Precipio (PRPO) AI Stock Analysis

• Market Cap: $16.46M
• Dividend Yield: N/A
• Average Volume (3M): 8.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: 26.67%
• EPS Growth: 44.02%
• Country: US
• Employees: 54
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Diagnostics & Research
• EPS (TTM): N/A
• Shares Outstanding: 1,512,011
• 10 Day Avg. Volume: 8,216
• 30 Day Avg. Volume: 8,808
• PEG Ratio: -0.03
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.57
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 1.24
• Enterprise Value/Ebitda: -1.25
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: $11.50 ▲(3.60%Upside)

Precipio's stock performance benefits from strong financial growth and operational improvements, as noted in the earnings call, but faces challenges with profitability and valuation metrics. Technical indicators show short-term bullish momentum, though overbought signals suggest caution. The absence of a dividend and negative P/E ratio highlight risks, affecting the overall score.

Precipio Business Overview & Revenue Model

Company Description

Precipio, Inc., a healthcare solutions company, provides diagnostic products, reagents, and services in the United States. It provides diagnostic blood cancer testing services. The company offers IV-Cell, a proprietary cell culture media that enables simultaneous culturing of four hematopoietic cell lineages; HemeScreen, a suite of robust genetic diagnostic panels; ICE-COLD PCR, a proprietary and patented specimen technology that increases the sensitivity of molecular based tests; and COVID-19 antibody tests. It sells ICE-COLD-PCR technology kits to bio-pharma customers. Precipio, Inc. has collaborations with academic institutions specializing in cancer research, diagnostics, and treatment. The company is based in New Haven, Connecticut.

How the Company Makes Money

Precipio makes money primarily through the sale of its proprietary diagnostic tests and services to clinical laboratories, hospitals, and other healthcare providers. The company generates revenue by charging fees for the administration and analysis of its cancer diagnostic tests. It also earns income through strategic partnerships and collaborations with other healthcare organizations, which may include co-development agreements or licensing of its technologies. Additionally, Precipio benefits from its own laboratory services, where it processes tests and provides diagnostic results to its clients. These revenue streams contribute to the company's financial performance by leveraging its innovative diagnostic solutions in the growing field of precision medicine.

Precipio Financial Statement Overview

Summary

Precipio shows revenue growth and improved cost management, but faces profitability challenges with negative net profit, EBIT, and EBITDA margins. The balance sheet is stable with strong equity and low debt, while cash flow improvements are promising, though profitability remains a concern.

Income Statement

Precipio has shown a consistent growth in revenue, with a notable increase of 21.2% in the TTM (Trailing-Twelve-Months) compared to the previous year. However, the company is still operating at a loss with a negative net profit margin of -16.0% in the TTM. The gross profit margin improved to 43.8% in the TTM, indicating better cost management. The EBIT and EBITDA margins are negative, reflecting operational inefficiencies.

Balance Sheet

The company's balance sheet reflects a stable equity base with an equity ratio of 65.8% in the TTM, signaling financial stability. The debt-to-equity ratio is low at 0.18, indicating limited financial leverage. However, return on equity remains negative due to ongoing losses, which is a concern for profitability.

Cash Flow

Precipio's cash flow shows improvement with positive operating cash flow in the TTM, representing a significant recovery. Free cash flow also turned positive, indicating better cash management. However, both operating cash flow to net income and free cash flow to net income ratios are not optimal due to negative net income.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
19.36M	15.96M	15.20M	9.41M	8.85M	6.09M
	Gross Profit
8.48M	7.56M	6.02M	2.51M	2.39M	1.15M
	EBIT
-3.00M	-4.22M	-7.62M	-12.80M	-9.61M	-9.15M
	EBITDA
-1.88M	-2.70M	-4.32M	-10.65M	-7.05M	-8.77M
	Net Income Common Stockholders
-3.10M	-4.29M	-5.85M	-12.20M	-8.55M	-12.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.02M	1.39M	1.50M	3.44M	11.67M	2.66M
	Total Assets
17.79M	17.00M	18.10M	21.50M	30.44M	20.71M
	Total Debt
2.16M	1.25M	1.12M	1.39M	1.43M	1.49M
	Net Debt
1.15M	-136.00K	-386.00K	-2.05M	-10.24M	-1.17M
	Total Liabilities
6.09M	4.90M	3.67M	5.14M	5.83M	6.55M
	Stockholders Equity
11.70M	12.09M	14.43M	16.30M	24.56M	14.13M
Cash Flow		Free Cash Flow
701.00K	216.00K	-3.69M	-8.00M	-7.26M	-7.58M
	Operating Cash Flow
1.06M	439.00K	-3.56M	-7.72M	-6.58M	-7.43M
	Investing Cash Flow
-361.00K	-223.00K	-126.00K	-277.00K	-682.00K	-96.00K
	Financing Cash Flow
-460.00K	-329.00K	1.74M	-225.00K	16.27M	9.34M

Precipio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.10
• 50DMA: Positive
• 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 PRPO, the sentiment is Positive. The current price of 11.1 is above the 20-day moving average (MA) of 10.54, above the 50-day MA of 7.97, and above the 200-day MA of 6.85, indicating a bullish trend. The MACD of 0.92 indicates Positive momentum. The RSI at 63.58 is Neutral, neither overbought nor oversold. The STOCH value of 59.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRPO.

Precipio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRPO	65 Neutral	$16.46M	―	-25.29%	―	26.67%	44.02%
Sector *	54 Neutral	$5.34B	3.36	-45.10%	3.39%	16.81%	-0.03%
NURO	45 Neutral	$9.43M	―	-45.38%	―	-48.61%	32.18%
ERNA		$9.94M	―	-2264.31%	―	―	―
KPRX	56 Neutral	$9.16M	4.67	-41.13%	―	―	―
LYRA	52 Neutral	$15.02M	―	-195.46%	―	-29.46%	2.71%
ACXP	39 Underperform	$7.21M	―	-285.79%	―	―	23.65%

Precipio Corporate Events

Precipio Holds Annual Stockholders Meeting, Approves Proposals

On June 17, 2025, Precipio, Inc. held its Annual Meeting of stockholders, where two key proposals were voted on and approved. The stockholders elected Ilan Danieli and David S. Cohen as Class I directors for terms expiring in 2028 and ratified the appointment of CBIZ CPAs, P.C. as the independent registered public accounting firm for the year ending December 31, 2025.

Precipio Schedules Q1-2025 Shareholder Update Call

On May 1, 2025, Precipio, Inc. announced a Q1-2025 Shareholder Update Call scheduled for May 15, 2025, at 5:00 PM ET, to provide updates on its core businesses. This call reflects Precipio’s ongoing commitment to transparency and engagement with its stakeholders, potentially impacting the company’s operations and market positioning by keeping investors informed about its progress and strategic direction.