BeiGene (ONC) AI Stock Analysis

• Market Cap: $24.82B
• Dividend Yield: N/A
• Average Volume (3M): 580.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: 54.96%
• EPS Growth: 27.51%
• Country: US
• Employees: 11,000
• Sector: Healthcare
• Sector Strength: 74
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -6.13
• Shares Outstanding: 98,697,630
• 10 Day Avg. Volume: 651,941
• 30 Day Avg. Volume: 580,296
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.06
• Price to Cash Flow (P/CF): 89.50
• P/FCF Ratio: 72.30
• 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: $320.21
• Price Target Upside: 53.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

BeiGene's strong revenue growth and positive earnings call guidance indicate significant potential, particularly in the BTK inhibitor market. However, profitability challenges and high cash flow dependency pose risks. Technical indicators are favorable, boosting short-term investor confidence, but valuation remains a concern due to negative earnings.

Positive Factors

Future Revenue Projections

The company provided total revenue guidance for 2025 in the range of $4.9-$5.3B, well ahead of the estimate of $4.6B.

Market Position

Brukinsa taking over the U.S. BTKi market with significant sales growth compared to its competitor.

Revenue Growth

BeiGene reported 4Q24 financial results, which beat top-line estimates due to $828MM in Brukinsa sales globally.

Negative Factors

Competitive Market

Brukinsa generated $828MM (20% Q/Q growth) in global sales across all indications, with $616MM (22% Q/Q growth) from the U.S., indicating intense market competition.

Product Development

BeiGene's decision to discontinue the development of TIGIT mAb is viewed as good news, as it allows the company to redirect cash resources to more promising areas of its pipeline.

BeiGene Business Overview & Revenue Model

Company Description

BeiGene, Ltd., an oncology company, engages in discovering and developing various treatments for cancer patients in the United States, China, Europe, and internationally. Its commercial stage products include BRUKINSA, a small molecule inhibitor of Bruton's Tyrosine Kinase (BTK) for the treatment of various blood cancers; TEVIMBRA, an anti-PD-1 antibody immunotherapy for the treatment of various solid tumor and blood cancers; and PARTRUVIX, a selective small molecule inhibitor of PARP1 and PARP2 enzymes that is being evaluated as a monotherapy and in combinations for the treatment of various solid tumors. The company's clinical stage products comprise BGB-11417, a small molecule Bcl-2 inhibitor; BGB-16673, a BTK-targeting chimeric degradation activation compound active against wild-type and mutant BTK; BGB-10188; BGB-21447, a Bcl-2 inhibitor; Ociperlimab (BGB-A1217), a TIGIT inhibitor; Zanidatamab, a bispecific HER2-targeted antibody; Surzebiclimab (BGB-A425), a TIM-3 inhibitor; BGB-A445, an OX40 agonist antibody; BGB-15025, a small molecule inhibitor of HPK1; BGB-24714, a SMAC mimetic; BGB-26808, a HPK-1 inhibitor; Lifirafenib and BGB-3245 that are inhibitors of RAF; BGB-30813; BGB-A3055, an anti-CCR8 antibody; and BGB-43395, a CDK-4 inhibitor. It also has various preclinical programs. The company has license agreements with Ensem Therapeutics, Inc.; Shandong Luye Pharmaceutical Co., Ltd.; Shoreline Biosciences, Inc.; Nanjing Leads Biolabs, Inc.; EUSA Pharma; Assembly Biosciences, Inc.; Bio-Thera Solutions, Ltd.; Amgen Inc.; and Beijing Novartis Pharma Co., Ltd. BeiGene, Ltd. was incorporated in 2010 and is based in Camana Bay, the Cayman Islands.

How the Company Makes Money

BeiGene generates revenue primarily through the sale of its commercialized pharmaceuticals, such as Brukinsa and tislelizumab, in various global markets. Additionally, the company earns income through collaborations and partnerships with other pharmaceutical companies, which may include licensing agreements, milestone payments, and royalties from marketed products developed in conjunction with partners. BeiGene also benefits from government grants and financial incentives related to its research and development activities. The company's strategy to expand its product portfolio and increase market penetration contributes significantly to its revenue growth.

BeiGene Financial Statement Overview

Summary

BeiGene shows strong revenue growth, reflecting its market expansion, but struggles with profitability and cash flow generation. The balance sheet is strong with low leverage, but cash flow challenges pose risks if external funding diminishes.

Income Statement

BeiGene has shown significant revenue growth, from $308 million in 2020 to $3.81 billion in 2024, indicating strong top-line expansion. However, the company consistently reports negative EBIT and net income, reflecting ongoing challenges in achieving profitability. Gross profit margins have improved, but net profit margins remain negative, indicating operational inefficiencies or high R&D expenses typical in biotechnology.

Balance Sheet

The company maintains a strong equity base, with a debt-to-equity ratio consistently below 0.4, suggesting modest leverage. The equity ratio has decreased over the years, signaling a higher proportion of liabilities. The company's cash reserves remain robust, but declining trends in stockholders’ equity indicate potential financial pressures.

Cash Flow

Operating and free cash flows are negative, highlighting a reliance on external financing. The operating cash flow to net income ratio suggests operational challenges in generating cash from core business activities. With decreasing free cash flow, the company may face liquidity pressures without external funding.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.81B	2.46B	1.42B	1.18B	308.87M
	Gross Profit
3.22B	2.08B	-511.06M	-447.86M	-1.06B
	EBIT
-568.20M	-1.21B	-1.79B	-1.44B	-1.66B
	EBITDA
-396.44M	-1.12B	-1.72B	-1.39B	-1.63B
	Net Income Common Stockholders
-644.79M	-881.71M	-2.00B	-1.41B	-1.60B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.63B	3.17B	4.54B	6.62B	4.66B
	Total Assets
5.92B	5.81B	6.38B	8.65B	5.60B
	Total Debt
1.08B	930.18M	891.13M	694.64M	561.96M
	Net Debt
-1.55B	-2.24B	-2.98B	-3.68B	-819.99M
	Total Liabilities
2.59B	2.27B	2.00B	2.40B	1.73B
	Stockholders Equity
3.33B	3.54B	4.38B	6.24B	3.87B
Cash Flow		Free Cash Flow
-669.77M	-1.75B	-1.97B	-1.61B	-1.51B
	Operating Cash Flow
-140.63M	-1.16B	-1.50B	-1.30B	-1.28B
	Investing Cash Flow
-548.35M	60.00M	1.08B	640.66M	-3.17B
	Financing Cash Flow
193.45M	416.48M	-18.97M	3.64B	5.20B

BeiGene Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 208.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONC, the sentiment is Negative. The current price of 208.31 is below the 20-day moving average (MA) of 250.82, below the 50-day MA of 245.58, and above the 200-day MA of 205.49, indicating a neutral trend. The MACD of 6.33 indicates Negative momentum. The RSI at 62.17 is Neutral, neither overbought nor oversold. The STOCH value of 74.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ONC.

BeiGene Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMRN	78 Outperform	$11.40B	25.61	8.05%	―	17.35%	151.40%
ARGX	68 Neutral	$31.67B	40.61	17.33%	―	78.01%	―
BIIB	65 Neutral	$17.64B	10.14	10.36%	―	-1.60%	39.71%
ONC	56 Neutral	$24.82B	―	-18.77%	―	54.96%	27.51%
BNTX	54 Neutral	$22.59B	―	-3.38%	―	-27.64%	-172.62%
BIO	49 Neutral	$6.86B	―	-24.09%	―	-3.92%	-202.80%
Sector *	48 Neutral	$6.36B	1.28	-45.04%	2.64%	19.24%	1.69%