AbSci (ABSI) AI Stock Analysis

• Market Cap: $381.28M
• Dividend Yield: N/A
• Average Volume (3M): 4.42M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.40
• Revenue Growth: 27.32%
• EPS Growth: -1.34%
• Country: US
• Employees: 156
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.24
• Shares Outstanding: 149,522,640
• 10 Day Avg. Volume: 4,516,502
• 30 Day Avg. Volume: 4,423,269
• 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: 0.53
• Enterprise Value/Revenue: 48.73
• Enterprise Value/Gross Profit: -66.25
• Enterprise Value/Ebitda: -2.02
• 1Y Price Target: $7.22
• Price Target Upside: 183.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 44 Neutral
• Price Target: $2.50 ▼(-1.96% Downside)

The overall stock score is primarily impacted by weak financial performance and valuation, with ongoing losses and negative cash flow metrics. Technical analysis indicates a bearish trend, while the earnings call provides some positive outlook with strategic partnerships and clinical progress, partially offsetting financial challenges.

Positive Factors

Strategic Partnerships

The expansion of the Almirall partnership signifies strong collaborative potential, enhancing revenue prospects through milestone payments and reinforcing AbSci's market position in biotechnology.

AI-Driven Drug Creation Platform

The strategic investment from AMD underscores confidence in AbSci's AI platform, potentially accelerating drug discovery processes and offering a competitive edge in the biotech industry.

Financial Stability

The successful capital raise enhances AbSci's financial stability, providing a longer operational runway and enabling continued investment in R&D and strategic initiatives.

Negative Factors

Increased R&D Expenses

Rising R&D expenses, while necessary for growth, may pressure short-term profitability and require careful management to ensure sustainable financial health.

Low Revenue Generation

The low revenue generation highlights challenges in effectively monetizing partnerships, which could impact long-term growth and financial performance if not addressed.

Negative Cash Flow

Persistent negative cash flow indicates operational inefficiencies and may limit AbSci's ability to invest in growth opportunities without additional financing.

AbSci Business Overview & Revenue Model

Company Description

Absci Corporation, a drug and target discovery company, provides biologic drug candidates and production cell lines using integrated drug creation platform for partners in the United States. Its integrated drug creation platform enables the creation of biologics by unifying the drug discovery and cell line development processes into one process. Absci Corporation was founded in 2011 and is headquartered in Vancouver, Washington.

How the Company Makes Money

AbSci generates revenue primarily through collaborations and partnerships with pharmaceutical and biotechnology companies. These partnerships typically involve research and development agreements where AbSci provides its expertise and technology to help partners discover, design, and optimize protein-based drugs. The company earns money through upfront payments, milestone payments, and royalties based on the success and commercialization of the therapeutics developed using its platform. Additionally, AbSci may offer contract services for specific research and development projects, contributing further to its revenue streams.

AbSci Financial Statement Overview

Summary

AbSci is struggling with profitability and cash flow generation, as evidenced by negative margins and cash flow metrics. The balance sheet remains relatively stable, with a solid equity base and low leverage, but operational inefficiencies and growth challenges present substantial risks that need to be addressed to improve financial health.

Income Statement

The income statement reveals persistent revenue stagnation and consistent net losses. The Gross Profit Margin and Net Profit Margin are negative, highlighting ongoing operational challenges. Revenue growth remains unstable with a decline in recent periods, while negative EBIT and EBITDA margins indicate significant operational inefficiencies.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio, indicating financial leverage is not a major concern. However, the continued net losses impede returns, as evidenced by the negative ROE. The equity ratio is relatively stable but has been decreasing, reflecting potential asset allocation challenges.

Cash Flow

Operating Cash Flow remains negative, reflecting ongoing cash burn, while Free Cash Flow also faces significant challenges. The company’s cash flow from operations compared to net income shows issues in converting income into cash, despite positive financing activities in recent periods providing liquidity support.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.14M	4.53M	5.72M	5.75M	4.78M	4.78M
Gross Profit	-3.04M	-8.86M	-41.85M	-7.29M	-1.87M	-6.67M
EBITDA	-100.08M	-89.08M	-95.46M	-91.36M	-99.77M	-12.59M
Net Income	-113.30M	-103.11M	-110.57M	-104.90M	-100.96M	-14.35M
Balance Sheet
Total Assets	209.89M	213.61M	217.30M	321.01M	426.19M	88.57M
Cash, Cash Equivalents and Short-Term Investments	117.46M	112.42M	97.66M	164.43M	252.57M	69.87M
Total Debt	7.25M	10.11M	15.96M	22.98M	20.01M	14.50M
Total Liabilities	36.52M	34.48M	41.12M	46.59M	60.09M	178.00M
Stockholders Equity	173.37M	179.13M	176.18M	274.41M	366.11M	67.00M
Cash Flow
Free Cash Flow	-76.73M	-72.81M	-65.50M	-97.51M	-98.64M	-13.15M
Operating Cash Flow	-76.41M	-72.40M	-64.64M	-81.34M	-60.60M	-10.97M
Investing Cash Flow	27.84M	-41.58M	81.94M	-126.98M	-67.38M	-2.17M
Financing Cash Flow	43.27M	82.53M	-4.48M	5.24M	336.19M	70.97M

AbSci Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABSI, the sentiment is Negative. The current price of 2.55 is above the 20-day moving average (MA) of 2.52, below the 50-day MA of 2.78, and below the 200-day MA of 3.10, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 51.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABSI.

AbSci Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STOK	68 Neutral	1.25B	26.91	15.67%	―	1218.82%	0.00%
UPB	61 Neutral	863.63M	-7.81	-13.37%	―	0.00%	0.00%
ZVRA	53 Neutral	411.47M	-134.74	2.26%	―	158.57%	96.76%
ABSI	44 Neutral	$381.28M	―	-57.39%	―	27.32%	-1.34%
OMER	40 Underperform	276.31M	-1.93	0.00%	―	0.00%	10.15%
SANA	33 Underperform	786.45M	-2.86	0.00%	―	0.00%	7.58%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

AbSci Corporate Events

Absci Reports Strong Q2 2025 Financial Results

On August 12, 2025, Absci Corporation announced its second quarter financial results and business updates, highlighting a strengthened balance sheet with $64 million raised in July 2025, sufficient to fund operations into 2028. The company expanded its collaboration with Almirall, focusing on dermatological indications, and reported progress in its internal pipeline, including clinical trials for ABS-101 and ABS-201. Despite a net loss of $30.6 million for the quarter, Absci continues to advance its AI Drug Creation platform and anticipates further partnerships in 2025.

The most recent analyst rating on (ABSI) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on AbSci stock, see the ABSI Stock Forecast page.