Precision BioSciences (DTIL) AI Stock Analysis

• Market Cap: $40.25M
• Dividend Yield: N/A
• Average Volume (3M): 114.37K
• Price to Earnings (P/E): 99.8
• Beta (1Y): 1.86
• Revenue Growth: 43.62%
• EPS Growth: N/A
• Country: US
• Employees: 109
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): 0.05
• Shares Outstanding: 7,891,771
• 10 Day Avg. Volume: 83,782
• 30 Day Avg. Volume: 114,373
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.53
• Price to Cash Flow (P/CF): -1.70
• P/FCF Ratio: 0.00
• 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: $41.33
• Price Target Upside: 724.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

The overall score reflects a company with strong revenue growth but significant challenges in converting that growth into profitability and positive cash flows. Technical indicators suggest a bearish trend with potential short-term positive sentiment. High valuation metrics imply expectations of future growth, yet the financials do not currently support this optimism. Recent advancements in clinical trials provide a positive outlook, although substantial risks remain.

Positive Factors

Clinical Data

Early PBGENE-HBV data show promising safety and efficacy, with substantial HBsAg reduction in patients.

Valuation

DTIL is considered significantly undervalued, trading at a fraction of its cash position, indicating favorable risk/reward potential.

Negative Factors

Potential Risks

Trial design includes patients receiving up to 3 doses administered after 8-week periods to increase cumulative editing efficiency, but may result in increased liver toxicity.

Precision BioSciences Business Overview & Revenue Model

Company Description

Precision BioSciences, Inc. is a biotechnology company, which engages in the development of genome editing technologies. It operates through the Therapeutics and Food segments. The Therapeutics segment focuses on the development of products in the field of immuno-oncology and of novel products outside immuno-oncology to treat human diseases. The Food segment applies ARCUS, the company's propriety genome editing platform, to develop food and nutrition products through collaboration agreements with consumer-facing companies. The company was founded by Derek N. Jantz, Jeff Smith, and Matthew R. Kane in January 2006 and is headquartered in Durham, NC.

How the Company Makes Money

Precision BioSciences generates revenue through a combination of product development partnerships, licensing agreements, and potential therapeutic product sales. The company collaborates with pharmaceutical and biotechnology partners to co-develop and commercialize gene and cell therapies, often receiving upfront payments, milestone payments, and royalties from these partnerships. Additionally, Precision BioSciences may secure funding and revenue from government grants and research institutions to support its research and development efforts. As its therapeutic candidates advance through clinical trials and gain regulatory approval, the company anticipates generating revenue from the commercialization of its proprietary therapies.

Precision BioSciences Financial Statement Overview

Summary

Precision BioSciences is experiencing revenue growth, yet profitability and cash flow remain challenging. The company has improved its net income position but continues to depend on external financing to manage cash flow needs. Balance sheet stability is moderate with increasing leverage, but equity remains a strong base. Continuous efforts are needed to convert revenue growth into sustainable cash flows and profitability.

Income Statement

The company has shown a significant improvement in total revenue over the TTM (Trailing-Twelve-Months) with a revenue growth rate of 54.1% compared to the previous year-end. However, the company continues to face challenges in turning its revenue into profitability, as reflected by a negative EBIT margin of -21.6% and a net profit margin of 11.5%. The gross profit margin is strong at 92.8%, indicating efficient cost management relative to revenue.

Balance Sheet

The company exhibits a solid equity ratio of 42.3% TTM, indicating a stable equity base relative to total assets. However, the debt-to-equity ratio has increased to 0.47, suggesting rising leverage. Return on equity is positive at 13.3%, indicating some profitability relative to equity. The balance sheet shows potential risks associated with increased liabilities over time.

Cash Flow

Operating cash flow remains negative at -48.2M in the TTM, though there is an improvement in free cash flow compared to previous periods. The operating cash flow to net income ratio is negative, suggesting cash flow challenges despite positive net income. Free cash flow growth is negative, indicating ongoing cash utilization issues.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
75.10M	48.73M	25.10M	115.53M	24.29M	22.24M
	Gross Profit
69.72M	40.47M	16.09M	115.53M	24.29M	22.24M
	EBIT
-16.21M	-43.74M	-100.37M	-39.40M	-109.83M	-87.20M
	EBITDA
18.82M	-32.04M	-62.79M	-20.27M	-99.19M	-87.38M
	Net Income Common Stockholders
8.62M	-61.32M	-122.91M	-30.92M	-109.01M	-83.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
116.68M	116.68M	189.58M	143.66M	89.80M	180.89M
	Total Assets
159.78M	159.78M	238.17M	211.50M	150.16M	235.23M
	Total Debt
31.27M	31.27M	27.04M	9.11M	10.52M	0.00
	Net Debt
-85.41M	-85.41M	-162.54M	-134.55M	-79.28M	-180.89M
	Total Liabilities
140.92M	140.92M	177.74M	120.33M	105.73M	96.92M
	Stockholders Equity
18.86M	18.86M	60.43M	91.17M	44.42M	138.31M
Cash Flow		Free Cash Flow
-48.33M	-86.39M	-49.07M	-16.66M	-92.42M	-95.68M
	Operating Cash Flow
-48.19M	-84.11M	-45.75M	-10.85M	-87.39M	-71.02M
	Investing Cash Flow
-76.00K	5.83M	-3.32M	-5.80M	-5.03M	-24.67M
	Financing Cash Flow
47.36M	5.39M	94.98M	70.52M	1.33M	173.37M

Precision BioSciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTIL, the sentiment is Negative. The current price of 5.01 is below the 20-day moving average (MA) of 5.31, below the 50-day MA of 5.05, and below the 200-day MA of 8.09, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 44.81 is Neutral, neither overbought nor oversold. The STOCH value of 42.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DTIL.

Precision BioSciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	49 Neutral	$6.90B	-0.08	-53.01%	2.43%	24.84%	-3.06%
DTIL	48 Neutral	$40.25M	99.80	24.44%	―	43.62%	―
CRSP	48 Neutral	$3.72B	―	-19.20%	―	-89.95%	-123.71%
BEAM	47 Neutral	$2.21B	―	-43.94%	―	-83.18%	-144.95%
SGMO	42 Neutral	$206.96M	―	-156.42%	―	-74.04%	48.16%
EDIT	42 Neutral	$129.44M	―	-98.10%	―	-58.64%	-40.05%
NTLA	39 Underperform	$962.71M	―	-54.00%	―	59.55%	3.09%

Precision BioSciences Corporate Events

Precision BioSciences Advances Gene Editing Trials Globally

Precision BioSciences has received clearance in Moldova to begin clinical trials for its gene editing program, PBGENE-HBV, aimed at treating chronic hepatitis B. The innovative approach targets the root cause of the disease by eliminating cccDNA, potentially leading to functional cures. This milestone marks a significant step forward in their global clinical strategy, as they aim to provide a groundbreaking treatment for millions affected worldwide.