ProKidney (PROK) AI Stock Analysis

• Market Cap: $201.96M
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.91
• Revenue Growth: N/A
• EPS Growth: -9.93%
• Country: US
• Employees: 204
• Sector: Healthcare
• Sector Strength: 53
• Industry: Biotechnology
• EPS (TTM): -0.14
• Shares Outstanding: 129,536,120
• 10 Day Avg. Volume: 1,053,081
• 30 Day Avg. Volume: 1,104,935
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 6.26
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 16.65K
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.00
• Price Target Upside: 334.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

ProKidney's stock score is significantly impacted by its poor financial performance, characterized by weak revenue growth, high operational costs, and negative cash flow. The technical analysis suggests a bearish trend with mixed indicators, while the valuation reflects high volatility and risk due to negative earnings. Overall, the financial instability and operational challenges are the primary concerns, leading to a low stock score.

Positive Factors

Financial Stability

PROK ended with cash and equivalents of $358 million, which is expected to fund operations into mid-2027, indicating strong financial stability.

Regulatory Approval

The FDA has confirmed that a single Phase 3 study could support a BLA submission and full approval, allowing for a more streamlined development timeline.

Regulatory Pathway

PROK announced alignment with the FDA on proceeding with only one pivotal trial, which has positively impacted cash runway expectations.

Negative Factors

Cash Runway Concerns

Topline results for the PROACT 1 study are expected in 3Q27, which is beyond the company's current cash runway.

Operational Challenges

The decision to discontinue the ex-US Ph3 trial (PROACT 2) could limit global data collection and market opportunities.

ProKidney Business Overview & Revenue Model

Company Description

ProKidney Corp., a clinical-stage biotechnology, engages in developing cellular therapy candidates. It is developing Renal Autologous Cell Therapy, an autologous homologous cell admixture that is in a Phase III development program, as well as Phase II clinical trials for the treatment of moderate to severe diabetic kidney disease; and Phase I clinical trial for patients with congenital anomalies of the kidney and urinary tract. The company was founded in 2015 and is headquartered in Winston-Salem, North Carolina.

How the Company Makes Money

ProKidney makes money primarily through the development and commercialization of its innovative cellular therapies for chronic kidney disease, particularly through its flagship product, Renal Autologous Cell Therapy (REACT). The company seeks to generate revenue by advancing this product through clinical trials and achieving regulatory approval, which would allow it to market the therapy to healthcare providers and hospitals. Additionally, ProKidney may enter into partnerships or licensing agreements with larger pharmaceutical companies to enhance distribution capabilities and expand market reach, which could provide upfront payments, milestone payments, and royalties as key revenue streams.

ProKidney Financial Statement Overview

Summary

ProKidney's financial performance is severely weak with no revenue growth, high operational costs, and consistent negative profitability metrics. The balance sheet shows significant weaknesses with negative equity and high leverage, raising solvency concerns. Cash flow analysis indicates ongoing cash burn and inefficiencies, reflecting critical deficiencies in profitability and cash management.

Income Statement

ProKidney demonstrates weak financial performance with no revenue growth and consistent negative profitability metrics. Despite a minor revenue introduction in 2024, the company has maintained negative gross and net profit margins, indicating ongoing operational challenges. The EBIT and EBITDA margins remain deeply negative, underscoring the company's struggle to cover its operating costs.

Balance Sheet

The balance sheet shows significant weaknesses with negative stockholders' equity and high leverage. The debt-to-equity ratio is not meaningful due to negative equity, suggesting financial instability. Assets are largely covered by liabilities, and the equity ratio indicates a deficiency in equity financing. These factors highlight a precarious financial position, raising concerns about long-term solvency.

Cash Flow

Cash flow analysis shows persistent negative free cash flow and operating cash flow, indicating ongoing cash burn. The operating cash flow to net income ratio is negative, reflecting inefficiencies in converting net income to cash. Despite positive financing efforts, cash management remains a critical issue, as evidenced by negative free cash flow to net income ratio.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
76.00K	0.00	0.00	0.00	0.00
	Gross Profit
76.00K	-3.17M	-3.04M	-1.98M	0.00
	EBIT
-183.68M	-151.52M	-153.01M	-55.11M	-27.02M
	EBITDA
-158.49M	-147.67M	-143.99M	-53.13M	-26.02M
	Net Income Common Stockholders
-61.19M	-35.47M	-148.13M	-55.15M	-26.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
358.29M	362.95M	490.25M	20.56M	4.58M
	Total Assets
441.07M	420.55M	518.00M	40.30M	16.70M
	Total Debt
2.47M	4.41M	2.40M	1.33M	1.56M
	Net Debt
-96.65M	-56.24M	-487.85M	-19.22M	-3.02M
	Total Liabilities
39.44M	29.22M	13.06M	13.38M	6.84M
	Stockholders Equity
-994.95M	-1.10B	-1.10B	26.92M	9.86M
Cash Flow		Free Cash Flow
-126.35M	-124.27M	-78.94M	-55.49M	-30.64M
	Operating Cash Flow
-126.35M	-90.07M	-77.09M	-50.30M	-25.18M
	Investing Cash Flow
20.41M	-329.98M	-1.74M	-5.19M	-5.46M
	Financing Cash Flow
144.41M	-9.55M	548.52M	71.47M	19.99M

ProKidney Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PROK, the sentiment is Negative. The current price of 0.69 is below the 20-day moving average (MA) of 0.80, below the 50-day MA of 0.89, and below the 200-day MA of 1.66, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 36.81 is Neutral, neither overbought nor oversold. The STOCH value of 3.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PROK.

ProKidney Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNFT	59 Neutral	$233.14M	139.58	2.17%	―	134.52%	―
VYGR	52 Neutral	$179.77M	5.05	-27.61%	―	-68.00%	-134.79%
Sector *	52 Neutral	$5.23B	3.70	-41.86%	2.84%	16.58%	-0.16%
DSGN	47 Neutral	$206.07M	―	-19.08%	―	―	26.63%
CRDF	42 Neutral	$169.64M	―	-59.51%	―	40.16%	-2.76%
HURA	36 Underperform	$162.93M	―	-203.07%	―	―	77.12%
PROK	29 Underperform	$201.96M	―	4.66%	―	―	-9.93%