Burning Rock Biotech (BNR) AI Stock Analysis

• Market Cap: $121.79M
• Dividend Yield: N/A
• Average Volume (3M): 22.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: 5.44%
• EPS Growth: 72.17%
• Country: US
• Employees: 674
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.22
• Shares Outstanding: 9,034,111
• 10 Day Avg. Volume: 13,298
• 30 Day Avg. Volume: 22,645
• PEG Ratio: <0.01
• Price to Book (P/B): 0.09
• Price to Sales (P/S): 0.10
• P/FCF Ratio: -0.52
• Enterprise Value/Market Cap: -0.20
• Enterprise Value/Revenue: -0.04
• Enterprise Value/Gross Profit: -0.06
• Enterprise Value/Ebitda: 0.38
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $19.50 ▼(-10.18% Downside)

Burning Rock Biotech's stock score is primarily influenced by its challenging financial performance, with ongoing losses and negative cash flow. Despite strong technical indicators suggesting positive momentum, the unattractive valuation due to negative earnings limits the overall score. Investors should be cautious of the financial instability despite the technical strength.

Positive Factors

Revenue Growth

Consistent revenue growth, particularly in pharma R&D services, indicates a strengthening market position and potential for sustained expansion.

Margin Improvement

Improved gross margins from high-margin projects suggest enhanced operational efficiency and profitability potential.

Cost Control

Effective cost control measures indicate management's ability to optimize operations, potentially leading to better financial health.

Negative Factors

Declining Revenue Trend

A declining revenue trend poses a risk to long-term growth, necessitating strategic initiatives to reverse this pattern.

Negative Cash Flow

Sustained negative cash flow challenges liquidity and may hinder the company's ability to invest in growth opportunities.

Persistent Net Losses

Ongoing net losses impact financial stability, requiring improved revenue generation and cost management for recovery.

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 a diverse range of business activities. The primary revenue streams include the sale of its genomic testing products and services to hospitals and medical institutions, which utilize these tests for cancer diagnosis and treatment decisions. Additionally, the company engages in partnerships with pharmaceutical firms for companion diagnostics, which further enhances its revenue through collaborative development and commercialization efforts. Research and development contracts with governmental and private entities also contribute to its earnings, as do potential licensing agreements for its proprietary technologies. Furthermore, as the demand for personalized medicine grows, BNR benefits from increased usage of its testing services, driving growth in its overall revenue.

Burning Rock Biotech Financial Statement Overview

Summary

Burning Rock Biotech faces significant financial challenges with declining revenues and persistent net losses. The balance sheet is relatively stable with low leverage, but 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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	539.27M	515.82M	537.43M	563.24M	507.86M	429.90M
Gross Profit	393.77M	362.40M	363.23M	380.04M	364.15M	313.92M
EBITDA	-63.91M	-270.23M	-517.90M	-856.31M	-746.50M	-373.26M
Net Income	-121.25M	-346.63M	-653.69M	-971.23M	-796.70M	-407.24M
Balance Sheet
Total Assets	812.17M	885.30M	1.04B	1.59B	2.28B	2.66B
Cash, Cash Equivalents and Short-Term Investments	463.99M	519.85M	615.10M	905.45M	1.50B	2.26B
Total Debt	33.18M	52.32M	12.32M	50.79M	86.69M	46.88M
Total Liabilities	262.59M	304.48M	271.59M	429.13M	433.28M	242.02M
Stockholders Equity	549.58M	580.83M	768.41M	1.16B	1.85B	2.42B
Cash Flow
Free Cash Flow	-37.84M	-98.24M	-265.17M	-518.84M	-691.33M	-153.08M
Operating Cash Flow	-32.42M	-92.26M	-255.78M	-456.81M	-477.89M	-73.54M
Investing Cash Flow	-4.88M	-4.41M	-9.30M	-7.46M	81.70M	-109.31M
Financing Cash Flow	1.93M	-72.00K	-48.83M	-86.24M	-52.90M	2.17B

Burning Rock Biotech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.71
• 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 BNR, the sentiment is Positive. The current price of 21.71 is above the 20-day moving average (MA) of 15.10, above the 50-day MA of 11.92, and above the 200-day MA of 6.83, indicating a bullish trend. The MACD of 2.57 indicates Negative momentum. The RSI at 69.44 is Neutral, neither overbought nor oversold. The STOCH value of 72.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BNR.

Burning Rock Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BNR	54 Neutral	$121.79M	-6.04	-19.87%	―	5.44%	72.17%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SERA	47 Neutral	$111.92M	―	-47.69%	―	1.06%	22.41%
BDSX	46 Neutral	$60.46M	-1.42	-302.55%	―	22.29%	31.93%
TRIB	44 Neutral	$18.05M	-0.34	―	―	-4.35%	-6.31%
VNRX	42 Neutral	$36.68M	-1.31	―	―	14.48%	36.83%
BNGO	40 Underperform	$17.50M	―	-78.22%	―	-13.84%	88.80%

Burning Rock Biotech Corporate Events

Burning Rock Biotech Schedules 2025 AGM for December 23

Burning Rock Biotech Limited announced that its 2025 Annual General Meeting (AGM) will be held on December 23, 2025, in Shanghai. The AGM will address proposals such as the ratification of Ernst & Young Hua Ming LLP as auditors, the re-election of directors Feng Deng and Licen Lisa Xu, and authorizing directors to implement necessary actions. The board supports these proposals and encourages shareholders to vote in favor. The company has also filed its annual report for the year ended December 31, 2024, with the SEC.

Burning Rock Biotech Announces Q3 2025 Financial Results with Revenue Growth

Burning Rock Biotech reported its financial results for the third quarter of 2025, highlighting a 2.3% increase in total revenues compared to the same period in 2024. The company experienced a significant increase in revenue from pharma research and development services, while revenues from in-hospital and central laboratory businesses decreased. The company’s gross profit improved by 7.6%, with a notable increase in gross margin due to high-margin companion diagnostic projects. Operating expenses decreased by 11.9%, driven by cost control measures and headcount reduction. Despite a net loss of RMB16.8 million, this was a substantial improvement from the previous year’s loss.

Burning Rock Biotech Reports Improved Q2 2025 Financial Results

Burning Rock Biotech reported its financial results for the second quarter of 2025, showing a 9.6% increase in total revenues compared to the same period in 2024. The company achieved a gross profit of RMB108.1 million, a 13.3% increase from the previous year, and significantly reduced its net loss to RMB9.7 million from RMB108.0 million in 2024. The results reflect a strategic shift towards in-hospital testing and increased pharma R&D services, alongside effective cost control measures that reduced operating expenses by 42.1%.