Precipio (PRPO) AI Stock Analysis

• Market Cap: $42.08M
• Dividend Yield: N/A
• Average Volume (3M): 19.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: 30.95%
• EPS Growth: 59.67%
• Country: US
• Employees: 54
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.05
• Shares Outstanding: 1,752,007
• 10 Day Avg. Volume: 16,445
• 30 Day Avg. Volume: 19,918
• PEG Ratio: 0.05
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 37.59
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 1.88
• Enterprise Value/Ebitda: 52.82
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $23.00 ▼(-4.25% Downside)

Precipio's overall score is driven by strong earnings call insights and positive technical indicators, offset by weak valuation metrics and ongoing profitability challenges. The company's strategic initiatives and growth in key divisions provide optimism, but financial performance needs improvement to enhance the stock's attractiveness.

Positive Factors

Revenue Growth

Strong growth in the Pathology Services division indicates robust demand and market penetration, supporting long-term revenue expansion.

Gross Margin Improvement

Improved gross margins reflect better cost management and operational efficiency, enhancing profitability prospects over time.

Strategic Investments

Strategic investments in lab expansion and equipment bolster capacity and support future growth, aligning with long-term business objectives.

Negative Factors

Profitability Challenges

Ongoing profitability issues, with negative margins, could hinder financial stability and limit reinvestment in growth initiatives.

Operational Challenges

Operational challenges in the Products division may impact revenue consistency and growth visibility, posing risks to sustained performance.

Negative Return on Equity

Negative return on equity indicates inefficiencies in generating shareholder returns, potentially affecting investor confidence and capital attraction.

Precipio Business Overview & Revenue Model

Company Description

Precipio, Inc. (PRPO) is a biotechnology company focused on developing and commercializing innovative diagnostic solutions for cancer and other diseases. The company specializes in providing advanced molecular diagnostics that utilize proprietary technology to enhance the accuracy and efficiency of disease detection and treatment. Precipio's core products include its HemeScreen and HemeTrace tests, designed for hematologic cancers, alongside a range of other diagnostic offerings that cater to various oncological needs.

How the Company Makes Money

Precipio generates revenue primarily through the sale of its molecular diagnostic tests and services. The company's revenue model includes direct sales to healthcare providers and institutions, as well as partnerships with laboratories that utilize its diagnostic technology. Key revenue streams consist of test fees from HemeScreen and HemeTrace, which are charged per test conducted, as well as potential licensing agreements for its proprietary technology. Additionally, Precipio may benefit from collaborations with pharmaceutical companies for companion diagnostics, which can provide further financial support and enhance its market presence.

Precipio Financial Statement Overview

Summary

Precipio shows moderate revenue growth and improved cash flow generation, but profitability remains a challenge with negative profit margins and return on equity. The low leverage provides financial stability, yet operational efficiencies need enhancement.

Income Statement

Precipio's income statement shows a moderate improvement in revenue growth, with a TTM revenue growth rate of 4.64%. However, the company continues to face profitability challenges, as indicated by negative net profit and EBIT margins. The gross profit margin has improved to 46.14% in the TTM, suggesting better cost management, but the overall negative margins highlight ongoing operational inefficiencies.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.21 in the TTM, indicating conservative leverage. However, the return on equity remains negative, suggesting that the company is not generating sufficient returns on shareholder investments. The equity ratio is not explicitly calculated, but the relatively low debt levels suggest a solid equity base.

Cash Flow

Cash flow analysis shows positive trends with a TTM free cash flow growth rate of 4.25% and a free cash flow to net income ratio of 0.62, indicating improved cash generation relative to earnings. However, the operating cash flow to net income ratio remains low, suggesting that cash from operations is not yet robust enough to fully support profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.52M	15.96M	15.20M	9.41M	8.85M	6.09M
Gross Profit	10.22M	7.56M	6.02M	2.51M	2.39M	1.15M
EBITDA	363.00K	-2.70M	-6.31M	-10.65M	-7.05M	-8.00M
Net Income	-1.25M	-4.29M	-5.85M	-12.20M	-8.55M	-10.63M
Balance Sheet
Total Assets	21.15M	17.00M	18.10M	21.50M	30.44M	20.71M
Cash, Cash Equivalents and Short-Term Investments	2.31M	1.39M	1.50M	3.44M	11.67M	2.66M
Total Debt	3.51M	1.25M	1.12M	1.39M	1.43M	1.49M
Total Liabilities	7.40M	4.90M	3.67M	5.14M	5.83M	6.55M
Stockholders Equity	13.75M	12.09M	14.43M	16.30M	24.56M	14.13M
Cash Flow
Free Cash Flow	589.00K	216.00K	-3.69M	-8.00M	-7.26M	-7.58M
Operating Cash Flow	884.00K	439.00K	-3.56M	-7.72M	-6.58M	-7.43M
Investing Cash Flow	-295.00K	-223.00K	-126.00K	-277.00K	-682.00K	-96.00K
Financing Cash Flow	663.00K	-329.00K	1.74M	-225.00K	16.27M	9.34M

Precipio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.02
• 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 24.02 is below the 20-day moving average (MA) of 24.37, above the 50-day MA of 21.61, and above the 200-day MA of 14.05, indicating a neutral trend. The MACD of 0.83 indicates Positive momentum. The RSI at 53.34 is Neutral, neither overbought nor oversold. The STOCH value of 35.54 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	57 Neutral	$42.08M	-28.78	-9.76%	―	30.95%	59.67%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DRIO	49 Neutral	$81.56M	-0.67	-42.73%	―	7.29%	7.24%
INBS	46 Neutral	$5.28M	-3.22	-223.45%	―	3.26%	65.96%
BIAF	46 Neutral	$6.21M	-0.07	-245.18%	―	-27.66%	13.18%
TRIB	40 Underperform	$17.19M	-0.33	―	―	-4.35%	-6.31%
BNGO	40 Underperform	$15.98M	-0.10	-78.22%	―	-13.84%	88.80%

Precipio Corporate Events

Precipio Announces Q3-2025 Shareholder Update Call

On November 4, 2025, Precipio, Inc. announced a Q3-2025 Shareholder Update Call scheduled for November 17, 2025. The call will provide updates on the company’s core businesses, reflecting Precipio’s ongoing commitment to transparency and stakeholder engagement. This event is significant for stakeholders as it offers insights into the company’s operational progress and strategic direction.