GH Research (GHRS) AI Stock Analysis

• Market Cap: $865.29M
• Dividend Yield: N/A
• Average Volume (3M): 296.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: N/A
• EPS Growth: -9.82%
• Country: US
• Employees: 50
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.15
• Shares Outstanding: 62,028,145
• 10 Day Avg. Volume: 274,564
• 30 Day Avg. Volume: 296,658
• 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: 0.54
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -3.02K
• Enterprise Value/Ebitda: -11.49
• 1Y Price Target: $29.67
• Price Target Upside: 136.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 45 Neutral
• Price Target: ―

GH Research's stock score reflects significant challenges in financial performance, with consistent losses and negative cash flows. The company's strong equity base and low debt provide some stability. Technical indicators show some short-term momentum, but valuation concerns persist due to the negative P/E ratio and lack of profitability.

Positive Factors

Strong Equity Base

A strong equity base with low debt enhances financial stability, providing a solid foundation for future growth and investment opportunities.

Potential for Future Growth

Initial revenue generation suggests that GH Research is beginning to monetize its R&D efforts, paving the way for future revenue streams as products advance through trials.

Strong Cash Position

A robust cash position allows GH Research to fund ongoing R&D and operational activities, crucial for advancing clinical trials and achieving long-term objectives.

Negative Factors

Negative Cash Flow

Negative cash flow from operations highlights the company's struggle to cover its operational expenses, posing a risk to its financial sustainability if not addressed.

Consistent Losses

Ongoing losses indicate that the company is not yet profitable, which could limit its ability to invest in growth and innovation without additional funding.

Declining Assets

A decline in assets coupled with negative return on equity suggests inefficiencies in asset utilization, potentially impacting long-term financial health and growth prospects.

GH Research Business Overview & Revenue Model

Company Description

GH Research PLC, a clinical-stage biopharmaceutical company, engages in developing various therapies for the treatment of psychiatric and neurological disorders. The company focuses on developing 5-Methoxy-N,N-Dimethyltryptamine (5-MeO-DMT) therapies for the treatment of patients with treatment-resistant depression (TRD). Its lead program is GH001, an inhalable 5-MeO-DMT product candidate that has completed two Phase 1 clinical trials and Phase 1/2 clinical trial in patients with TRD. The company also develops GH002, an injectable 5-MeO-DMT product candidate; and GH003, an intranasal 5-MeO-DMT product candidate, which are in preclinical development trials with a focus on psychiatric and neurological disorders. GH Research PLC was incorporated in 2018 and is based in Dublin, Ireland.

How the Company Makes Money

GH Research makes money primarily through the development and eventual commercialization of its pharmaceutical products. Revenue streams are anticipated from the sale of proprietary medications following successful clinical trials and regulatory approval. Additionally, the company may engage in strategic partnerships or collaborations with larger pharmaceutical firms, potentially receiving milestone payments, royalties, or licensing fees. However, as a clinical-stage company, it currently relies on funding from investors, grants, and partnerships to support its research and development activities.

GH Research Financial Statement Overview

Summary

GH Research is in the early stages of revenue generation and faces significant challenges in terms of profitability and operational cash flow. The company has a strong equity base and low debt, which are positives. However, ongoing losses and negative cash flows are major concerns that need to be addressed to achieve long-term financial health.

Income Statement

GH Research shows weak financial performance with consistently negative net income and EBIT. The gross profit margin is negative due to costs exceeding the revenue. However, the company has shown some revenue generation in the latest TTM, indicating potential for future growth.

Balance Sheet

The balance sheet is relatively stable with a high equity ratio and low total debt, indicating strong financial stability. However, the company’s assets have been declining over time, and the return on equity is negative due to consistent losses.

Cash Flow

The cash flow statement indicates negative operating cash flow, reflecting ongoing operational challenges. Despite this, the company maintains a strong cash position, suggesting potential for future investment and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-154.00K	-315.00K	-315.00K	-47.00K	-19.00K	0.00
EBITDA	-40.49M	-37.93M	-41.15M	-30.63M	-15.08M	0.00
Net Income	-41.02M	-38.96M	-35.59M	-7.13M	-9.21M	-446.00K
Balance Sheet
Total Assets	313.43M	188.27M	226.30M	254.36M	279.92M	5.91M
Cash, Cash Equivalents and Short-Term Investments	291.54M	149.32M	161.56M	165.96M	276.78M	5.89M
Total Debt	647.00K	624.00K	974.00K	0.00	0.00	0.00
Total Liabilities	10.25M	9.32M	7.33M	4.55M	2.75M	246.00K
Stockholders Equity	303.18M	178.95M	218.97M	249.82M	277.18M	5.67M
Cash Flow
Free Cash Flow	-40.38M	-42.33M	-33.44M	-26.27M	-15.39M	-1.11M
Operating Cash Flow	-40.29M	-42.28M	-33.34M	-26.20M	-15.28M	-1.09M
Investing Cash Flow	64.16M	65.14M	-54.10M	-84.69M	-104.00K	-21.00K
Financing Cash Flow	139.67M	-304.00K	-204.00K	0.00	286.45M	5.50M

GH Research Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GHRS, the sentiment is Negative. The current price of 12.54 is below the 20-day moving average (MA) of 13.38, below the 50-day MA of 13.42, and above the 200-day MA of 12.36, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 42.65 is Neutral, neither overbought nor oversold. The STOCH value of 44.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GHRS.

GH Research Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHAR	―	$911.85M	―	-3.40%	―	22.68%	42.45%
TSHA	―	$1.37B	―	-51.86%	―	-37.09%	58.96%
RLAY	―	$1.18B	-3.52	-46.24%	―	-76.27%	22.77%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GHRS	―	$865.29M	-18.90	-16.35%	―	―	-9.82%
PRME	―	$809.01M	―	-154.81%	―	739.42%	24.90%
SANA	―	$1.39B	―	-109.12%	―	―	7.58%