Precision BioSciences (DTIL) AI Stock Analysis

• Market Cap: $46.75M
• Dividend Yield: N/A
• Average Volume (3M): 156.44K
• Price to Earnings (P/E): 2.9
• Beta (1Y): 1.26
• Revenue Growth: 40.98%
• EPS Growth: N/A
• Country: US
• Employees: 108
• Sector: Healthcare
• Sector Strength: 71
• Industry: Biotechnology
• EPS (TTM): 1.89
• Shares Outstanding: 10,481,931
• 10 Day Avg. Volume: 197,444
• 30 Day Avg. Volume: 156,440
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.56
• Price to Cash Flow (P/CF): -1.80
• 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: $41.33
• Price Target Upside: 724.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Precision BioSciences demonstrates strong revenue growth and a stable balance sheet with low leverage, but faces significant challenges in profitability and cash flow management. From a technical perspective, the stock is under bearish pressure, with weak momentum indicators. The high P/E ratio suggests potential overvaluation, which could deter fundamental investors. The overall assessment reflects these mixed factors, highlighting the need for improved cash management and strategic cost control to enhance future prospects.

Positive Factors

Analyst Confidence

The analyst's recommendation for Precision BioSciences is a 'Buy' with a price target set at $30.00, indicating confidence in the company's potential growth.

Efficacy of PBGENE-HBV

Preclinical in vivo data demonstrated positive tolerability and superior efficacy with repeated doses of PBGENE-HBV.

Strategic Developments

A decision on whether to partner out or wholly develop PBGENE-DMD is expected, which could significantly impact the company's strategic direction.

Negative Factors

AST/ALT Levels Post-Treatment

Transaminase (AST/ALT) levels spiked acutely post-treatments, increasing more after the second dose but normalized over time.

HBV Treatment Challenges

Current cHBV treatments have not changed much in the last 20+ years and fail to eliminate the virus.

Potential Toxicity Concerns

Trial design includes patients receiving up to 3 doses administered after 8-week periods to increase cumulative editing efficiency, but may result in increase liver toxicity.

Precision BioSciences Business Overview & Revenue Model

Company Description

Precision BioSciences, Inc., a clinical stage gene editing company, develops in vivo gene editing and ex vivo allogeneic CAR T therapies in the United States. It offers ARCUS, a genome editing platform to cure genetic disorders. The company also provides Ex vivo Allogeneic CAR T Immunotherapy, a form of immunotherapy in which T cell, a specific type of immune cell is genetically engineered to recognize and kill cancer cells; PBCAR0191, which is in Phase 1/2a clinical trial in adult patients with R/R NHL or R/R B-cell precursor acute lymphoblastic leukemia, or B-ALL; PBCAR19B, an anti-CD19 CAR T candidate built on the stealth cell platform utilizing a single-step gene edit to minimize the risk of chromosome abnormalities; and PBCAR269A, an investigational allogeneic CAR T immunotherapy targeting BCMA for the treatment of R/R multiple myeloma. The company has development and commercial license agreement with Les Laboratoires Servier to develop allogeneic chimeric antigen receptor T cell therapies for antigen targets, hematological cancer targets beyond CD19, and solid tumor targets; Tiziana Life Sciences to evaluate foralumab, a fully human anti-CD3 monoclonal antibody as a lymphodepleting agent for the potential treatment of cancers; and iECURE, Inc. to develop ARCUS-based gene editing therapies. Precision BioSciences, Inc. was incorporated in 2006 and is headquartered in Durham, North Carolina.

How the Company Makes Money

Precision BioSciences generates revenue through various channels, including partnerships and collaborations with other biotechnology and pharmaceutical companies. These partnerships often involve licensing agreements for the use of its ARCUS technology, leading to milestone payments and royalties. Additionally, the company aims to commercialize its own therapeutic products, which could provide revenue from product sales. Significant factors contributing to its earnings include successful development and commercialization of therapies, as well as strategic alliances that leverage its genome editing expertise.

Precision BioSciences Financial Statement Overview

Summary

Precision BioSciences is showing promising revenue growth and improved operating performance, but profitability and cash flow management remain key challenges. The low debt levels provide financial stability, but the company needs to enhance its cash generation capabilities to sustain long-term growth. While the financial position is strengthening, strategic focus on cost control and cash efficiency is crucial for future success.

Income Statement

Precision BioSciences has shown a significant improvement in revenue, with a year-over-year growth rate of approximately 41% from 2023 to 2024. However, profitability is a concern as the net profit margin remains low due to high operating expenses relative to revenue, resulting in a net income of only $7.1 million in 2024 from a loss of $61.3 million in 2023. The gross profit margin is relatively stable at 100%, indicating that the company is retaining its revenue at the gross level efficiently. EBIT and EBITDA margins are positive, reflecting improved operating performance.

Balance Sheet

The company has a strong equity base with a debt-to-equity ratio of approximately 0.02 in 2024, indicating low financial leverage. However, the return on equity is modest at about 12.7%, suggesting moderate profitability relative to shareholder investment. The equity ratio is approximately 41.4%, reflecting a balanced asset structure. Overall, the balance sheet presents a stable financial position with low debt.

Cash Flow

The cash flow statement indicates challenges in cash management, with a negative operating cash flow of $58.4 million in 2024. Despite an improvement in free cash flow from the previous year, the free cash flow to net income ratio is negative, highlighting inefficiencies in converting net income into free cash flow. The operating cash flow to net income ratio is also negative, indicating that cash outflows from operations exceed net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
68.70M	48.73M	25.10M	115.53M	24.29M
	Gross Profit
68.70M	40.47M	16.09M	115.53M	24.29M
	EBIT
7.17M	-43.74M	-100.37M	-39.40M	-109.83M
	EBITDA
13.53M	-32.04M	-62.79M	-20.27M	-99.19M
	Net Income Common Stockholders
7.17M	-61.32M	-122.91M	-30.92M	-109.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
86.31M	116.68M	189.58M	143.66M	89.80M
	Total Assets
136.39M	159.78M	238.17M	211.50M	150.16M
	Total Debt
1.32M	31.27M	27.04M	9.11M	10.52M
	Net Debt
-84.58M	-85.41M	-162.54M	-134.55M	-79.28M
	Total Liabilities
80.00M	140.92M	177.74M	120.33M	105.73M
	Stockholders Equity
56.39M	18.86M	60.43M	91.17M	44.42M
Cash Flow		Free Cash Flow
-58.70M	-86.39M	-49.07M	-16.66M	-92.42M
	Operating Cash Flow
-58.45M	-84.11M	-45.75M	-10.85M	-87.39M
	Investing Cash Flow
-215.00K	5.83M	-3.32M	-5.80M	-5.03M
	Financing Cash Flow
50.45M	5.39M	94.98M	70.52M	1.33M

Precision BioSciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTIL, the sentiment is Positive. The current price of 5.01 is above the 20-day moving average (MA) of 4.79, below the 50-day MA of 5.03, and below the 200-day MA of 7.25, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 61.78 is Neutral, neither overbought nor oversold. The STOCH value of 56.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DTIL.

Precision BioSciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTMX	54 Neutral	$48.55M	1.61	-58.97%	―	36.45%	―
Sector *	50 Neutral	$5.51B	2.95	-43.70%	2.78%	16.94%	3.59%
DTIL	48 Neutral	$46.75M	2.91	19.05%	―	40.98%	―
IKNA	42 Neutral	$45.89M	―	-33.30%	―	-100.00%	37.59%
BLUE	36 Underperform	$46.60M	―	-295.35%	―	184.12%	31.92%
ACET	36 Underperform	$46.80M	―	-65.65%	―	―	59.75%
ACRV	30 Underperform	$47.03M	―	-54.07%	―	―	10.84%

Precision BioSciences Corporate Events

Precision BioSciences Advances Gene Editing Trials Globally

Precision BioSciences has received clearance in Moldova to begin clinical trials for its gene editing program, PBGENE-HBV, aimed at treating chronic hepatitis B. The innovative approach targets the root cause of the disease by eliminating cccDNA, potentially leading to functional cures. This milestone marks a significant step forward in their global clinical strategy, as they aim to provide a groundbreaking treatment for millions affected worldwide.