Prog Stock is a biotechnology company. It is involved in the development of and commercializing molecular testing solutions. The company is turning innovations into precision medicine using the development of therapeutic and diagnostic platforms based on genomics, microbiomics and proteomics.
However, the company earns its income from laboratory tests for molecular analysis which is primarily derive from the selling tests for Innatal, Preparent, and pathology molecular tests. The company was establish in 2010 and is located within San Diego, California.
I am not a fan of the stock of PROG. It’s a penny-stock that could appear to be inexpensive, given that it’s trading at about $1.40 for a share. But a deeper analysis of its fundamentals reveals that there are several risks to be concerned about which suggests its value is still high, despite suffering losses of around 77% over the last 1 year.
Prog Stock, Does it have a Bullish Side?
Prog stock is an iconic penny stock, which is an excellent illustration of a public-trade company to stay clear of. It is plague by extremely negative aspects. The first is that it has a poor profitability rating and its financial health assessment is also negative. In addition, the stock is an exorbitant valuation, and isn’t even close to producing any growth.
In the end, constructing an optimistic scenario for Prog stock that is based on the fundamentals of the market is likely to be based on fact rather than opinions. It is more credible to invest when it is ground in facts instead of opinions and emotions.
Prog Stock: Bearish Side
Prog shares have become a loss-making company since the year 2018. It is fascinating to highlight certain ratios of its profitability that could leave investors wondering what is the reason the business model is in such a mess. PROG’s profits have been in negative territory since Q2 2020.
Progenity has been a losing business since the year 2018. It’s interesting to look at certain ratios of its profitability that could leave investors wondering what the reason for being in such a mess. PROG’s stock profits have been in negative territory since the second quarter of 2020.
Additionally, Progeny is profit-oriented with a profit margin of -583.11 percent. This is lower than the industry standard of 0.68 percent and 97 percent of its peers in the industry outperform Progenity.
The financial health of the company is extremely weak, as shown in an Altman Z score of -14.89 This means that it is in a crisis area and bankruptcy could be imminent within the coming two years.
Additionally, the biotechnology firm has seen a decline in its revenue. Based on the last 3 years, revenues have decreased by -23.81 percent per year. Earnings per share also have decreased dramatically, by -113.78 percent in the past year.
I previously discussed the possible possibility of liquidity problems that are back through the Current Ratio, which is 0.90. This indicates that the company is not financially sound enough and may face difficulties in meeting its short-term obligations.
It is expected that there will be an extreme cash burn issue. It has less than one years of cash-flow runway according to the current free cash flow.
Wall Street’s View
Progenity has a Moderate Buy consensus built upon one Hold and one Buy rating. The average price target of $3.00 corresponds to 141.9 percent upside.
Prog Stock is an iconic textbook stock that you should avoid at all costs. It doesn’t have any fundamentally positive factors at present however, it has a lot of negative ones, making it a risky penny stock in the biotechnology industry.
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