ENANTA PHARMACEUTICALS INC (ENTA) Stock Analysis
ENANTA PHARMACEUTICALS INC
▾ What's in the 39/100 risk score? (higher = riskier)
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend). It excludes the Altman Z score, whose retained-earnings input this filer does not report separately. See the Financial Health section for the full balance-sheet read.
How to read ENTA (pre-profit growth)
This company is reinvesting instead of generating profit, so a standard DCF cannot price it. The useful question is whether the growth the market is paying for is achievable — and whether the company can fund itself until then.
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Reverse-DCF — the growth the price demands ↓
It shows exactly how fast the business must grow to justify today's price. Compare that to what comparable companies have actually achieved.
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Cash runway ↓
Can it reach profitability before it has to raise money and dilute shareholders?
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Interactive calculator ↓
Set your own growth + margin assumptions and see what the business would be worth if you are right.
Standard DCF doesn't fit ENTA well — but that's expected for this kind of business. The Rule of 40 (Pre-Profit Growth) Lens below uses the metrics actually used by analysts who value pharmaceuticals. Reverse DCF + Football Field also work as cross-checks.
Riskier than 82% of the stocks we cover
A model trained on every US filing since 2012 — including the 823 companies that went bankrupt or stopped trading under a dollar — ranks each covered stock by its chance of failing in the next year. This is a position among peers, not a prediction about this company alone. Below is what happened to stocks that sat in the same position in past years.
▾ Every band, and what happened to the stocks in it
| Rank band | went bankrupt within 12 months | fell 80% or more (or failed) within 12 months | fell 50% or more (or failed) within 6 months |
|---|---|---|---|
| All covered stocks (average) | 0.59% | 4.21% | 8.51% |
| Healthcare (sector average) | 0.94% | 9.47% | 17.69% |
| riskiest 1% | 16.4% of 1,749 | 33.0% of 1,998 | 45.5% of 2,239 |
| next 2% (97-99) | 5.9% of 3,360 | 24.9% of 3,985 | 38.2% of 4,461 |
| next 2% (95-97) | 3.4% of 3,409 | 21.2% of 3,984 | 33.8% of 4,462 |
| next 5% (90-95) | 1.6% of 8,443 | 15.1% of 9,965 | 27.3% of 11,155 |
| next 15% (75-90) ← this stock | 0.8% of 25,328 | 8.5% of 29,884 | 17.8% of 33,459 |
| next 25% (50-75) | 0.2% of 36,310 | 2.7% of 49,810 | 6.2% of 55,771 |
| safest half | <0.1% of 92,256 | 0.5% of 99,617 | 2.1% of 111,538 |
Counts are stock-quarters 2012–2025, scored each year by a model that had not seen that year. The rank is recomputed from each company's latest filing (this one: 2026-05-14); table generated 2026-09-17. Calibrated one-year odds for this stock alone: bankruptcy 0.4%, 80%+ fall 7.1%, 50%+ fall in six months 12.1% — treat these as rougher than the band counts; the model overstates the middle of the range. For comparison, the classic Altman Z-score here is -0.45; on the same data the Altman ranking caught 26% of bankruptcies in its riskiest 5%, this one 59%.
What this is not. It is not a trade. We tested shorting these names and buying puts on them at real option prices (2010–2025): every version lost money, because the market already prices the distress and the survivors squeeze. A high rank is a reason to read the filings and to size a position for the chance of a total loss — not a reason to bet against the company. A low rank says the balance sheet and the market are calm; it says nothing about whether the price is sensible.
Quality & solvency checks
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
The Z-score needs working capital, retained earnings, EBIT, sales and total assets from the latest balance sheet, and at least one of those isn't reported in machine-readable form here — common for foreign private issuers. We leave it blank rather than compute a distress verdict from an estimated input. It doesn't affect the reported figures in the financial tables below.
▾ The checks — what passed, what didn't (and what we couldn't measure)
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✗ Positive net incomeNet income -$81.9M in FY2025.Why this matters: Does the company actually earn a profit? Sustained losses eventually force it to raise money — diluting you — or take on debt.
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✗ Positive operating cash flowOperating cash flow -$19.3M (was -$78.8M the prior year).Why this matters: Profit can be an accounting figure; cash from running the business is harder to fake. Negative operating cash flow means the core business consumes cash and must be funded externally.
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✓ Cash flow backs up reported profitOperating cash flow -$19.3M vs net income -$81.9M.
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✓ Return on assets improvingReturn on assets -29.2% vs -30.8% a year ago.
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✓ Debt load (vs assets)The filing reports no interest-bearing debt in either year (total assets $280.7M).
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✗ Short-term liquidity (current ratio)Current ratio 4.21x vs 5.21x a year ago.Why this matters: The current ratio compares assets it can turn to cash within a year against bills due within a year. Below 1.0 means it may struggle to cover near-term obligations.
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✗ Share count (dilution)Share count rose 0.8% (0.0M → 0.0M year-over-year).Why this matters: Issuing lots of new shares splits the pie into more pieces, shrinking your slice. Stable or falling share count protects existing owners.
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· Pricing power (gross margin) (n/a — data not reported; not scored)
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✓ Sales per asset (asset turnover)Asset turnover 0.23x vs 0.18x a year ago.
Missing data is never counted as a pass or a fail — it's shown as n/a and excluded from the denominator. Each check compares the company against its own prior year.
Plain English: the company holds about $32M in cash and is burning roughly $19M/year in operations. At that pace, the cash lasts 20 mo before it must raise capital (diluting shareholders), take on debt, or cut spending.
Assumes constant burn and ignores financing/asset sales. For pre-profit biotech and growth companies, this matters more than a DCF — a great drug pipeline is worthless if they run out of money before approval.
A standard discounted cash flowDCF — Discounted Cash Flow — sums up all future cash a business will produce, adjusted for the fact that future dollars are worth less than dollars today.
Why it matters: It is the most fundamentally honest valuation method when applicable — but only works for companies with predictable, positive cash flow.
Reference: Best for: mature, profitable businesses. Fails for: pre-profit growth, banks, REITs.
Full explanation → (DCF) valuation is not meaningful for Enanta Pharmaceuticals due to its consistently negative operating cash flow and net income, indicating a cash-burning growth stage. Investors are likely betting on the success of its drug pipeline and future revenue growth from new product approvals, rather than current profitability. The primary quantifiable risk is the declining revenue, which has fallen by 9.4% annually over the last four years, posing a challenge to future cash generation.
As of 3 months ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
- Clinical trial results for lead drug candidates (e.g., RSV, HBV programs)
- New collaboration or licensing agreements announced
- Updates on regulatory submissions or approvals
The trend, in plain numbers (FY2024 → FY2025, latest reported)
Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.
- Free cash flow is negative at -$50.7M — the cash burn narrowed vs last year.
- Still unprofitable at -$81.9M — loss narrowing.
- Revenue fell -3% to $65.3M.
Management & Leadership
Jay Luly has served as President and CEO of Enanta Pharmaceuticals since 2003, also holding the position of Director. He has been instrumental in guiding the company's research and development efforts in antiviral therapies. The company focuses on discovering and developing small molecule drugs for viral infections.
What They Make
Enanta Pharmaceuticals discovers and develops small molecule drugs for viral infections, primarily targeting respiratory syncytial virus (RSV) and hepatitis B virus (HBV). Their products are sold to pharmaceutical partners and, indirectly, to patients through those partnerships.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
What we use instead: earnings (P/E, EV/EBIT), book value (P/B) — computed from the figures this company does report, shown in the sections below. Those numbers are unaffected by the missing cash-flow data.
The market is pricing Enanta Pharmaceuticals based on expectations for its drug pipeline and potential future commercialization success, rather than its current financial performance. With negative net income and operating cash flow, and declining revenue, the market may be assigning value to the potential for a breakthrough drug in its pipeline, which is not in the model, or the market may be assigning value to future licensing deals and milestone payments, which is not in the model. The current ratio of 4.21 suggests adequate liquidity to fund ongoing operations and R&D for a period.
Business Model & Valuation
How They Make Money
The company funds its operations and R&D primarily through existing cash reserves and potential future equity raises, as it has negative operating cash flow and does not pay dividends or engage in buybacks.
Growth / Revenue DCF
Negative free cash flow: revenue/margin growth model used - standard FCF DCF is unreliable for companies still scaling.
Show advanced inputs
| Revenue Growth | 2.0% |
What this model does NOT do: this is a consolidated owner-earnings FCF model. Standalone segment assumptions: none. It does not project its revenue segments independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
Moat Signals
Revenue has been declining by 9.4% per year over the last four years, from $97M to $65M.
Geography & Markets
Enanta Pharmaceuticals is headquartered in the United States and primarily conducts its research and development activities there. Specific geographic revenue mix is not available from current data sources.
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)40.5NeutralMomentum is balanced — neither overbought nor oversold.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BearishLine below signalThe fast trend is below the slow trend — short-term momentum is currently downward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (5 notes — click to expand/collapse)
Guardrail Notes (5)
- FCF negative: revenue/margin growth model projects future cash flows from revenue trajectory.
- Terminal growth (3%) capped to 1.6% (80% of near-term growth 2%).
- Illiquidity discount 7% applied (small/micro-cap — harder to exit, demand a margin).
- Extreme valuation (P/IV withheld — see the note above); output dominated by data/units issue (often a multi-class share-count mismatch). Suppressed.
- DATA UNAVAILABLE: per-share values suppressed due to missing/unreliable shares data.
FINANCIALS
Financial Statements (5-year tables — click to expand)
From ENANTA PHARMACEUTICALS INC's SEC filings (EDGAR).
Income (5yr)
| Year | Revenue | Net Income | EPS |
|---|---|---|---|
| 2025 | 65.3M | -81.9M | $-3.84 |
| 2024 | 67.6M | -116.0M | $-5.48 |
| 2023 | 79.2M | -133.8M | $-6.38 |
| 2022 | 86.2M | -121.8M | $-5.91 |
| 2021 | 97.1M | -79.0M | $-3.92 |
Cash Flow (5yr)
| Year | Operating CF | CapEx | − SBC & adj. | Free Cash Flow |
|---|---|---|---|---|
| 2025 | -19.3M | 12.9M | 18.6M | -50.7M |
| 2024 | -78.8M | 17.9M | 26.8M | -123.5M |
| 2023 | -103.2M | 9.1M | 28.2M | -140.4M |
| 2022 | -84.8M | 2.1M | 27.0M | -113.9M |
| 2021 | -70.0M | 750,000 | 21.0M | -91.7M |
How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). Latest year: -19.3M − 12.9M − 18.6M (SBC & adj.) = -50.7M. This is the same owner-earnings FCF definition the valuation model uses, though the DCF's starting value is a projected from revenue × terminal margin, not this single year.
Balance Sheet
| Total Assets | 280.7M |
| Total Liabilities | 216.0M |
| Equity | 64.7M |
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