	469.19M	252.06M	305.83M	43.53M
	Total Debt
59.21M	68.23M	25.94M	0.00	0.00
	Net Debt
-42.00M	628.00K	-19.22M	-291.06M	-39.05M
	Total Liabilities
97.64M	226.83M	39.50M	7.12M	85.02M
	Stockholders Equity
428.68M	242.36M	212.55M	298.72M	-41.49M
Cash Flow		Free Cash Flow
-44.72M	134.19M	-96.67M	-55.44M	-27.89M
	Operating Cash Flow
-41.56M	139.80M	-93.79M	-50.86M	-25.57M
	Investing Cash Flow
-27.80M	-138.40M	-148.65M	-4.58M	-2.32M
	Financing Cash Flow
102.96M	21.04M	479.00K	307.46M	50.09M

Entrada Therapeutics Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRDA, the sentiment is Negative. The current price of 10.65 is below the 20-day moving average (MA) of 11.92, below the 50-day MA of 13.31, and below the 200-day MA of 15.82, indicating a bearish trend. The MACD of -0.80 indicates Positive momentum. The RSI at 39.16 is Neutral, neither overbought nor oversold. The STOCH value of 25.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRDA.

Entrada Therapeutics Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRPT	69 Neutral	$9.77B	41.86	19.71%	―	52.97%	―
TRDA	64 Neutral	$400.38M	5.59	19.56%	―	63.38%	―
WVE	51 Neutral	$1.60B	―	-73.24%	―	-4.42%	-42.17%
Sector *	49 Neutral	$6.90B	0.02	-54.05%	2.46%	24.91%	-3.14%
MRNA	48 Neutral	$13.03B	―	-28.77%	―	-52.75%	25.00%
ARWR	47 Neutral	$2.07B	―	-600.68%	―	-98.62%	-86.21%
RNA	36 Underperform	$3.56B	―	-33.47%	―	13.99%	0.17%

Entrada Therapeutics Inc Corporate Events

Entrada Therapeutics Receives FDA Approval for DMD Study

On February 24, 2025, Entrada Therapeutics announced that the FDA has lifted the clinical hold on ENTR-601-44, granting authorization for a Phase 1b clinical study of the drug aimed at treating Duchenne muscular dystrophy (DMD) in adult patients. This significant regulatory milestone allows Entrada to initiate its ELEVATE-44-102 study in the U.S. and expand its global clinical program, potentially positioning the company as a leader in developing therapies for DMD.

Entrada Therapeutics Advances Duchenne Muscular Dystrophy Trial

On February 3, 2025, Entrada Therapeutics announced receiving authorization from the UK’s Medicines and Healthcare Products Regulatory Agency to initiate a Phase 1/2 clinical trial of ENTR-601-44 for Duchenne muscular dystrophy. This trial, set to start in the second quarter of 2025, aims to evaluate the safety, tolerability, and efficacy of ENTR-601-44 in patients amenable to exon 44 skipping, marking a significant step in addressing the medical needs of this patient population with limited treatment options.