Harvard Bioscience (HBIO) AI Stock Analysis

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Harvard Bioscience

(NASDAQ:HBIO)

38Underperform

Harvard Bioscience faces substantial financial and operational hurdles, with declining revenue and profitability concerns being significant risks. The technical indicators suggest strong bearish trends, and valuation metrics are unattractive. While there are some positive aspects from the earnings call, such as sequential revenue growth, the overall outlook remains challenging.

Harvard Bioscience (HBIO) vs. S&P 500 (SPY)

Market Cap

$16.77M

Dividend YieldN/A

Average Volume (3M)360.28K

Price to Earnings (P/E)―

Beta (1Y)1.66

Revenue Growth-16.14%

EPS Growth-256.50%

CountryUS

Employees330

SectorHealthcare

Sector Strength78

IndustryMedical - Instruments & Supplies

Share Statistics

EPS (TTM)-0.28

Shares Outstanding44,074,474

10 Day Avg. Volume345,685

30 Day Avg. Volume360,284

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.30

Price to Cash Flow (P/CF)4.10

P/FCF Ratio5.60

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$4.50

Price Target Upside1116.22% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Harvard Bioscience Business Overview & Revenue Model

Company DescriptionHarvard Bioscience, Inc. develops, manufactures, and sells technologies, products, and services that enables fundamental research, discovery, and pre-clinical testing for drug development in the United States and internationally. The company offers cellular and molecular technology instruments, such as syringe and peristaltic pump products, as well as a range of instruments and accessories for tissue and organ-based lab research, including surgical products, infusion systems, and behavior research systems; and spectrophotometers, microplate readers, amino acid analyzers, gel electrophoresis equipment, and electroporation and electrofusion instruments. It also engages in the development and manufacture of precision scientific measuring instrumentation and equipment, which cover data acquisition systems with custom amplifier configurations for cellular analysis, micro electrode array solutions for in vivo recordings, and vitro-systems for extracellular recordings; and offers preclinical products. The company markets its products through sales organizations, websites, catalogs, and distributors to research scientists in pharmaceutical and biotechnology companies, universities, hospitals, and government laboratories, as well as to contract research organizations, academic labs, and government researchers. It primarily sells its products under Harvard Apparatus, DSI, Ponemah, Buxco, Biochrom, BTX, and MCS brand names. The company was founded in 1901 and is headquartered in Holliston, Massachusetts.

How the Company Makes MoneyHarvard Bioscience generates revenue through the sale of scientific instruments and consumable products designed for life science research. The company's key revenue streams include its broad array of laboratory instruments, such as spectrometers, cell analysis equipment, and physiology research devices. Additionally, the company offers consumables and accessories that complement its equipment, providing ongoing revenue opportunities. Harvard Bioscience also engages in strategic partnerships and collaborations with research institutions and pharmaceutical companies to enhance its product offerings and expand its market reach. These collaborations often involve co-development and licensing agreements that can provide additional revenue streams.

Harvard Bioscience Financial Statement Overview

Summary

Harvard Bioscience is facing significant financial challenges with declining revenue and margins, a lack of stockholders' equity, and potential liquidity issues despite maintaining positive operating cash flow.

Income Statement

Negative

Harvard Bioscience has experienced a decline in revenue with a TTM (Trailing-Twelve-Months) figure lower than the previous year. The company faces negative EBIT and EBITDA margins, indicating operational challenges. The negative net profit margin further highlights profitability issues.

Balance Sheet

Negative

The company's balance sheet displays a lack of stockholders' equity in the TTM period, which could indicate high financial risk. Previously, the company had a manageable debt-to-equity ratio, but the zero equity in the latest period is concerning. The absence of liabilities in the TTM period may also suggest an incomplete snapshot of the company's liabilities.

Cash Flow

Neutral

The TTM cash flow shows a decrease in free cash flow compared to the previous year, reflecting potential liquidity issues. However, the firm has managed to maintain positive operating cash flow, which is a positive indicator amidst declining profitability.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
94.14M	112.25M	113.33M	118.90M	102.10M
	Gross Profit
54.77M	66.07M	60.82M	67.65M	58.04M
	EBIT
-6.21M	1.89M	-7.17M	1.40M	-585.00K
	EBITDA
-1.30M	8.03M	944.00K	11.31M	5.49M
	Net Income Common Stockholders
-12.40M	-3.42M	-9.52M	-288.00K	-7.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.11M	4.28M	4.51M	7.82M	8.32M
	Total Assets
126.64M	137.37M	145.36M	162.34M	156.25M
	Total Debt
44.49M	42.77M	46.82M	48.33M	48.01M
	Net Debt
40.39M	38.49M	42.32M	40.51M	39.69M
	Total Liabilities
63.30M	64.29M	73.14M	78.94M	79.57M
	Stockholders Equity
63.34M	73.07M	72.22M	83.40M	76.68M
Cash Flow		Free Cash Flow
-1.20M	11.72M	-438.00K	-83.00K	8.18M
	Operating Cash Flow
1.44M	14.03M	1.15M	1.26M	9.33M
	Investing Cash Flow
-1.34M	-1.80M	-1.59M	-1.34M	-1.40M
	Financing Cash Flow
-131.00K	-12.13M	-2.84M	-252.00K	-7.97M

Harvard Bioscience Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.37

Price Trends

50DMA

0.96

Negative

100DMA

1.54

Negative

200DMA

2.16

Negative

Market Momentum

MACD

-0.14

Negative

RSI

26.10

Positive

STOCH

18.95

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HBIO, the sentiment is Negative. The current price of 0.37 is below the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.96, and below the 200-day MA of 2.16, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 26.10 is Positive, neither overbought nor oversold. The STOCH value of 18.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HBIO.

Harvard Bioscience Risk Analysis

Harvard Bioscience disclosed 30 risk factors in its most recent earnings report. Harvard Bioscience reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Harvard Bioscience Peers Comparison

Overall Rating

UnderperformOutperform

Sector (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TECH	73 Outperform	$8.27B	53.17	7.82%	0.61%	4.46%	-29.62%
TMO	70 Outperform	$165.21B	26.48	13.15%	0.36%	0.05%	6.87%
QGEN	66 Neutral	$8.71B	104.47	2.27%	―	0.66%	-75.89%
DHR	65 Neutral	$130.05B	34.37	7.57%	0.63%	-13.50%	-17.25%
BIO	49 Neutral	$6.44B	―	-24.09%	―	-3.92%	-202.80%
Sector *	48 Neutral	$6.27B	1.17	-48.19%	2.68%	17.28%	1.24%
HBIO	38 Underperform	$16.77M	―	-18.19%	―	-16.14%	-256.50%

* Healthcare Sector Average

Performance Comparison

HBIO

Harvard Bioscience

0.37

-4.26

-92.01%

BIO

Bio-Rad Laboratories

220.51

-118.97

-35.04%

DHR

Danaher

174.64

-73.98

-29.76%

QGEN

Qiagen

38.81

-3.15

-7.51%

TECH

Bio-Techne

48.81

-22.11

-31.18%

TMO

Thermo Fisher

419.31

-168.18

-28.63%

Harvard Bioscience Earnings Call Summary

Earnings Call Date: Mar 12, 2025 | % Change Since: -51.32% | Next Earnings Date: May 13, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted several positive aspects such as sequential revenue growth, strategic product launches, and stable gross margins. However, these were balanced by significant challenges like year-over-year revenue decline, debt covenant non-compliance, and uncertainties around NIH funding. The sentiment reflects a cautious optimism, recognizing both opportunities and hurdles.

Highlights

Sequential Revenue Growth

Revenue in the fourth quarter was $24.6 million, showing a sequential increase of 12% from the third quarter.

Gross Margin Stability

Gross margin for the fourth quarter was 57%, close to the target of 60%, demonstrating effective cost management despite lower revenue.

Positive Book-to-Bill Ratio

The company reported a positive book-to-bill ratio, indicating a healthy demand pipeline.

Successful Product Launches

New products like the SoHo telemetry devices and VivaMARS neurobehavioral monitoring system are seeing strong demand, with early adopters including major institutions like Labcorp.

Strategic Partnerships

The company is working with large pharma companies for bioproduction applications, showcasing growth opportunities in electroporation and bioproduction.

Expansion of Distribution Agreements

Extended distribution agreements with large distributors like Fisher and VWR to include North America, increasing product reach.

Lowlights

Year-Over-Year Revenue Decline

Revenue for the year was $94 million, down from $112 million last year, marking a 16% decrease.

NIH Funding Uncertainty

Uncertainty around NIH funding affected academic research revenue, impacting the company's outlook.

Debt Covenant Non-Compliance

The company was not in compliance with the consolidated net leverage ratio covenant in its credit agreement at year-end, though a waiver was obtained.

APAC Revenue Decline

Asia Pacific revenue was down 24% year-over-year, attributed to destocking and market challenges.

ERP Implementation Challenges

The new ERP system implementation is causing some initial inefficiencies, though long-term benefits are expected.

Company Guidance

During the fourth quarter of fiscal year 2024, Harvard Bioscience reported revenue of $24.6 million, marking a 13% decline from the same period last year but a 12% sequential increase from the third quarter. The gross margin was $14 million, or 57% of revenue, while operating income broke even on a GAAP basis. Adjusted operating income was $2.5 million, accounting for 10% of revenue, and adjusted EBITDA was $3 million, representing 12% of revenue. The Americas saw a 3% sequential revenue growth but an 11% year-over-year decline. Europe experienced a 28% sequential increase, albeit a 7% year-over-year decrease, while the Asia Pacific region showed an 8% sequential increase but a 24% decline compared to the previous year. The company's financial outlook for the first quarter of 2025 anticipates revenues in the range of $19 million to $21 million and gross margins between 56% to 58%. They are working on refinancing their debt by June 30, 2025, due to non-compliance with the consolidated net leverage ratio covenant.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.