Burning Rock Biotech (BNR) AI Stock Analysis

• Market Cap: $34.44M
• Dividend Yield: N/A
• Average Volume (3M): 31.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: -0.26%
• EPS Growth: 60.09%
• Country: US
• Employees: 674
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.17
• Shares Outstanding: 9,034,111
• 10 Day Avg. Volume: 25,545
• 30 Day Avg. Volume: 31,297
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: $3.00 ▼(-6.25%Downside)

The overall score is influenced primarily by financial performance challenges, including declining revenues and negative cash flows. Technical indicators provide some short-term optimism, but the stock's valuation remains unattractive with no dividends and a negative P/E ratio. Improvements in financial health are crucial for a better outlook.

Burning Rock Biotech Business Overview & Revenue Model

Company Description

Burning Rock Biotech Limited primarily develops and provides cancer therapy selection tests in the People's Republic of China. It operates in three segments: Central Laboratory Business, In-Hospital Business, and Pharma Research and Development Services. The company primarily offers next-generation sequencing-based cancer therapy selection and prognosis prediction tests applicable to a range of cancer types, including lung cancer, gastrointestinal cancer, prostate cancer, breast cancer, lymphomas, thyroid cancer, colorectal cancer, ovarian cancer, pancreatic cancer, and bladder cancer using tissue and liquid biopsy samples. Its principal products include OncoCompass IO, a corresponding test for liquid biopsy samples; OncoScreen IO, a pan-cancer test for tissue samples; OncoCompass Target, a ctDNA liquid biopsy-based test for NSCLC; ColonCore for assessing microsatellite loci related to MSI status and detecting mutations in genes associated with gastrointestinal cancers; and OncoScreen ParpMatch and OncoCompass ParpMatch to target critical genes associated with homologous recombination deficiency. In addition, the company has development and commercialization agreement with Myriad Genetics, Inc. to in-license Myriad myChoice tumor testing in China; and licensing agreement with Oncocyte Corporation to in-license DetermaRx, a risk stratification test for early stage lung cancer patients in China. It has collaborations on clinical trials and research studies with AstraZeneca, Bayer, Johnson & Johnson, CStone, BeiGene, Abbisko Therapeutics, and IMPACT Therapeutics and Merck KGaA. The company was incorporated in 2014 and is headquartered in Guangzhou, China.

How the Company Makes Money

Burning Rock Biotech generates revenue through multiple streams including the sale of its NGS-based cancer therapy selection tests to hospitals and medical institutions, which are used for identifying targeted therapies for cancer patients. The company also provides genomic profiling services that help in tailoring patient-specific treatment plans. Additionally, Burning Rock earns income from partnerships and collaborations with pharmaceutical companies and research institutions, leveraging its technology for drug development and clinical trials. These partnerships can involve licensing agreements, research collaborations, or co-development projects, contributing to the company's financial performance.

Burning Rock Biotech Financial Statement Overview

Summary

Burning Rock Biotech shows declining revenue and persistent net losses. While the balance sheet is stable with low leverage, negative cash flow from operations is concerning. Improvement in revenue generation and operational efficiency is needed.

Income Statement

Burning Rock Biotech shows a declining revenue trend with a negative revenue growth rate of -4.03% from 2023 to 2024. Gross profit margin is relatively stable but the net profit margin remains deeply negative due to substantial net losses. The EBIT and EBITDA margins are also negative, indicating ongoing operational challenges and inefficiencies. The company needs to focus on revenue stabilization and cost control to improve its income statement.

Balance Sheet

The company's balance sheet shows a relatively healthy equity ratio with stockholders' equity forming a significant part of total assets. The debt-to-equity ratio is low at 0.09, indicating low leverage which is a positive sign for financial stability. However, the return on equity is negative due to consistent net losses, which impacts the overall attractiveness of the balance sheet.

Cash Flow

Burning Rock Biotech's cash flow statement reflects negative operating cash flows, though there is an improvement from the previous year. Free cash flow remains negative, reflecting ongoing cash burn. The operating cash flow to net income ratio is challenging due to both figures being negative, and the company needs to improve cash generation from operations to sustain long-term growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	515.82M	537.43M	563.24M	507.86M	429.90M
Gross Profit	362.40M	363.23M	380.04M	364.15M	313.92M
EBITDA	-270.23M	-517.90M	-856.31M	-746.50M	-373.26M
Net Income	-346.63M	-653.69M	-971.23M	-796.70M	-373.71M
Balance Sheet
Total Assets	885.30M	1.04B	1.59B	2.28B	2.66B
Cash, Cash Equivalents and Short-Term Investments	519.85M	615.10M	905.45M	1.50B	2.26B
Total Debt	52.32M	12.32M	50.79M	86.69M	46.88M
Total Liabilities	304.48M	271.59M	429.13M	433.28M	242.02M
Stockholders Equity	580.83M	768.41M	1.16B	1.85B	2.42B
Cash Flow
Free Cash Flow	-98.24M	-265.17M	-518.84M	-691.33M	-153.08M
Operating Cash Flow	-92.26M	-255.78M	-456.81M	-477.89M	-73.54M
Investing Cash Flow	-4.41M	-9.30M	-7.46M	81.70M	-109.31M
Financing Cash Flow	-72.00K	-48.83M	-86.24M	-52.90M	2.17B

Burning Rock Biotech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.20
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNR, the sentiment is Negative. The current price of 3.2 is below the 20-day moving average (MA) of 3.31, above the 50-day MA of 3.02, and below the 200-day MA of 4.55, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 48.35 is Neutral, neither overbought nor oversold. The STOCH value of 8.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BNR.

Burning Rock Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENZB	60 Neutral	$35.71M	―	-13.95%	―	―	―
PRE	54 Neutral	$107.92M	―	-26.74%	―	85.33%	30.70%
VNRX	53 Neutral	$79.11M	―	138.92%	―	64.15%	41.65%
Sector *	51 Neutral	$7.55B	0.39	-61.90%	2.32%	17.14%	1.55%
BNR	50 Neutral	$34.44M	―	-37.15%	―	-0.26%	60.09%
BDSX	43 Neutral	$42.06M	―	-1454.41%	―	35.76%	47.48%
BNGO	41 Neutral	$11.07M	―	-127.82%	―	-24.04%	84.11%