Generation Bio (GBIO) AI Stock Analysis

• Market Cap: $38.93M
• Dividend Yield: N/A
• Average Volume (3M): 583.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.78
• Revenue Growth: 61.15%
• EPS Growth: 54.71%
• Country: US
• Employees: 115
• Sector: Healthcare
• Sector Strength: 51
• Industry: Biotechnology
• EPS (TTM): -3.12
• Shares Outstanding: 6,735,544
• 10 Day Avg. Volume: 78,685
• 30 Day Avg. Volume: 583,414
• 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: -0.89
• Enterprise Value/Revenue: -1.63
• Enterprise Value/Gross Profit: -1.63
• Enterprise Value/Ebitda: 0.49
• 1Y Price Target: $11.00
• Price Target Upside: 90.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 50 Neutral
• Price Target: $6.50 ▲(12.46% Upside)

Generation Bio's stock score is primarily impacted by its weak financial performance, characterized by significant losses and high leverage. While technical analysis shows positive momentum, the stock's valuation is unattractive due to a negative P/E ratio and no dividend yield. The absence of earnings call and corporate event data limits further insights.

Positive Factors

Financial Stability

Cash runway is expected to fund operations into the second half of 2027, providing financial stability for ongoing projects.

Platform Potential

The strategic shift towards leveraging their platform for siRNA therapeutics in autoimmune diseases is seen as a move in the right direction, focusing on differentiated technology.

Technology Development

New milestone data confirm successful siRNA delivery to T cells in non-human primates, with potent knockdown of B2M, LAT1, and VAV1 without inducing T cell activation.

Negative Factors

Regulatory Challenges

FDA/NIH changes may present a long-term challenge due to the significant uncertainty they introduce.

Strategic Uncertainty

There is increased uncertainty around the company's path forward and potential ability to achieve strategic goals.

Workforce Reduction

The company announced it will be reducing its headcount by ~90% over the next several months as it explores strategic alternatives to maximize shareholder value.

Generation Bio Business Overview & Revenue Model

Company Description

Generation Bio Co., a genetic medicines company, develops therapies for the treatment of rare and prevalent diseases. The company provides a portfolio of programs, including programs for rare and prevalent diseases of the liver and retina. It also focuses on the diseases of skeletal muscle, central nervous system, and oncology. The company was formerly known as Torus Therapeutics, Inc. and changed its name to Generation Bio Co. in November 2017. Generation Bio Co. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Generation Bio makes money through the development and potential commercialization of its proprietary gene therapy platforms. The company's primary revenue streams are expected to come from partnerships with other biotechnology and pharmaceutical companies, as well as potential licensing agreements. These partnerships may involve collaborative research, co-development of therapies, and milestone payments associated with successful development stages. Additionally, Generation Bio may generate revenue from royalties on sales of successfully commercialized therapies developed through its platform. The company's strategic focus on innovation and collaboration in the gene therapy space is crucial for its financial sustainability and growth.

Generation Bio Financial Statement Overview

Summary

Generation Bio is experiencing substantial revenue growth but continues to face significant profitability challenges. The balance sheet reflects moderate leverage but declining equity ratios, suggesting financial instability. Cash flows show improvement in management but remain negative, indicative of ongoing operational and financial challenges.

Income Statement

The company's revenue has shown significant growth, particularly in the latest TTM period, with a Revenue Growth Rate of 23.45% from the previous year. Despite this, Generation Bio is struggling with profitability, as evidenced by a negative Net Profit Margin (-292.83%) and negative EBIT and EBITDA margins. The gross profit margin for the most recent TTM is positive at 100%, indicating that all revenues are above the cost of goods sold, but the high operating expenses are leading to substantial losses.

Balance Sheet

Generation Bio's balance sheet shows a moderate level of stability. The Debt-to-Equity Ratio is 1.19, indicating moderate leverage. However, the Equity Ratio has been decreasing, currently at 36.41%, highlighting a reduction in financial stability. Return on Equity remains negative due to ongoing net losses, indicating that shareholders' equity is not generating positive returns.

Cash Flow

Cash flow analysis reveals challenges with negative free cash flow, though the Free Cash Flow to Net Income Ratio is improving. The company has a high Operating Cash Flow to Net Income Ratio of 1.19, suggesting that operating cash flows are relatively strong compared to net income losses. Free Cash Flow Growth Rate is positive, indicating some improvement in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.23M	19.89M	5.90M	0.00	0.00	0.00
Gross Profit	21.23M	19.89M	-71.03M	-5.13M	-4.53M	-3.43M
EBITDA	-69.92M	-74.26M	-133.30M	-136.05M	-114.57M	-77.68M
Net Income	-72.42M	-131.67M	-126.61M	-136.64M	-119.15M	-80.52M
Balance Sheet
Total Assets	179.43M	231.20M	374.76M	376.26M	476.77M	294.15M
Cash, Cash Equivalents and Short-Term Investments	141.36M	185.22M	264.36M	279.09M	375.14M	262.33M
Total Debt	85.32M	93.56M	97.89M	81.71M	80.83M	0.00
Total Liabilities	125.33M	144.99M	171.63M	93.77M	95.03M	26.14M
Stockholders Equity	54.10M	86.20M	203.13M	282.49M	381.75M	268.01M
Cash Flow
Free Cash Flow	-81.69M	-90.96M	-60.14M	-111.25M	-97.78M	-75.66M
Operating Cash Flow	-80.52M	-88.56M	-52.74M	-102.45M	-91.82M	-70.14M
Investing Cash Flow	100.90M	94.53M	-9.70M	-192.51M	193.05M	-205.20M
Financing Cash Flow	214.00K	250.00K	35.82M	12.99M	214.67M	323.10M

Generation Bio Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GBIO, the sentiment is Neutral. The current price of 5.78 is below the 20-day moving average (MA) of 5.82, above the 50-day MA of 4.78, and below the 200-day MA of 6.47, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 53.48 is Neutral, neither overbought nor oversold. The STOCH value of 14.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GBIO.

Generation Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.91B	-0.36	-41.71%	2.23%	23.45%	-1.86%
GBIO	50 Neutral	$38.93M	―	-85.45%	―	61.15%	54.71%
TVRD	50 Neutral	$285.45M	―	-93.85%	―	-40.16%	78.28%
DARE	46 Neutral	$27.36M	―	597.53%	―	88.13%	92.45%
PASG	44 Neutral	$21.84M	―	-88.27%	―	―	32.57%
CGTX	41 Neutral	$214.38M	―	-219.68%	―	―	29.58%
NRSN	30 Underperform	$27.06M	―	-2880.11%	―	―	31.09%

Generation Bio Corporate Events

Generation Bio Announces Reverse Stock Split

On July 18, 2025, Generation Bio announced a 1-for-10 reverse stock split of its common stock, effective July 21, 2025, to comply with Nasdaq’s minimum bid price requirement. This move will reduce the company’s outstanding shares from approximately 67.3 million to 6.7 million, with trading on a split-adjusted basis starting July 22, 2025.

The most recent analyst rating on (GBIO) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Generation Bio stock, see the GBIO Stock Forecast page.

Generation Bio Elects Directors and Approves Key Proposals

On June 4, 2025, Generation Bio Co. conducted its annual meeting of stockholders, where key proposals were voted upon. The meeting resulted in the election of Ron Cooper, Anthony Quinn, and Jason Rhodes as Class II directors, ratification of Ernst & Young LLP as the independent auditor, approval of executive compensation, and authorization of a reverse stock split amendment.

The most recent analyst rating on (GBIO) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Generation Bio stock, see the GBIO Stock Forecast page.