Beam Therapeutics (BEAM) AI Stock Analysis

• Market Cap: $2.39B
• Dividend Yield: N/A
• Average Volume (3M): 2.90M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.40
• Revenue Growth: -82.90%
• EPS Growth: -155.64%
• Country: US
• Employees: 393
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.00
• Shares Outstanding: 101,162,025
• 10 Day Avg. Volume: 2,809,227
• 30 Day Avg. Volume: 2,902,750
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.31
• Enterprise Value/Revenue: 12.27
• Enterprise Value/Gross Profit: 332.62
• Enterprise Value/Ebitda: -1.86
• 1Y Price Target: $40.63
• Price Target Upside: 75.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 50 Neutral
• Price Target: $19.00 ▼(-17.71% Downside)

Beam Therapeutics' overall stock score is primarily influenced by its financial challenges, including declining revenues and negative cash flows. The technical analysis suggests a neutral trend, while the valuation is constrained by unprofitability. The recent acquisition provides a positive strategic outlook, but financial stability remains a concern.

Positive Factors

Strategic Acquisition

The acquisition enhances Beam's capabilities and market position, potentially leading to improved innovation and competitive advantage in the biotechnology sector.

Low Leverage

A low debt-to-equity ratio indicates manageable leverage, providing Beam with financial flexibility to invest in R&D and strategic initiatives without significant debt burden.

Strong Shareholder Support

Strong shareholder support for leadership and governance decisions can enhance stability and confidence in management's strategic direction, benefiting long-term operations.

Negative Factors

Declining Revenue

Significant revenue decline suggests challenges in maintaining market demand or competitive positioning, potentially impacting long-term financial health and growth prospects.

Negative Cash Flow

Persistent negative cash flows indicate operational inefficiencies and may limit the company's ability to fund new projects or withstand economic downturns, affecting sustainability.

Profitability Challenges

Ongoing profitability issues reflect difficulties in cost management and revenue generation, which could hinder long-term financial stability and investor confidence.

Beam Therapeutics Business Overview & Revenue Model

Company Description

Beam Therapeutics Inc., a biotechnology company, develops precision genetic medicines for patients suffering from serious diseases in the United States. The company is developing BEAM-101 for the treatment of sickle cell disease and beta thalassemia; BEAM-102 for the treatment of sickle cell disease; and BEAM-201, an allogeneic chimeric antigen receptor T cell for the treatment of relapsed/refractory T-cell acute lymphoblastic leukemia; and BEAM-301, a liver-targeted development candidate for the treatment of patients with Glycogen Storage Disease Type Ia. It also develops therapies for alpha-1 antitrypsin deficiency; ocular diseases; and other liver, muscle, and central nervous system disorders. The company has an alliance with Boston Children's Hospital; a research and clinical trial collaboration agreement with Magenta Therapeutics, Inc.; license agreement with Sana Biotechnology, Inc.; and a research collaboration with the Institute of Molecular and Clinical Ophthalmology Basel. It also has a research collaboration agreement with Pfizer Inc. and Apellis Pharmaceuticals, Inc.; and collaboration and license agreement with Verve Therapeutics, Inc. The company was incorporated in 2017 and is based in Cambridge, Massachusetts.

How the Company Makes Money

Beam Therapeutics generates revenue primarily through collaborations and partnerships with pharmaceutical companies and other biotech firms. These partnerships often involve licensing agreements where Beam provides access to its base editing technology in exchange for upfront payments, research funding, and milestone payments tied to the achievement of specific developmental and regulatory objectives. Additionally, the company may earn royalties on future sales of products developed using its technology. As the company advances its clinical programs and moves towards regulatory approvals, potential revenue from product commercialization could also contribute significantly to its earnings.

Beam Therapeutics Financial Statement Overview

Summary

Beam Therapeutics is experiencing significant financial challenges typical of early-stage biotech firms. The company has ongoing losses due to high R&D and operational costs. Despite a healthy gross profit margin, the net profit margin is deeply negative, reflecting difficulties in scaling operations profitably. The balance sheet shows manageable debt levels but negative return on equity due to consistent net losses. Cash flow is negative, indicating increasing cash consumption without corresponding revenue growth.

Income Statement

Beam Therapeutics shows significant challenges in profitability, with consistent negative net income and EBIT over recent periods. The gross profit margin is relatively healthy, indicating some cost control, but the net profit margin remains deeply negative due to high operating expenses. Revenue growth is stagnant, especially compared to the larger increases in operating losses, indicating a struggle to scale operations profitably.

Balance Sheet

The company's balance sheet reflects moderate leverage with a debt-to-equity ratio that suggests manageable debt levels relative to equity. However, the return on equity is negative due to consistent net losses, indicating that shareholders' equity is not generating positive returns. The equity ratio indicates a stable capital structure, with a significant portion of assets funded by equity, which is a positive aspect amidst financial struggles.

Cash Flow

Beam Therapeutics has negative free cash flow, reflecting ongoing operational cash burn. The operating cash flow to net income ratio indicates that cash flow is less negative than net income, suggesting non-cash expenses. However, the negative free cash flow growth rate is concerning, indicating increasing cash consumption without corresponding revenue growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.27M	63.52M	377.71M	60.92M	51.84M	24.00K
Gross Profit	2.22M	63.52M	-59.67M	38.34M	35.40M	-103.16M
EBITDA	-396.47M	-383.98M	-156.47M	-324.33M	-392.46M	-128.03M
Net Income	-398.58M	-376.74M	-132.53M	-263.59M	-341.36M	-256.42M
Balance Sheet
Total Assets	1.39B	1.10B	1.46B	1.34B	1.47B	451.68M
Cash, Cash Equivalents and Short-Term Investments	1.15B	850.74M	1.19B	1.08B	965.65M	299.67M
Total Debt	154.80M	161.43M	172.69M	179.00M	142.35M	100.23M
Total Liabilities	344.34M	370.28M	478.38M	608.24M	647.72M	206.12M
Stockholders Equity	1.05B	733.54M	981.33M	733.47M	826.74M	245.56M
Cash Flow
Free Cash Flow	-355.57M	-356.19M	-182.93M	-26.42M	-113.08M	-112.10M
Operating Cash Flow	-344.82M	-347.25M	-149.19M	22.53M	-66.27M	-95.74M
Investing Cash Flow	-144.52M	185.01M	71.84M	-461.34M	-294.14M	-100.12M
Financing Cash Flow	479.19M	7.74M	276.45M	111.59M	756.14M	322.32M

Beam Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BEAM, the sentiment is Positive. The current price of 23.09 is above the 20-day moving average (MA) of 21.05, above the 50-day MA of 19.59, and above the 200-day MA of 21.63, indicating a bullish trend. The MACD of 1.52 indicates Negative momentum. The RSI at 60.48 is Neutral, neither overbought nor oversold. The STOCH value of 58.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BEAM.

Beam Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMCR	64 Neutral	1.73B	-82.40	-5.23%	―	26.90%	62.72%
ARQT	58 Neutral	2.07B	-22.47	-67.11%	―	99.50%	65.91%
BEAM	50 Neutral	$2.39B	―	-41.94%	―	-82.90%	-155.64%
DNLI	45 Neutral	1.97B	-4.78	―	―	-100.00%	1.62%
IMVT	45 Neutral	2.69B	-5.51	―	―	―	-48.38%
IRON	43 Neutral	2.17B	-13.97	―	―	―	-22.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Beam Therapeutics Corporate Events

Beam Therapeutics Acquires Early-Stage Life Sciences Firm

On July 1, 2025, Beam Therapeutics Inc. acquired an early-stage life sciences company, agreeing to issue 403,128 shares of its common stock as an upfront payment and up to $89 million in additional milestone payments. This strategic acquisition is expected to enhance Beam’s capabilities and market position, potentially impacting its operations and stakeholders positively.