Generation Bio (GBIO) AI Stock Analysis

• Market Cap: $29.03M
• Dividend Yield: N/A
• Average Volume (3M): 165.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.66
• Revenue Growth: 146.47%
• EPS Growth: 57.85%
• Country: US
• Employees: 115
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -2.20
• Shares Outstanding: 6,703,524
• 10 Day Avg. Volume: 285,062
• 30 Day Avg. Volume: 165,197
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.33
• Enterprise Value/Market Cap: 2.25
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 2.66
• Enterprise Value/Ebitda: -0.19
• 1Y Price Target: $6.50
• Price Target Upside: 54.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 46 Neutral
• Price Target: $0.50 ▼(-88.10%Downside)

Generation Bio's overall score is primarily influenced by its financial performance, which highlights strong revenue growth but significant profitability challenges. Technical analysis shows some positive momentum, but valuation is hampered by negative earnings. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Financial Stability

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

Market Position

Generation Bio Co. is focusing on innovative siRNA therapeutics for autoimmune disorders, which could set them apart in the market.

Technological Innovation

Successfully delivering mRNA directly into T-cells could differentiate Generation Bio Co. from competitors, who primarily target the liver.

Negative Factors

Regulatory Concerns

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

Stock Valuation

The stock is currently trading below its cash position, which is viewed as a fair discount consistent with other biotech companies with similar uncertainties.

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 exhibits substantial revenue growth with a Revenue Growth Rate of 23.45%, but faces severe profitability issues as shown by a negative Net Profit Margin of -292.83%. The balance sheet displays moderate leverage with a Debt-to-Equity Ratio of 1.19, yet declining financial stability with an Equity Ratio of 36.41%. Cash flows are improving but remain negative, indicating ongoing operational 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.89M	5.90M	0.00	0.00	0.00
Gross Profit	19.89M	-73.91M	-5.13M	-4.53M	-3.43M
EBITDA	-74.26M	-133.30M	-136.05M	-114.57M	-77.68M
Net Income	-131.67M	-126.61M	-132.10M	-114.67M	-76.50M
Balance Sheet
Total Assets	231.20M	374.76M	376.26M	476.77M	294.15M
Cash, Cash Equivalents and Short-Term Investments	185.22M	264.36M	279.09M	375.14M	262.33M
Total Debt	93.56M	97.89M	81.71M	80.83M	0.00
Total Liabilities	144.99M	171.63M	93.77M	95.03M	26.14M
Stockholders Equity	86.20M	203.13M	282.49M	381.75M	268.01M
Cash Flow
Free Cash Flow	-90.96M	-60.14M	-111.25M	-97.78M	-75.66M
Operating Cash Flow	-88.56M	-52.74M	-102.45M	-91.82M	-70.14M
Investing Cash Flow	94.53M	-9.70M	-192.51M	193.05M	-205.20M
Financing Cash Flow	250.00K	35.82M	12.99M	214.67M	323.10M

Generation Bio Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 4.2 is above the 20-day moving average (MA) of 3.93, above the 50-day MA of 3.88, and below the 200-day MA of 8.99, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 51.98 is Neutral, neither overbought nor oversold. The STOCH value of 24.58 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
TVRD	57 Neutral	$268.10M	―	-414.88%	―	-65.96%	40.80%
Sector *	50 Neutral	AU$2.62B	3.32	-57.47%	2.40%	36.73%	13.67%
DARE	50 Neutral	$23.54M	―	597.53%	―	88.13%	92.45%
GBIO	46 Neutral	$29.03M	―	-70.06%	―	146.47%	57.85%
PASG	44 Neutral	$17.88M	―	-83.73%	―	―	42.39%
CGTX	41 Neutral	$49.90M	―	-161.93%	―	―	-0.38%
NRSN	30 Underperform	$48.70M	―	-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.