Edgewise Therapeutics, Inc.
$36.21
-1.7%Edgewise Therapeutics, Inc., a biopharmaceutical company, develops small molecule therapies for musculoskeletal diseases. The Company's lead product candidate, EDG-5506, is an orally administered small molecule designed to address the root cause of dystrophinopathies including Duchenne muscular dystrophy and Becker muscular dystrophy which has completed Phase 1 clinical trial. It develops a pipeline of precision medicine product candidates that target key muscle proteins and modulators to address genetically defined muscle disorders. Edgewise Therapeutics, Inc. was incorporated in 2017 and is headquartered in Boulder, Colorado.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -22.2).
Valuation inputs: P/E -22.2, earnings yield N/A, momentum -1.7%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -32.1%, ROIC -36.4%).
Profitability stack: net margin 0.0%, ROE -32.1%, ROIC -36.4%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +5.5%, momentum -1.7%, net margin 0.0%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Edgewise Therapeutics, Inc. Market vs Earnings Trajectory
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Edgewise Therapeutics, Inc. Fair Value Envelope
No Revenue Data
EWTX has not reported any revenue values in the available annual periods.
Edgewise Therapeutics, Inc. Profit Bridge
Profitability Analysis
No Gross Profit Margin Data
EWTX has not reported any gross profit margin values in the available annual periods.
No Operating Profit Margin Data
EWTX has not reported any operating profit margin values in the available annual periods.
No Net Profit Margin Data
EWTX has not reported any net profit margin values in the available annual periods.
Edgewise Therapeutics, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Strong cash conversion. Most reported earnings translate into actual cash flow, suggesting solid fundamentals.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.
Edgewise Therapeutics, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Edgewise Therapeutics, Inc. Street Expectations Map
Wall Street analysts project that EWTX stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 47.57, with estimates ranging from a low of 25.00 to a high of 66.00.
The consensus 1-year price target stands at 47.57, with estimates ranging from a low of 25.00 to a high of 66.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High uncertainty. Very wide target spread indicates significant disagreement among analysts—major valuation uncertainty or transformation underway.
Risk-Reward Profile
Favorable risk-reward. Potential upside significantly exceeds downside risk, offering asymmetric return profile attractive for risk-tolerant investors.
Analyst Conviction
High uncertainty: Wide dispersion indicates analysts struggle to agree on valuation—proceed with caution and independent analysis.
Market Sentiment Insight
High risk, high reward: Substantial upside potential exists, but wide analyst disagreement signals execution risk or unclear catalysts. Thorough due diligence essential before committing capital.
Edgewise Therapeutics, Inc. Insider Positioning
During the last 12 months, insiders have purchased $199K and sold $6.54M worth of EWTX shares, resulting in $6.34M of net selling activity.
3 Months
0
0.00
114.9K
4.00M
-4.0M
-$4.00M
3-6 Months
0
0.00
13.7K
403.03K
-403K
-$403K
6-9 Months
10.7K
199.40K
100.0K
2.11M
-1.9M
-$1.91M
9-12 Months
0
0.00
100.0K
18.00K
-18K
-$18K
Top Buyers
Fox Jonathan C
Director
$199K
Top Sellers
Donovan Joanne M.
Officer: Cmo
$4.00M
Russell Alan J
Director, Officer: Chief Scientific Officer
$2.13M
Edris Badreddin
Director
$403K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $6.34M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
3 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
EWTX has not reported any dividend yield values in the available annual periods.
ewtx Dividend History
Learning Layer
Related Guides
Build conviction on EWTX by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.