Prenetics Group (PRE) AI Stock Analysis

• Market Cap: $122.36M
• Dividend Yield: N/A
• Average Volume (3M): 40.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• Revenue Growth: 85.33%
• EPS Growth: 30.70%
• Country: US
• Employees: 285
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.71
• Shares Outstanding: 11,453,009
• 10 Day Avg. Volume: 51,700
• 30 Day Avg. Volume: 40,878
• 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: -0.02
• Enterprise Value/Revenue: -0.07
• Enterprise Value/Gross Profit: -0.14
• Enterprise Value/Ebitda: 0.04
• 1Y Price Target: $14.00
• Price Target Upside: 50.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: $9.50 ▲(2.15% Upside)

The overall stock score reflects significant profitability challenges and valuation concerns, despite positive technical indicators. Financial performance is the most significant factor, highlighting the need for improved cash flow and profitability. Technical analysis provides some optimism with positive momentum, but valuation issues weigh heavily on the score.

Prenetics Group Business Overview & Revenue Model

Company Description

Prenetics Global Limited, an investment holding company, operates as a diagnostics and genetic testing company. Its products include CircleDNA, a consumer genetic testing product; and Circle HealthPod, a rapid detection health monitoring system that allows users to take COVID-19 tests at point-of-care or at home utilizing the nucleic acid amplification test. The company's products also comprise ColoClear, a non-invasive FIT-DNA colorectal cancer screening test; Circle SnapShot, an off-the-shelf at-home blood test; Circle Medical, a diagnostic testing product; and Circle One and F1x/Fem. Prenetics Global Limited was founded in 2014 and is headquartered in Quarry Bay, Hong Kong.

How the Company Makes Money

Prenetics generates revenue primarily through its genetic testing services and health solutions. Key revenue streams include direct-to-consumer sales of genetic testing kits, corporate wellness programs, and partnerships with healthcare providers and insurers. Additionally, Prenetics has established significant collaborations with various organizations to offer their testing solutions, which further expands their market reach and drives earnings. The company also leverages technology through its digital platforms, allowing for subscription-based models and one-time service fees, contributing to a diversified revenue base.

Prenetics Group Financial Statement Overview

Summary

Prenetics Group shows strong cost management with a gross profit margin of 50%. However, persistent negative EBIT, net income margins, and negative cash flows indicate profitability challenges and cash flow issues. The balance sheet is stable with low leverage, but overall financial performance needs improvement to ensure long-term viability.

Income Statement

Prenetics Group has seen fluctuating revenue growth, with recent declines from 2022 to 2023 but a recovery in 2024. Gross profit margin stands at roughly 50%, indicating strong cost management. However, negative EBIT and net income margins highlight ongoing profitability challenges that could impact long-term sustainability.

Balance Sheet

The company maintains a strong equity position with a positive equity ratio, indicative of low leverage and financial stability. The debt-to-equity ratio remains low, though high negative net income affects return on equity. Overall, the balance sheet suggests a relatively stable financial footing but with profitability concerns.

Cash Flow

Operating cash flow remains negative, suggesting challenges in generating cash from operations. Despite this, there is a positive trend in cash flow from investing activities. The free cash flow remains negative, impacting the company's ability to finance operations without external funding. Overall, cash flow management needs improvement.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.62M	21.74M	275.76M	275.85M	65.18M
Gross Profit	15.40M	8.83M	131.55M	106.13M	26.34M
EBITDA	-51.57M	-47.90M	-214.28M	-157.70M	-1.42M
Net Income	-46.30M	-62.72M	-190.45M	-174.02M	-1.96M
Balance Sheet
Total Assets	213.57M	254.17M	307.98M	148.51M	78.88M
Cash, Cash Equivalents and Short-Term Investments	62.81M	72.74M	164.20M	45.19M	14.49M
Total Debt	5.77M	2.37M	6.65M	5.27M	1.67M
Total Liabilities	42.23M	44.01M	67.94M	549.40M	47.88M
Stockholders Equity	170.39M	206.36M	237.06M	-400.81M	31.08M
Cash Flow
Free Cash Flow	-29.94M	-14.68M	8.17M	2.00M	-5.94M
Operating Cash Flow	-28.87M	-13.76M	14.51M	13.42M	-2.88M
Investing Cash Flow	38.54M	-82.95M	-46.14M	-22.02M	-5.97M
Financing Cash Flow	-3.34M	-4.70M	143.32M	29.32M	11.84M

Prenetics Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRE, the sentiment is Positive. The current price of 9.3 is above the 20-day moving average (MA) of 7.80, above the 50-day MA of 7.95, and above the 200-day MA of 6.21, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 71.41 is Negative, neither overbought nor oversold. The STOCH value of 77.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRE.

Prenetics Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.93B	-0.32	-43.43%	2.21%	22.30%	-1.88%
BNR	51 Neutral	$89.32M	―	-22.66%	―	5.33%	75.52%
BNGO	50 Neutral	$18.68M	―	-118.26%	―	-25.02%	85.08%
PRE	49 Neutral	$122.36M	―	-26.74%	―	85.33%	30.70%
BDSX	47 Neutral	$63.37M	―	-219.68%	―	25.70%	39.23%
MYNZ	44 Neutral	$7.51M	―	-809.29%	―	―	―
VNRX	43 Neutral	$65.74M	―	138.92%	―	35.10%	39.15%