Gritstone bio (GRTSQ) AI Stock Analysis

• Market Cap: $118.00
• Dividend Yield: N/A
• Average Volume (3M): 2.38M
• Price to Earnings (P/E): ―
• Beta (1Y): -63.29
• Revenue Growth: -81.66%
• EPS Growth: 11.95%
• Country: US
• Employees: 233
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -1.15
• Shares Outstanding: 35,774,000
• 10 Day Avg. Volume: 1,788,058
• 30 Day Avg. Volume: 2,379,209
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 47.99
• P/FCF Ratio: N/A
• 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: 24 Underperform
• Price Target: ―

Gritstone bio's overall stock score reflects significant financial challenges, technical weaknesses, poor valuation metrics, and the negative impact of bankruptcy proceedings. The company's current situation presents substantial risks, overshadowing any potential positive factors.

Positive Factors

Future Trials

Plans are reiterated to initiate a global Phase III pivotal trial.

Strategic Planning

Gritstone has engaged a financial advisor to explore and review potential value-maximizing strategies.

Negative Factors

Clinical Results

Recent equity weakness is attributed to disappointing ctDNA primary efficacy results that overshadowed better than expected preliminary PFS dataset.

Funding Challenges

The insufficient funding and lack of a clear path forward bring significant uncertainties to the development of Gritstone’s pipeline.

Gritstone bio Business Overview & Revenue Model

Company Description

Gritstone bio, Inc. is a biotechnology company focused on developing personalized immunotherapies for cancer and infectious diseases. The company leverages its proprietary artificial intelligence platform, EDGE, and its understanding of tumor immunology to create therapeutic products. Gritstone bio's core products include neoantigen-based cancer immunotherapies and infectious disease vaccines, aiming to harness the power of the immune system to fight disease.

How the Company Makes Money

Gritstone bio makes money primarily through collaborations and partnerships with pharmaceutical companies and research institutions, focusing on the development and commercialization of its immunotherapy products. Revenue streams include upfront payments, milestone payments, and potential royalties from successfully developed products. Strategic alliances and collaborations, such as those with major pharmaceutical companies or government entities, significantly contribute to Gritstone bio's earnings by providing funding and resources for research and development initiatives.

Gritstone bio Financial Statement Overview

Summary

Gritstone bio's financial performance is weak, with declining revenues, increasing losses, and high leverage. The company's financial health is under significant pressure due to these factors, indicating a need for strategic financial adjustments to stabilize operations.

Income Statement

Gritstone bio's income statement reveals a challenging financial situation. The company experienced a significant decline in revenue from $19,945,000 in 2022 to $1,331,000 in 2023, indicating a severe contraction in business activity. Gross profit margins are not sustainable, and the company has reported negative EBIT and net income for several years, with net losses increasing from $119,687,000 in 2022 to $138,490,000 in 2023. These factors significantly impact profitability and highlight the need for strategic adjustments to stabilize financial performance.

Balance Sheet

The balance sheet shows a concerning increase in leverage, with total debt rising from $40,316,000 in 2022 to $104,775,000 in 2023. The debt-to-equity ratio is elevated, given the decrease in stockholders' equity from $170,781,000 in 2022 to $51,850,000 in 2023. Return on equity remains negative due to persistent losses, and the equity ratio has diminished, reflecting reduced financial stability. These metrics suggest potential risks associated with high leverage and declining equity.

Cash Flow

Cash flow analysis indicates a negative trend in cash generation, with operating cash flow deteriorating from -$115,946,000 in 2022 to -$121,648,000 in 2023. Free cash flow remains negative, highlighting ongoing challenges in covering capital expenditures and operational needs. The company is heavily reliant on financing activities to sustain operations, which raises concerns about its ability to generate internal cash flows and maintain liquidity.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
―	―	―	―	―
	Gross Profit
16.34M	19.95M	48.21M	―	―
	EBIT
-139.62M	-120.43M	-75.21M	-106.02M	-97.94M
	EBITDA
-126.86M	-111.87M	-67.88M	-99.37M	-93.19M
	Net Income Common Stockholders
-138.49M	-119.69M	-75.08M	-105.31M	-94.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
―	―	―	―	―
	Total Assets
177.77M	240.75M	278.11M	221.57M	184.39M
	Total Debt
104.78M	40.32M	26.42M	25.10M	23.49M
	Net Debt
25.49M	-131.57M	-186.51M	-145.96M	-104.29M
	Total Liabilities
125.92M	69.97M	62.02M	54.83M	50.05M
	Stockholders Equity
―	―	―	―	―
Cash Flow		Free Cash Flow
-126.22M	-121.82M	-56.14M	-92.62M	-101.18M
	Operating Cash Flow
-121.65M	-115.95M	-50.68M	-89.10M	-85.01M
	Investing Cash Flow
―	―	―	―	―
	Financing Cash Flow
―	―	―	―	―

Gritstone bio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRTSQ, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.02, and below the 200-day MA of 0.57, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 34.82 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GRTSQ.

Gritstone bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRUS	65 Neutral	$4.19B	―	-58.66%	―	42.77%	-51.27%
Sector *	54 Neutral	$5.31B	3.26	-45.10%	2.79%	16.76%	0.02%
IMMP	50 Neutral	$256.78M	―	-31.16%	―	―	15.14%
ADAP	43 Neutral	$72.97M	―	-273.36%	―	883.05%	62.93%
ALXO	39 Underperform	$30.94M	―	-102.99%	―	―	30.37%
CLRB	34 Underperform	$16.63M	―	-208.72%	―	―	56.38%
GRTSQ	24 Underperform	$118.00	―	-267.30%	―	-81.66%	11.95%

Gritstone bio Corporate Events

Gritstone Bio Files for Bankruptcy and Auctions Assets

Gritstone bio, Inc., a biotechnology company, has filed for Chapter 11 bankruptcy and conducted an auction of its assets. Hercules Capital, Inc., Future Solutions Investments LLC, and Seattle Project Corp. emerged as successful bidders for the company’s machinery, intellectual property, and other assets, respectively, totaling approximately $21.25 million in cash proceeds, pending court approval.

More about Gritstone bio

YTD Price Performance: -99.41%

Average Trading Volume: 18,650,820

Technical Sentiment Consensus Rating: Buy

Current Market Cap: $1.48M

Gritstone bio Files for Chapter 11 Bankruptcy

Gritstone bio, Inc. has filed for Chapter 11 bankruptcy, highlighting the speculative nature of trading its stock during this period. Investors are cautioned as the company’s monthly operating report, though submitted to comply with legal requirements, is not a reliable indicator of future performance or investment decisions. The report reveals significant financial challenges, with no assurance on recovery prospects for stakeholders.