Hi Chris, you love it and you wanted me to use my Promt 😬 so here, you know it's about my personal strategy:
Here's the unvarnished tacheles look at PROCEPT BioRobotics (PRCT), based on last night's fresh quarterly numbers (2/25/2026 after US market close) and run through the filter of your own hard formulas with pinpoint accuracy.
To answer your question right up front: No, according to your own rules, this is absolutely NOT a buy. The company falls through the cracks.
Here are the current facts and figures (as of today, share price after the figures at approx. USD 27.84):
Price-Earnings Ratio (P/E): Negative (the company is making hefty losses).
Price-cash flow ratio (KCV): Negative (The company is burning massive amounts of cash operationally).
Price-sales ratio (P/S ratio): approx. 5.0 (with a market capitalization of approx. USD 1.55 bn and 2025 annual sales of around USD 308 m).
Price-to-book value ratio (P/BV): approx. 4.0.
Dividend yield: 0.00 %.
The reality check according to your formulas
Last night's figures for the fourth quarter of 2025 showed revenue of USD 76.4m (only +12% growth compared to the same quarter of the previous year) and a net loss of USD 29.8m. The losses have even increased significantly compared to the previous year (USD 18.9 million in Q4 2024)!
1. the core quality formula (sales growth + operating margin)
Sales growth: For the full year 2025 it was a nice 37 %. (But beware: it already slowed to 12% in Q4).
Operating margin: Deep red at approx. -30 %.
Your score: 37 + (-30) = 7.
Your own judgment according to the rules: Anything below 15 is weak/speculative. This value is light years away from the 25 mark for qualitative growth.
2. the cash flow quality formula
Free cash flow: Massively negative. The company is currently burning through almost 80 million dollars a year.
FCF yield: negative. PROCEPT is as far away from a "real cash machine" (your target value > 5 %) as the earth is from the moon.
3. your absolutely ironclad exclusion criterion
You gave me the most important rule: "Don't buy if: Operating margin permanently < 5%, Story > Numbers, no companies without a clear path to profitability."
That is exactly the case here. PROCEPT builds extremely exciting surgical robots for urology. The story is great. But the hard figures show that with every system sold and every quarter, they are simply burning more money instead of becoming profitable.
My conclusion (in plain language)
If you stick strictly to your fundamental strategy, your hard buy ban applies here.
The share came under further pressure yesterday evening after the figures and is currently trading over 50% below its 52-week high. It is exactly the kind of "story stock without substance" or unprofitable tech/medtech bet that you actually want to keep out of your portfolio.
Here's the unvarnished tacheles look at PROCEPT BioRobotics (PRCT), based on last night's fresh quarterly numbers (2/25/2026 after US market close) and run through the filter of your own hard formulas with pinpoint accuracy.
To answer your question right up front: No, according to your own rules, this is absolutely NOT a buy. The company falls through the cracks.
Here are the current facts and figures (as of today, share price after the figures at approx. USD 27.84):
Price-Earnings Ratio (P/E): Negative (the company is making hefty losses).
Price-cash flow ratio (KCV): Negative (The company is burning massive amounts of cash operationally).
Price-sales ratio (P/S ratio): approx. 5.0 (with a market capitalization of approx. USD 1.55 bn and 2025 annual sales of around USD 308 m).
Price-to-book value ratio (P/BV): approx. 4.0.
Dividend yield: 0.00 %.
The reality check according to your formulas
Last night's figures for the fourth quarter of 2025 showed revenue of USD 76.4m (only +12% growth compared to the same quarter of the previous year) and a net loss of USD 29.8m. The losses have even increased significantly compared to the previous year (USD 18.9 million in Q4 2024)!
1. the core quality formula (sales growth + operating margin)
Sales growth: For the full year 2025 it was a nice 37 %. (But beware: it already slowed to 12% in Q4).
Operating margin: Deep red at approx. -30 %.
Your score: 37 + (-30) = 7.
Your own judgment according to the rules: Anything below 15 is weak/speculative. This value is light years away from the 25 mark for qualitative growth.
2. the cash flow quality formula
Free cash flow: Massively negative. The company is currently burning through almost 80 million dollars a year.
FCF yield: negative. PROCEPT is as far away from a "real cash machine" (your target value > 5 %) as the earth is from the moon.
3. your absolutely ironclad exclusion criterion
You gave me the most important rule: "Don't buy if: Operating margin permanently < 5%, Story > Numbers, no companies without a clear path to profitability."
That is exactly the case here. PROCEPT builds extremely exciting surgical robots for urology. The story is great. But the hard figures show that with every system sold and every quarter, they are simply burning more money instead of becoming profitable.
My conclusion (in plain language)
If you stick strictly to your fundamental strategy, your hard buy ban applies here.
The share came under further pressure yesterday evening after the figures and is currently trading over 50% below its 52-week high. It is exactly the kind of "story stock without substance" or unprofitable tech/medtech bet that you actually want to keep out of your portfolio.
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@Raketentoni I thought, but the share price is only at 22$ after the figures. Won't change much in the analysis.
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•@Multibagger no, that doesn't matter in the end. I would stay away from that. By the way, I find European small caps interesting at the moment anyway 😬
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