Beam Therapeutics (BEAM) AI Stock Analysis

• Market Cap: $1.82B
• Dividend Yield: N/A
• Average Volume (3M): 2.65M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.44
• Revenue Growth: -82.38%
• EPS Growth: -164.76%
• Country: US
• Employees: 393
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): -1.24
• Shares Outstanding: 100,557,090
• 10 Day Avg. Volume: 2,472,423
• 30 Day Avg. Volume: 2,654,218
• PEG Ratio: 0.02
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.92
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 39.19
• Enterprise Value/Ebitda: -1.88
• 1Y Price Target: $45.27
• Price Target Upside: 162.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

Beam Therapeutics' stock score reflects the challenges it faces in financial performance, with ongoing losses and negative cash flow. However, the recent positive trial data provides a promising outlook for future developments. Technical indicators show a bearish trend, and the valuation is constrained by the lack of profitability. Overall, while there are significant risks, the potential breakthroughs in clinical trials are a notable positive factor.

Positive Factors

Clinical Trial Progress

Beam announced positive first-in-human in vivo editing data from their Phase 1/2 trial with BEAM-302 in alpha-1 antitrypsin deficiency.

FDA and Regulatory Environment

There is an expectation that Beam Therapeutics' programs could benefit from the FDA's increasingly favorable view on rare diseases.

Financial Position

Beam is backed by a strengthened balance sheet with a cash position of $1.2B, including proceeds from a $500M oversubscribed financing, entering a catalyst-rich period with runway into 2028.

Negative Factors

Competition in Treatment Development

AATD is a crowded space with multiple types of treatment modalities in development.

Financial Performance

Net loss per share was reported as ($1.24) compared to the consensus of ($1.18).

Regulatory Challenges

Following the appointment of Vinay Prasad as the next Director of CBER, headwinds are expected for the gene editing space, especially for stocks valued at over $1 billion in market cap.

Beam Therapeutics Business Overview & Revenue Model

Company Description

Beam Therapeutics (BEAM) is a biotechnology company that operates in the healthcare sector, focusing on the development of innovative genetic medicines. The company leverages its proprietary base editing technology to create therapies aimed at treating serious diseases at the genetic level. Beam Therapeutics' core products include a pipeline of preclinical and clinical-stage therapeutic candidates targeting various genetic disorders, including hematologic, metabolic, and ocular diseases.

How the Company Makes Money

Beam Therapeutics primarily makes money through the advancement and commercialization of its therapeutic candidates. The company generates revenue by entering into strategic collaborations and partnerships with other pharmaceutical and biotechnology companies, which may include upfront payments, milestone payments, and royalties based on the successful development and commercialization of its therapies. Additionally, Beam may generate revenue through grants and research funding from government or private institutions. As the company progresses its pipeline, future revenue could also come from the direct sale of its approved therapies.

Beam Therapeutics Financial Statement Overview

Summary

Beam Therapeutics is experiencing financial challenges, with negative profitability and cash flow metrics. Revenue fluctuations and consistent net losses are concerning for long-term sustainability. The company has a strong equity position, but lacks positive operating cash flow, which may hinder future growth.

Income Statement

Beam Therapeutics has experienced significant revenue fluctuations with revenue dropping to zero in 2024 from $377.7 million in 2023. Gross profit margins have been negative, indicating costs are exceeding revenues. Net profit margins are also negative, with substantial net losses reported each year, highlighting profitability challenges. EBIT and EBITDA margins are deeply negative, illustrating operating inefficiencies and high expense relative to revenue.

Balance Sheet

The company maintains a strong equity position with a debt-to-equity ratio of 0.22 in 2024, indicating moderate financial leverage. However, the return on equity is negative due to consistent net losses, reflecting inefficiencies in generating shareholder value. The equity ratio remains stable, showing substantial reliance on equity financing. Cash reserves are strong, which provides financial stability despite operational losses.

Cash Flow

Cash flow analysis indicates challenges with operating cash flow being zero in 2024, down from a negative position in previous years, impacting liquidity. Free cash flow remains negative, showing the company is not generating sufficient cash to cover its capital expenditures. The lack of positive cash flow from operations compared to net income suggests difficulty in converting revenue into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
63.52M	377.71M	60.92M	51.84M	24.00K
	Gross Profit
41.59M	-59.67M	38.34M	35.40M	-103.16M
	EBIT
-415.57M	-176.49M	-338.48M	-392.46M	-132.76M
	EBITDA
-383.98M	-156.47M	-324.33M	-392.46M	-128.03M
	Net Income Common Stockholders
-376.74M	-132.53M	-263.59M	-341.36M	-256.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
850.74M	1.19B	1.08B	965.65M	299.67M
	Total Assets
1.10B	1.46B	1.34B	1.47B	451.68M
	Total Debt
161.43M	172.69M	179.00M	142.35M	100.23M
	Net Debt
-120.54M	-263.21M	-53.76M	-823.30M	-61.94M
	Total Liabilities
370.28M	478.38M	608.24M	647.72M	206.12M
	Stockholders Equity
733.54M	981.33M	733.47M	826.74M	245.56M
Cash Flow		Free Cash Flow
-356.19M	-182.93M	-26.42M	-113.08M	-112.10M
	Operating Cash Flow
-347.25M	-149.19M	22.53M	-66.27M	-95.74M
	Investing Cash Flow
185.01M	71.84M	-461.34M	-294.14M	-100.12M
	Financing Cash Flow
7.74M	276.45M	111.59M	756.14M	322.32M

Beam Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BEAM, the sentiment is Negative. The current price of 17.24 is below the 20-day moving average (MA) of 18.51, below the 50-day MA of 20.19, and below the 200-day MA of 24.54, indicating a bearish trend. The MACD of -0.62 indicates Negative momentum. The RSI at 42.98 is Neutral, neither overbought nor oversold. The STOCH value of 43.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BEAM.

Beam Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.14B	3.39	-43.55%	2.83%	16.49%	-0.19%
NTLA	50 Neutral	$885.64M	―	-57.92%	―	-13.37%	2.57%
IMVT	45 Neutral	$2.38B	―	-74.17%	―	―	-43.10%
BEAM	45 Neutral	$1.82B	―	-38.04%	―	-82.38%	-164.76%
PHAT	43 Neutral	$231.08M	―	181.41%	―	3055.71%	-18.80%
ETNB	42 Neutral	$1.14B	―	-69.30%	―	―	-68.13%

Beam Therapeutics Corporate Events

Beam Therapeutics Reports Positive Phase 1/2 Trial Data

On March 10, 2025, Beam Therapeutics announced positive initial data from its Phase 1/2 trial of BEAM-302 for treating alpha-1 antitrypsin deficiency (AATD). The trial demonstrated that BEAM-302, a liver-targeting lipid-nanoparticle formulation, was well tolerated and showed dose-dependent increases in functional AAT levels and decreases in mutant Z-AAT levels. This marks the first clinical genetic correction of a disease-causing mutation, offering potential treatment for both lung and liver disease in AATD patients. The company plans further dose escalation and expects to present more data in the second half of 2025.