Champions Oncology (CSBR) AI Stock Analysis

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Champions Oncology

(NASDAQ:CSBR)

51Neutral

Champions Oncology's stock score reflects significant challenges in financial performance, particularly in revenue stability and cash management, despite some positive developments noted in the earnings call. Technical analysis suggests bearish trends, while valuation appears moderate. The company's focus on data-driven growth is promising but carries uncertainties.

Champions Oncology (CSBR) vs. S&P 500 (SPY)

Market Cap

$105.22M

Dividend YieldN/A

Average Volume (3M)41.70K

Price to Earnings (P/E)16.9

Beta (1Y)0.80

Revenue Growth19.03%

EPS GrowthN/A

CountryUS

Employees210

SectorHealthcare

Sector Strength69

IndustryBiotechnology

Share Statistics

EPS (TTM)0.45

Shares Outstanding13,826,904

10 Day Avg. Volume27,836

30 Day Avg. Volume41,705

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)2.26

Price to Cash Flow (P/CF)67.60

P/FCF Ratio67.30

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$12.00

Price Target Upside51.90% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Champions Oncology Business Overview & Revenue Model

Company DescriptionChampions Oncology, Inc. operates within the biotechnology sector, focusing on the development and sale of advanced technology solutions and services to enhance the drug development process, particularly in oncology. The company's core offerings include unique patient-derived xenograft (PDX) models that simulate human cancer tumors, providing valuable insights into cancer biology and facilitating the development of personalized medicine. Champions Oncology's services are crucial in aiding pharmaceutical and biotechnology companies in their research and development efforts to bring innovative cancer therapies to market.

How the Company Makes MoneyChampions Oncology generates revenue primarily through its personalized oncology solutions and technology platforms, which it offers to pharmaceutical companies, academic institutions, and other research organizations engaged in cancer drug development. The company's main revenue streams include the sale of its PDX models, which are used for preclinical testing and drug discovery, as well as its drug testing services that provide critical data to optimize drug development processes. Additionally, Champions Oncology engages in strategic partnerships and collaborations with leading pharmaceutical firms to expand its service offerings and enhance its market reach, further contributing to its financial performance.

Champions Oncology Financial Statement Overview

Summary

Champions Oncology faces challenges in revenue stability and cash management. Despite some improvements in equity and net income, the company has high leverage and inconsistent profit margins, reflecting potential risks. Cash flow issues underscore liquidity concerns.

Income Statement

Negative

The company exhibits a volatile income statement with a negative gross profit margin in TTM, indicating more costs than revenue. Despite a positive net income in TTM, the revenue growth rate is negative, showing declining sales over time. Margins are inconsistent, with significant fluctuations in EBIT and EBITDA margins. The overall income statement suggests instability in revenue generation and cost management.

Balance Sheet

Neutral

The balance sheet reveals a concerning debt-to-equity ratio, indicating high leverage. However, the TTM data shows improved stockholders' equity, suggesting a recovery trend. ROE is positive in TTM, reflecting recent profitability. The equity ratio remains low, indicating potential financial risk due to dependence on liabilities. The balance sheet points to a moderate risk profile with some signs of recovery.

Cash Flow

Negative

Cash flow analysis shows negative free cash flow growth in TTM, reflecting cash management challenges. The operating cash flow to net income ratio is negative, indicating cash outflows even with positive net income. This trend suggests problems in converting earnings into cash. The cash flow statement highlights liquidity challenges and inefficiencies in cash operations.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
58.59M	50.16M	53.87M	49.11M	41.04M	32.12M
	Gross Profit
30.58M	20.75M	24.34M	25.48M	19.57M	15.24M
	EBIT
6.72M	-7.36M	-4.45M	607.00K	338.00K	-1.47M
	EBITDA
8.43M	-5.05M	-2.07M	2.23M	366.00K	-735.00K
	Net Income Common Stockholders
6.43M	-7.28M	-5.33M	548.00K	362.00K	-1.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.64M	2.62M	10.12M	9.01M	4.69M	8.34M
	Total Assets
36.15M	26.13M	34.31M	35.38M	27.59M	20.75M
	Total Debt
8.87M	7.43M	8.60M	9.47M	9.60M	3.80M
	Net Debt
-2.78M	4.81M	-1.52M	459.00K	4.91M	-4.54M
	Total Liabilities
29.09M	28.04M	29.68M	26.28M	20.16M	15.43M
	Stockholders Equity
7.06M	-1.90M	4.64M	9.10M	7.43M	5.32M
Cash Flow		Free Cash Flow
-1.32M	-6.97M	1.08M	4.11M	-4.96M	685.00K
	Operating Cash Flow
-1.30M	-6.14M	3.96M	6.50M	-1.68M	2.90M
	Investing Cash Flow
-25.00K	-836.00K	-2.87M	-2.38M	-3.17M	-2.22M
	Financing Cash Flow
57.00K	-527.00K	11.00K	207.00K	1.20M	4.42M

Champions Oncology Technical Analysis

Technical Analysis Sentiment

Negative

Last Price7.90

Price Trends

50DMA

9.29

Negative

100DMA

8.86

Negative

200DMA

6.70

Positive

Market Momentum

MACD

-0.43

Negative

RSI

39.92

Neutral

STOCH

30.99

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSBR, the sentiment is Negative. The current price of 7.9 is below the 20-day moving average (MA) of 8.17, below the 50-day MA of 9.29, and above the 200-day MA of 6.70, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 39.92 is Neutral, neither overbought nor oversold. The STOCH value of 30.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CSBR.

Champions Oncology Risk Analysis

Champions Oncology disclosed 30 risk factors in its most recent earnings report. Champions Oncology reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Champions Oncology Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEER	52 Neutral	$118.97M	―	-23.91%	―	-13.92%	-2.86%
Sector *	51 Neutral	$5.32B	3.32	-40.25%	2.90%	17.93%	2.14%
CSBR	51 Neutral	$105.22M	16.90	376.84%	―	19.03%	―
TNXP	49 Neutral	$118.23M	―	-106.12%	―	29.94%	-241.81%
ZNTL	44 Neutral	$108.44M	―	-42.83%	―	―	48.92%
CCCC	41 Neutral	$114.32M	―	-45.58%	―	71.44%	43.22%
ELTX	30 Underperform	$80.88M	―	-9999.00%	―	―	27.65%

* Healthcare Sector Average

Performance Comparison

CSBR

Champions Oncology

7.90

2.98

60.57%

TNXP

Tonix Pharma

17.82

-556.58

-96.90%

ZNTL

Zentalis Pharmaceuticals

1.43

-9.99

-87.48%

CCCC

C4 Therapeutics

1.54

-4.78

-75.63%

SEER

Seer

1.97

0.02

1.03%

ELTX

Elicio Therapeutics

5.13

-3.97

-43.63%

Champions Oncology Earnings Call Summary

Earnings Call Date: Mar 11, 2025 | % Change Since: -11.24% | Next Earnings Date: Jul 17, 2025

Earnings Call Sentiment Positive

The earnings call reflected significant positive developments such as record-breaking revenue, successful data licensing, and improved financial metrics. However, challenges in the biotech sector and uncertainties regarding future data revenue contributions were highlighted. Despite the challenges, the company is optimistic about long-term growth.

Highlights

Record-Breaking Revenue and Growth

Champions Oncology had a record-breaking quarter with total revenue surpassing $17 million and adjusted EBITDA hitting a record high. Research service revenue was $12.5 million, an increase from $12 million in the same period last year. The company reported adjusted EBITDA of $5.2 million compared to an adjusted loss of $1.7 million in the prior year.

Successful Data Licensing Agreement

Champions Oncology successfully completed its first data licensing deal, marking the initial validation of its strategic vision to create a transformative data business. Data revenue contribution was $4.5 million, showcasing early traction of the new platform.

Improved Financial Metrics

On a GAAP basis, income from operations was $4.5 million compared to a loss of $2.6 million in the prior year. Total gross margin improved to 53% compared to 40% in the same period last year. Research service margins also improved to 48% compared to 35% in the same period last year.

Strong Cash Position

Champions Oncology ended the quarter with $3.2 million of cash on the balance sheet and no debt. Cash generated by operating activities was $900,000.

Lowlights

Tight Biotech Sector Environment

Despite some improvement, the environment remains tight with a challenging funding environment in the biotech sector. The company is cautious about performance volatility due to uncertainties in the sector.

Uncertain Future Data Revenue Contribution

While the initial data deal is promising, it remains premature to forecast the number of future deals, their average size, or the frequency with which they will occur, making the future data revenue contribution uncertain.

Potential Short-term Volatility in Research Service Revenue

There is anticipation of short-term volatility in research service revenue, with some expected balance related in revenue and cost of sales.

Company Guidance

During the Champions Oncology Third Quarter Fiscal Year 2025 earnings call, CEO Ronnie Morris highlighted the company's record revenue of $17 million, driven by the closure of their first data deal. The core services business, anchored by their industry-leading PDX bank, continues to thrive. Morris noted a cautiously optimistic outlook for the biotech sector, despite a challenging environment. The demand for Champions' multiomic data set has increased, especially with the rise of AI, and the company is exploring ways to maximize its value. CFO David Miller reported that Q3 revenue reached $17 million, with research service revenue at $12.5 million and data revenue at $4.5 million. The gross margin improved to 61%, thanks to high-margin data revenue. Operating expenses decreased, contributing to a record adjusted EBITDA of $5.2 million. Despite short-term volatility, the company reaffirmed its full-year revenue growth guidance of 10% to 15%, focusing on expanding its data business and enhancing profitability.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.