Generation Bio (GBIO) AI Stock Analysis

• Market Cap: $21.45M
• Dividend Yield: N/A
• Average Volume (3M): 861.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.56
• Revenue Growth: 146.47%
• EPS Growth: 57.85%
• Country: US
• Employees: 115
• Sector: Healthcare
• Sector Strength: 47
• Industry: Biotechnology
• EPS (TTM): -0.22
• Shares Outstanding: 67,035,230
• 10 Day Avg. Volume: 1,616,376
• 30 Day Avg. Volume: 861,884
• PEG Ratio: -0.15
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.05
• Enterprise Value/Market Cap: 10.11
• Enterprise Value/Revenue: 2.85
• Enterprise Value/Gross Profit: 8.83
• Enterprise Value/Ebitda: -0.63
• 1Y Price Target: $6.50
• Price Target Upside: 1811.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 42 Neutral
• Price Target: $0.50 ▲(47.06%Upside)

Generation Bio's stock score of 42 reflects significant challenges in financial performance, particularly in profitability and leverage. Technical analysis indicates a bearish trend, and valuation metrics are unfavorable due to negative earnings and no dividend yield. These factors contribute to a cautious outlook on the stock.

Positive Factors

Financial Stability

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

Market Differentiation

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.

Technological Advancement

Recent data demonstrated the effectiveness of ctLNPs in targeting T-cells, highlighting the potential of their technology in treating autoimmune diseases.

Negative Factors

Regulatory Environment

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

Generation Bio Business Overview & Revenue Model

Company Description

Generation Bio (GBIO) is a biotechnology company focused on the development of gene therapy platforms. The company's core technology, known as ceDNA (closed-ended DNA), aims to provide durable and redosable gene therapies for a variety of genetic disorders. Generation Bio operates in the biotechnology and pharmaceutical sectors, with a focus on developing therapies that address rare and prevalent diseases by delivering genetic payloads to specific tissues in the body.

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 demonstrates strong revenue growth; however, profitability remains a challenge with negative profit margins and high operating expenses. The balance sheet indicates moderate leverage but decreasing financial stability, and cash flows, though improving, are still negative.

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	24.56M	19.89M	5.90M	0.00	0.00	0.00
Gross Profit	24.56M	19.89M	-73.91M	-5.13M	-4.53M	-3.43M
EBITDA	-69.20M	-74.26M	-133.30M	-136.05M	-114.57M	-77.68M
Net Income	-71.93M	-131.67M	-126.61M	-132.10M	-114.67M	-76.50M
Balance Sheet
Total Assets	201.35M	231.20M	374.76M	376.26M	476.77M	294.15M
Cash, Cash Equivalents and Short-Term Investments	157.56M	185.22M	264.36M	279.09M	375.14M	262.33M
Total Debt	87.58M	93.56M	97.89M	81.71M	80.83M	0.00
Total Liabilities	128.02M	144.99M	171.63M	93.77M	95.03M	26.14M
Stockholders Equity	73.33M	86.20M	203.13M	282.49M	381.75M	268.01M
Cash Flow
Free Cash Flow	-85.95M	-90.96M	-60.14M	-111.25M	-97.78M	-75.66M
Operating Cash Flow	-85.23M	-88.56M	-52.74M	-102.45M	-91.82M	-70.14M
Investing Cash Flow	98.04M	94.53M	-9.70M	-192.51M	193.05M	-205.20M
Financing Cash Flow	368.00K	250.00K	35.82M	12.99M	214.67M	323.10M

Generation Bio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GBIO, the sentiment is Negative. The current price of 0.34 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.39, and below the 200-day MA of 1.06, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.53 is Neutral, neither overbought nor oversold. The STOCH value of 28.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GBIO.

Generation Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TVRD	57 Neutral	$207.34M	―	-414.88%	―	-65.96%	40.80%
Sector *	51 Neutral	$7.55B	0.30	-61.90%	2.27%	17.11%	1.58%
PASG	44 Neutral	$23.63M	―	-83.73%	―	―	42.39%
GBIO	42 Neutral	$21.45M	―	-70.06%	―	146.47%	57.85%
CGTX	41 Neutral	$19.36M	―	-161.93%	―	―	-0.38%
DARE	40 Underperform	$20.98M	―	597.53%	―	88.13%	92.45%
NRSN	30 Underperform	$45.58M	―	-2880.11%	―	―	31.09%

Generation Bio Corporate Events

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.