Breaking Down Evelo Biosciences, Inc. (EVLO) Financial Health: Key Insights for Investors

Breaking Down Evelo Biosciences, Inc. (EVLO) Financial Health: Key Insights for Investors

US | Healthcare | Biotechnology | NASDAQ

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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

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