Generation Bio (GBIO) AI Stock Analysis

• Market Cap: $44.72M
• Dividend Yield: N/A
• Average Volume (3M): 53.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.73
• 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: 47,097
• 30 Day Avg. Volume: 53,440
• 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: -0.77
• Enterprise Value/Revenue: -1.63
• Enterprise Value/Gross Profit: -1.63
• Enterprise Value/Ebitda: 0.49
• 1Y Price Target: $11.00
• Price Target Upside: 77.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 48 Neutral
• Price Target: $6.00 ▼(-2.91% Downside)

Generation Bio's overall stock score is primarily impacted by its weak financial performance, characterized by significant losses and high leverage. While technical analysis shows some positive momentum, the negative valuation metrics further weigh down the score. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and increasing demand for Generation Bio's gene therapy platforms, supporting long-term business expansion.

Gross Profit Margin

A high gross profit margin reflects efficient cost management in production, which can enhance profitability as the company scales its operations.

Innovative Technology

Generation Bio's ceDNA technology positions it as a leader in the gene therapy space, potentially offering competitive advantages in treating genetic disorders.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies and high costs, which could hinder the company's path to profitability and long-term sustainability.

Cash Flow Challenges

Negative cash flows indicate liquidity issues, which could affect the company's ability to fund operations and invest in strategic initiatives.

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: Neutral
• Last Price: 6.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 6.18 is above the 20-day moving average (MA) of 6.16, above the 50-day MA of 6.01, and above the 200-day MA of 5.42, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 62.90 is Neutral, 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
XLO	54 Neutral	$39.29M	―	-277.74%	―	536.44%	63.68%
FGEN	53 Neutral	$43.57M	―	60.38%	―	-69.19%	98.78%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GBIO	48 Neutral	$44.72M	―	-85.45%	―	61.15%	54.71%
GRCE	46 Neutral	$44.39M	―	-16.78%	―	―	32.31%
OKUR	42 Neutral	$38.97M	―	-90.56%	―	―	68.13%
LVTX	41 Neutral	$39.98M	―	-90.07%	―	-32.55%	-15.83%