Enanta Pharmaceuticals, Inc. (ENTA) AI Stock Analysis
ENTA AI stock analysis summary
AI ResearchEnanta Pharmaceuticals, Inc. (NASDAQ: ENTA) is a biotechnology company developing small molecule drugs for viral infections and liver diseases. The company generated $65.3M in revenue over the trailing twelve months with a net margin of -96.9%. While its annual revenue has contracted at an 11.8% CAGR over five years, its balance sheet holds $133.8M in net cash as of June 30, 2026.
- Market cap
- $323.3M
- Revenue (TTM)
- $65.3M
- P/E
- — fwd 44.1x
- 1Y return
- -2.5% S&P 500 16.8%
- Avg. target
- $21.83 96.7% vs last close
Bull case
- Enanta maintains a liquid balance sheet with $189.5M in cash and short-term investments, supporting a net cash position of $133.8M as of June 30, 2026.
- The consensus analyst mean price target of $21.83 represents 96.7% upside relative to the last closing price of $11.10.
- Free cash flow burn improved substantially from -$112.2M in FY2023 to -$32.2M in FY2025 as research and development expenses declined to $106.7M.
Bear case
- Revenue has contracted over multiple years, falling from $97.1M in FY2021 to $65.3M in FY2025 and dropping 21.6% year-over-year in the latest quarter.
- The company remains unprofitable, recording an FY2025 net income of -$81.9M and trailing twelve month profit margin of -96.9%.
- Shareholder dilution has been substantial, with common share count rising 42.7% over the past 5 years.
What Enanta Pharmaceuticals does
Enanta Pharmaceuticals, Inc., founded in 1995 and based in Watertown, Massachusetts, discovers and develops small molecule drugs targeting viral infections and liver diseases. Its research pipeline addresses respiratory syncytial virus (RSV), SARS-CoV-2, human metapneumovirus, and hepatitis B virus (HBV). Through a strategic partnership with Abbott Laboratories, Enanta collaborates on the development and commercialization of HCV NS3 and NS3/4A protease inhibitors. This partnership produced therapies including paritaprevir and glecaprevir for chronic hepatitis C virus (HCV) treatment. The company employs 120 people.
Growth and profitability
Enanta's revenue decreased from $97.1M in FY2021 to $65.3M in FY2025, representing a 5-year revenue CAGR of -11.8%. Operating margin was -130.7% in FY2025, improving from -179.9% in FY2024, while net loss narrowed to -$81.9M compared to -$116.0M in FY2024. Research and development expenses were $106.7M in FY2025, down from $174.1M in FY2021. For the trailing twelve months, revenue stands at $65.3M with an operating margin of -120.0% and an EPS of -$2.42. In the latest quarter ended June 30, 2026, quarterly revenue fell 21.6% year-over-year, and quarterly earnings declined 66.2%.
Balance sheet and cash flow
As of June 30, 2026, Enanta held $189.5M in cash and short-term investments against $55.7M in total debt, resulting in a net cash position of $133.8M. Total assets stood at $296.9M and shareholders' equity was $101.1M. The company maintains a current ratio of 3.76 and a debt-to-equity ratio of 0.55. In FY2025, operating cash flow was -$19.3M, free cash flow was -$32.2M, and capital expenditures were $12.9M. The company's share count increased 42.7% over the past 5 years.
Valuation and performance
Enanta carries a market capitalization of $323.3M and an enterprise value of $214.2M. The stock trades at a forward P/E of 44.1x, above the 17.3x median of its US-listed Healthcare peers. Its price-to-sales ratio is 5.0x, compared to the peer median of 4.1x, and its EV/EBITDA stands at 41.1x versus the peer median of 12.0x. Over the past year, ENTA returned -2.5% compared to a 16.8% return for the S&P 500 (SPY). Over five years, the stock dropped 84.5%, while the S&P 500 rose 83.0%.
What analysts expect
Wall Street coverage includes 5 Strong Buy ratings, 1 Buy rating, and no Hold, Sell, or Strong Sell ratings. The mean price target is $21.83, which sits 96.7% above the last closing price of $11.10. For the fiscal year ending September 30, 2026, consensus estimates project revenue of $64.0M and an EPS of -$2.29. For the next fiscal year, 5 analysts expect revenue of $63.7M and an EPS of -$2.37. Enanta has beaten EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 16, 2026.
Key risks and what to watch
- Continued negative operating cash flow, which was -$19.3M in FY2025, may deplete cash reserves if clinical programs require higher spending.
- Revenue growth for the fiscal year ending September 30, 2027 is projected to decline 0.4% to $63.7M.
- Short interest represents 10.5% of the float, indicating elevated negative sentiment among market participants.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this ENTA AI stock analysis
This page is an AI-written research summary of Enanta Pharmaceuticals, Inc. (ENTA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: ENTA income statement, ENTA balance sheet, ENTA key metrics, ENTA analyst forecast, ENTA chart. See the ENTA stock overview for the latest quote and news.
ENTA AI stock analysis FAQ
Does Enanta Pharmaceuticals pay a dividend?
No, Enanta Pharmaceuticals does not pay a dividend. The company directs its capital toward research and development, which totaled $106.7M in FY2025.
What is Enanta's cash and debt position?
As of June 30, 2026, Enanta had $189.5M in cash and short-term investments and $55.7M in total debt. This results in net cash of $133.8M and a current ratio of 3.76.
When does Enanta Pharmaceuticals report earnings next?
Enanta's next earnings date is scheduled for November 16, 2026.
What are analysts' price targets for ENTA?
Analysts have a mean price target of $21.83 for ENTA, which is 96.7% above its last close of $11.10. Across 6 analyst ratings, there are 5 Strong Buys and 1 Buy.