Burning Rock Biotech Ltd (BNR) Stock Analysis
Burning Rock Biotech Ltd
▾ What's in the 32/100 risk score? (higher = riskier)
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend). It excludes the Altman Z score, whose retained-earnings input this filer does not report separately. See the Financial Health section for the full balance-sheet read.
How to read BNR (pre-profit growth)
This company is reinvesting instead of generating profit, so a standard DCF cannot price it. The useful question is whether the growth the market is paying for is achievable — and whether the company can fund itself until then.
-
1
Reverse-DCF — the growth the price demands ↓
It shows exactly how fast the business must grow to justify today's price. Compare that to what comparable companies have actually achieved.
-
2
Cash runway ↓
Can it reach profitability before it has to raise money and dilute shareholders?
-
3
Interactive calculator ↓
Set your own growth + margin assumptions and see what the business would be worth if you are right.
Standard DCF doesn't fit BNR well — but that's expected for this kind of business. The Rule of 40 (Pre-Profit Growth) Lens below uses the metrics actually used by analysts who value medical labs. Reverse DCF + Football Field also work as cross-checks.
Quality & solvency checks
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
The Z-score needs working capital, retained earnings, EBIT, sales and total assets from the latest balance sheet, and at least one of those isn't reported in machine-readable form here — common for foreign private issuers. We leave it blank rather than compute a distress verdict from an estimated input. It doesn't affect the reported figures in the financial tables below.
▾ The checks — what passed, what didn't (and what we couldn't measure)
-
✗ Positive net incomeNet income -$7.9M in FY2025.Why this matters: Does the company actually earn a profit? Sustained losses eventually force it to raise money — diluting you — or take on debt.
-
✗ Positive operating cash flowOperating cash flow -$4.1M (was -$12.6M the prior year).Why this matters: Profit can be an accounting figure; cash from running the business is harder to fake. Negative operating cash flow means the core business consumes cash and must be funded externally.
-
✓ Cash flow backs up reported profitOperating cash flow -$4.1M vs net income -$7.9M.
-
✓ Return on assets improvingReturn on assets -6.7% vs -39.2% a year ago.
-
✓ Debt load (vs assets)The filing reports no interest-bearing debt in either year (total assets $117.3M).
-
✓ Short-term liquidity (current ratio)Current ratio 2.99x vs 2.92x a year ago.
-
· Share count (dilution) (n/a — data not reported; not scored)
-
✓ Pricing power (gross margin)Gross margin 74.7% vs 70.3% a year ago.
-
✓ Sales per asset (asset turnover)Asset turnover 0.66x vs 0.58x a year ago.
Missing data is never counted as a pass or a fail — it's shown as n/a and excluded from the denominator. Each check compares the company against its own prior year.
Plain English: the company holds about $68M in cash and is burning roughly $4M/year in operations. At that pace, the cash lasts 16.8 yrs before it must raise capital (diluting shareholders), take on debt, or cut spending.
Assumes constant burn and ignores financing/asset sales. For pre-profit biotech and growth companies, this matters more than a DCF — a great drug pipeline is worthless if they run out of money before approval.
A standard discounted cash flowDCF — Discounted Cash Flow — sums up all future cash a business will produce, adjusted for the fact that future dollars are worth less than dollars today.
Why it matters: It is the most fundamentally honest valuation method when applicable — but only works for companies with predictable, positive cash flow.
Reference: Best for: mature, profitable businesses. Fails for: pre-profit growth, banks, REITs.
Full explanation → (DCF) valuation is not meaningful for Burning Rock Biotech Ltd due to its consistently negative operating cash flow and net income, indicating a cash-burning growth stage. Investors are likely betting on future revenue growth and the successful development of its diagnostic pipeline, rather than current profitability. The primary quantifiable risk is the roughly flat revenue decline of 0.8% per year over the last four years, which could hinder its path to profitability.
As of 3 months ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
- Significant acceleration in revenue growth rates in upcoming quarters
- Positive operating cash flow reported in future filings
- Successful launch and adoption of new diagnostic products or services
The trend, in plain numbers (FY2024 → FY2025, latest reported)
Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.
- Revenue grew +9% to $77.2M.
- Free cash flow is negative at -$6.8M — the cash burn narrowed vs last year.
- Gross margin improved to 75% (+4 pts).
- Still unprofitable at -$7.9M — loss narrowing.
Nothing was clearly worsening year-over-year.
Management & Leadership
Jianxiang Zhang is the Founder, Chairman, and Chief Executive Officer of Burning Rock Biotech Ltd, having led the company since its inception. Yusheng Han serves as the Chief Operating Officer, overseeing the company's operational strategies and execution.
What They Make
Burning Rock Biotech Ltd is a company focused on the application of next-generation sequencing (NGS) technology in precision oncology. It develops and commercializes cancer diagnostic and monitoring products and services for healthcare providers and patients.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
What we use instead: earnings (P/E, EV/EBIT), book value (P/B) — computed from the figures this company does report, shown in the sections below. Those numbers are unaffected by the missing cash-flow data.
The market is pricing Burning Rock Biotech based on its potential for future growth in the precision oncology market, rather than its current financial performance, as evidenced by its negative net income and operating cash flow. The market may be assigning value to its drug pipeline catalysts, which is not in the model, anticipating breakthroughs in cancer diagnostics and treatment selection that could drive significant revenue expansion.
Business Model & Valuation
How They Make Money
The company funds itself primarily through equity raises, given its consistently negative operating cash flow and lack of dividend payments or buybacks.
Growth / Revenue DCF
Negative free cash flow: revenue/margin growth model used - standard FCF DCF is unreliable for companies still scaling.
Show advanced inputs
| Revenue Growth | 2.0% |
What this model does NOT do: this is a consolidated owner-earnings FCF model. Standalone segment assumptions: none. It does not project its revenue segments independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
Moat Signals
Revenue has been roughly flat, declining at -0.8% per year over the last four years, from $80M to $77M.
Geography & Markets
Burning Rock Biotech Ltd is headquartered in China and primarily operates within the Chinese market, focusing on providing precision oncology solutions to hospitals and patients across the country.
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)20.8OversoldHeavily sold off recently — sometimes a bounce setup, sometimes a falling knife.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BearishLine below signalThe fast trend is below the slow trend — short-term momentum is currently downward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (7 notes — click to expand/collapse)
Guardrail Notes (7)
- FCF negative: revenue/margin growth model projects future cash flows from revenue trajectory.
- Terminal growth (3%) capped to 1.6% (80% of near-term growth 2%).
- Shares from unknown — per-share values may be less accurate.
- Illiquidity discount 25% applied (small/micro-cap — harder to exit, demand a margin).
- Shares/market cap missing or defaulted; per-share valuation unreliable.
- Shares defaulted to 1; IV is NOT meaningful — treat as data-unavailable.
- DATA UNAVAILABLE: per-share values suppressed due to missing/unreliable shares data.
FINANCIALS
Financial Statements (5-year tables — click to expand)
From Burning Rock Biotech Ltd's SEC filings (EDGAR).
Income (5yr)
| Year | Revenue | Net Income | EPS |
|---|---|---|---|
| 2025 | 77.2M | -7.9M | — |
| 2024 | 70.7M | -47.5M | — |
| 2023 | 75.7M | -92.1M | — |
| 2022 | 81.7M | -140.8M | — |
| 2021 | 79.7M | -125.0M | — |
Cash Flow (5yr)
| Year | Operating CF | CapEx | − SBC & adj. | Free Cash Flow |
|---|---|---|---|---|
| 2025 | -4.1M | 751,000 | 2.0M | -6.8M |
| 2024 | -12.6M | 742,000 | 21.3M | -34.7M |
| 2023 | -36.0M | 1.1M | 36.7M | -73.9M |
| 2022 | -66.2M | 9.0M | 47.4M | -122.6M |
| 2021 | -75.0M | 32.1M | 44.3M | -151.4M |
How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). Latest year: -4.1M − 751,000 − 2.0M (SBC & adj.) = -6.8M. This is the same owner-earnings FCF definition the valuation model uses, though the DCF's starting value is a projected from revenue × terminal margin, not this single year.
Balance Sheet
| Total Assets | 117.3M |
| Total Liabilities | 40.8M |
| Equity | 76.5M |
Similar companies worth a look
Same sector and industry, similar fundamentals shape. Verify everything yourself — this list is computed mechanically and does not reflect our judgment about whether any of these are a good investment.