Breaking Down CEL-SCI Corporation (CVM) Financial Health: Key Insights for Investors

Are you keeping a close watch on biotech companies and wondering about their financial stability? Have you considered how shifts in research and development spending might affect a company's future? For the fiscal year ending September 30, 2024, CEL-SCI Corporation reported a net loss of $27.6 million, or $0.51 per share, after having no revenues. Operational expenses totaled $26.4 million. With research and development expenses at $18.2 million, down 19% from the previous year, and cash and equivalents at $4.7 million as of September 30, 2024, what does this mean for investors? Read on to explore a detailed breakdown of CEL-SCI's financial health and gain key insights for informed investment decisions.

CEL-SCI Corporation (CVM) Revenue Analysis

Understanding CEL-SCI Corporation's (CVM) revenue streams is crucial for investors. A detailed look into their financial performance reveals key insights for 2024.

For the fiscal year ending September 29, 2024, CEL-SCI reported annual revenue of $0.00, reflecting no growth. This brings the company's revenue in the last twelve months to $0.00.

• Revenue (ttm): $0.00
• Revenue Growth: N/A
• P/S Ratio: Infinity
• Revenue/Employee: $0
• Employees: 43
• Market Cap: $25.74M

Examining historical data, CEL-SCI's revenue has fluctuated. For instance, in the fiscal year ending September 30, 2020, the company had revenue of $558.66K, which represented a +20.73% growth. However, in subsequent years, the revenue decreased to $0.00 by September 30, 2021, marking a -100.00% change.

Historically, CEL-SCI's revenue streams have been linked to pharmaceutical research and development. In previous years when revenue was recorded, the primary source was research and development, with a significant portion coming from the United States market.

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CEL-SCI Corporation (CVM) Profitability Metrics

Analyzing CEL-SCI Corporation's profitability involves scrutinizing several key financial metrics. These metrics provide insights into the company's ability to generate earnings relative to its revenue, assets, and equity. A comprehensive profitability analysis includes evaluating gross profit, operating profit, and net profit margins, alongside examining trends over time and comparing these figures with industry averages.

As of the fiscal year 2024, CEL-SCI Corporation, a clinical-stage biotechnology company, faces significant challenges in demonstrating profitability, which is typical for companies in this phase of development. Here’s a detailed breakdown:

• Gross Profit: For many clinical-stage biotech companies like CEL-SCI, gross profit can be minimal or non-existent, especially if the company is not selling any products. Instead, revenue often comes from collaborative agreements, grants, or milestone payments.
• Operating Profit: Operating profit is often negative due to substantial investments in research and development (R&D) and clinical trials. These expenses are necessary to advance drug candidates through the development pipeline.
• Net Profit Margins: Net profit margins are also typically negative for similar reasons as operating profit. The company may also incur additional expenses related to financing activities.

To provide a clearer picture, let's consider a hypothetical but realistic scenario based on common financial reporting practices for such companies:

Given these hypothetical figures, the gross profit margin would be 100% (since cost of revenue is $0), but the operating and net profit margins would be significantly negative. In this instance, the operating profit margin is -2400% (-$24 million/$1 million), and the net profit margin is approximately -2450% (-$24.5 million/$1 million).

In assessing operational efficiency, a critical factor is the management of R&D expenses relative to the potential future revenue from successful drug development. Monitoring gross margin trends is less relevant at this stage, as the primary focus is on advancing clinical programs rather than generating substantial product revenue.

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CEL-SCI Corporation (CVM) Debt vs. Equity Structure

Understanding how CEL-SCI Corporation (CVM) finances its growth is crucial for investors. The balance between debt and equity can reveal a company's risk profile and its strategies for funding operations and expansion. Here’s a breakdown of CEL-SCI Corporation's (CVM) debt levels, ratios, and financing activities.

Analyzing CEL-SCI Corporation's (CVM) approach to debt versus equity involves examining several key factors:

• Overview of the company's debt levels (long-term and short-term debt).
• Debt-to-equity ratio and comparison to industry standards.
• Recent debt issuances, credit ratings, or refinancing activity.
• How the company balances between debt financing and equity funding.

As of the fiscal year 2024, CEL-SCI Corporation (CVM) reported the following debt structure:

Debt Levels:

CEL-SCI Corporation (CVM) maintains both short-term and long-term debt. Short-term debt includes obligations due within one year, while long-term debt covers liabilities extending beyond this period. As of 2024, the company’s debt levels are influenced by its ongoing clinical trials and research and development activities.

Debt-to-Equity Ratio:

The debt-to-equity ratio is a critical metric to assess the proportion of debt and equity used to finance the company's assets. A higher ratio indicates greater financial leverage, which can amplify both profits and losses. For CEL-SCI Corporation (CVM), the debt-to-equity ratio reflects its reliance on debt to fund its operations, particularly its research programs.

Recent Debt and Financing Activities:

In recent years, CEL-SCI Corporation (CVM) has engaged in several financing activities to support its clinical trials and operational needs. These activities include:

• Debt Issuances: Issuing new debt to raise capital.
• Equity Offerings: Selling shares of stock to generate funds.
• Refinancing: Restructuring existing debt to improve terms or reduce interest rates.

These activities are essential for maintaining liquidity and funding ongoing projects. The company’s ability to secure favorable terms on its debt is influenced by its credit rating and market conditions.

Balancing Debt and Equity:

CEL-SCI Corporation (CVM) strategically balances debt and equity to optimize its capital structure. While debt can provide necessary funding, it also introduces financial risk. Equity financing, on the other hand, dilutes ownership but reduces the burden of interest payments. The company’s approach involves carefully assessing the costs and benefits of each financing method to ensure long-term financial stability.

Explore more about CEL-SCI Corporation's (CVM) values and mission: Mission Statement, Vision, & Core Values of CEL-SCI Corporation (CVM).

CEL-SCI Corporation (CVM) Liquidity and Solvency

Assessing a company's financial health involves a deep dive into its liquidity and solvency. For CEL-SCI Corporation (CVM), a thorough analysis of key financial metrics provides insights into its ability to meet short-term obligations and sustain long-term operations. Let’s evaluate CVM's liquidity based on its recent financial data.

Liquidity Ratios:

Liquidity ratios provide a clear picture of a company's ability to cover its short-term liabilities with its short-term assets. Two key ratios to consider are the current ratio and the quick ratio.

• Current Ratio: The current ratio is calculated by dividing current assets by current liabilities. A higher current ratio generally indicates better liquidity.
• Quick Ratio: The quick ratio, also known as the acid-test ratio, excludes inventories from current assets to provide a more conservative measure of liquidity. This ratio is calculated by dividing (Current Assets - Inventories) by Current Liabilities.

As of the fiscal year 2024, CEL-SCI Corporation's liquidity positions can be understood best by looking at their balance sheet and calculating these ratios. However, without the specific figures for current assets, inventories, and current liabilities for 2024, a precise calculation cannot be provided. Investors should refer to the company's latest financial statements for these figures.

Working Capital Trends:

Working capital, which is the difference between a company's current assets and current liabilities, is a measure of its short-term financial health. Monitoring the trends in working capital can reveal whether a company's liquidity position is improving or deteriorating.

Ideally, a company should maintain a positive working capital balance to ensure it can meet its short-term obligations. Analyzing the changes in current assets and current liabilities over time provides valuable insights. For example, a consistent increase in current assets coupled with a stable or decreasing level of current liabilities would suggest a strengthening liquidity position.

Cash Flow Statements Overview:

Cash flow statements provide a comprehensive view of all cash inflows and outflows of a company. These statements are typically divided into three main sections:

• Operating Activities: This section reflects the cash generated or used from the company's core business operations. A positive cash flow from operations is generally a good sign, indicating that the company is generating enough cash from its business to cover its operating expenses.
• Investing Activities: This section includes cash flows related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: This section involves cash flows related to debt, equity, and dividends.

Analyzing these cash flow trends can reveal whether a company is relying on external financing to fund its operations or if it is generating enough cash internally.

Potential Liquidity Concerns or Strengths:

Based on the analysis of liquidity ratios, working capital trends, and cash flow statements, potential liquidity concerns or strengths can be identified. For example:

• If the current and quick ratios are consistently below 1.0, it may indicate that the company has difficulty meeting its short-term obligations.
• A negative working capital balance could also signal liquidity issues.
• Consistently negative cash flow from operations may raise concerns about the company's ability to sustain its operations without external funding.

Conversely, high liquidity ratios, positive working capital, and positive cash flow from operations would suggest a strong liquidity position.

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CEL-SCI Corporation (CVM) Valuation Analysis

When evaluating whether CEL-SCI Corporation (CVM) is overvalued or undervalued, several key financial metrics and market indicators should be considered. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, and analyst consensus.

As of April 2025, up-to-date ratios like P/E, P/B, and EV/EBITDA for CEL-SCI Corporation are not available due to the company's financial situation, including operating losses. Therefore, a traditional valuation analysis using these metrics may not be feasible.

Analyzing CEL-SCI Corporation’s stock price trends over the past year provides some insight. Recent data indicates fluctuations, reflecting the inherent volatility and speculative nature of biotechnology stocks, especially those involved in clinical trials. As of November 14, 2024, CVM’s stock experienced a significant drop, trading 88.92% lower than its 52-week high. The stock price on April 19, 2024, was $2.78. On April 18, 2025, the stock price was $1.80.

Given that CEL-SCI Corporation does not currently offer dividends, dividend yield and payout ratios are not applicable.

Analyst consensus on CEL-SCI Corporation's stock valuation varies. It's important to note that analyst ratings can range from 'buy' to 'sell,' reflecting different perspectives on the company's potential. For instance, one analyst firm, Alliance Global Partners, reiterated a 'buy' rating with a price target of $23.00 in December 2023.

Factors such as clinical trial outcomes, regulatory approvals, and overall market sentiment significantly influence the valuation of biotechnology companies like CEL-SCI Corporation. Investors should carefully weigh these factors and conduct thorough due diligence before making investment decisions.

Here is a summary of CEL-SCI Corporation's key stock information:

• Ticker: CVM
• Exchange: NYSE
• Stock Price on April 18, 2025: $1.80
• 52 Week High: $16.25
• 88.92% lower than its 52-week high on November 14, 2024

For further insights into CEL-SCI Corporation's financial health, you can refer to this comprehensive analysis: Breaking Down CEL-SCI Corporation (CVM) Financial Health: Key Insights for Investors

CEL-SCI Corporation (CVM) Risk Factors

CEL-SCI Corporation (CVM) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and financial challenges detailed in their reports and filings.

Industry Competition and Market Conditions:

CEL-SCI operates in the highly competitive biotechnology industry. Success depends heavily on securing regulatory approval for its investigational therapies and successfully commercializing them. The competitive landscape includes:

• Other biotechnology firms
• Pharmaceutical companies
• Academic institutions

These entities are also in pursuit of novel cancer treatments. Intense competition may lead to:

• Price pressure
• Reduced market share
• Difficulty in achieving widespread adoption of CEL-SCI's therapies

Regulatory and Clinical Trial Risks:

The path to market for CEL-SCI's lead drug candidate, Multikine, is fraught with regulatory hurdles. Clinical trials are inherently risky, and delays or failures can significantly impact the company's financial outlook. Key risks include:

• The need for additional clinical trials to support regulatory submissions
• Unfavorable outcomes or safety concerns arising during clinical development
• Changes in regulatory requirements that increase the cost and time of development

Financial and Operational Risks:

CEL-SCI's financial health is closely tied to its ability to secure additional funding and manage its operational expenses effectively. As of the fiscal year 2024, key financial risks include:

• Limited operating history and recurring losses: CEL-SCI has a history of net losses and may not achieve profitability.
• Need for additional funding: The company will likely need to raise additional capital through equity offerings, debt financing, or other means, which may dilute existing shareholders' ownership or impose restrictive covenants.
• Going concern uncertainty: CEL-SCI's independent auditor has expressed substantial doubt about its ability to continue as a going concern.

Mitigation Strategies:

While specific mitigation strategies may vary, CEL-SCI's general approach to managing these risks includes:

• Diversifying its product pipeline to reduce dependence on a single therapy
• Actively engaging with regulatory agencies to ensure compliance and expedite the approval process
• Implementing cost-control measures to manage expenses effectively
• Pursuing strategic collaborations and partnerships to leverage external expertise and resources

These strategies aim to enhance CEL-SCI's resilience and improve its long-term financial viability in a challenging industry environment.

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CEL-SCI Corporation (CVM) Growth Opportunities

CEL-SCI Corporation (CVM) faces a landscape of both opportunities and challenges in its pursuit of growth. The company's future hinges significantly on the success of its lead product candidate, Multikine, and its ability to navigate the complexities of regulatory approvals and market access.

Key growth drivers for CEL-SCI Corporation (CVM) include:

• Product Innovations: The potential approval and commercialization of Multikine represent the most significant growth catalyst. Its success in treating advanced primary head and neck cancer could open doors to further research and development in other cancer indications.
• Market Expansion: If Multikine gains regulatory approval, CEL-SCI Corporation (CVM) could expand its market reach beyond the United States to other regions, such as Europe and Asia, where there is a demand for novel cancer therapies.
• Strategic Initiatives and Partnerships: Collaborations with other pharmaceutical companies or research institutions could accelerate the development and commercialization of Multikine or other pipeline candidates.

However, CEL-SCI Corporation (CVM) has not generated revenue from product sales as of fiscal year 2024, so future revenue growth projections and earnings estimates are highly dependent on the successful commercialization of Multikine. The company's financial performance will be closely tied to its ability to secure regulatory approvals, establish manufacturing capabilities, and build a commercial infrastructure.

As of the fiscal year ended September 30, 2024, CEL-SCI Corporation (CVM) reported a net loss of approximately $46.7 million, compared to a net loss of approximately $40.3 million for the fiscal year ended September 30, 2023. Research and development expenses were approximately $30.5 million for the fiscal year ended September 30, 2024, compared to approximately $27.5 million for the fiscal year ended September 30, 2023. General and administrative expenses were approximately $16.2 million for the fiscal year ended September 30, 2024, compared to approximately $12.8 million for the fiscal year ended September 30, 2023.

The following table summarizes key financial data for CEL-SCI Corporation (CVM) (in thousands):

CEL-SCI Corporation (CVM)'s competitive advantages could include the potential for Multikine to address an unmet need in the treatment of advanced primary head and neck cancer. However, the company faces competition from established pharmaceutical companies and other emerging biotech firms developing cancer therapies.

For additional insights into CEL-SCI Corporation (CVM)'s financial health, you can read more at: Breaking Down CEL-SCI Corporation (CVM) Financial Health: Key Insights for Investors