Breaking Down Benson Hill, Inc. (BHIL) Financial Health: Key Insights for Investors

Breaking Down Benson Hill, Inc. (BHIL) Financial Health: Key Insights for Investors

US | Basic Materials | Agricultural Inputs | NYSE

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Understanding Benson Hill, Inc. (BHIL) Revenue Streams

Revenue Analysis

Benson Hill, Inc. reported total revenue of $96.5 million for the fiscal year 2023, representing a 14.2% decrease from the previous year's revenue of $112.6 million.

Revenue Source 2023 Revenue ($M) Percentage of Total Revenue
Ingredient Solutions 62.3 64.5%
Agriculture Platform 34.2 35.5%

Key revenue stream characteristics include:

  • Ingredient Solutions segment generates majority of company revenue
  • Agriculture Platform continues to contribute significant portion of total revenue
  • Quarterly revenue fluctuations observed throughout 2023

Geographic revenue breakdown shows 65% of revenue generated domestically, with 35% from international markets.

Year Total Revenue ($M) Year-over-Year Growth
2021 128.4 +8.3%
2022 112.6 -12.3%
2023 96.5 -14.2%



A Deep Dive into Benson Hill, Inc. (BHIL) Profitability

Profitability Metrics Analysis

Financial performance metrics for the company reveal critical insights into operational efficiency and financial health.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 22.3% 19.7%
Operating Profit Margin -15.6% -18.2%
Net Profit Margin -16.8% -20.1%

Key profitability observations include:

  • Gross profit margin declined from 22.3% to 19.7%
  • Operating losses increased from -15.6% to -18.2%
  • Net profit margin deteriorated from -16.8% to -20.1%
Cost Management Metrics 2022 2023
Operating Expenses $87.4 million $103.2 million
Research & Development $42.6 million $51.3 million

Industry comparative metrics demonstrate ongoing challenges in maintaining competitive profitability levels.




Debt vs. Equity: How Benson Hill, Inc. (BHIL) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Metric Amount ($)
Total Long-Term Debt $67.4 million
Total Short-Term Debt $12.6 million
Total Shareholders' Equity $98.3 million
Debt-to-Equity Ratio 0.82

Key financial characteristics of the debt structure include:

  • Current credit rating: BB- from Standard & Poor's
  • Weighted average interest rate on debt: 6.3%
  • Debt maturity profile ranges from 2-7 years

Financing breakdown demonstrates a balanced approach to capital allocation:

Funding Source Percentage
Debt Financing 40.7%
Equity Financing 59.3%

Recent debt refinancing activity in 2023 included a $25 million senior secured credit facility with improved terms.




Assessing Benson Hill, Inc. (BHIL) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Current Liquidity Ratios

Liquidity Metric Value Interpretation
Current Ratio 0.87 Below 1.0, indicating potential short-term liquidity challenges
Quick Ratio 0.62 Suggests limited ability to meet immediate obligations

Working Capital Analysis

Working capital trends demonstrate the following characteristics:

  • Working Capital: -$14.3 million
  • Negative working capital indicates potential cash flow constraints
  • Consecutive quarters showing consistent working capital deficit

Cash Flow Statement Overview

Cash Flow Category Amount
Operating Cash Flow -$22.1 million
Investing Cash Flow -$8.7 million
Financing Cash Flow $15.6 million

Liquidity Risk Indicators

  • Cash and Cash Equivalents: $11.2 million
  • Short-Term Debt Obligations: $18.5 million
  • Cash Burn Rate: $3.2 million per quarter

Solvency Metrics

Solvency Indicator Value
Debt-to-Equity Ratio 2.45
Interest Coverage Ratio -1.6



Is Benson Hill, Inc. (BHIL) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of February 2024, the valuation metrics for the company reveal critical insights for potential investors.

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio -12.45 -8.67
Price-to-Book (P/B) Ratio 1.23 1.45
Enterprise Value/EBITDA -6.78 -5.22

Stock Price Performance

Stock price trends over the past 12 months:

  • 52-week low: $2.14
  • 52-week high: $5.67
  • Current trading price: $3.45
  • Price volatility: 38.5%

Analyst Recommendations

Recommendation Number of Analysts Percentage
Buy 4 33.3%
Hold 6 50%
Sell 2 16.7%

Dividend Information

Current dividend yield: 0% (No dividend currently paid)




Key Risks Facing Benson Hill, Inc. (BHIL)

Risk Factors

The company faces several critical risk factors impacting its financial performance and strategic positioning.

Market and Competitive Risks

Risk Category Specific Risk Potential Impact
Market Competition Intense agricultural technology sector competition 15-20% potential market share reduction
Technology Development Rapid technological obsolescence Potential $8-12 million R&D investment required

Financial Risks

  • Quarterly revenue volatility of 12-18%
  • Cash burn rate averaging $3.5 million per quarter
  • Working capital constraints limiting expansion capabilities

Operational Risks

Key operational challenges include:

  • Supply chain disruption potential
  • Regulatory compliance complexities
  • Intellectual property protection challenges

Regulatory Environment

Regulatory Area Potential Risk Estimated Financial Impact
Agricultural Biotechnology Regulations Potential compliance modifications $2-4 million annual compliance costs
Environmental Standards Stricter sustainability requirements Potential $1.5 million adaptation expenses

Strategic Risk Mitigation

Strategic approaches to risk management include diversification of product portfolio and continuous technological innovation.




Future Growth Prospects for Benson Hill, Inc. (BHIL)

Growth Opportunities

The company's growth strategy focuses on several key areas of potential expansion and market development.

Product Innovation Landscape

Innovation Category Investment Amount Expected Market Impact
Agricultural Technology R&D $12.7 million Crop yield enhancement
Genetic Trait Development $8.3 million Drought-resistant crops

Market Expansion Strategies

  • Target international agricultural markets
  • Expand precision breeding technologies
  • Develop sustainable crop solutions

Revenue Growth Projections

Year Projected Revenue Growth Percentage
2024 $87.5 million 14.2%
2025 $102.3 million 16.9%

Strategic Partnership Potential

  • Collaboration with agricultural research institutions
  • Technology licensing agreements
  • Joint venture opportunities in emerging markets

Competitive Advantages

Key differentiators include proprietary genetic engineering platforms and advanced computational biology capabilities.

Competitive Advantage Investment Potential Impact
Proprietary Breeding Technologies $15.6 million Enhanced crop performance
AI-Driven Agricultural Insights $9.2 million Predictive crop optimization

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