AbCellera Biologics (ABCL) AI Stock Analysis

• Market Cap: $964.11M
• Dividend Yield: N/A
• Average Volume (3M): 4.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: -35.41%
• EPS Growth: -12.26%
• Country: US
• Employees: 596
• Sector: Healthcare
• Sector Strength: 58
• Industry: Biotechnology
• EPS (TTM): -0.15
• Shares Outstanding: 298,484,650
• 10 Day Avg. Volume: 6,823,991
• 30 Day Avg. Volume: 4,977,651
• PEG Ratio: 0.00
• Price to Book (P/B): 2.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.11
• Enterprise Value/Market Cap: 2.68
• Enterprise Value/Revenue: 21.90
• Enterprise Value/Gross Profit: -23.57
• Enterprise Value/Ebitda: -3.08
• 1Y Price Target: $7.00
• Price Target Upside: 118.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 56 Neutral
• Price Target: $3.00 ▼(-6.25%Downside)

AbCellera Biologics' stock score is primarily influenced by its financial challenges, including declining revenue and profitability. However, strong technical indicators and strategic advancements in drug development provide some optimism. The company's robust liquidity position supports ongoing and future initiatives, but valuation concerns persist due to negative earnings and no dividend yield.

Positive Factors

Financial Position

The stock continues to trade near its total liquidity, implying upside from ABCL's royalty portfolio and internal pipeline.

Research and Development

AbCellera is focusing on its two leading internal R&D programs, ABCL635 in the metabolic and endocrinology medical area and ABCL575, targeting immunology and inflammation.

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

Competitive Market

Leading NK3R competitors, including Astellas' Veozah and Bayer's elinzanetant, have a head start on ABCL-635.

Financial Performance

Revenues came in below estimates.

Revenue Decline

AbCellera's 4Q24 revenue of $5.0M fell below expectations as ABCL continues to wind down partner program activity.

AbCellera Biologics Business Overview & Revenue Model

Company Description

AbCellera Biologics Inc. is a biotechnology company specializing in the discovery and development of therapeutic antibodies. Operating within the biopharmaceutical sector, the company leverages its advanced proprietary technology platforms to rapidly identify and develop antibody therapies. AbCellera partners with pharmaceutical companies to enhance the drug discovery process, focusing on accelerating the path from target to lead candidate.

How the Company Makes Money

AbCellera makes money primarily through collaborations and partnerships with pharmaceutical and biotechnology companies. The company generates revenue by providing its technology and expertise to discover antibodies for its partners, who may pay upfront fees, milestone payments, and royalties on any products that result from these collaborations. AbCellera's revenue model is heavily reliant on its ability to form strategic partnerships and successfully deliver therapeutic candidates that can advance into clinical development and commercialization, thus ensuring a share in the financial success of these therapies.

AbCellera Biologics Financial Statement Overview

Summary

AbCellera Biologics faces significant financial challenges with drastic declines in revenue, negative profit margins, and cash flow issues. However, the company's balance sheet remains relatively strong, with low leverage and adequate liquidity.

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
23.11M	28.83M	38.02M	485.42M	375.20M	233.16M
	Gross Profit
-109.61M	-68.17M	7.13M	418.99M	329.69M	206.01M
	EBIT
-365.03M	-314.77M	-237.21M	216.51M	204.41M	156.03M
	EBITDA
-203.72M	-204.15M	-192.16M	272.20M	241.62M	169.62M
	Net Income Common Stockholders
-167.87M	-162.86M	-146.40M	158.52M	153.46M	118.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
605.27M	625.61M	760.59M	886.49M	722.98M	594.12M
	Total Assets
579.23M	1.36B	1.49B	1.54B	1.32B	1.01B
	Total Debt
63.21M	65.36M	77.38M	82.26M	36.41M	6.10M
	Net Debt
-96.06M	-90.96M	-55.94M	-304.28M	-439.73M	-588.01M
	Total Liabilities
245.83M	304.47M	335.78M	307.63M	292.84M	175.03M
	Stockholders Equity
1.02B	1.06B	1.15B	1.23B	1.03B	830.51M
Cash Flow		Free Cash Flow
-142.47M	-186.95M	-121.38M	204.70M	186.13M	8.02M
	Operating Cash Flow
-77.89M	-108.56M	-43.88M	277.36M	244.58M	22.69M
	Investing Cash Flow
99.43M	121.41M	-221.11M	-352.63M	-332.25M	-119.78M
	Financing Cash Flow
15.87M	12.77M	10.36M	-1.63M	-3.89M	683.65M

AbCellera Biologics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 3.2 is above the 20-day moving average (MA) of 2.35, above the 50-day MA of 2.31, and above the 200-day MA of 2.66, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 78.86 is Negative, neither overbought nor oversold. The STOCH value of 75.51 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	78 Outperform	$916.38M	6.17	34.46%	―	799.36%	―
XERS	60 Neutral	$701.48M	―	222.83%	―	29.88%	35.11%
ABCL	56 Neutral	$964.11M	―	-15.59%	―	-35.41%	-12.26%
GYRE	54 Neutral	$728.91M	166.81	11.62%	―	―	―
PRAX	54 Neutral	$917.22M	―	-63.56%	―	270.02%	32.69%
Sector *	54 Neutral	$5.41B	3.27	-45.10%	3.29%	16.81%	0.02%
PHVS	42 Neutral	$929.11M	―	-51.85%	―	―	0.71%

AbCellera Biologics Corporate Events

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.

The most recent analyst rating on (ABCL) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on AbCellera Biologics stock, see the ABCL Stock Forecast page.

AbCellera Biologics Receives Health Canada Approval for Trial

On May 30, 2025, AbCellera Biologics announced it received a No Objection Letter from Health Canada, authorizing its Clinical Trial Application for ABCL575, an investigational antibody antagonist targeting the OX40 ligand for treating moderate-to-severe atopic dermatitis. The Phase 1 clinical trial is expected to commence in Q3 2025, focusing on evaluating the safety and pharmacokinetics of ABCL575 in healthy participants. This development signifies a step forward in AbCellera’s efforts to address inflammatory and autoimmune conditions, potentially enhancing its market position and offering new treatment options for stakeholders.

The most recent analyst rating on (ABCL) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on AbCellera Biologics stock, see the ABCL Stock Forecast page.

AbCellera Biologics Receives Health Canada Approval for Trial

On May 14, 2025, AbCellera Biologics announced it received a No Objection Letter from Health Canada for its Clinical Trial Application for ABCL635, a novel antibody antagonist targeting the neurokinin 3 receptor for treating vasomotor symptoms associated with menopause. The Phase 1 clinical trial, expected to start in Q3 2025, will assess the safety and pharmacokinetics of ABCL635, marking a significant step in AbCellera’s efforts to offer a non-hormonal treatment for menopause-related hot flashes, potentially impacting the well-being of millions of women.

The most recent analyst rating on (ABCL) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on AbCellera Biologics stock, see the ABCL Stock Forecast page.

AbCellera Wins Patent Appeal Against Bruker

On May 12, 2025, AbCellera Biologics announced that the United States Court of Appeals for the Federal Circuit affirmed the validity of its U.S. Patent No. 10,087,408, which pertains to microfluidic devices used for culturing and selectively recovering cells. This decision follows a challenge by Bruker Cellular Analysis, Inc., which was rejected by the U.S. Patent Trial and Appeal Board and now confirmed by the Federal Circuit. This ruling strengthens AbCellera’s intellectual property portfolio and supports its ongoing patent infringement litigation against Bruker in the U.S. District Court for the Northern District of California.

The most recent analyst rating on (ABCL) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on AbCellera Biologics stock, see the ABCL Stock Forecast page.

AbCellera Reports Q1 2025 Financial Results and New Antibody

On May 8, 2025, AbCellera Biologics announced its financial results for the first quarter of 2025, reporting a total revenue of $4.2 million and a net loss of $45.6 million. The company highlighted the introduction of ABCL635, a potential first-in-class antibody for treating menopause-related vasomotor symptoms, with plans to start Phase 1 clinical trials in the latter half of 2025. Despite the financial loss, AbCellera maintained significant liquidity of over $800 million to support its strategic initiatives, including 97 partner-initiated programs and 16 molecules reaching the clinic.