Generation Bio (GBIO) AI Stock Analysis

• Market Cap: $38.80M
• Dividend Yield: N/A
• Average Volume (3M): 552.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.74
• Revenue Growth: 61.15%
• EPS Growth: 54.71%
• Country: US
• Employees: 115
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -3.12
• Shares Outstanding: 6,735,544
• 10 Day Avg. Volume: 70,330
• 30 Day Avg. Volume: 552,289
• PEG Ratio: -0.81
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 3.55
• P/FCF Ratio: -0.78
• 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: 90.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 45 Neutral
• Price Target: $5.50 ▼(-4.51% Downside)

Generation Bio's overall stock score is primarily impacted by its weak financial performance and poor valuation metrics. While technical analysis shows some stability, the company's significant financial challenges and lack of profitability weigh heavily on the stock's attractiveness.

Positive Factors

Innovative Technology

The ceDNA platform offers a competitive advantage in gene therapy, potentially leading to breakthrough treatments for genetic disorders, enhancing long-term growth prospects.

Revenue Growth Potential

Strong revenue growth potential from strategic partnerships and licensing agreements positions the company for future financial sustainability and expansion in the biotech sector.

High Gross Profit Margin

A high gross profit margin indicates efficient production and potential for profitability improvement, supporting long-term financial health if operational inefficiencies are addressed.

Negative Factors

High Leverage

Significant leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and affecting long-term stability.

Negative Cash Flow

Persistent negative cash flows indicate challenges in sustaining operations without external funding, affecting the company's ability to finance future growth and innovation.

Profitability Challenges

Severe profitability issues and declining revenue growth highlight operational inefficiencies, posing a significant threat to long-term financial viability and market competitiveness.

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 faces significant financial challenges, with persistent losses and high leverage. Despite a strong gross profit margin, the company struggles with profitability and cash flow management. High debt levels and negative returns on equity highlight potential risks.

Income Statement

Generation Bio's income statement shows significant challenges with profitability. The TTM data indicates a negative net profit margin of -341.12%, and a declining revenue growth rate of -13.55%. Despite a high gross profit margin of 96.40%, the company struggles with negative EBIT and EBITDA margins, reflecting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.58 in the TTM, indicating significant leverage. The return on equity is negative at -91.07%, suggesting that the company is not generating sufficient returns on shareholders' equity. The equity ratio is not explicitly calculated, but the high leverage poses a risk to financial stability.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a slight improvement in free cash flow growth at -4.96% in the TTM. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is marginally covering net losses.

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: Negative
• Last Price: 5.76
• 50DMA: Positive
• 100DMA: Positive
• 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 5.76 is below the 20-day moving average (MA) of 5.92, above the 50-day MA of 5.42, and below the 200-day MA of 5.88, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 50.15 is Neutral, neither overbought nor oversold. The STOCH value of 41.31 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	50 Neutral	347.25M	-2.12	1542.93%	―	-40.16%	78.28%
DARE	46 Neutral	28.85M	-4.85	67.43%	―	88.13%	92.45%
GBIO	45 Neutral	$38.80M	―	-85.45%	―	61.15%	54.71%
PASG	44 Neutral	24.07M	-0.42	―	―	―	32.57%
CGTX	41 Neutral	119.10M	-2.05	―	―	―	29.58%
NRSN	30 Underperform	30.51M	-2.12	―	―	―	31.09%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%