Beta Bionics Stock To $14?
Beta Bionics (BBNX) stock has fallen 37% during the past day, and is currently trading at $20.14. Our multi-factor assessment suggests that it may be time to reduce exposure to BBNX stock. We are primarily concerned current valuation and a price of $14 may not be out of reach. We believe there are only a couple of things to fear in BBNX stock given its overall Strong operating performance and financial condition. But given its Very High valuation, the stock appears Relatively Expensive.
Below is our assessment:
| CONCLUSION | |
|---|---|
| What you pay: | |
| Valuation | Very High |
| What you get: | |
| Growth | Very Strong |
| Profitability | Very Weak |
| Financial Stability | Very Strong |
| Downturn Resilience | N/A |
| Operating Performance | Strong |
| Stock Opinion | Relatively Expensive |
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Let’s get into details of each of the assessed factors but before that, for quick background: With $879 Mil in market cap, Beta Bionics provides innovative medical devices using advanced adaptive closed-loop algorithms to simplify and enhance treatment for insulin-dependent diabetes, improving health and quality of life.
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[1] Valuation Looks Very High
| BBNX | S&P 500 | |
|---|---|---|
| Price-to-Sales Ratio | 10.0 | 3.3 |
| Price-to-Earnings Ratio | -11.4 | 24.2 |
| Price-to-Free Cash Flow Ratio | -14.7 | 21.4 |
This table highlights how BBNX is valued vs broader market.
[2] Growth Is Very Strong
- Beta Bionics has seen its top line grow at an average rate of 67.0% over the last 3 years
- Its revenues have grown 67% from $53 Mil to $89 Mil in the last 12 months
- Also, its quarterly revenues grew 63.1% to $27 Mil in the most recent quarter from $17 Mil a year ago.
| BBNX | S&P 500 | |
|---|---|---|
| 3-Year Average | 67.0% | 5.6% |
| Latest Twelve Months* | 67.0% | 6.2% |
| Most Recent Quarter (YoY)* | 63.1% | 7.3% |
This table highlights how BBNX is growing vs broader market. For more details see: BBNX Revenue Comparison
[3] Profitability Appears Very Weak
- BBNX last 12 month operating income was $-69 Mil representing operating margin of -77.4%
- With cash flow margin of -63.9%, it generated nearly $-57 Mil in operating cash flow over this period
- For the same period, BBNX generated nearly $-78 Mil in net income, suggesting net margin of about -87.9%
| BBNX | S&P 500 | |
|---|---|---|
| Current Operating Margin | -77.4% | 18.8% |
| Current OCF Margin | -63.9% | 20.5% |
| Current Net Income Margin | -87.9% | 13.1% |
This table highlights how BBNX profitability vs broader market. For more details see: BBNX Operating Income Comparison
[4] Financial Stability Looks Very Strong
- BBNX Debt was $7.7 Mil at the end of the most recent quarter, while its current Market Cap is $879 Mil. This implies Debt-to-Equity Ratio of 0.9%
- BBNX Cash (including cash equivalents) makes up $229 Mil of $330 Mil in total Assets. This yields a Cash-to-Assets Ratio of 69.3%
| BBNX | S&P 500 | |
|---|---|---|
| Current Debt-to-Equity Ratio | 0.9% | 20.2% |
| Current Cash-to-Assets Ratio | 69.3% | 7.2% |
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