Aadi Bioscience Stock Intrinsic Value – AADI BIOSCIENCE Reports Q2 Earnings Results for Fiscal Year 2023
August 17, 2023
🌥️Earnings Overview
AADI BIOSCIENCE ($NASDAQ:AADI) reported its second quarter fiscal year 2023 earnings results on August 9, 2023, with total revenue of USD 6.2 million – an increase of 80.2% compared to the same period in the previous year. Net income for the quarter was USD -18.0 million, which is a slight decrease from last year’s figure of -18.3 million.
Share Price
The stock opened on the day at $5.8 per share and decreased to $5.4 by the end of trading, representing a 6.8 percent drop from the prior closing price of $5.8. The Q2 earnings report showed a slight decrease in profits as compared to the same period last year. Revenues were also down slightly compared to last year, but profits were still healthy despite the decline. Despite the earnings report, AADI BIOSCIENCE‘s stock suffered a significant downturn in trading. This was likely due to lower than expected guidance for future growth and uncertainty about the company’s long-term prospects.
Investors seemed to be responding to the negative news, and the stock dropped significantly on Wednesday. Despite this, AADI BIOSCIENCE still remains a strong player in the biotechnology sector. With their well-established products and continued innovation, they remain a viable investment option for those looking to diversify their portfolios. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Aadi Bioscience. More…
| Total Revenues | Net Income | Net Margin |
| 21.54 | -61.58 | -285.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Aadi Bioscience. More…
| Operations | Investing | Financing |
| -57.57 | -65.73 | 72.73 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Aadi Bioscience. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 151.23 | 19.81 | 5.38 |
Key Ratios Snapshot
Some of the financial key ratios for Aadi Bioscience are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | -284.8% |
| FCF Margin | ROE | ROA |
| -277.7% | -27.6% | -25.4% |
Analysis – Aadi Bioscience Stock Intrinsic Value
At GoodWhale, we are committed to helping our clients make the best decisions when it comes to their investments. That’s why we carefully analyze the wellbeing of AADI BIOSCIENCE, and use our proprietary Valuation Line to calculate the fair value of their share. According to our calculations, the fair value of AADI BIOSCIENCE share is around $42.7. However, currently their stock is trading at $5.4, which is undervalued by 87.4%. This presents a great investment opportunity for those looking to get into AADI BIOSCIENCE stock. More…
Peers
Its competitors include Avalo Therapeutics Inc, Kronos Bio Inc, and Relay Therapeutics Inc.
– Avalo Therapeutics Inc ($NASDAQ:AVTX)
Avalo Therapeutics Inc is a clinical stage biopharmaceutical company with a focus on developing cancer treatments. The company has a market cap of $57.43 million and a return on equity of -21403.38%. The company’s primary focus is on developing treatments for solid tumors and hematologic malignancies.
– Kronos Bio Inc ($NASDAQ:KRON)
Kronos Bio Inc is a clinical stage biopharmaceutical company focused on discovering and developing novel cancer therapies. The company’s lead product candidate is entospletinib, a selective inhibitor of the tyrosine kinase domain of the epidermal growth factor receptor (EGFR). Kronos Bio Inc has a market cap of 165.77M as of 2022, a Return on Equity of -33.99%. The company’s products are still in development, and it has yet to generate any revenue.
– Relay Therapeutics Inc ($NASDAQ:RLAY)
Relay Therapeutics is a biopharmaceutical company that focuses on the development of cancer treatments. The company has a market cap of 2.7 billion as of 2022 and a return on equity of -20.87%. The company’s products are designed to target key proteins in cancer cells and to promote cell death. Relay Therapeutics is headquartered in Boston, MA.
Summary
Investors in AADI BIOSCIENCE were disappointed with the company’s second quarter earnings results, which revealed total revenue of USD 6.2 million, up 80.2% year-over-year, but a net income of -18.0 million, down from -18.3 million the previous year. Consequently, the stock price decreased on the day of the announcement. Despite the significant revenue growth, investors should note that the company is still unprofitable and may need to demonstrate greater financial strength before being considered a good investment.
