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Gritstone Bio, Inc. (GRTSQ)
OTHER OTC:GRTSQ
US Market

Gritstone bio (GRTSQ) AI Stock Analysis

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Gritstone bio

(OTC:GRTSQ)

Rating:24Underperform
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 (GRTSQ) vs. SPDR S&P 500 ETF (SPY)

Gritstone bio Business Overview & Revenue Model

Company DescriptionGritstone 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 MoneyGritstone 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
30
Negative
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
40
Negative
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
35
Negative
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 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
Gross Profit
16.34M19.95M48.21M
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 SheetCash, Cash Equivalents and Short-Term Investments
Total Assets
177.77M240.75M278.11M221.57M184.39M
Total Debt
104.78M40.32M26.42M25.10M23.49M
Net Debt
25.49M-131.57M-186.51M-145.96M-104.29M
Total Liabilities
125.92M69.97M62.02M54.83M50.05M
Stockholders Equity
Cash FlowFree 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 Price0.01
Price Trends
50DMA
0.02
Negative
100DMA
0.21
Negative
200DMA
0.57
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
34.82
Neutral
STOCH
>-0.01
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 Risk Analysis

Gritstone bio disclosed 71 risk factors in its most recent earnings report. Gritstone bio reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Gritstone bio Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$4.19B-58.66%42.77%-51.27%
54
Neutral
$5.31B3.26-45.10%2.79%16.76%0.02%
50
Neutral
$256.78M-31.16%15.14%
43
Neutral
$72.97M-273.36%883.05%62.93%
39
Underperform
$30.94M-102.99%30.37%
34
Underperform
$16.63M-208.72%56.38%
24
Underperform
$118.00-267.30%-81.66%11.95%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GRTSQ
Gritstone bio
0.01
-0.79
-98.75%
IMMP
Immutep
1.84
-0.87
-32.10%
ADAP
Adaptimmune Therapeutics
0.28
-0.76
-73.08%
CLRB
Cellectar Biosciences
0.36
-2.90
-88.96%
MRUS
Merus
54.91
-2.20
-3.85%
ALXO
ALX Oncology Holdings
0.58
-7.98
-93.22%

Gritstone bio Corporate Events

Legal ProceedingsBusiness Operations and Strategy
Gritstone Bio Files for Bankruptcy and Auctions Assets
Negative
Dec 13, 2024

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

Legal ProceedingsFinancial Disclosures
Gritstone bio Files for Chapter 11 Bankruptcy
Negative
Nov 29, 2024

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.