GRAIL Inc (GRAL) AI Stock Analysis

• Market Cap: $2.72B
• Dividend Yield: N/A
• Average Volume (3M): 965.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.67
• Revenue Growth: 22.37%
• EPS Growth: 86.08%
• Country: US
• Employees: 1,000
• Sector: General
• Sector Strength: N/A
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -3.18
• Shares Outstanding: 36,047,800
• 10 Day Avg. Volume: 1,044,628
• 30 Day Avg. Volume: 965,977
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 4.53
• P/FCF Ratio: -0.98
• Enterprise Value/Market Cap: 0.48
• Enterprise Value/Revenue: 9.68
• Enterprise Value/Gross Profit: -178.34
• Enterprise Value/Ebitda: -2.77
• 1Y Price Target: $49.00
• Price Target Upside: -43.29% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 59 Neutral
• Price Target: $34.00 ▼(-60.65% Downside)

GRAIL Inc.'s overall stock score reflects strong revenue growth and positive developments from the earnings call, tempered by significant profitability challenges and poor valuation metrics. The technical analysis indicates bearish momentum, further impacting the score.

Positive Factors

Revenue Growth

Sustained revenue growth indicates increasing market adoption of Galleri, enhancing GRAIL's market position and long-term business prospects.

Partnership Expansion

Strategic partnerships expand market access and integration into healthcare systems, driving adoption and supporting long-term revenue growth.

Clinical Trial Success

Positive clinical trial results enhance product credibility and could lead to wider acceptance and regulatory support, boosting long-term growth.

Negative Factors

Profitability Challenges

Persistent losses and negative margins indicate ongoing operational inefficiencies, which could hinder financial sustainability and growth potential.

Cash Flow Challenges

Negative free cash flow highlights reliance on external financing, which could limit flexibility and increase risk if funding conditions tighten.

Operational Challenges

Operational inefficiencies could impact customer satisfaction and increase costs, potentially affecting long-term profitability and market competitiveness.

GRAIL Inc Business Overview & Revenue Model

Company Description

GRAIL, Inc., a biotechnology company, focuses on developing technologies for early cancer detection. The company develops Galleri, a screening test for asymptomatic individuals over 50 years of age; and DAC, a diagnostic aid for cancer tests to accelerate diagnostic resolution for patients for whom there is a clinical suspicion of cancer. It is also developing minimal residual disease and other post-diagnostic tests. The company was incorporated in 2015 and is based in Menlo Park, California. GRAIL, Inc. operates as a former subsidiary of Illumina, Inc.

How the Company Makes Money

GRAIL generates revenue primarily through the sale of its multi-cancer early detection tests to healthcare providers, hospitals, and laboratories. The company operates a direct-to-consumer model as well, allowing individuals to access its testing services. Key revenue streams include the fees charged for each test performed, as well as potential partnerships with healthcare organizations and insurers that may facilitate broader access to its products. GRAIL also benefits from collaborations with pharmaceutical companies and research institutions, which may involve funding for clinical studies or development efforts aimed at integrating its testing solutions into broader cancer care protocols.

GRAIL Inc Financial Statement Overview

Summary

GRAIL Inc. shows strong revenue growth but faces significant profitability challenges with negative profit margins. The company maintains a strong equity position and low leverage, indicating financial stability, but negative free cash flow and reliance on external financing are concerns.

Income Statement

GRAIL Inc. has shown substantial revenue growth with a 34.89% increase from 2023 to 2024. However, the company continues to operate at a loss with a negative gross profit margin of -62.12% and a net profit margin of -161.42% in 2024. The EBIT and EBITDA margins are also negative, indicating ongoing operational challenges.

Balance Sheet

GRAIL Inc. maintains a strong equity position with an equity ratio of 83.92%. The debt-to-equity ratio is low at 0.03, signifying limited leverage. However, the return on equity is negative due to ongoing losses. The company's high stockholders' equity relative to total assets suggests financial stability but profitability remains a concern.

Cash Flow

The operating cash flow to net income ratio is 0.28, indicating cash flow challenges. Free cash flow has improved slightly, but remains negative at -$582.36 million. The company raised $1.24 billion in financing activities, aiding liquidity but highlighting reliance on external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2020	Dec 2019
Income Statement
Total Revenue	134.28M	125.59M	93.11M	55.55M	0.00	0.00
Gross Profit	-7.29M	-78.02M	-95.61M	-116.45M	0.00	-10.31M
EBITDA	-469.82M	-610.17M	-1.35B	-587.70M	-308.73M	-243.14M
Net Income	-442.95M	-2.03B	-1.47B	-5.40B	-312.16M	-244.85M
Balance Sheet
Total Assets	2.70B	2.98B	3.91B	5.60B	706.30M	635.52M
Cash, Cash Equivalents and Short-Term Investments	602.75M	763.47M	97.29M	241.60M	583.48M	544.34M
Total Debt	62.16M	68.14M	84.41M	96.01M	62.99M	42.04M
Total Liabilities	387.91M	479.90M	267.63M	955.94M	144.46M	84.99M
Stockholders Equity	2.31B	2.50B	3.65B	4.65B	561.84M	550.53M
Cash Flow
Free Cash Flow	-371.75M	-582.36M	-608.69M	-584.17M	-243.91M	-249.13M
Operating Cash Flow	-370.05M	-577.16M	-595.80M	-561.31M	-232.00M	-245.79M
Investing Cash Flow	-462.10M	-551.01M	-12.89M	-22.86M	-12.79M	133.04M
Financing Cash Flow	0.00	1.24B	463.77M	604.82M	275.11M	160.33M

GRAIL Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 86.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRAL, the sentiment is Positive. The current price of 86.41 is above the 20-day moving average (MA) of 61.21, above the 50-day MA of 45.29, and above the 200-day MA of 37.04, indicating a bullish trend. The MACD of 9.47 indicates Negative momentum. The RSI at 80.28 is Negative, neither overbought nor oversold. The STOCH value of 81.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRAL.

GRAIL Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTRA	70 Neutral	$24.78B	―	-24.32%	―	44.38%	22.87%
ILMN	61 Neutral	$14.29B	11.78	68.11%	―	-3.32%	―
GRAL	59 Neutral	$2.72B	―	-17.68%	―	22.37%	86.08%
GH	57 Neutral	$8.41B	―	-4584.47%	―	28.74%	18.25%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
MYGN	52 Neutral	$751.80M	―	-70.03%	―	3.83%	-137.31%
NEO	51 Neutral	$1.29B	―	-11.76%	―	9.70%	-30.94%

GRAIL Inc Corporate Events

GRAIL Inc Holds Annual Stockholders Meeting

On May 29, 2025, GRAIL, Inc. held its Annual Meeting of Stockholders with a quorum of 29,682,974 shares represented. During the meeting, stockholders elected William Chase as a Class I Director to serve until 2028 and ratified Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.