WAVE Life Sciences Ltd.
In the quarter to June 2026, revenue fell 73.9%, EPS fell 9.68% and free cash flow fell 17.6%, each against the same quarter a year earlier. Insiders bought in the last twelve months.
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WAVE Life Sciences Ltd. (WVE) Altman Z-score
WAVE Life Sciences Ltd.'s Altman Z-score for fiscal 2025 is 11.34, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 11.34 | 8.62 |
| FY2024 | 2.72 | 6.76 |
| FY2023 | −4.04 | 6.90 |
| FY2022 | −10.94 | (4.80) |
| FY2021 | −6.14 | (2.39) |
| FY2020 | −3.76 | 0.21 |
| FY2019 | −3.97 | (4.20) |
| FY2018 | 0.24 | (13.57) |
| FY2017 | 13.80 | (1.54) |
| FY2016 | 15.35 | (9.87) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.81 | — | 0.98 | |
| Retained earnings / total assets | (2.08) | — | −2.91 | |
| EBIT / total assets | (0.34) | — | −1.11 | |
| Market value of equity / total liabilities | 23.86 | — | 14.32 | |
| Sales / total assets | 0.07 | — | 0.07 | |
| Altman Z-score | Safe zone | 11.34 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | 0.83 | ||
Z and Z″ put WAVE Life Sciences Ltd. in different zones: safe zone by Z, distress zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| WVE WAVE Life Sciences Ltd. | 11.3× |
| ZVRA Zevra Therapeutics, Inc. compare | 0.6× |
| AVTX Avalo Therapeutics, Inc. compare | −2.1× |
| SLDB Solid Biosciences Inc. compare | −2.9× |
| PRME Prime Medicine, Inc. compare | −3.7× |
| PHAT Phathom Pharmaceuticals, Inc. compare | −7.9× |
| CLYM Climb Bio, Inc. compare | — |
| DSGN Design Therapeutics, Inc. compare | — |
| NVCT Nuvectis Pharma, Inc. compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets