PROCEPT BioRobotics (PRCT) AI Stock Analysis

• Market Cap: $1.70B
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: 50.07%
• EPS Growth: 21.22%
• Country: US
• Employees: 756
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.38
• Shares Outstanding: 55,878,590
• 10 Day Avg. Volume: 1,079,594
• 30 Day Avg. Volume: 1,135,748
• PEG Ratio: 2.10
• Price to Book (P/B): 10.43
• Price to Sales (P/S): 18.70
• P/FCF Ratio: -40.50
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 5.91
• Enterprise Value/Gross Profit: 9.16
• Enterprise Value/Ebitda: -23.71
• 1Y Price Target: $49.86
• Price Target Upside: 64.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): -1.14
• Revenue Forecast (FY): $422.08M

• Rating: 41 Neutral
• Price Target: $30.00 ▼(-1.25% Downside)

The overall stock score is primarily influenced by financial performance and technical analysis. Despite strong revenue growth, the company faces significant challenges in profitability and cash flow, which are critical concerns. Technical indicators point to bearish momentum, further impacting the score. Valuation metrics are weak due to negative earnings and lack of dividends, adding to the negative outlook.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing market adoption and demand for PROCEPT's products, supporting long-term business expansion.

Gross Margin Expansion

Improved gross margins suggest effective cost management and pricing power, enhancing profitability potential over time.

U.S. Installed Base Growth

A growing installed base in the U.S. strengthens market position and drives recurring revenue from consumables and services.

Negative Factors

Net Loss Persistence

Ongoing net losses highlight challenges in achieving profitability, which could strain financial resources and investor confidence.

Challenges in Utilization Growth

Sluggish utilization growth may indicate underutilization of installed systems, impacting revenue potential and operational efficiency.

Cash Flow Challenges

Negative cash flows suggest difficulties in sustaining operations and funding growth initiatives without external financing.

PROCEPT BioRobotics Business Overview & Revenue Model

Company Description

PROCEPT BioRobotics Corporation, a surgical robotics company, develops transformative solutions in urology. It develops, manufactures, and sells AquaBeam Robotic System, an image-guided, surgical robotic system for use in minimally-invasive urologic surgery with a focus on treating benign prostatic hyperplasia (BPH). The company also designs Aquablation therapy for males suffering from lower urinary tract symptoms due to BPH. As of December 31, 2021, it had an install base of 130 AquaBeam Robotic Systems worldwide comprising 78 in the United States. PROCEPT BioRobotics Corporation was incorporated in 2007 and is headquartered in Redwood City, California.

How the Company Makes Money

PROCEPT BioRobotics generates revenue primarily through the sale of its AQUABEAM Robotic System, which is complemented by disposable instruments and accessories used in surgical procedures. The company typically earns money from the initial sale of the robotic systems, which are sold to hospitals and surgical centers, as well as recurring revenue from the sale of consumable products required for each procedure. Additionally, PROCEPT may engage in partnerships with healthcare providers and institutions to enhance its market reach and implement its technologies in a broader range of healthcare settings, contributing to its overall earnings. These partnerships often facilitate training, adoption, and integration of its systems into clinical practice, thereby driving further sales and increasing the company's revenue base.

PROCEPT BioRobotics Financial Statement Overview

Summary

PROCEPT BioRobotics shows strong revenue growth and improving gross profit margins, but struggles with profitability and cash flow generation. The balance sheet is stable with moderate leverage, yet the company faces challenges in achieving positive returns on equity.

Income Statement

PROCEPT BioRobotics shows a consistent revenue growth trajectory, with a notable 9.08% increase in TTM. However, the company struggles with profitability, as evidenced by negative net profit margins and EBIT margins. The gross profit margin has improved over time, reaching 64.55% in TTM, indicating efficient cost management. Despite these improvements, the persistent negative net income and EBIT margins highlight ongoing challenges in achieving profitability.

Balance Sheet

The company's balance sheet reflects a stable debt-to-equity ratio of 0.21 in TTM, indicating moderate leverage. However, the return on equity remains negative, suggesting that the company is not generating sufficient returns on shareholders' equity. The equity ratio is not explicitly provided, but the overall asset base appears solid. The balance sheet stability is a positive, but the lack of profitability remains a concern.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows. The free cash flow growth rate is negative, indicating deteriorating cash generation capabilities. However, the free cash flow to net income ratio is above 1, suggesting that cash flow is relatively better than net income. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	299.91M	224.50M	136.19M	75.01M	34.47M	7.72M
Gross Profit	193.59M	137.10M	71.05M	37.09M	15.87M	-1.25M
EBITDA	-74.79M	-82.00M	-98.09M	-79.13M	-50.72M	-44.90M
Net Income	-84.58M	-91.41M	-105.90M	-87.15M	-59.85M	-53.02M
Balance Sheet
Total Assets	511.54M	534.02M	404.72M	309.33M	337.02M	125.97M
Cash, Cash Equivalents and Short-Term Investments	294.28M	333.73M	257.22M	222.64M	304.32M	100.13M
Total Debt	78.93M	80.25M	79.20M	77.32M	54.10M	54.76M
Total Liabilities	131.26M	131.80M	123.97M	112.26M	69.93M	65.01M
Stockholders Equity	380.28M	402.22M	280.75M	197.07M	267.09M	60.96M
Cash Flow
Free Cash Flow	-79.73M	-103.62M	-133.21M	-83.03M	-57.93M	-48.58M
Operating Cash Flow	-71.05M	-99.21M	-108.00M	-80.38M	-57.33M	-48.34M
Investing Cash Flow	-8.68M	-4.41M	-25.21M	-2.65M	-592.00K	-233.00K
Financing Cash Flow	177.28M	180.13M	167.79M	3.61M	262.12M	106.77M

PROCEPT BioRobotics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRCT, the sentiment is Negative. The current price of 30.38 is below the 20-day moving average (MA) of 32.31, below the 50-day MA of 32.19, and below the 200-day MA of 44.23, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 41.45 is Neutral, neither overbought nor oversold. The STOCH value of 19.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRCT.

PROCEPT BioRobotics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INSP	69 Neutral	$2.68B	63.26	6.54%	―	16.81%	34.90%
LIVN	63 Neutral	$3.39B	-15.49	-17.63%	―	8.97%	-1024.86%
AORT	58 Neutral	$2.06B	-179.30	-2.45%	―	9.81%	-1067.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ATEC	47 Neutral	$2.64B	-16.94	-540.40%	―	27.11%	17.66%
SSII	47 Neutral	$1.15B	-93.39	-43.42%	―	159.43%	67.42%
PRCT	41 Neutral	$1.70B	-19.75	-27.22%	―	50.07%	21.22%