AbCellera Biologics (ABCL) AI Stock Analysis

• Market Cap: $622.79M
• Dividend Yield: N/A
• Average Volume (3M): 4.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: -24.17%
• EPS Growth: -9.24%
• Country: US
• Employees: 596
• Sector: Healthcare
• Sector Strength: 77
• Industry: Biotechnology
• EPS (TTM): -0.55
• Shares Outstanding: 297,987,670
• 10 Day Avg. Volume: 3,482,550
• 30 Day Avg. Volume: 4,228,269
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 21.75
• Price to Cash Flow (P/CF): -6.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.60
• Price Target Upside: 455.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

AbCellera Biologics is navigating significant financial and operational challenges, with declining revenue and profitability impacting its financial health. The technical analysis indicates bearish trends, while the valuation reflects ongoing losses. Despite these hurdles, the company shows promise with its transition to a clinical stage biotech, supported by strong liquidity and strategic partnerships. However, the substantial net loss and high R&D expenses remain key risks.

Positive Factors

Financial Strategy

Solid balance sheet should provide ample runway to advance and expand the internal pipeline while executing on key strategic initiatives.

Research and Development

Transition from platform to pipeline continues with two significant therapeutic antibodies entering clinical trials.

Strategic Partnerships

AbCellera succeeded in signing two new partnerships in 2024, with Biogen and venture firms Viking and ArrowMark, and expanding two legacy programs.

Negative Factors

Financial Performance

The wide EPS miss was largely due to a $32M non-cash R&D impairment charge related to a discontinued transgenic technology.

Operational Shifts

Drop in Q4 research fees led to light FY24 revenues as priority shift towards internal pipeline.

Revenue Performance

Revenues came in below estimates.

AbCellera Biologics Business Overview & Revenue Model

Company Description

AbCellera Biologics Inc. develops antibody discovery platform. Its full-stack, artificial intelligence-powered antibody discovery platform searches and analyzes the database of natural immune systems to find antibodies that could be developed as drugs. As of December 31, 2021, the company had 156 discovery programs that are either completed, in progress, or under contract with 36 partners. AbCellera Biologics Inc. has a research collaboration and license agreement with Eli Lilly and Company. The company was incorporated in 2012 and is headquartered in Vancouver, Canada.

How the Company Makes Money

AbCellera Biologics generates revenue through collaborations and partnerships with pharmaceutical and biotechnology companies. Its revenue model primarily involves upfront payments, milestone payments, and royalties. The company leverages its technology platform to provide discovery services, identifying potential therapeutic antibodies that partners can then further develop and commercialize. AbCellera enters into agreements where it receives payments upon achieving certain development and regulatory milestones, as well as a percentage of sales (royalties) from any successfully commercialized products. Significant partnerships with major industry players, such as Eli Lilly, contribute to its earnings by providing a steady flow of collaboration opportunities and financial commitments.

AbCellera Biologics Financial Statement Overview

Summary

AbCellera Biologics faces notable financial challenges, with declining revenues and profitability affecting its income statement. While the balance sheet remains relatively stable, increased debt levels and weakened cash flow metrics pose potential risks. Strategic adjustments may be required to improve financial health and operational efficiency.

Income Statement

AbCellera Biologics has experienced a significant decrease in revenue from 2022 to 2024, which has adversely affected its gross profit margin. The net profit margin has turned negative due to substantial losses in 2023 and 2024, indicating operational challenges. Additionally, EBIT and EBITDA margins have deteriorated, reflecting negative operating efficiency.

Balance Sheet

The company maintains a strong equity base, with a favorable equity ratio. However, the debt-to-equity ratio has increased, suggesting a rising reliance on debt financing, though it remains at manageable levels. The declining return on equity indicates reduced profitability on shareholders' investments.

Cash Flow

Free cash flow has turned negative, and operating cash flow is not sufficient to cover net income, indicating cash management issues. The significant decline in free cash flow growth rate from 2022 to 2024 further pressures financial stability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
28.83M	38.02M	485.42M	375.20M	233.16M
	Gross Profit
28.83M	38.02M	418.99M	329.69M	206.01M
	EBIT
-314.77M	-237.21M	216.51M	204.41M	156.03M
	EBITDA
-204.15M	-192.16M	272.20M	241.62M	169.62M
	Net Income Common Stockholders
-162.86M	-146.40M	158.52M	153.46M	118.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
625.61M	760.59M	886.49M	722.98M	594.12M
	Total Assets
1.36B	1.49B	1.54B	1.32B	1.01B
	Total Debt
60.74M	77.38M	82.26M	36.41M	6.10M
	Net Debt
-95.58M	-55.94M	-304.28M	-439.73M	-588.01M
	Total Liabilities
304.47M	335.78M	307.63M	292.84M	175.03M
	Stockholders Equity
1.06B	1.15B	1.23B	1.03B	830.51M
Cash Flow		Free Cash Flow
-186.95M	-121.38M	204.70M	186.13M	8.02M
	Operating Cash Flow
-108.56M	-43.88M	277.36M	244.58M	22.69M
	Investing Cash Flow
121.41M	-221.11M	-352.63M	-332.25M	-119.78M
	Financing Cash Flow
12.77M	10.36M	-1.63M	-3.89M	683.65M

AbCellera Biologics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABCL, the sentiment is Negative. The current price of 2.09 is below the 20-day moving average (MA) of 2.34, below the 50-day MA of 2.74, and below the 200-day MA of 2.80, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 32.69 is Neutral, neither overbought nor oversold. The STOCH value of 9.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABCL.

AbCellera Biologics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REGN	78 Outperform	$62.69B	14.96	15.95%	0.15%	8.27%	10.35%
GILD	75 Outperform	$133.70B	280.39	2.28%	2.89%	6.16%	-91.54%
AMGN	75 Outperform	$158.15B	38.94	67.55%	3.10%	18.64%	-39.39%
BIIB	65 Neutral	$18.00B	11.00	10.36%	―	-1.60%	39.71%
VRTX	64 Neutral	$122.02B	―	-3.15%	―	11.64%	-114.72%
Sector *	48 Neutral	$6.36B	1.14	-49.01%	2.63%	17.12%	1.49%
ABCL	44 Neutral	$622.79M	―	-14.75%	―	-24.17%	-9.24%

AbCellera Biologics Corporate Events

AbCellera Biologics Reports 2024 Financial Results and Growth

AbCellera Biologics reported its financial results for the year 2024, highlighting significant progress in transitioning to a clinical-stage biotech company. The company maintained a strong cash position with over $800 million in liquidity and is set to initiate Phase 1 clinical trials for its first two programs in 2025. Despite a net loss of $162.9 million, AbCellera advanced three additional molecules into the clinic, bringing the total to 16, and started nine new partner-initiated programs, reflecting its continued growth and strategic investments.