Beam Therapeutics (BEAM) AI Stock Analysis

• Market Cap: $1.63B
• Dividend Yield: N/A
• Average Volume (3M): 2.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.58
• Revenue Growth: -83.18%
• EPS Growth: -144.95%
• Country: US
• Employees: 483
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -4.58
• Shares Outstanding: 99,839,980
• 10 Day Avg. Volume: 3,736,474
• 30 Day Avg. Volume: 2,779,360
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 30.70
• Price to Cash Flow (P/CF): -6.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $45.33
• Price Target Upside: 209.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

Beam Therapeutics faces considerable financial and technical challenges, reflected in its negative profitability and bearish stock trend. While recent positive trial data and advancements in base editing are promising, these factors are not sufficient to offset the financial and technical weaknesses currently impacting the stock.

Positive Factors

Clinical Trials

Impressive early results for BEAM-302 show a promising effect in correcting the disease-causing PiZ mutation in patients with alpha-1 antitrypsin deficiency (AATD).

Financial Position

The $1.35 billion cash position provides Beam Therapeutics with a strong financial runway into 2028, sufficient to advance current therapies into late-stage studies.

Negative Factors

Market Sentiment

Investors seem to be imposing a higher bar than clinicians.

Regulatory Challenges

Regulatory: Highly uncertain. Dr. Rennard thinks it may be 'overly optimistic' to think FDA will apply the 11 micromolar approval bar to novel modalities.

Beam Therapeutics Business Overview & Revenue Model

Company Description

Beam Therapeutics Inc., a biotechnology company, develops precision genetic medicines for patients suffering from serious diseases in the United States. The company is developing BEAM-101 for the treatment of sickle cell disease and beta thalassemia; BEAM-102 for the treatment of sickle cell disease; and BEAM-201, an allogeneic chimeric antigen receptor T cell for the treatment of relapsed/refractory T-cell acute lymphoblastic leukemia; and BEAM-301, a liver-targeted development candidate for the treatment of patients with Glycogen Storage Disease Type Ia. It also develops therapies for alpha-1 antitrypsin deficiency; ocular diseases; and other liver, muscle, and central nervous system disorders. The company has an alliance with Boston Children's Hospital; a research and clinical trial collaboration agreement with Magenta Therapeutics, Inc.; license agreement with Sana Biotechnology, Inc.; and a research collaboration with the Institute of Molecular and Clinical Ophthalmology Basel. It also has a research collaboration agreement with Pfizer Inc. and Apellis Pharmaceuticals, Inc.; and collaboration and license agreement with Verve Therapeutics, Inc. The company was incorporated in 2017 and is based in Cambridge, Massachusetts.

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 faces significant financial challenges with negative profitability and cash flow metrics. Revenue volatility and consistent net losses pose concerns for long-term sustainability. Despite a strong equity position, the inability to generate positive operating cash flow and profitability could hinder future growth and strategic investments.

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
63.52M	-59.67M	38.34M	35.40M	-103.16M
	EBIT
-415.57M	-176.49M	-338.48M	-392.46M	-132.76M
	EBITDA
-415.57M	-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: 14.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 14.63 is below the 20-day moving average (MA) of 19.71, below the 50-day MA of 24.65, and below the 200-day MA of 25.38, indicating a bearish trend. The MACD of -1.92 indicates Positive momentum. The RSI at 27.85 is Positive, neither overbought nor oversold. The STOCH value of 13.95 is Positive, 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 *	48 Neutral	$6.36B	1.28	-45.04%	2.64%	19.24%	1.69%
PHAT	47 Neutral	$308.49M	―	181.41%	―	8001.47%	-37.69%
NTLA	41 Neutral	$732.90M	―	-54.00%	―	59.55%	3.09%
BEAM	39 Underperform	$1.63B	―	-43.94%	―	-83.18%	-144.95%
IMVT	37 Underperform	$2.53B	―	-74.17%	―	―	-43.10%
ETNB	35 Underperform	$808.75M	―	-78.34%	―	―	-70.45%

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.

Beam Therapeutics Advances Base Editing Portfolio

Beam Therapeutics announced advancements in its base editing portfolio with key milestones anticipated in 2025. This progress is expected to bolster its industry positioning by advancing clinical programs, which aim to deliver life-long, curative genetic medicines, potentially impacting stakeholders through enhanced therapeutic options and financial stability.