Prenetics Group (PRE) AI Stock Analysis

• Market Cap: $43.98M
• Dividend Yield: N/A
• Average Volume (3M): 7.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -68.28%
• EPS Growth: 0.07%
• Country: US
• Employees: 320
• Sector: Healthcare
• Sector Strength: 58
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.94
• Shares Outstanding: 10,636,254
• 10 Day Avg. Volume: 5,581
• 30 Day Avg. Volume: 7,128
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.95
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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: $13.00
• Price Target Upside: 144.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Prenetics Group is currently facing significant financial challenges, marked by declining revenues and negative profitability. While technical analysis shows some positive momentum, the overall valuation remains unattractive due to negative earnings. The company needs to focus on improving financial health and profitability to enhance its stock performance.

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 Group makes money through a diversified revenue model centered around its genetic testing and diagnostic services. The company generates revenue by selling its genetic testing kits directly to consumers and through partnerships with healthcare providers and corporate clients. Additionally, Prenetics has established significant partnerships with hospitals and clinics to offer its precision oncology solutions as part of their patient care services. The company also earns income by licensing its technology and intellectual property to third parties, expanding its reach and application in the healthcare industry. Key factors contributing to its earnings include strategic collaborations with leading healthcare institutions and continuous innovation in its testing and diagnostic capabilities.

Prenetics Group Financial Statement Overview

Summary

Prenetics Group is facing significant financial challenges, with declining revenues, negative profitability, and cash flow issues. The balance sheet shows some strength with low leverage, but overall financial performance is weak and needs improvement.

Income Statement

Prenetics Group has faced significant challenges with declining revenues and negative profit margins. The net profit margin and EBIT margin are negative, indicating substantial losses. Revenue has decreased sharply from 2022 to 2023, showing a significant decline in business performance. The company needs to reverse these trends to improve its financial health.

Balance Sheet

Prenetics Group's balance sheet shows some strengths, such as relatively low debt levels resulting in a low debt-to-equity ratio. However, the company's return on equity is negative due to ongoing losses. The equity ratio is strong, indicating a solid capital structure with high equity relative to total assets.

Cash Flow

The cash flow situation is concerning, with negative operating cash flow and free cash flow in 2023. The free cash flow to net income ratio is negative, reflecting cash outflows amid losses. However, the company has maintained a strong cash position, which may provide some flexibility to manage operations.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
21.74M	275.76M	275.85M	65.18M	9.23M
	Gross Profit
8.83M	131.55M	106.13M	26.34M	2.72M
	EBIT
-51.91M	207.42M	-10.35M	967.46K	-18.23M
	EBITDA
-47.90M	-214.28M	-157.70M	-1.42M	-18.57M
	Net Income Common Stockholders
-62.72M	-190.45M	-174.02M	-1.96M	-20.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
72.74M	164.20M	45.19M	14.49M	11.82M
	Total Assets
254.17M	307.98M	148.51M	78.88M	29.69M
	Total Debt
2.37M	6.65M	5.27M	1.67M	899.55K
	Net Debt
-43.34M	-140.01M	-30.02M	-12.82M	-10.62M
	Total Liabilities
44.01M	67.94M	549.40M	47.88M	12.83M
	Stockholders Equity
206.36M	237.06M	-400.81M	31.08M	16.91M
Cash Flow		Free Cash Flow
-14.68M	8.17M	2.00M	-5.94M	-2.26M
	Operating Cash Flow
-13.76M	14.51M	13.42M	-2.88M	-1.88M
	Investing Cash Flow
-82.95M	-46.14M	-22.02M	-5.97M	-4.60M
	Financing Cash Flow
-4.70M	143.32M	29.32M	11.84M	-569.14K

Prenetics Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 5.31 is above the 20-day moving average (MA) of 4.27, above the 50-day MA of 4.42, and above the 200-day MA of 4.90, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 71.94 is Negative, neither overbought nor oversold. The STOCH value of 87.35 is Negative, 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
BNR	52 Neutral	$30.89M	―	-51.22%	―	-10.56%	41.02%
Sector *	52 Neutral	$5.36B	3.88	-42.93%	2.87%	17.85%	1.45%
PRE	44 Neutral	$43.98M	―	-24.59%	―	-68.28%	0.07%
BNGO	43 Neutral	$12.41M	―	-170.33%	―	-14.79%	76.94%
BDSX	42 Neutral	$75.86M	―	-337.30%	―	45.30%	45.67%
MYNZ	42 Neutral	$9.06M	―	-809.29%	―	―	―
VNRX	29 Underperform	$49.13M	―	138.92%	―	59.10%	37.59%