Verve Therapeutics (VERV) AI Stock Analysis

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Verve Therapeutics

(NASDAQ:VERV)

36Underperform

Verve Therapeutics shows potential in revenue growth; however, significant challenges in achieving profitability and generating positive cash flows weigh heavily on its financial health. The bearish technical indicators reflect a lack of positive momentum, and the negative valuation metrics further indicate the stock is currently unattractive for risk-averse investors. Overall, the stock is rated low due to high financial uncertainty and market volatility.

Positive Factors

Regulatory Approval

VERVE-102 IND approval reflects FDA's positive view on the benefit/risk profile and unmet need in HeFH and premature Coronary artery disease.

Safety Profile

Verve Therapeutics has not seen treatment-related serious adverse events or clinically significant lab abnormalities, indicating positive safety for the initial doses of VERVE-102.

Strategic Decisions

LLY's opt-in decision is seen as a major inflection point for VERV, with broad and long-term implications.

Negative Factors

Competitive Pressure

The success of competing treatments like inclisiran poses a challenge to VERVE-102's market potential.

Market Uncertainty

The need for further validation and data updates from heart-2 trials adds an element of uncertainty to the financial outlook.

Verve Therapeutics (VERV) vs. S&P 500 (SPY)

Market Cap

$270.83M

Dividend YieldN/A

Average Volume (3M)1.63M

Price to Earnings (P/E)―

Beta (1Y)3.07

Revenue Growth174.98%

EPS Growth25.06%

CountryUS

Employees274

SectorHealthcare

Sector Strength70

IndustryBiotechnology

Share Statistics

EPS (TTM)-2.35

Shares Outstanding88,795,770

10 Day Avg. Volume2,339,283

30 Day Avg. Volume1,627,463

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)15.24

Price to Cash Flow (P/CF)-3.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$21.43

Price Target Upside557.36% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering8

Verve Therapeutics Business Overview & Revenue Model

Company DescriptionVerve Therapeutics (VERV) is a biotechnology company focused on developing transformative therapies for patients with cardiovascular diseases. The company operates within the life sciences sector, specializing in gene editing technologies. Verve's core products are designed to provide effective, long-term treatment options for cardiovascular conditions by addressing the underlying genetic causes of these diseases.

How the Company Makes MoneyVerve Therapeutics makes money primarily through the development and commercialization of its innovative gene editing therapies. The company's revenue streams include potential milestone payments and royalties from partnerships with larger pharmaceutical companies, licensing agreements for its proprietary technologies, and future sales of its therapeutic products once they receive regulatory approval. Verve may also engage in strategic collaborations to advance its research and development efforts, which can provide additional funding and resources to support its operational and clinical endeavors.

Verve Therapeutics Financial Statement Overview

Summary

Verve Therapeutics displays strong revenue growth potential in the biotechnology sector. However, operating losses, negative cash flows, and reliance on external financing highlight financial instability. The balance sheet remains relatively strong with low leverage, but profitability remains a key challenge.

Income Statement

Negative

Verve Therapeutics shows strong revenue growth, increasing from $1.9M in 2022 to $32.3M in 2024. However, the company continues to operate at a loss with a negative EBIT and net income margins, indicating high operational costs and challenges in achieving profitability.

Balance Sheet

Neutral

The company's debt-to-equity ratio is relatively low at 0.14 in 2024, suggesting manageable leverage. However, the negative net income affects ROE, and equity ratio is moderate at 76.2%, reflecting a solid equity base.

Cash Flow

Negative

Verve Therapeutics has struggled with generating positive operating cash flow. Although free cash flow improved, it's still non-positive, indicating the company is heavily reliant on financing for operations.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
32.33M	11.76M	1.94M	0.00	0.00
	Gross Profit
32.33M	6.30M	-4.77M	-3.38M	-1.33M
	EBIT
-228.66M	-223.12M	-165.69M	-87.07M	-40.63M
	EBITDA
-228.66M	-217.67M	-162.88M	-85.53M	-39.30M
	Net Income Common Stockholders
-198.71M	-200.07M	-157.39M	-118.64M	-45.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
524.28M	623.95M	554.81M	360.44M	72.11M
	Total Assets
647.39M	752.69M	679.22M	384.12M	78.41M
	Total Debt
69.98M	74.91M	81.92M	1.96M	125.16M
	Net Debt
-102.58M	-131.27M	-33.49M	-62.38M	116.17M
	Total Liabilities
153.99M	153.19M	128.29M	26.77M	142.32M
	Stockholders Equity
493.40M	599.50M	550.93M	357.35M	-63.91M
Cash Flow		Free Cash Flow
-161.43M	-158.83M	-135.56M	-82.24M	-38.69M
	Operating Cash Flow
-157.69M	-149.55M	-122.33M	-77.88M	-35.27M
	Investing Cash Flow
74.88M	27.69M	-155.96M	-239.10M	-51.13M
	Financing Cash Flow
49.20M	212.58M	328.96M	377.09M	92.63M

Verve Therapeutics Technical Analysis

Technical Analysis Sentiment

Negative

Last Price3.26

Price Trends

50DMA

6.16

Negative

100DMA

6.11

Negative

200DMA

5.90

Negative

Market Momentum

MACD

-0.55

Positive

RSI

26.42

Positive

STOCH

3.60

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VERV, the sentiment is Negative. The current price of 3.26 is below the 20-day moving average (MA) of 4.64, below the 50-day MA of 6.16, and below the 200-day MA of 5.90, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 26.42 is Positive, neither overbought nor oversold. The STOCH value of 3.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VERV.

Verve Therapeutics Risk Analysis

Verve Therapeutics disclosed 88 risk factors in its most recent earnings report. Verve Therapeutics reported the most risks in the “Tech & Innovation” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Verve Therapeutics Peers Comparison

Overall Rating

UnderperformOutperform

Sector (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.25B	1.14	-46.26%	2.69%	19.24%	1.75%
IVA	43 Neutral	$297.21M	―	344.74%	―	17.91%	-10.55%
OLMA	42 Neutral	$233.02M	―	-39.07%	―	―	0.42%
TSHA	39 Underperform	$239.85M	―	-121.94%	―	-46.07%	71.52%
SANA	37 Underperform	$344.29M	―	-99.17%	―	―	19.94%
VERV	36 Underperform	$270.83M	―	-36.36%	―	174.98%	25.06%
RNAC	36 Underperform	$268.40M	―	-938.38%	―	38.82%	-645.78%

* Healthcare Sector Average

Performance Comparison

VERV

Verve Therapeutics

3.26

-4.34

-57.11%

RNAC

Cartesian Therapeutics

10.67

-8.72

-44.97%

IVA

Inventiva

3.36

-0.19

-5.35%

TSHA

Taysha Gene Therapies

1.24

-1.70

-57.82%

OLMA

Olema Pharmaceuticals

3.77

-7.09

-65.29%

SANA

Sana Biotechnology

1.76

-7.20

-80.36%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.