ProKidney (PROK) AI Stock Analysis

• Market Cap: $806.24M
• Dividend Yield: N/A
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: N/A
• EPS Growth: 2.35%
• Country: US
• Employees: 204
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.12
• Shares Outstanding: 141,545,440
• 10 Day Avg. Volume: 1,651,285
• 30 Day Avg. Volume: 2,052,554
• PEG Ratio: -0.31
• Price to Book (P/B): -0.17
• Price to Sales (P/S): 2177.35
• P/FCF Ratio: -1.06
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 1.52K
• Enterprise Value/Gross Profit: -1.73K
• Enterprise Value/Ebitda: -7.55
• 1Y Price Target: $4.67
• Price Target Upside: 74.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.49
• Revenue Forecast (FY): $430.17K

• Rating: 29 Underperform
• Price Target: ―

ProKidney's stock score is significantly impacted by its poor financial performance, characterized by weak revenue growth, high operational costs, and negative cash flow. The technical analysis suggests a bearish trend with mixed indicators, while the valuation reflects high volatility and risk due to negative earnings. Overall, the financial instability and operational challenges are the primary concerns, leading to a low stock score.

Positive Factors

Innovative Product

ProKidney's focus on innovative cellular therapies like REACT positions it at the forefront of CKD treatment, potentially transforming patient care and offering a competitive edge in the biotechnology sector.

Strategic Partnerships

Potential partnerships with larger pharmaceutical companies could enhance ProKidney's distribution capabilities, providing access to broader markets and additional revenue streams through upfront payments, milestones, and royalties.

Market Position

ProKidney's dedication to pioneering therapies for CKD positions it as a leader in a niche market, potentially capturing significant market share as demand for advanced kidney treatments grows.

Negative Factors

Weak Financial Performance

Persistent financial weaknesses, including lack of revenue growth and high costs, threaten ProKidney's long-term viability, limiting its ability to invest in R&D and expand operations.

High Leverage

High leverage and negative equity raise concerns about ProKidney's solvency, potentially restricting its financial flexibility and ability to withstand economic downturns or fund future growth.

Cash Flow Issues

Ongoing negative cash flow highlights inefficiencies in cash management, posing a risk to ProKidney's operational sustainability and ability to finance its strategic initiatives without external funding.

ProKidney Business Overview & Revenue Model

Company Description

ProKidney Corp., a clinical-stage biotechnology, engages in developing cellular therapy candidates. It is developing Renal Autologous Cell Therapy, an autologous homologous cell admixture that is in a Phase III development program, as well as Phase II clinical trials for the treatment of moderate to severe diabetic kidney disease; and Phase I clinical trial for patients with congenital anomalies of the kidney and urinary tract. The company was founded in 2015 and is headquartered in Winston-Salem, North Carolina.

How the Company Makes Money

ProKidney makes money primarily through the development and commercialization of its innovative cellular therapies for chronic kidney disease, particularly through its flagship product, Renal Autologous Cell Therapy (REACT). The company seeks to generate revenue by advancing this product through clinical trials and achieving regulatory approval, which would allow it to market the therapy to healthcare providers and hospitals. Additionally, ProKidney may enter into partnerships or licensing agreements with larger pharmaceutical companies to enhance distribution capabilities and expand market reach, which could provide upfront payments, milestone payments, and royalties as key revenue streams.

ProKidney Financial Statement Overview

Summary

ProKidney's financial performance is severely weak with no revenue growth, high operational costs, and consistent negative profitability metrics. The balance sheet shows significant weaknesses with negative equity and high leverage, raising solvency concerns. Cash flow analysis indicates ongoing cash burn and inefficiencies, reflecting critical deficiencies in profitability and cash management.

Income Statement

ProKidney demonstrates weak financial performance with no revenue growth and consistent negative profitability metrics. Despite a minor revenue introduction in 2024, the company has maintained negative gross and net profit margins, indicating ongoing operational challenges. The EBIT and EBITDA margins remain deeply negative, underscoring the company's struggle to cover its operating costs.

Balance Sheet

The balance sheet shows significant weaknesses with negative stockholders' equity and high leverage. The debt-to-equity ratio is not meaningful due to negative equity, suggesting financial instability. Assets are largely covered by liabilities, and the equity ratio indicates a deficiency in equity financing. These factors highlight a precarious financial position, raising concerns about long-term solvency.

Cash Flow

Cash flow analysis shows persistent negative free cash flow and operating cash flow, indicating ongoing cash burn. The operating cash flow to net income ratio is negative, reflecting inefficiencies in converting net income to cash. Despite positive financing efforts, cash management remains a critical issue, as evidenced by negative free cash flow to net income ratio.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	744.00K	76.00K	0.00	0.00	0.00	0.00
Gross Profit	-654.00K	76.00K	0.00	-3.04M	0.00	0.00
EBITDA	-149.50M	-158.49M	-125.59M	-143.99M	-53.12M	-26.06M
Net Income	-71.03M	-61.19M	-35.47M	-108.03M	-55.15M	-26.75M
Balance Sheet
Total Assets	351.61M	441.07M	420.55M	518.00M	40.30M	16.70M
Cash, Cash Equivalents and Short-Term Investments	271.73M	358.29M	362.95M	490.25M	20.56M	4.58M
Total Debt	4.24M	3.24M	4.41M	2.40M	1.33M	1.56M
Total Liabilities	33.27M	39.44M	29.22M	13.06M	13.38M	6.84M
Stockholders Equity	-1.01B	-994.95M	-1.10B	-1.10B	26.92M	9.86M
Cash Flow
Free Cash Flow	-146.73M	-155.86M	-124.27M	-78.94M	-55.49M	-30.64M
Operating Cash Flow	-111.78M	-126.35M	-90.07M	-77.09M	-50.30M	-25.18M
Investing Cash Flow	90.95M	20.41M	-329.98M	-1.74M	-5.19M	-5.46M
Financing Cash Flow	8.06M	144.41M	-9.55M	548.52M	71.47M	19.99M

ProKidney Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.68
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PROK, the sentiment is Neutral. The current price of 2.68 is below the 20-day moving average (MA) of 2.99, below the 50-day MA of 2.81, and above the 200-day MA of 1.83, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 42.17 is Neutral, neither overbought nor oversold. The STOCH value of 25.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PROK.

ProKidney Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHAT	61 Neutral	$1.04B	―	―	―	460.30%	33.03%
URGN	57 Neutral	$1.18B	―	―	―	8.00%	-10.15%
RZLT	53 Neutral	$923.10M	―	-59.23%	―	―	26.65%
RLAY	52 Neutral	$1.18B	-3.52	-41.14%	―	-16.50%	33.02%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NRIX	51 Neutral	$1.23B	―	-65.35%	―	48.32%	-1.91%
PROK	29 Underperform	$806.24M	―	―	―	―	2.35%