Burning Rock Biotech (BNR) AI Stock Analysis

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Burning Rock Biotech

(NASDAQ:BNR)

Rating:39Underperform

Price Target:―

Burning Rock Biotech's overall stock score is low due to significant financial challenges, including declining revenues and persistent net losses. The technical analysis highlights bearish momentum with oversold indicators. The negative P/E ratio and lack of a dividend yield further contribute to a weak valuation outlook. The company must focus on stabilizing its financials and improving operational efficiency to enhance its stock performance.

Burning Rock Biotech (BNR) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$29.27M

Dividend YieldN/A

Average Volume (3M)50.53K

Price to Earnings (P/E)―

Beta (1Y)1.18

Revenue Growth-5.72%

EPS Growth48.12%

CountryUS

Employees674

SectorHealthcare

Sector Strength44

IndustryMedical - Diagnostics & Research

Share Statistics

EPS (TTM)-1.09

Shares Outstanding8,232,740

10 Day Avg. Volume102,009

30 Day Avg. Volume50,528

Financial Highlights & Ratios

PEG Ratio0.02

Price to Book (P/B)0.30

Price to Sales (P/S)0.00

P/FCF Ratio-0.18

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Burning Rock Biotech Business Overview & Revenue Model

Company DescriptionBurning 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 MoneyBurning 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 faces significant financial challenges with declining revenues and persistent net losses. While the balance sheet is relatively stable with low leverage, negative cash flow from operations is a concern. The company needs to enhance revenue generation and operational efficiency to improve its financial health.

Income Statement

Negative

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

Neutral

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

Negative

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
-357.56M	-669.32M	-980.41M	-797.06M	-412.40M
	EBITDA
-270.23M	-517.90M	-856.31M	-746.50M	-373.26M
	Net Income Common Stockholders
-346.63M	-653.69M	-971.23M	-796.70M	-373.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
519.85M	615.10M	905.45M	1.50B	2.26B
	Total Assets
885.30M	1.04B	1.59B	2.28B	2.66B
	Total Debt
52.32M	12.32M	50.79M	86.69M	46.88M
	Net Debt
-467.53M	-602.77M	-854.66M	-1.34B	-1.85B
	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

Neutral

Last Price3.10

Price Trends

50DMA

3.62

Negative

100DMA

5.10

Negative

200DMA

4.90

Negative

Market Momentum

MACD

-0.19

Negative

RSI

53.85

Neutral

STOCH

75.94

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNR, the sentiment is Neutral. The current price of 3.1 is above the 20-day moving average (MA) of 2.70, below the 50-day MA of 3.62, and below the 200-day MA of 4.90, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 53.85 is Neutral, neither overbought nor oversold. The STOCH value of 75.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BNR.

Burning Rock Biotech Risk Analysis

Burning Rock Biotech disclosed 88 risk factors in its most recent earnings report. Burning Rock Biotech reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Burning Rock Biotech Peers Comparison

Overall Rating

UnderperformOutperform

Sector (53)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRE	54 Neutral	$95.15M	―	-24.59%	―	-9.11%	35.83%
Sector *	53 Neutral	$5.24B	3.07	-43.58%	2.80%	16.87%	-0.11%
VNRX	52 Neutral	$50.58M	―	138.92%	―	64.15%	41.65%
ENZB	50 Neutral	$30.39M	―	-12.94%	―	―	―
BDSX	46 Neutral	$39.69M	―	-1454.41%	―	35.76%	47.48%
BNGO	45 Neutral	$12.58M	―	-127.82%	―	-24.04%	84.11%
BNR	39 Underperform	$29.27M	―	-51.22%	―	-5.72%	48.12%

* Healthcare Sector Average

Performance Comparison

BNR

Burning Rock Biotech

3.10

-4.47

-59.05%

ENZB

Enzo Biochem

0.59

-0.37

-38.54%

VNRX

VolitionRX

0.51

-0.23

-31.08%

BNGO

BioNano Genomics

3.62

-58.18

-94.14%

BDSX

Biodesix

0.40

-1.01

-71.63%

PRE

Prenetics Group

8.09

2.25

38.53%

Burning Rock Biotech Earnings Call Summary

Earnings Call Date:Mar 25, 2025

(Q1-2024)

% Change Since: -43.64%|

Next Earnings Date:Jun 03, 2025

Earnings Call Sentiment Positive

The earnings call presented a positive financial turnaround with significant improvements in sales efficiency, profitability, and in-hospital revenue growth. Despite industry challenges, the company demonstrated a strong cash position and strategic adaptability.

Q1-2024 Updates

Positive Updates

Record Low Sales and Marketing Expenses

Achieved sales and marketing expenses as a percentage of revenue at 35%, marking a historic low and the most efficient quarter in recent operating history.

Positive Financial Turnaround

Turned profitable again in Q1 2024 after challenges in Q3 and Q4 of 2023, with a focus on making the company cash flow positive in the future.

In-Hospital Revenue Growth

First quarter where revenue from in-hospital surpassed Central Lab, with overall revenue up 4% quarter-over-quarter, driven by in-hospital growth.

Strong Cash Position

Ended the quarter with RMB 573 million cash balance and a reduced cash outflow, providing a good 3-year cash runway without the need for capital raising.

Negative Updates

Industry Operating Environment Challenges

Faced changes in the industry's operating environment starting July last year, impacting revenue distribution and necessitating a transition strategy.

Company Guidance

During Burning Rock's Q1 2024 earnings call, the company provided optimistic guidance, highlighting significant improvements in their financial metrics. The sales and marketing expenses were reduced to 35% of revenue, marking a historic efficiency level, which underpins their operating profitability. The company's gross profit minus SG&A expenses turned positive again in Q1 2024, after a challenging Q3 and Q4 in 2023. Burning Rock ended the quarter with an RMB 573 million cash balance and projected a cash outflow between RMB 150 million to RMB 200 million for 2024. They also noted a successful transition in their revenue model, with more income now coming from in-hospital services than from Central Labs, contributing to a 4% increase in overall revenue quarter-over-quarter. The company aims to maintain positive non-GAAP gross profit minus SG&A for the entirety of 2024 and anticipates further cash flow improvements into 2025.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.