AbCellera Biologics (ABCL) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: N/A
• Average Volume (3M): 4.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• Revenue Growth: -0.54%
• EPS Growth: -6.28%
• Country: US
• Employees: 596
• Sector: Healthcare
• Sector Strength: 52
• Industry: Biotechnology
• EPS (TTM): -0.12
• Shares Outstanding: 298,832,920
• 10 Day Avg. Volume: 3,753,129
• 30 Day Avg. Volume: 4,978,395
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 17.88
• Enterprise Value/Gross Profit: -9.51
• Enterprise Value/Ebitda: -3.58
• 1Y Price Target: $9.20
• Price Target Upside: 118.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 46 Neutral
• Price Target: $4.00 ▼(-5.21% Downside)

AbCellera Biologics' overall score is driven by strong clinical progress and liquidity, but is weighed down by negative profitability, cash flow challenges, and a bearish technical outlook. The strategic shift towards clinical trials offers long-term potential, but near-term financial pressures remain a concern.

Positive Factors

Clinical Development

AbCellera began dosing the first participants in a Phase 1 study for its ABCL635 for the potential treatment of moderate-to-severe vasomotor symptoms associated with menopause after recently receiving regulatory authorization.

Financial Performance

AbCellera Biologics reported financial results for their 2Q25 with revenues for the second quarter coming in at $17.1 million as compared to $7.3 million in the prior year period.

Pipeline Potential

ABCL's pivot from being an antibody discovery platform company to developing their own internal pipeline shows potential for growth.

Negative Factors

Clinical Risk

There is a clinical risk for targeting NK3R with ABCL635 due to concerns about sufficient target engagement and potential safety issues related to liver toxicity.

Strategic Focus Shift

The Company is decreasing its revenue-generating development partnership activities and focusing more on its internal pipeline development.

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 generates revenue primarily through its partnerships and collaborations with pharmaceutical companies, where it provides its antibody discovery services. The company typically enters into agreements that include upfront payments, research funding, and milestone payments based on the progress of drug development. Additionally, AbCellera may receive royalties on sales of products that result from these collaborations. The company's revenue model is heavily reliant on the successful advancement of its partners' therapeutic candidates, along with ongoing research contracts and collaborations that can provide continuous income streams.

AbCellera Biologics Financial Statement Overview

Summary

AbCellera Biologics faces significant financial challenges, with drastic revenue declines and negative profit margins. The balance sheet remains a relative strength with low leverage, but persistent cash flow issues and operational inefficiencies pose substantial risks.

Income Statement

AbCellera Biologics shows significant financial deterioration in its income statement. The company experienced a drastic decline in total revenue over the recent periods, from $485.42 million in 2022 to $23.12 million in the TTM. This resulted in negative gross profit margins and substantial net losses, reflected in a negative net profit margin. The negative EBIT and EBITDA margins further emphasize operational challenges, indicating a steep drop in operating efficiency and profitability.

Balance Sheet

Despite the operational challenges, the balance sheet of AbCellera Biologics remains relatively strong, with a solid equity base. The debt-to-equity ratio is low, indicating prudent leverage management. The equity ratio remains robust, suggesting financial stability in terms of asset financing. However, there is a decline in total assets and stockholders' equity, which requires monitoring.

Cash Flow

Cash flow analysis reveals significant strain, with negative operating and free cash flow in the TTM. The free cash flow to net income ratio is negative, highlighting cash flow challenges relative to net losses. The operating cash flow to net income ratio is also negative, indicating issues in converting income to cash. Despite these challenges, the company maintains a healthy cash reserve.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.88M	28.83M	38.02M	485.42M	375.20M	233.16M
Gross Profit	-61.82M	-68.17M	7.13M	418.99M	329.69M	206.01M
EBITDA	-164.04M	-204.15M	-192.16M	272.20M	241.62M	169.62M
Net Income	-165.66M	-162.86M	-146.40M	158.52M	153.46M	118.92M
Balance Sheet
Total Assets	1.40B	1.36B	1.49B	1.54B	1.32B	1.01B
Cash, Cash Equivalents and Short-Term Investments	553.08M	625.61M	760.59M	886.49M	722.98M	594.12M
Total Debt	142.08M	65.36M	77.38M	82.26M	40.06M	6.78M
Total Liabilities	394.99M	304.47M	335.78M	307.63M	292.84M	175.03M
Stockholders Equity	1.01B	1.06B	1.15B	1.23B	1.03B	830.51M
Cash Flow
Free Cash Flow	-138.99M	-186.95M	-121.38M	204.70M	186.13M	8.02M
Operating Cash Flow	-80.84M	-108.56M	-43.88M	277.36M	244.58M	22.69M
Investing Cash Flow	15.53M	121.41M	-221.11M	-352.63M	-332.25M	-119.78M
Financing Cash Flow	9.88M	12.77M	10.36M	-1.63M	-3.89M	683.65M

AbCellera Biologics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.22
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABCL, the sentiment is Positive. The current price of 4.22 is below the 20-day moving average (MA) of 4.32, below the 50-day MA of 4.29, and above the 200-day MA of 3.09, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 48.77 is Neutral, neither overbought nor oversold. The STOCH value of 35.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABCL.

AbCellera Biologics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVAC	74 Outperform	$1.21B	5.94	34.46%	―	799.36%	―
GYRE	58 Neutral	$698.46M	471.78	5.47%	―	―	―
XERS	55 Neutral	$1.27B	―	222.83%	―	35.62%	49.58%
Sector *	51 Neutral	$7.95B	-0.40	-42.50%	2.21%	22.29%	-1.85%
PRAX	47 Neutral	$985.99M	―	-60.98%	―	338.45%	-19.64%
ABCL	46 Neutral	$1.26B	―	-15.64%	―	-0.54%	-6.28%
PHVS	42 Neutral	$1.48B	―	-63.96%	―	―	-36.92%

AbCellera Biologics Corporate Events

AbCellera Biologics Reports Q2 2025 Financial Results

AbCellera Biologics reported its financial results for Q2 2025, highlighting a net loss of $34.7 million, which is an improvement from the previous year’s loss. The company also initiated dosing in a Phase 1 clinical trial for ABCL635, a potential treatment for vasomotor symptoms associated with menopause, marking its transition to a clinical-stage company. Additionally, AbCellera received authorization to begin Phase 1 trials for ABCL575 and advanced ABCL688 into IND-enabling studies, demonstrating significant progress in its pipeline. With over $750 million in available liquidity, AbCellera is well-positioned to continue executing its strategic initiatives.

AbCellera Biologics Holds Annual Shareholder Meeting

On June 12, 2025, AbCellera Biologics Inc. held its Annual Meeting of Shareholders, where key decisions were made regarding the election of directors, appointment of an accounting firm, and executive compensation. Shareholders approved the election of Carl L. G. Hansen and Michael Hayden as Class II directors, ratified KPMG LLP as the independent accounting firm, and endorsed executive compensation, reflecting continued support for the company’s strategic direction.