Generation Bio (GBIO) AI Stock Analysis

• Market Cap: $37.87M
• Dividend Yield: N/A
• Average Volume (3M): 52.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.98
• Revenue Growth: -17.82%
• EPS Growth: 57.32%
• Country: US
• Employees: 115
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.82
• Shares Outstanding: 6,737,899
• 10 Day Avg. Volume: 46,579
• 30 Day Avg. Volume: 52,917
• 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: 1.13
• Enterprise Value/Revenue: 2.80
• Enterprise Value/Gross Profit: 3.09
• Enterprise Value/Ebitda: -0.73
• 1Y Price Target: $5.25
• Price Target Upside: -6.58% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: $5.50 ▼(-2.14% Downside)

Generation Bio's stock score is primarily impacted by its poor financial performance, characterized by declining revenues, high leverage, and negative cash flows. Technical analysis indicates bearish momentum, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors contribute to a low overall stock score.

Positive Factors

Proprietary non-viral delivery platform

Generation Bio’s non-viral delivery platform is a durable technology asset that can host multiple RNA/DNA payloads. Platform breadth supports repeatable program launches and partner licensing, increasing long-term optionality and lowering marginal R&D cost per program versus one-off modalities.

Announced merger with XOMA Royalty

The announced acquisition by XOMA is a structural change that can provide stable parent-level capital, development resources, and commercialization expertise. Becoming a subsidiary reduces standalone financing risk and can accelerate program funding and regulatory progress over the coming months.

Reasonable equity ratio provides balance-sheet buffer

Despite other balance-sheet pressures, a reasonable equity ratio indicates a portion of assets financed with equity rather than solely debt. That buffer can sustain operations during integration, support R&D continuity, and improve creditor confidence while strategic transitions occur.

Negative Factors

Declining revenues

A sustained revenue decline erodes internal funding for R&D and operations. Over a 2–6 month horizon, falling top-line trends increase reliance on external capital, reduce negotiating leverage with partners, and raise execution risk for clinical and platform advancement.

High leverage (debt-to-equity 1.58)

Elevated debt relative to equity increases interest and refinancing risk, particularly given negative cash flows. Higher leverage constrains financial flexibility, may force priority on debt servicing over R&D, and raises the probability of dilutive or restrictive financing decisions.

Negative operating cash flow and cash burn

Ongoing negative operating cash flow signifies structural cash burn that undermines independent program funding. Even with some FCF growth metrics, lack of consistent positive operating cash generation increases dependency on fundraising or parent support and limits strategic optionality.

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 generates revenue primarily through partnerships and collaborations with pharmaceutical companies and research institutions. These partnerships often involve funding for research and development in exchange for rights to co-develop or commercialize the therapies. Additionally, the company may receive milestone payments and royalties from its partners based on the progress of the products developed through their platform. The potential for revenue is also supported by grants and funding from government and nonprofit organizations interested in advancing genetic medicine solutions.

Generation Bio Financial Statement Overview

Summary

Generation Bio faces substantial financial challenges, with declining revenues, high leverage, and negative cash flows. The biotechnology industry often involves high R&D costs and long development cycles, which may contribute to these financial difficulties. The company needs to improve operational efficiency and manage its debt levels to enhance financial stability.

Income Statement

Generation Bio's income statement reveals significant challenges, with negative net profit margins and declining revenue growth. The TTM data shows a revenue decline of 28.07%, and the company has consistently reported negative EBIT and EBITDA margins, indicating ongoing operational inefficiencies. Despite a positive gross profit margin, the overall profitability remains a concern.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.58 in the TTM period, indicating increased leverage and potential financial risk. Return on equity is negative, reflecting losses. However, the company maintains a reasonable equity ratio, suggesting some stability in asset financing.

Cash Flow

Cash flow analysis highlights significant cash outflows, with negative operating and free cash flows. Although there is a positive free cash flow growth rate in the TTM period, 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 some alignment between cash flow and reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.27M	19.89M	5.90M	0.00	0.00	0.00
Gross Profit	13.87M	19.89M	5.90M	0.00	0.00	-3.43M
EBITDA	-58.50M	-74.26M	-133.30M	-136.05M	-114.57M	-77.09M
Net Income	-62.63M	-131.67M	-126.61M	-136.64M	-119.15M	-80.52M
Balance Sheet
Total Assets	121.90M	231.20M	374.76M	376.26M	476.77M	294.15M
Cash, Cash Equivalents and Short-Term Investments	89.62M	185.22M	264.36M	279.09M	375.14M	262.33M
Total Debt	26.10M	93.56M	97.89M	81.71M	80.83M	0.00
Total Liabilities	71.34M	144.99M	171.63M	93.77M	95.03M	26.14M
Stockholders Equity	50.56M	86.20M	203.13M	282.49M	381.75M	268.01M
Cash Flow
Free Cash Flow	-114.73M	-90.96M	-60.14M	-111.25M	-97.78M	-75.66M
Operating Cash Flow	-113.65M	-88.56M	-52.74M	-102.45M	-91.82M	-70.14M
Investing Cash Flow	113.72M	94.53M	-9.70M	-192.51M	193.05M	-205.20M
Financing Cash Flow	215.00K	250.00K	35.82M	12.99M	214.67M	323.10M

Generation Bio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.62
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 5.62 is above the 20-day moving average (MA) of 5.61, above the 50-day MA of 5.47, and above the 200-day MA of 5.06, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 52.31 is Neutral, neither overbought nor oversold. The STOCH value of 75.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GBIO.

Generation Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRCE	58 Neutral	$56.94M	-6.29	-13.15%	―	―	45.97%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
XLO	49 Neutral	$36.89M	-0.83	-908.28%	―	588.40%	61.76%
OKUR	42 Neutral	$32.52M	-0.39	-115.64%	―	―	46.20%
GBIO	39 Underperform	$37.87M	-0.60	-80.81%	―	-17.82%	57.32%

Generation Bio Corporate Events

Generation Bio Announces Merger with XOMA Royalty

On December 15, 2025, Generation Bio Co. entered into a merger agreement with XOMA Royalty Corporation, under which XOMA will acquire all outstanding shares of Generation Bio for $4.2913 per share in cash, along with a contingent value right (CVR) for potential future payments. The merger, expected to close in February 2026, will see Generation Bio become a wholly owned subsidiary of XOMA, enhancing XOMA’s portfolio with Generation Bio’s ctLNP delivery platform. The merger agreement includes conditions such as the tender of a majority of shares and customary closing conditions, with support agreements from stockholders holding approximately 15% of Generation Bio’s shares.

The most recent analyst rating on (GBIO) stock is a Sell with a $4.50 price target. To see the full list of analyst forecasts on Generation Bio stock, see the GBIO Stock Forecast page.