Beta Bionics, Inc. (BBNX) AI Stock Analysis

• Market Cap: $1.22B
• Dividend Yield: N/A
• Average Volume (3M): 917.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: 67.01%
• EPS Growth: -39.19%
• Country: US
• Employees: 352
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Equipment & Services
• EPS (TTM): -0.33
• Shares Outstanding: 44,024,630
• 10 Day Avg. Volume: 410,323
• 30 Day Avg. Volume: 917,055
• PEG Ratio: -0.79
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 2.31
• P/FCF Ratio: -2.91
• Enterprise Value/Market Cap: 0.32
• Enterprise Value/Revenue: 4.40
• Enterprise Value/Gross Profit: 8.07
• Enterprise Value/Ebitda: -5.96
• 1Y Price Target: $30.57
• Price Target Upside: -0.94% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $33.00 ▲(6.93% Upside)

Beta Bionics, Inc. benefits from strong technical momentum and positive earnings call highlights, such as revenue growth and margin improvements. However, financial performance issues, including unprofitability and cash flow challenges, along with a poor valuation due to a negative P/E ratio, weigh down the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and increasing demand for the iLet Bionic Pancreas, supporting long-term business expansion.

Gross Margin Improvement

Improved gross margins suggest better cost management and pricing power, enhancing profitability potential and financial health over time.

Expanded Coverage

Expanded insurance coverage through PBMs increases accessibility and affordability, potentially boosting sales and market share.

Negative Factors

Operating Expense Increase

Rising operating expenses may pressure margins and profitability, necessitating careful cost management to sustain financial stability.

FDA Regulatory Challenges

Regulatory challenges with the FDA could delay product approvals and affect market credibility, impacting future growth and operations.

Negative Cash Flow

Negative cash flow reflects operational inefficiencies and may limit investment in growth initiatives, posing a risk to long-term sustainability.

Beta Bionics, Inc. Business Overview & Revenue Model

Company Description

Beta Bionics, Inc., a commercial-stage medical device company, engages in the design, development, and commercialization of solutions to enhance the health and quality of life of insulin-requiring people with diabetes. It offers iLet Bionic Pancreas, an insulin delivery device for the treatment of type 1 diabetes in adults and children six years of age and older. The company is also developing Patch Pump, an insulin pump that is designed to adhere directly to the skin and administer insulin without the need for tubing; Bihormonal iLet, which combines automated delivery of insulin and glucagon; and iLet to treat people with insulin-dependent type-2 diabetes. It has collaboration and license agreement with Xeris Pharmaceuticals, Inc. (Xeris) to develop and commercialize a pump-compatible glucagon formulation; and development and commercialization agreement with Abbott Diabetes Care Inc. to develop and commercialize an automated insulin delivery system. The company was incorporated in 2015 and is based in Irvine, California.

How the Company Makes Money

Beta Bionics generates revenue primarily through the sales of its flagship product, the iLet Bionic Pancreas, which is expected to be marketed to hospitals, healthcare providers, and directly to consumers. The company may also explore partnerships with healthcare organizations and insurance companies to facilitate reimbursement models for their products. Additionally, Beta Bionics may pursue grants and funding from research institutions or government initiatives targeted at diabetes management solutions, contributing to their overall revenue streams.

Beta Bionics, Inc. Financial Statement Overview

Summary

Beta Bionics, Inc. demonstrates strong revenue growth but struggles with profitability and cash flow management. The balance sheet is stable with low leverage, but ongoing losses and negative cash flows pose risks.

Income Statement

Beta Bionics, Inc. shows strong revenue growth with a significant increase from previous years. However, the company is currently unprofitable, with negative EBIT, EBITDA, and net profit margins, indicating challenges in achieving operational efficiency and cost control.

Balance Sheet

The company's balance sheet reflects moderate leverage with a low debt-to-equity ratio and a healthy equity ratio, showcasing financial stability. However, the negative net income impacts the return on equity, which remains a concern for investors seeking profitability.

Cash Flow

Beta Bionics, Inc. faces challenges with negative free cash flow, indicative of high operational costs. Although there is a positive financing cash flow, indicating external funding, the operating cash flow to net income and free cash flow ratios are unfavorable, highlighting cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	88.57M	65.12M	11.99M	179.00K
Gross Profit	48.28M	35.89M	6.31M	179.00K
EBITDA	-65.36M	-44.10M	-34.62M	-63.40M
Net Income	-77.84M	-54.76M	-44.10M	-64.75M
Balance Sheet
Total Assets	330.05M	149.65M	110.04M	35.53M
Cash, Cash Equivalents and Short-Term Investments	228.69M	103.58M	96.75M	27.68M
Total Debt	7.69M	7.25M	4.22M	4.13M
Total Liabilities	35.29M	73.63M	51.43M	22.53M
Stockholders Equity	294.76M	76.01M	58.61M	13.00M
Cash Flow
Free Cash Flow	-60.53M	-51.67M	-32.85M	-60.98M
Operating Cash Flow	-56.58M	-48.27M	-32.45M	-60.21M
Investing Cash Flow	-193.13M	-3.48M	-69.69M	-769.00K
Financing Cash Flow	270.71M	55.62M	101.03M	56.78M

Beta Bionics, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.86
• 50DMA: Positive
• 100DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBNX, the sentiment is Positive. The current price of 30.86 is above the 20-day moving average (MA) of 24.82, above the 50-day MA of 23.34, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 1.55 indicates Negative momentum. The RSI at 55.71 is Neutral, neither overbought nor oversold. The STOCH value of 64.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BBNX.

Beta Bionics, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LH	68 Neutral	$22.24B	26.35	10.14%	1.07%	8.28%	97.24%
NVST	64 Neutral	$3.45B	251.08	0.50%	―	4.73%	―
BBNX	62 Neutral	$1.22B	-15.52	-47.52%	―	67.01%	-39.19%
TNDM	60 Neutral	$1.41B	―	-109.73%	―	17.87%	-57.03%
FTRE	55 Neutral	$1.17B	―	-98.13%	―	-0.54%	-259.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SANA	33 Underperform	$934.95M	―	-96.11%	―	―	31.16%

Beta Bionics, Inc. Corporate Events

Beta Bionics Reports Strong Q3 Growth Amid Challenges

Beta Bionics, Inc. recently held its earnings call, showcasing a strong financial performance with notable revenue growth and improved gross margins. The company emphasized its continued progress in the pharmacy channel and innovation pipeline. However, the call also highlighted potential risks due to increased operating expenses and regulatory challenges with the FDA.

Beta Bionics Reports Strong Q3 Growth and Raises Guidance

Beta Bionics, Inc. is a commercial-stage medical device company specializing in advanced diabetes management solutions, notably through its iLet Bionic Pancreas, which autonomously determines insulin doses to improve outcomes for insulin-requiring individuals.

Beta Bionics’ iLet Experience Study: A Game-Changer in Diabetes Management?

Beta Bionics, Inc. has initiated a clinical study titled ‘iLet Dosing Decision Software Postmarket Surveillance Plan (PS240001): The iLet Experience Study.’ This study aims to gather safety and effectiveness data on the iLet Dosing Decision Software in real-world settings for individuals aged six and older with type 1 diabetes. The significance of this study lies in its potential to enhance diabetes management through innovative technology.