Education
About Us
Working with TipRanks
Follow Us
Precipio Inc (PRPO)
NASDAQ:PRPO
Top Page
Precipio
(NASDAQ:PRPO)
Rating:66Neutral
Price Target:
$10.50
▲( 8.47% Upside)
Precipio (PRPO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.63M
Dividend YieldN/A
Average Volume (3M)14.42K
Price to Earnings (P/E)―
Beta (1Y)0.64
Revenue Growth26.67%
EPS Growth44.02%
CountryUS
Employees54
SectorHealthcare
Sector Strength40
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,512,011
10 Day Avg. Volume12,204
30 Day Avg. Volume14,420
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)1.01
Price to Sales (P/S)0.00
P/FCF Ratio17.00
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue0.18
Enterprise Value/Gross Profit1.54
Enterprise Value/Ebitda-1.56
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Precipio Business Overview & Revenue Model
Company DescriptionPrecipio, Inc. is a healthcare solutions company focused on cancer diagnostics. It operates within the biotechnology and healthcare sectors, offering a range of diagnostic products and services designed to improve the accuracy and efficiency of cancer diagnosis. The company's core products include specialty diagnostic tests that target hematologic cancers and solid tumors, providing advanced insights to healthcare providers and laboratories.
How the Company Makes MoneyPrecipio 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, yet faces challenges with negative profitability margins. The balance sheet is stable with strong equity and low debt, indicating solid financial health. Cash flow improvements are promising, but profitability is needed for further enhancement.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.70
Positive
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.65
Positive
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.60
Neutral
| 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
Positive
9.68
Price Trends
6.59
Positive
6.74
Positive
6.46
Positive
Market Momentum
0.86
Negative
70.77
Negative
94.44
Negative
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 9.68 is above the 20-day moving average (MA) of 7.28, above the 50-day MA of 6.59, and above the 200-day MA of 6.46, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 70.77 is Negative, neither overbought nor oversold. The STOCH value of 94.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRPO.
Precipio Risk Analysis
Precipio disclosed 62 risk factors in its most recent earnings report. Precipio reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Precipio Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $14.63M | ― | -25.29% | ― | 26.67% | 44.02% | |
56 Neutral | $9.31M | 4.67 | -41.13% | ― | ― | ― | |
53 Neutral | $5.14B | 3.23 | -45.01% | 2.85% | 17.55% | -0.69% | |
42 Neutral | $6.08M | ― | -195.46% | ― | -29.46% | 2.71% | |
39 Underperform | $9.39M | ― | -285.79% | ― | ― | 23.65% |
* Healthcare Sector Average
Performance Comparison
PRPO
Precipio
9.68
3.77
63.79%
KPRX
Kiora Pharmaceuticals
3.06
-1.74
-36.25%
LYRA
Lyra Therapeutics
0.09
-0.24
-72.73%
ACXP
Acurx Pharmaceuticals
0.40
-2.11
-84.06%
Precipio Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: 39.68%|
Next Earnings Date:Aug 25, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong year-over-year revenue growth, improved margins, and significant operational efficiency gains. However, these positives were somewhat offset by a quarter-over-quarter revenue decline, delays in product division revenue realization, and initial uncertainty regarding FDA regulations. Despite these challenges, the overall sentiment remains cautiously optimistic, with expectations of continued growth and positive cash flow in the coming quarters.Q1-2025 Updates
Positive Updates
Record Revenue Growth
Q1 2025 revenues were $4.9 million, marking a 43% year-over-year increase driven by sustained demand in Pathology Services.
Improved Margins and Operational Efficiency
Pathology gross margins increased from 24% to 42% year-over-year, and operating expenses as a percent of revenue dropped from 87% to 61%.
Significant EBITDA Improvement
Adjusted EBITDA improved by 92%, with a $108,000 loss in Q1 compared to a $1.4 million loss in the same period last year.
MolDx Approval
Received MolDx approval for next-generation sequencing testing, potentially increasing revenue by approximately $250,000 per quarter.
Product Division Progress
Gross margins for the Product division improved from 37% to 51% year-over-year, with new customers and product launches contributing to growth.
Positive Non-Recurring Impacts
Received over $400,000 in COVID relief funds and negotiated a $130,000 write-off with Change Healthcare, positively impacting cash flow.
Negative Updates
Quarter-over-Quarter Revenue Decline
Revenue decreased by 9.5% from Q4 2024 due to seasonal factors affecting test volumes and collections.
Delayed Product Division Revenue
Product division revenues were flat from Q4 2024 to Q1 2025, impacted by customer validation timelines.
Impact of FDA Ruling on Laboratory Tests
Uncertainty around FDA ruling on laboratory tests led to delays in customer adoption of products until the ruling was overturned in March 2025.
Company Guidance
In the first quarter of 2025, Precipio reported strong financial performance with a 43% year-over-year revenue increase to $4.9 million, although it experienced a 9.5% decline from the previous quarter. The company improved its adjusted EBITDA by 92%, reducing losses to $108,000, and cut cash usage by 93% compared to the same period last year. Pathology Services saw a 46% increase in test volume and a 53% revenue growth, while gross margins rose significantly from 24% to 42%. Operating expenses dropped by 30%, from 87% to 61% of revenue, and the company maintained flat operating expenses at approximately $3 million per quarter. Precipio also achieved MolDx approval for its next-generation sequencing tests, potentially adding approximately $250,000 in quarterly revenue. The Product division improved gross margins from 37% to 51% year-over-year and is expected to drive future growth, particularly following the overturning of the FDA ruling on laboratory tests. Overall, Precipio aims to achieve positive operating cash flow by Q2 or Q3 of 2025.Precipio Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Precipio Schedules Q1-2025 Shareholder Update Call
Neutral
May 6, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.