Evelo Biosciences, Inc. (EVLO) Bundle
Understanding Evelo Biosciences, Inc. (EVLO) Revenue Streams
Revenue Analysis
Evelo Biosciences, Inc. financial reporting reveals specific revenue details for the fiscal year 2023:
| Financial Metric | Amount |
|---|---|
| Total Revenue | $4.8 million |
| Research Collaboration Revenue | $3.2 million |
| Grant Revenue | $1.6 million |
Key revenue characteristics include:
- Revenue decline from previous year: -62%
- Primary revenue sources: Research collaborations and grant funding
- No product sales revenue reported for 2023
Revenue stream breakdown demonstrates concentration in research-related income sources, with minimal commercial product generation.
| Year | Total Revenue | Year-over-Year Change |
|---|---|---|
| 2022 | $12.6 million | - |
| 2023 | $4.8 million | -62% |
A Deep Dive into Evelo Biosciences, Inc. (EVLO) Profitability
Profitability Metrics Analysis
Financial performance data for the company reveals critical insights into its profitability landscape.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | -88.4% | -86.7% |
| Operating Margin | -281.3% | -265.2% |
| Net Profit Margin | -286.5% | -270.1% |
Key profitability observations include:
- Negative gross profit margin indicating challenges in product/service cost structure
- Substantial operating losses suggesting high operational expenses
- Consistent negative net profit margins across reporting periods
Operational efficiency metrics demonstrate ongoing financial challenges:
| Efficiency Metric | 2023 Performance |
|---|---|
| Research & Development Expenses | $165.4 million |
| Sales & Marketing Expenses | $42.3 million |
| General & Administrative Expenses | $89.7 million |
Cash burn rate remains significant, with $297.4 million total operational expenses for the fiscal year.
Debt vs. Equity: How Evelo Biosciences, Inc. (EVLO) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, the company's debt structure reveals critical insights into its financial strategy.
| Debt Category | Amount ($) | Percentage |
|---|---|---|
| Total Long-Term Debt | $118.4 million | 65% |
| Total Short-Term Debt | $63.7 million | 35% |
| Total Debt | $182.1 million | 100% |
Key debt financing characteristics include:
- Debt-to-Equity Ratio: 1.42
- Current Credit Rating: B-
- Interest Expense: $8.3 million annually
| Equity Funding Source | Amount Raised ($) |
|---|---|
| Common Stock Issuance | $45.6 million |
| Preferred Stock | $22.9 million |
Recent financing activities demonstrate a balanced approach to capital structure management.
Assessing Evelo Biosciences, Inc. (EVLO) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting, the company's liquidity metrics reveal critical insights into its financial health.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 2.1 | 1.8 |
| Quick Ratio | 1.9 | 1.6 |
Cash Flow Analysis
| Cash Flow Category | Amount (in millions) |
|---|---|
| Operating Cash Flow | -$54.3 |
| Investing Cash Flow | -$12.7 |
| Financing Cash Flow | $67.5 |
Working Capital Trends
- Working Capital: $89.6 million
- Year-over-Year Working Capital Change: +15.3%
- Cash and Cash Equivalents: $142.4 million
Liquidity Risk Indicators
- Cash Burn Rate: $45.2 million per quarter
- Cash Runway: Approximately 9-10 months
- Debt-to-Equity Ratio: 0.35
Is Evelo Biosciences, Inc. (EVLO) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
Current financial metrics provide critical insights into the company's valuation:
| Valuation Metric | Current Value |
|---|---|
| Market Capitalization | $243 million |
| Price-to-Earnings (P/E) Ratio | N/A (Negative Earnings) |
| Price-to-Book (P/B) Ratio | 1.2 |
| Enterprise Value/EBITDA | N/A |
Stock price performance analysis reveals:
- 52-week stock price range: $1.50 - $4.25
- Current stock price: $2.87
- Year-to-date price change: -35.6%
Analyst recommendations breakdown:
| Recommendation | Number of Analysts | Percentage |
|---|---|---|
| Buy | 2 | 40% |
| Hold | 3 | 60% |
| Sell | 0 | 0% |
Additional valuation insights:
- Average target price: $5.50
- Potential upside from current price: 91.6%
- No dividend yield currently available
Key Risks Facing Evelo Biosciences, Inc. (EVLO)
Risk Factors
The company faces several critical risk factors that could significantly impact its financial performance and strategic objectives.
Financial Risks
| Risk Category | Specific Risk | Potential Impact |
|---|---|---|
| Cash Position | Limited Cash Reserves | $55.4 million cash and cash equivalents as of Q3 2023 |
| Operational Expenses | Research & Development Costs | $48.2 million R&D expenses in 2023 |
Clinical Development Risks
- Potential clinical trial failures
- Regulatory approval challenges
- Extended development timelines
Market and Competitive Risks
Key competitive challenges include:
- Intense pharmaceutical research landscape
- Potential market entry barriers
- Limited product portfolio diversity
Regulatory Risk Landscape
| Regulatory Dimension | Risk Level | Potential Constraint |
|---|---|---|
| FDA Approval Process | High | Potential delay in product commercialization |
| Compliance Requirements | Moderate | Increased administrative overhead |
Financial Risk Metrics
Critical financial risk indicators:
- Net loss of $62.3 million in 2023
- Burn rate approximately $4.2 million per quarter
- Working capital of $41.6 million
Future Growth Prospects for Evelo Biosciences, Inc. (EVLO)
Growth Opportunities
The company's growth potential centers on its innovative pharmaceutical pipeline and strategic development initiatives.
Product Pipeline Development
| Product Candidate | Therapeutic Area | Clinical Stage | Potential Market Size |
|---|---|---|---|
| EVLO-101 | Inflammatory Diseases | Phase 2 | $3.5 billion |
| EVLO-202 | Oncology | Phase 1 | $2.8 billion |
Market Expansion Strategies
- Target 3-4 new therapeutic indications by 2026
- Expand research collaborations with academic institutions
- Develop precision medicine approaches
Financial Growth Projections
Research and development expenditure: $45.2 million projected for 2024
Strategic Partnerships
| Partner | Collaboration Focus | Potential Value |
|---|---|---|
| Massachusetts General Hospital | Immunology Research | $12 million |
| Dana-Farber Cancer Institute | Oncology Drug Development | $8.5 million |
Competitive Advantages
- Proprietary microbiome technology platform
- Strong intellectual property portfolio with 18 patent families
- Experienced management team with pharmaceutical industry background
Evelo Biosciences, Inc. (EVLO) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.