Beta Bionics, Inc. (BBNX) AI Stock Analysis

• Market Cap: $870.27M
• Dividend Yield: N/A
• Average Volume (3M): 917.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: 97.91%
• EPS Growth: -34.11%
• Country: US
• Employees: 352
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Equipment & Services
• EPS (TTM): -0.39
• Shares Outstanding: 43,470,123
• 10 Day Avg. Volume: 410,323
• 30 Day Avg. Volume: 917,055
• PEG Ratio: -0.79
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 2.31
• P/FCF Ratio: -2.91
• Enterprise Value/Market Cap: 0.45
• Enterprise Value/Revenue: 5.00
• Enterprise Value/Gross Profit: 9.26
• Enterprise Value/Ebitda: -6.24
• 1Y Price Target: $25.83
• Price Target Upside: 29.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 52 Neutral
• Price Target: $21.00 ▲(4.90% Upside)

Beta Bionics, Inc. demonstrates strong revenue growth and positive future guidance, but faces challenges with profitability and cash flow. The technical indicators suggest neutral momentum, and the valuation reflects high risk due to negative earnings. The earnings call provided optimism, but increased expenses and external uncertainties remain concerns.

Positive Factors

Revenue Growth

Strong revenue growth reflects successful market penetration and increased adoption of the iLet Bionic Pancreas, enhancing long-term business prospects.

Pharmacy Channel Expansion

Expansion in the pharmacy channel indicates improved distribution and reimbursement models, which can drive sustained revenue growth and market reach.

Product Innovation

Positive feedback on the Bionic portal suggests strong product innovation, enhancing user experience and clinical outcomes, which can strengthen competitive positioning.

Negative Factors

Profitability Challenges

Ongoing profitability challenges indicate difficulties in achieving operational efficiency, which can hinder long-term financial sustainability.

Rising Operating Expenses

Significant rise in operating expenses could pressure margins and cash flow, potentially impacting future profitability and investment capacity.

CMS Proposal Uncertainty

Regulatory uncertainties from CMS proposals could affect reimbursement models, posing risks to revenue streams and market strategy.

Beta Bionics, Inc. Business Overview & Revenue Model

Company Description

Beta Bionics, Inc. (BBNX) is a biotechnology company focused on developing innovative solutions for diabetes management. The company is primarily engaged in the design and commercialization of advanced insulin delivery systems, specifically the iLet Bionic Pancreas, which aims to automate insulin delivery and improve the quality of life for individuals with diabetes. Beta Bionics operates within the healthcare sector, leveraging cutting-edge technology to enhance patient outcomes through better glycemic control.

How the Company Makes Money

Beta Bionics generates revenue primarily through the sales of its flagship product, the iLet Bionic Pancreas, which is expected to be marketed to hospitals, healthcare providers, and directly to consumers. The company may also explore partnerships with healthcare organizations and insurance companies to facilitate reimbursement models for their products. Additionally, Beta Bionics may pursue grants and funding from research institutions or government initiatives targeted at diabetes management solutions, contributing to their overall revenue streams.

Beta Bionics, Inc. Financial Statement Overview

Summary

Beta Bionics, Inc. demonstrates impressive revenue growth but struggles with profitability and cash flow management. The balance sheet remains stable with low leverage, but ongoing losses and negative cash flows could pose risks if not addressed.

Income Statement

Beta Bionics, Inc. shows strong revenue growth with a significant increase from previous years. However, the company is currently unprofitable, with negative EBIT, EBITDA, and net profit margins, indicating challenges in achieving operational efficiency and cost control.

Balance Sheet

The company's balance sheet reflects moderate leverage with a low debt-to-equity ratio and a healthy equity ratio, showcasing financial stability. However, the negative net income impacts the return on equity, which remains a concern for investors seeking profitability.

Cash Flow

Beta Bionics, Inc. faces challenges with negative free cash flow, indicative of high operational costs. Although there is a positive financing cash flow, indicating external funding, the operating cash flow to net income and free cash flow ratios are unfavorable, highlighting cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	78.02M	65.12M	11.99M	179.00K
Gross Profit	42.08M	35.89M	6.31M	179.00K
EBITDA	-62.50M	-44.10M	-34.62M	-63.40M
Net Income	-73.37M	-54.76M	-44.10M	-64.75M
Balance Sheet
Total Assets	329.97M	149.65M	110.04M	35.53M
Cash, Cash Equivalents and Short-Term Investments	249.72M	103.58M	96.75M	27.68M
Total Debt	6.69M	7.25M	4.22M	4.13M
Total Liabilities	28.34M	73.63M	51.43M	22.53M
Stockholders Equity	301.63M	76.01M	58.61M	13.00M
Cash Flow
Free Cash Flow	-62.05M	-51.67M	-32.85M	-60.98M
Operating Cash Flow	-57.46M	-48.27M	-32.45M	-60.21M
Investing Cash Flow	-187.37M	-3.48M	-69.69M	-769.00K
Financing Cash Flow	266.88M	55.62M	101.03M	56.78M

Beta Bionics, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LH	76 Outperform	$23.50B	31.32	9.27%	1.01%	7.98%	72.22%
NVST	70 Outperform	$3.34B	63.31	1.76%	―	0.76%	―
FTRE	54 Neutral	$955.22M	―	-100.49%	―	-4.96%	-284.00%
BBNX	52 Neutral	$870.27M	―	―	―	97.91%	-34.11%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TNDM	48 Neutral	$1.01B	―	-111.91%	―	25.84%	-47.67%
SANA	33 Underperform	$1.42B	―	-109.12%	―	―	7.58%

Beta Bionics, Inc. Corporate Events

Beta Bionics Reports Record Growth in Earnings Call

Beta Bionics, Inc. reported a strong quarterly performance in its latest earnings call, showcasing record revenue growth and a significant rise in new patient starts. The expansion of the pharmacy channel and improved gross margins were highlighted as positive indicators, although increased operating expenses and uncertainties surrounding the CMS proposal were noted as challenges. Overall, the positive developments significantly outweighed the challenges, reflecting an optimistic sentiment during the call.

Beta Bionics Reports Strong Q2 Growth and Raises Guidance

Beta Bionics, Inc. is a commercial-stage medical device company specializing in advanced diabetes management solutions, particularly known for its iLet Bionic Pancreas, which autonomously determines insulin doses to improve outcomes for people with diabetes.