Precipio (PRPO) AI Stock Analysis

• Market Cap: $10.61M
• Dividend Yield: N/A
• Average Volume (3M): 14.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: 26.67%
• EPS Growth: 44.02%
• Country: US
• Employees: 54
• Sector: Healthcare
• Sector Strength: 38
• Industry: Medical - Diagnostics & Research
• EPS (TTM): N/A
• Shares Outstanding: 1,516,296
• 10 Day Avg. Volume: 5,967
• 30 Day Avg. Volume: 14,838
• PEG Ratio: 0.05
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 46.40
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 1.36
• Enterprise Value/Ebitda: -0.93
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Precipio's stock score reflects its strong revenue growth and recent achievements in cash flow and profitability. However, significant risks related to profitability, valuation, and financial stability weigh heavily on the overall score. The positive outlook from the earnings call balances some of these concerns, but challenges in the products division and negative P/E ratio remain critical factors.

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 exhibits strong revenue growth and improved gross profit margins, signaling potential market success. However, persistent net losses, negative EBIT and EBITDA margins, and a weak balance sheet with zero equity indicate significant financial instability. Positive cash flow is a positive sign, but inefficiencies remain. Overall, financial challenges overshadow progress.

Income Statement

Precipio has demonstrated a consistent increase in total revenue, growing from $3.13M in 2019 to $15.97M in 2024, indicating a strong upward trajectory in sales. The gross profit margin has improved over time, reaching approximately 47.34% in 2024, up from 7.01% in 2019. However, the company continues to face challenges with negative net profit margins, reflecting ongoing net losses. EBIT and EBITDA margins are also negative, stressing the need for improved cost management and operational efficiency.

Balance Sheet

The company's balance sheet shows significant weaknesses, particularly with zero stockholders' equity in 2024, indicating high financial risk. Although total liabilities have been reduced to zero in 2024, the absence of equity suggests a lack of financial stability. The historical debt-to-equity ratio is concerning, as is the diminished equity ratio over the years. The lack of equity raises concerns about the company's ability to secure financing and sustain operations.

Cash Flow

Precipio has shown some improvement in cash flow, with free cash flow turning positive in 2024 at $216K after being negative in previous years. Operating cash flow improved significantly from -$3.56M in 2023 to $439K in 2024. However, the operating cash flow to net income ratio indicates inefficiencies, as net income remains negative. The company must focus on enhancing cash generation capabilities to ensure long-term sustainability.

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

Precipio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 7.15 is above the 20-day moving average (MA) of 6.40, above the 50-day MA of 6.34, and above the 200-day MA of 6.34, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 57.16 is Neutral, neither overbought nor oversold. The STOCH value of 71.47 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
KPRX	56 Neutral	$9.40M	4.67	-41.13%	―	―	―
Sector *	52 Neutral	$5.04B	3.15	-44.58%	2.85%	16.08%	-0.27%
PRPO	47 Neutral	$10.61M	―	-25.29%	―	26.67%	44.02%
NURO	45 Neutral	$9.43M	―	-45.38%	―	-48.61%	32.18%
LYRA	42 Neutral	$7.40M	―	-195.46%	―	-29.46%	2.71%
ACXP	39 Underperform	$8.63M	―	-285.79%	―	―	23.65%

Precipio Corporate Events

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.

Spark’s Take on PRPO Stock

According to Spark, TipRanks’ AI Analyst, PRPO is a Neutral.

Precipio’s strong revenue growth and recent positive cash flow are key strengths, but the company’s financial health is undermined by persistent profitability issues and a weak balance sheet. Technical indicators are neutral, and valuation metrics suggest overvaluation. The earnings call provided some optimism for future growth, particularly in the pathology division, but unresolved challenges in the products division present ongoing risks.

To see Spark’s full report on PRPO stock, click here.