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Relative valuation derived from Technology sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 36.5GRADE D
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
-10.4%
Sector: -1.4%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Precipio, Inc. (PRPO) receives a "Hold" rating with a composite score of 44.6/100, ranked #413 out of 4446 stocks. Key factor scores: Quality 37/100, Value 31/100, Momentum 71/100. This is quantitative analysis only — not investment advice.
Precipio, Inc. (PRPO) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Precipio, Inc. Do?
Precipio, Inc., a healthcare solutions company, provides diagnostic products, reagents, and services in the United States. It provides diagnostic blood cancer testing services. The company offers IV-Cell, a proprietary cell culture media that enables simultaneous culturing of four hematopoietic cell lineages; HemeScreen, a suite of robust genetic diagnostic panels; ICE-COLD PCR, a proprietary and patented specimen technology that increases the sensitivity of molecular based tests; and COVID-19 antibody tests. It sells ICE-COLD-PCR technology kits to bio-pharma customers. Precipio, Inc. has collaborations with academic institutions specializing in cancer research, diagnostics, and treatment. The company is based in New Haven, Connecticut. Precipio, Inc. (PRPO) is classified as a micro-cap stock in the Technology sector, specifically within the Measuring And Control Equipment industry. The company is led by CEO Ilan Danieli and employs approximately 60 people, headquartered in Omaha, Connecticut. With a market capitalization of $43M, PRPO is one of the notable companies in the Technology sector.
Precipio, Inc. (PRPO) Stock Rating — Hold (April 2026)
As of April 2026, Precipio, Inc. receives a Hold rating with a composite score of 44.6/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.PRPO ranks #413 out of 4,446 stocks in our coverage universe. Within the Technology sector, Precipio, Inc. ranks #24 of 584 stocks, placing it in the top 10% of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
PRPO Stock Price and 52-Week Range
Precipio, Inc. (PRPO) currently trades at $27.34. The stock lost $0.48 (1.7%) in the most recent trading session. The 52-week high for PRPO is $29.53, which means the stock is currently trading -7.4% from its annual peak. The 52-week low is $3.90, putting the stock 601.0% above its annual trough. Recent trading volume was 30K shares, suggesting relatively thin trading activity.
Is PRPO Overvalued or Undervalued? — Valuation Analysis
Precipio, Inc. (PRPO) carries a value factor score of 31/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The price-to-book ratio stands at 3.49x, versus the sector average of 3.16x. The price-to-sales ratio is 2.25x, compared to 1.06x for the average Technology stock. On an enterprise value basis, PRPO trades at 19.57x EV/EBITDA, versus 12.79x for the sector.
At current multiples, Precipio, Inc. trades at a premium to most Technology peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.
Precipio, Inc. Profitability — ROE, Margins, and Quality Score
Precipio, Inc. (PRPO) earns a quality factor score of 37/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is -10.4%, compared to the Technology sector average of -1.4%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -7.1% versus the sector average of -1.0%.
On a margin basis, Precipio, Inc. reports gross margins of 43.6%, compared to 50.9% for the sector. The operating margin is -11.1% (sector: -0.5%). Net profit margin stands at -7.5%, versus -1.5% for the average Technology stock. Revenue growth is running at 52.4% on a trailing basis, compared to 14.2% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
PRPO Debt, Balance Sheet, and Financial Health
Precipio, Inc. has a debt-to-equity ratio of 1.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.61x, suggesting adequate working capital coverage. Total debt on the balance sheet is $83,000. Cash and equivalents stand at $2M.
PRPO has a beta of 0.62, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Precipio, Inc. is 43/100, reflecting average volatility within the normal range for its sector.
Precipio, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Precipio, Inc. reported revenue of $23M and earnings per share (EPS) of $-0.23. Net income for the quarter was $-2M. Gross margin was 43.6%. Operating income came in at $-2M.
In FY 2025, Precipio, Inc. reported revenue of $24M and earnings per share (EPS) of $-0.23. Net income for the quarter was $-363,000. Gross margin was 44.5%. Revenue grew 29.8% year-over-year compared to FY 2024. Operating income came in at $-1M.
In Q3 2025, Precipio, Inc. reported revenue of $7M and earnings per share (EPS) of $-0.05. Net income for the quarter was $-79,000. Gross margin was 44.4%. Revenue grew 29.9% year-over-year compared to Q3 2024. Operating income came in at $-61,000.
In Q2 2025, Precipio, Inc. reported revenue of $6M and earnings per share (EPS) of $0.05. Net income for the quarter was $74,000. Gross margin was 43.0%. Revenue grew 27.3% year-over-year compared to Q2 2024. Operating income came in at $-824,000.
Over the past 8 quarters, Precipio, Inc. has demonstrated a growth trajectory, with revenue expanding from $4M to $23M. Investors analyzing PRPO stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
PRPO Dividend Yield and Income Analysis
Precipio, Inc. (PRPO) does not currently pay a dividend. This is common among smaller companies in the Measuring And Control Equipment industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.
PRPO Momentum and Technical Analysis Profile
Precipio, Inc. (PRPO) has a momentum factor score of 71/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 22/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 48/100 reflects moderate short selling activity.
PRPO vs Competitors — Technology Sector Ranking and Peer Comparison
Comparing PRPO against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full PRPO vs S&P 500 (SPY) comparison to assess how Precipio, Inc. stacks up against the broader market across all factor dimensions.
PRPO Next Earnings Date
No upcoming earnings date has been announced for Precipio, Inc. (PRPO) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy PRPO? — Investment Thesis Summary
Precipio, Inc. presents a balanced picture with arguments on both sides. The quality score of 37/100 flags below-average profitability. The value score of 31/100 indicates premium valuation. Price momentum is positive at 71/100, suggesting the trend favors buyers.
In summary, Precipio, Inc. (PRPO) earns a Hold rating with a composite score of 44.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on PRPO stock.
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Institutional Research Dossier
Precipio, Inc. (PRPO) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Precipio, Inc. (PRPO), driven by a mixed assessment of its financial performance and strategic positioning. While the company has demonstrated impressive revenue growth, particularly in the most recent quarter, persistent negative profitability and cash flow generation raise concerns about its long-term sustainability. The company's innovative diagnostic technologies, such as ICE-COLD PCR, offer potential, but successful commercialization and scaling remain key challenges.
The Hold rating reflects a balanced view, acknowledging the company's growth potential and innovative technologies while recognizing the significant financial risks and valuation concerns. Investors should closely monitor Precipio's progress in achieving profitability and managing its cash burn before considering a more bullish stance.
Business Strategy & Overview
Precipio, Inc. operates as a healthcare solutions company, primarily focused on providing diagnostic products, reagents, and services, with a specialization in diagnostic blood cancer testing. The company's revenue is generated through the sale of diagnostic tests, reagents, and technology kits, as well as through collaborations with academic institutions. A core element of Precipio's strategy revolves around its proprietary technologies, including IV-Cell, HemeScreen, and ICE-COLD PCR. IV-Cell aims to improve cell culturing, HemeScreen offers genetic diagnostic panels, and ICE-COLD PCR enhances the sensitivity of molecular-based tests. The company's COVID-19 antibody tests also contributed to revenue, particularly during the pandemic.
Precipio's strategic positioning involves targeting specialized areas within diagnostics, particularly hematological malignancies. This focus allows the company to develop expertise and potentially capture market share in niche segments. The collaboration with academic institutions is a crucial aspect of Precipio's strategy, providing access to research, clinical validation, and potential commercialization opportunities. The company's business model also includes selling ICE-COLD-PCR technology kits to bio-pharma customers, diversifying its revenue streams beyond diagnostic testing services.
The company's product pipeline appears to be centered around further development and commercialization of its existing technologies, particularly ICE-COLD PCR. This technology has the potential to significantly improve the accuracy and sensitivity of molecular diagnostics, which could drive adoption and revenue growth. However, the company faces challenges in scaling its operations, securing regulatory approvals, and competing with larger, more established players in the diagnostics market.
Precipio operates within the broader diagnostics industry, which is characterized by rapid technological advancements, increasing regulatory scrutiny, and intense competition. The industry is driven by the growing demand for personalized medicine, early disease detection, and improved treatment outcomes. Precipio's success depends on its ability to differentiate itself through innovative technologies, establish strong partnerships, and effectively commercialize its products and services.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
52.4%
Sector: 14.2%
+268% VS SCTR
Economic Moat Analysis
Precipio's economic moat is currently assessed as None. While the company possesses proprietary technologies like ICE-COLD PCR, these innovations have not yet translated into a sustainable competitive advantage. The diagnostics industry is characterized by rapid innovation and intense competition, making it difficult for smaller players like Precipio to establish a durable moat.
The company's reliance on specialized diagnostic testing, particularly in hematological malignancies, could potentially create a niche market position. However, this niche is not necessarily protected from competition, as larger diagnostic companies could easily enter the market with similar offerings. Furthermore, the company's collaborations with academic institutions, while valuable, do not guarantee a long-term competitive advantage, as these collaborations can be replicated by other companies.
Precipio's technologies do not appear to benefit from strong network effects. The value of its diagnostic tests and reagents does not increase significantly as more customers adopt them. Similarly, the company's switching costs are relatively low, as customers can easily switch to alternative diagnostic providers if they offer better pricing, service, or technology.
While Precipio possesses intangible assets in the form of patents and proprietary technologies, these assets are not yet generating significant economic rents. The company's ability to effectively commercialize these assets and protect them from infringement will be crucial in determining whether it can develop a sustainable competitive advantage in the future.
Precipio does not appear to have significant cost advantages over its competitors. The company's gross margins, while improving, are still below the sector average, suggesting that it may not be able to produce its products and services at a lower cost than its rivals. Furthermore, the company's operating expenses are relatively high, contributing to its negative profitability.
Given the competitive landscape and Precipio's current financial performance, it is unlikely that the company will be able to establish a significant economic moat in the near term. The company needs to demonstrate its ability to generate sustainable profits and cash flow before its competitive position can be reassessed.
Financial Health & Profitability
Precipio's financial health presents a mixed picture. The company has demonstrated impressive revenue growth, with a 52.4% increase compared to the sector average of 14.0%. This growth is encouraging, suggesting that the company's products and services are gaining traction in the market. However, the company's profitability remains a significant concern. The company's net income, EBITDA, and free cash flow are all negative, indicating that it is not generating enough revenue to cover its expenses. The company's net margin of -7.5% is significantly lower than the sector average of -1.5%, highlighting its struggles with profitability.
A review of the quarterly financial history reveals a volatile pattern. While Q3 FY2025 showed a slight improvement with a near break-even net income, previous quarters, including Q1 FY2025, showed substantial losses. The gross margin has remained relatively consistent around 43%, but the operating margin fluctuates significantly, reflecting the company's difficulty in controlling operating expenses. The large negative operating margins in earlier periods, such as Q1 FY2024 (-60.4%) and FY2022 (-136.0%), are particularly concerning.
Precipio's balance sheet shows a modest level of liquidity. The company's current ratio of 1.27 indicates that it has enough current assets to cover its current liabilities. However, its total cash of $2.31 million is relatively low, given its negative cash flow generation. The company's total debt of $85,000 is manageable, but it may need to raise additional capital in the future to fund its operations and growth initiatives.
The company's return on equity (ROE) of -11.0% is significantly lower than the sector average of -1.5%, reflecting its negative profitability. This indicates that the company is not effectively utilizing its equity to generate returns for its shareholders. The company's debt-to-equity ratio of 54.00 is slightly higher than the sector average of 43.00, suggesting that it is using a moderate amount of leverage to finance its operations.
Overall, Precipio's financial health is weak. While the company has demonstrated strong revenue growth, its persistent negative profitability and cash flow generation raise concerns about its long-term sustainability. The company needs to improve its profitability and cash flow generation to strengthen its financial position and reduce its reliance on external funding.
Valuation Assessment
Precipio's valuation is challenging to assess due to its negative earnings and free cash flow. The company's P/E ratio is not applicable (N/A) because it does not have positive earnings. Its EV/EBITDA ratio of 19.6x is higher than the sector average of 13.0x, suggesting that it is relatively expensive compared to its peers. However, this metric can be misleading for companies with negative EBITDA, as it can be significantly influenced by small changes in EBITDA.
Given the company's negative free cash flow, a traditional discounted cash flow (DCF) analysis is difficult to perform. A more appropriate valuation approach might involve using revenue multiples or comparing the company's valuation to that of other diagnostic companies with similar growth profiles. However, even using revenue multiples, Precipio's valuation appears relatively high, given its negative profitability and cash flow generation.
The company's market capitalization of $48.85 million reflects the market's expectations for future growth and profitability. However, this valuation is highly sensitive to changes in the company's financial performance and market sentiment. If the company fails to achieve its growth targets or improve its profitability, its valuation could decline significantly.
The recent revenue growth of 52.4% is a positive sign, but it needs to be sustained and translated into improved profitability. The company's valuation is currently based on the assumption that it will be able to achieve this. However, there is significant risk that the company will not be able to meet these expectations.
Overall, Precipio's valuation appears to be stretched, given its negative earnings, free cash flow, and relatively high EV/EBITDA ratio. While the company has demonstrated strong revenue growth, it needs to improve its profitability and cash flow generation to justify its current valuation. Investors should exercise caution and carefully consider the risks before investing in Precipio.
Risk & Uncertainty
Precipio faces several significant risks that could negatively impact its business and financial performance. One of the most significant risks is its reliance on a limited number of products and services. The company's revenue is primarily generated from diagnostic blood cancer testing services and the sale of ICE-COLD PCR technology kits. If demand for these products and services declines, or if the company is unable to successfully commercialize new products, its revenue could be significantly impacted.
Another significant risk is the intense competition in the diagnostics industry. Precipio competes with larger, more established companies that have greater financial resources and broader product portfolios. These competitors may be able to offer lower prices, develop more innovative products, or provide better customer service, which could put Precipio at a disadvantage.
The company's reliance on collaborations with academic institutions also poses a risk. These collaborations are crucial for research, clinical validation, and commercialization. However, if these collaborations are terminated or if the company is unable to secure new collaborations, its ability to develop and commercialize new products could be significantly impacted.
Regulatory risks are also a concern. The diagnostics industry is subject to extensive regulation, and changes in these regulations could negatively impact Precipio's business. For example, new regulations could require the company to obtain additional approvals for its products, increase its compliance costs, or limit its ability to market its products.
Finally, the company's financial condition poses a risk. Precipio has a history of negative profitability and cash flow generation. If the company is unable to improve its financial performance, it may need to raise additional capital, which could dilute existing shareholders or increase its debt burden. There is also a risk that the company could run out of cash and be forced to curtail its operations.
Bulls Say / Bears Say
The Bull Case
BULL VIEWPrecipio's ICE-COLD PCR technology offers a significant advantage in molecular diagnostics, potentially leading to widespread adoption and substantial revenue growth.
BULL VIEWThe company's focus on hematological malignancies allows it to develop specialized expertise and capture market share in a high-growth niche segment.
BULL VIEWRecent revenue growth demonstrates increasing market traction, suggesting that Precipio is on the path to achieving profitability and sustainable cash flow generation.
The Bear Case
BEAR VIEWPrecipio's persistent negative profitability and cash flow raise serious concerns about its long-term viability, requiring continuous capital raises that dilute shareholder value.
BEAR VIEWThe company's small size and limited resources make it vulnerable to competition from larger, more established players in the diagnostics industry.
BEAR VIEWThe high EV/EBITDA multiple, despite negative earnings, indicates an overvaluation that is unsustainable without significant improvements in financial performance.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score PRPO and 4,400+ other equities.
Precipio, Inc. exhibits a 0% valuation premium relative to institutional benchmarks. This represents a balanced risk/reward profile based on current multiples.
Return on Assets
Efficiency of asset utilization
-7.1%
Sector: -1.0%
Gross Margin
Pricing power and cost efficiency
43.6%
Sector: 50.9%
Operating Margin
Core business profitability
-11.1%
Sector: -0.5%
Net Margin
Bottom-line profitability
-7.5%
Sector: -1.5%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
