Generation Bio (GBIO) AI Stock Analysis

• Market Cap: $36.59M
• Dividend Yield: N/A
• Average Volume (3M): 52.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.94
• 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: -0.95
• Enterprise Value/Revenue: -2.26
• Enterprise Value/Gross Profit: -2.49
• Enterprise Value/Ebitda: 0.59
• 1Y Price Target: $5.25
• Price Target Upside: -2.60% 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: $4.50 ▼(-16.51% 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

Innovative Technology

Generation Bio's non-viral gene delivery platform offers a safer alternative to traditional methods, potentially leading to more effective treatments and a competitive edge in the biotechnology sector.

Partnership Revenue Model

The partnership-based revenue model provides financial support for R&D and potential milestone payments, enhancing long-term revenue stability and growth potential.

Earnings Growth

A significant EPS growth rate indicates improving financial performance, suggesting potential for future profitability as the company advances its product pipeline.

Negative Factors

Declining Revenue

The decline in revenue growth reflects challenges in monetizing the company's technology, potentially impacting long-term financial health and operational sustainability.

High Leverage

Increased leverage poses financial risks, limiting flexibility and increasing vulnerability to economic downturns, which could hinder long-term strategic initiatives.

Negative Cash Flows

Persistent negative cash flows indicate cash management challenges, potentially restricting the company's ability to fund R&D and operational activities, impacting future growth.

Generation Bio Business Overview & Revenue Model

Company Description

Generation Bio (GBIO) is a biotechnology company focused on developing genetic medicines for patients with rare diseases. The company specializes in its proprietary non-viral gene delivery platform, which aims to provide safer and more effective treatments by delivering genetic material directly to cells without the use of viral vectors. Generation Bio's core products are designed to address genetic disorders by utilizing its innovative technology to enable durable and potentially curative therapies.

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: Neutral
• Last Price: 5.39
• 50DMA: Negative
• 100DMA: Negative
• 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 5.39 is above the 20-day moving average (MA) of 5.26, below the 50-day MA of 5.63, and above the 200-day MA of 4.88, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 49.74 is Neutral, neither overbought nor oversold. The STOCH value of 57.76 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	$35.76M	-0.99	-908.28%	―	588.40%	61.76%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GRCE	46 Neutral	$51.22M	-5.54	-13.15%	―	―	45.97%
FGEN	46 Neutral	$33.90M	0.25	―	―	-95.39%	―
LVTX	44 Neutral	$42.75M	-1.54	-101.50%	―	-32.06%	16.38%
OKUR	42 Neutral	$41.59M	-0.52	-115.64%	―	―	46.20%
GBIO	39 Underperform	$36.59M	-0.58	-80.81%	―	-17.82%	57.32%

Generation Bio Corporate Events

Generation Bio CEO Resignation and Leadership Transition

On October 21, 2025, Generation Bio announced the resignation of Geoff McDonough as CEO, effective October 31, 2025. He will continue as Chairman of the Board. Yalonda Howze, previously the Chief Legal Officer, was appointed as Interim CEO and President. The company is undergoing a leadership transition amidst a strategic alternatives review process, with consulting agreements arranged for outgoing executives to ensure continuity.