Beam Therapeutics Inc.BEAM
NASDAQ • Healthcare
$32.13
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
+324.9% YoY
Gross Margin
100.0%
Health Score
5/10
D/E Ratio
0.24
Confidence
—
Business Snapshot
Beam Therapeutics is a biotechnology company focused on developing precision genetic medicines through its proprietary base editing platform. Operating in the highly competitive gene editing market, Beam distinguishes itself by targeting single-base changes in DNA, which may offer a differentiated safety and efficacy profile versus traditional CRISPR approaches. As a small-cap biotech with TTM revenue of $164.01 million, the company is pre-commercial and relies on partnership milestones and research revenue to fund operations. A key defining characteristic is its platform technology that could address a broad range of genetic diseases, but it remains in early-stage clinical development with no approved products.
Financial Health
Gross margin is reported at 100.0%, up from 95.0% in the prior year — note this figure may be distorted due to revenue recognition accounting, as it suggests no cost of goods sold. Net margin remains deeply negative at -39.7%, reflecting the company's heavy investment in R&D and clinical programs...
Risk Assessment
- EARNINGS QUALITY — Net income in Q2 2025 included a $244.3 million gain that is likely non-recurring, inflating apparent profitability and masking the underlying operating loss trend.
- REVENUE DECELERATION — Revenue declined 72.2% quarter-over-quarter from $114.11 million to $31.74 million, revealing a highly erratic revenue stream dependent on milestone timing.
- VALUATION — A price-to-sales ratio of 19.81x is steep for a company with negative net margins and negative free cash flow, leaving little margin for execution missteps.
- FCF / CASH BURN — Negative free cash flow of -$360.05 million indicates substantial cash consumption, which may pressure the balance sheet over time without new financing.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION DIVERGENCE — The FMP DCF fair value of -$36.1 (189% premium) cannot be reconciled with any positive intrinsic value estimate, though model limitations are acknowledged....