Predictive Oncology (POAI) AI Stock Analysis

• Market Cap: $8.57M
• Dividend Yield: N/A
• Average Volume (3M): 5.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: -6.99%
• EPS Growth: 27.40%
• Country: US
• Employees: 34
• Sector: Healthcare
• Sector Strength: 71
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -2.53
• Shares Outstanding: 8,931,621
• 10 Day Avg. Volume: 352,384
• 30 Day Avg. Volume: 5,483,926
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.32
• Price to Cash Flow (P/CF): -0.80
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Predictive Oncology's stock score is primarily driven by its challenging financial performance, characterized by declining revenues and negative profit margins. However, the technical analysis shows some positive momentum, which partially offsets the poor financial metrics. The valuation is unattractive due to negative earnings and lack of dividends.

Positive Factors

Technology

The proprietary AI platform PEDAL has demonstrated the potential to identify biomarkers in cancer patients, making it an attractive licensing target.

Negative Factors

Financial Performance

Predictive Oncology reported lower than expected revenue for 3Q24, indicating potential financial challenges.

Strategic Uncertainty

The company is undergoing a strategic review, which includes evaluating alternatives like a sale of the company or its assets, creating uncertainty.

Predictive Oncology Business Overview & Revenue Model

Company Description

Predictive Oncology Inc., a knowledge-driven company, focuses on developing personalized cancer therapies using artificial intelligence (AI) primarily in the United States. The company operates in four segments: Helomics, zPREDICTA, Soluble, and Skyline. The Helomics segment offers clinical testing services comprising tumor drug response testing and genomic profiling tests; and contract research services through patient-centric drug discovery using active learning technology for discovery, clinical and translational research, clinical trials, and diagnostic development and validation. The zPREDICTA segment develops organ-specific disease models that provide 3D reconstruction of human tissues representing each disease state and mimicking drug response for testing of anticancer agents. The Soluble segment provides services using High-Throughput Self-Interaction Chromatography, a self-contained, automated system that conducts high-throughput, self-interaction chromatography screens using additives and excipients that are included in protein formulations for soluble and physically stable formulations for biologics. This segment also offers protein stability analysis services; protein solubility kits that allow rapid identification of soluble formulations; and proprietary technologies for bacterial endotoxin detection and removal. The Skyline segment provides STREAMWAY System, a wall-mounted fully automated system, which virtually eliminates staff exposure to blood, irrigation fluid, and other infectious fluids found in the healthcare environment. It also offers research and development services; and media that help cancer cells grow outside the patient's body and retain their DNA/RNA and proteomic signatures. The company was formerly known as Precision Therapeutics Inc. and changed its name to Predictive Oncology Inc. in June 2019. Predictive Oncology Inc. was incorporated in 2002 and is based in Eagan, Minnesota.

How the Company Makes Money

Predictive Oncology makes money through a diversified revenue model centered around its advanced biotechnology offerings. The company generates income primarily by providing its proprietary AI-driven platforms to healthcare institutions and pharmaceutical companies. These platforms facilitate drug discovery and optimize treatment plans by analyzing vast amounts of genomic and clinical data. Additionally, Predictive Oncology engages in strategic partnerships and collaborations with leading biotech and pharmaceutical firms, which further contribute to its revenue streams. The company's business model is bolstered by licensing agreements and service contracts, allowing access to its expansive database and predictive analytics tools. These partnerships and agreements are crucial in driving the company's growth and expanding its market reach.

Predictive Oncology Financial Statement Overview

Summary

Predictive Oncology faces substantial financial challenges. The income statement shows persistent losses, the balance sheet reveals high leverage, and the cash flow statement indicates ongoing cash burn. These factors contribute to an overall financial health that requires significant improvement.

Income Statement

Predictive Oncology's income statement reveals significant challenges. The company has struggled with consistent revenue growth, showing fluctuations across periods. The gross profit margin is relatively low, and the net profit margin is negative, indicating ongoing losses. Both EBIT and EBITDA margins are significantly negative, reflecting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet highlights a company with high leverage, as indicated by the debt-to-equity ratio. Although the equity ratio has declined, it remains positive, suggesting some equity cushion. However, the return on equity is currently negative due to ongoing net losses, signaling inefficient use of equity capital.

Cash Flow

Cash flow analysis indicates a company under financial strain. The operating cash flow has been consistently negative, reflecting poor cash generation from core activities. The free cash flow has also been negative, although there is some improvement in free cash flow to net income ratio, suggesting incremental progress in managing cash better relative to net losses.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.38M	1.78M	1.51M	1.42M	1.25M	1.41M
	Gross Profit
108.76K	1.15M	1.00M	933.66K	805.08K	879.75K
	EBIT
-13.25M	-14.08M	-15.27M	-13.47M	-666.27K	-13.77M
	EBITDA
-12.76M	-13.18M	-13.95M	-12.13M	-11.46M	-12.41M
	Net Income Common Stockholders
-13.97M	-13.98M	-36.21M	-19.66M	-37.70M	-27.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.20M	8.73M	22.07M	28.20M	678.33K	150.83K
	Total Assets
10.60M	14.42M	25.73M	43.77M	13.06M	22.38M
	Total Debt
2.61M	2.86M	180.32K	879.33K	5.87M	5.53M
	Net Debt
-2.59M	-5.87M	-21.89M	-27.32M	5.20M	5.37M
	Total Liabilities
6.55M	6.15M	3.97M	3.51M	10.42M	11.14M
	Stockholders Equity
4.05M	8.27M	21.77M	40.27M	2.64M	11.23M
Cash Flow		Free Cash Flow
-12.00M	-13.49M	-12.85M	-13.17M	-12.62M	-8.76M
	Operating Cash Flow
-12.00M	-13.19M	-12.37M	-12.21M	-12.26M	-8.73M
	Investing Cash Flow
-2.21K	-302.37K	-475.70K	-10.61M	-167.46K	-599.09K
	Financing Cash Flow
4.02M	148.90K	6.72M	50.34M	12.95M	9.32M

Predictive Oncology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POAI, the sentiment is Negative. The current price of 0.98 is below the 20-day moving average (MA) of 1.24, below the 50-day MA of 1.31, and below the 200-day MA of 1.03, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 37.77 is Neutral, neither overbought nor oversold. The STOCH value of 9.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for POAI.

Predictive Oncology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRTX	64 Neutral	$127.47B	―	-3.15%	―	11.64%	-114.72%
EXAS	52 Neutral	$8.22B	―	-37.09%	―	10.37%	-389.98%
POAI	51 Neutral	$8.57M	―	-292.08%	―	-6.99%	27.40%
Sector *	50 Neutral	$5.51B	2.95	-43.70%	2.78%	16.94%	3.59%
ILMN	49 Neutral	$11.88B	―	-30.11%	―	-2.93%	-4.69%
GH	49 Neutral	$5.57B	―	-4584.47%	―	31.04%	16.91%
CRSP	46 Neutral	$3.34B	―	-19.20%	―	-89.95%	-123.71%

Predictive Oncology Corporate Events

Predictive Oncology Ends Merger Talks with Renovaro

Predictive Oncology Inc. announced that it has discontinued discussions with Renovaro Inc. regarding a proposed merger, clarifying that no binding agreement was ever reached despite contrary claims by Renovaro. The letter of intent for the merger, initially signed on January 1, 2025, and extended on February 28, 2025, expired on March 31, 2025, leaving Predictive Oncology with no further obligations to Renovaro. The company remains focused on advancing its core business in AI-driven drug discovery and development.

Spark’s Take on POAI Stock

According to Spark, TipRanks’ AI Analyst, POAI is a Neutral.

Predictive Oncology’s stock score is primarily driven by its challenging financial performance, characterized by declining revenues and negative profit margins. However, the technical analysis shows some positive momentum, which partially offsets the poor financial metrics. The valuation is unattractive due to negative earnings and lack of dividends.

To see Spark’s full report on POAI stock, click here.