GH Research (GHRS) AI Stock Analysis

• Market Cap: $558.25M
• Dividend Yield: N/A
• Average Volume (3M): 254.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: N/A
• EPS Growth: -9.46%
• Country: US
• Employees: 50
• Sector: Healthcare
• Sector Strength: 70
• Industry: Biotechnology
• EPS (TTM): -0.75
• Shares Outstanding: 62,028,145
• 10 Day Avg. Volume: 237,870
• 30 Day Avg. Volume: 254,532
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): N/A
• 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: $32.38
• Price Target Upside: 259.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

GH Research's financial performance is challenged by negative cash flows and profitability issues, despite a strong equity base. Technical analysis indicates mixed signals with potential short-term weakness. The valuation remains a concern due to negative earnings. These factors result in a below-average overall stock score.

Positive Factors

Clinical Trial Success

GH001 demonstrated significant reduction in depression symptoms in a placebo-controlled Phase IIb study.

Financial Stability

GH Research is well funded, with over $180 million in cash, to execute on broad development plans for GH001.

Market Expansion Potential

Positive efficacy signals in postpartum depression and bipolar depression highlight future expansion and potential upside.

Negative Factors

Clinical Hold

One key focus for investors is on the ongoing clinical hold for GHRS' proprietary inhalation device.

Regulatory Challenges

Regulatory and commercial challenges are key investor concerns.

Trial Progression Delays

A full response submission to remove the clinical hold on the US trial using the proprietary aerosol device is anticipated, which indicates a delay in trial progression until mid-2025.

GH Research Business Overview & Revenue Model

Company Description

GH Research (GHRS) is a clinical-stage biopharmaceutical company focused on developing novel treatments for mental health disorders. The company operates primarily in the biotechnology and pharmaceutical sectors, with a core emphasis on researching and developing therapeutic solutions specifically targeting treatment-resistant depression and other mood disorders.

How the Company Makes Money

GH Research makes money primarily through the development and eventual commercialization of its pharmaceutical products. Revenue streams are anticipated from the sale of proprietary medications following successful clinical trials and regulatory approval. Additionally, the company may engage in strategic partnerships or collaborations with larger pharmaceutical firms, potentially receiving milestone payments, royalties, or licensing fees. However, as a clinical-stage company, it currently relies on funding from investors, grants, and partnerships to support its research and development activities.

GH Research Financial Statement Overview

Summary

GH Research is in the early stages of revenue generation and faces significant challenges in terms of profitability and operational cash flow. The company has a strong equity base and low debt, which are positives. However, ongoing losses and negative cash flows are major concerns that need to be addressed to achieve long-term financial health.

Income Statement

GH Research shows weak financial performance with consistently negative net income and EBIT. The gross profit margin is negative due to costs exceeding the revenue. However, the company has shown some revenue generation in the latest TTM, indicating potential for future growth.

Balance Sheet

The balance sheet is relatively stable with a high equity ratio and low total debt, indicating strong financial stability. However, the company’s assets have been declining over time, and the return on equity is negative due to consistent losses.

Cash Flow

The cash flow statement indicates negative operating cash flow, reflecting ongoing operational challenges. Despite this, the company maintains a strong cash position, suggesting potential for future investment and growth.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
80.00K	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-78.00K	-315.00K	-47.00K	-19.00K	0.00	0.00
	EBIT
-50.26M	-41.22M	-30.55M	-15.10M	-446.00K	-310.00K
	EBITDA
-38.27M	-41.15M	-30.63M	-15.08M	0.00	0.00
	Net Income Common Stockholders
-38.96M	-35.59M	-7.13M	-9.21M	-446.00K	-310.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
149.32M	161.56M	165.96M	276.78M	5.89M	498.00K
	Total Assets
188.27M	226.30M	254.36M	279.92M	5.91M	504.00K
	Total Debt
624.00K	974.00K	0.00	0.00	0.00	0.00
	Net Debt
-100.17M	-77.45M	-165.96M	-276.78M	-5.89M	-498.00K
	Total Liabilities
9.32M	7.33M	4.55M	2.75M	246.00K	104.00K
	Stockholders Equity
178.95M	218.97M	249.82M	277.18M	5.67M	400.00K
Cash Flow		Free Cash Flow
-42.33M	-33.44M	-26.27M	-15.39M	-1.11M	-289.00K
	Operating Cash Flow
-42.28M	-33.34M	-26.20M	-15.28M	-1.09M	-289.00K
	Investing Cash Flow
65.14M	-54.10M	-84.69M	-104.00K	-21.00K	0.00
	Financing Cash Flow
-304.00K	-204.00K	0.00	286.45M	5.50M	797.00K

GH Research Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GHRS, the sentiment is Negative. The current price of 9 is below the 20-day moving average (MA) of 10.78, below the 50-day MA of 11.78, and below the 200-day MA of 9.81, indicating a bearish trend. The MACD of -0.67 indicates Positive momentum. The RSI at 36.19 is Neutral, neither overbought nor oversold. The STOCH value of 26.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GHRS.

GH Research Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.36B	1.19	-46.31%	2.67%	19.41%	1.23%
PRTA	47 Neutral	$550.11M	―	-23.34%	―	47.92%	17.84%
GHRS	45 Neutral	$558.25M	―	-19.58%	―	―	-9.46%
DNTH	42 Neutral	$565.74M	―	-32.60%	―	351.48%	80.10%
REPL	40 Neutral	$566.06M	―	-50.50%	―	―	4.28%
LENZ	36 Underperform	$558.02M	―	-25.68%	―	―	68.93%
RCKT	34 Underperform	$561.94M	―	-54.14%	―	―	6.99%