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Harvard Bioscience (HBIO)
NASDAQ:HBIO
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Harvard Bioscience
(NASDAQ:HBIO)
Rating:44Neutral
Price Target:
$0.50
▲( 47.06% Upside)
Positive Factors
Cost Management
Cost cutting is expected to reduce operating expenses by $1 million a quarter going forward, overcoming cautious revenue expectations.
Product Innovation
Management remains optimistic about the 2025 prospects for newly launched products such as cellular organ models and large-scale electroporation, which offer higher margins and a proportionately higher recurring revenue stream.
Regulatory Support
New FDA policy supports the use of organoids and AI models for drug testing, benefiting Harvard Bioscience's MEA system.
Negative Factors
Financial Risks
HBIO recently violated the consolidated net leverage ratio covenant and is now operating under a waiver from its lenders.
Leadership Change
Harvard Bioscience's CFO Jennifer Cote is leaving for a new opportunity, though it is not due to any disagreements with the company.
Market Challenges
The outlook for end-user markets in biomedical research continues to be challenging due to uncertainty around China tariffs, NIH funding, and biopharmaceutical research activity.
Harvard Bioscience (HBIO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.86M
Dividend YieldN/A
Average Volume (3M)858.68K
Price to Earnings (P/E)―
Beta (1Y)1.42
Revenue Growth-14.41%
EPS Growth-549.88%
CountryUS
Employees330
SectorHealthcare
Sector Strength42
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.01
Shares Outstanding44,213,745
10 Day Avg. Volume1,985,865
30 Day Avg. Volume858,682
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)0.22
Price to Sales (P/S)0.00
P/FCF Ratio-11.57
Enterprise Value/Market Cap3.65
Enterprise Value/Revenue0.14
Enterprise Value/Gross Profit1.04
Enterprise Value/Ebitda-10.10
Forecast
1Y Price Target
$3.00Price Target Upside782.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Harvard Bioscience Business Overview & Revenue Model
Company DescriptionHarvard Bioscience, Inc. is a global developer, manufacturer, and marketer of a broad range of equipment, instrumentation, and services to advance life science research and regenerative medicine. The company operates primarily in the fields of cellular and molecular biology, physiology, and related areas, providing high-quality solutions for laboratory research. Its product portfolio includes technologies for cell analysis, animal research, and molecular analysis, serving academic institutions, pharmaceutical companies, and government laboratories worldwide.
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 financial challenges with declining revenue and negative profit margins. The lack of stockholders' equity presents significant financial risk, and while operating cash flow remains positive, overall liquidity concerns persist.Income Statement
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.40
Negative
Balance Sheet
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.30
Negative
Cash Flow
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.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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 |
| -1.47M | 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
Neutral
0.34
Price Trends
0.44
Negative
0.95
Negative
1.73
Negative
Market Momentum
-0.03
Negative
40.30
Neutral
16.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HBIO, the sentiment is Neutral. The current price of 0.34 is above the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.44, and below the 200-day MA of 1.73, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 40.30 is Neutral, neither overbought nor oversold. The STOCH value of 16.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 3 New Risks
1.
Our management has identified material weaknesses in our internal controls over financial reporting as of December 31, 2024. Failure to establish and maintain effective internal controls over financial reporting could have a material adverse effect on our ability to report our financial condition, results of operations, or cash flows accurately and on a timely basis. Q4, 2024
2.
We have substantial debt, and our lenders have waived our non-compliance with certain of the covenants in our Credit Agreement. If we fail to comply with the terms and conditions of the waiver, or if we fail to comply with any covenants in the future, our lenders may require the amounts outstanding under the debt to become immediately due and payable. Q4, 2024
3.
Our inability to make additional borrowings under our revolving credit facility could materially affect our ability to fund our existing operations or execute our current business strategy. We may be unable to generate sufficient cash flow, and we may be forced to take actions, which may not be successful, to satisfy our obligations and fund our operations. Q4, 2024
Harvard Bioscience Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $113.48M | 36.85 | 5.94% | ― | 7.98% | 3304.55% | |
53 Neutral | $5.14B | 3.03 | -43.89% | 2.83% | 16.75% | -0.06% | |
50 Neutral | $64.84M | ― | -354.27% | ― | -14.55% | 34.87% | |
48 Neutral | $78.08M | ― | -88.36% | ― | -9.13% | 30.04% | |
44 Neutral | $14.86M | ― | -138.80% | ― | -14.41% | -549.88% | |
39 Underperform | $28.33M | ― | -239.87% | ― | 61.97% | -6.89% |
* Healthcare Sector Average
Performance Comparison
HBIO
Harvard Bioscience
0.34
-2.82
-89.24%
INFU
InfuSystem Holdings
5.41
-1.74
-24.34%
MLSS
Milestone Scientific
1.00
0.25
33.33%
AKYA
Akoya Biosciences
1.26
-0.70
-35.71%
FEMY
Femasys
1.04
-0.24
-18.75%
Harvard Bioscience Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 6.25%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with several innovative product launches and improvements in cash flow and debt reduction. However, significant challenges such as a decline in revenue, reduced gross margins, a major goodwill impairment charge, and difficulties in the APAC market pose concerns. Despite these issues, there is optimism about new product adoption and potential recovery in the China market.Q1-2025 Updates
Positive Updates
New Product Launches and Expansions
Successful launch of new SoHo family of implanted telemetry devices and expansion to cardiac and neuromonitoring. The Viva Mars system was successfully delivered to Labcorp and discussions for additional sites are ongoing.
Growth in Bioproduction and CAR-T Therapy
Reached approximately $1 million in consumable revenue from the first large bioproduction customer. Exploring opportunities with a large biotech for bioproduction of a CAR-T therapy.
Improved Cash Flow from Operations
Cash flow from operations improved to $3 million during Q1 2025 compared to $1.4 million in Q1 last year, primarily driven by improvements in working capital management.
Debt Reduction
Net debt is down $1 million from Q1 2024 and $2.4 million from year-end '24, reflecting improved operating cash flow and quarterly principal payments.
Positive Indications for China Market
Good news regarding potential agreement with China, which is significant as China represents around 10% of revenue.
Negative Updates
Revenue Decline
Revenue for Q1 2025 was $21.8 million, down from $24.5 million in the prior year, reflecting a year-over-year decline.
Gross Margin Reduction
Gross margin decreased to 56% from 60.3% in Q1 2024, impacted by lower absorption of fixed manufacturing overhead and nominally by product mix.
Goodwill Impairment Charge
A non-cash goodwill impairment charge of $48 million was recorded due to a decrease in market capitalization, impacting operating expenses and resulting in a significant operating loss.
Challenges in APAC Market
APAC revenue was down 17% compared to the prior year Q1. The APAC market has been challenging with immediate softening of revenue in China following tariff announcements.
Uncertainty in Academic and NIH Funding
Uncertainty around NIH and academic research funding, with purchasing processes slowed due to a reduction in force impacting purchasing departments.
Company Guidance
In the first quarter of 2025, Harvard Bioscience Inc. reported revenue of $21.8 million, which was slightly below the previous year's $24.5 million but aligned with the higher end of the guidance provided in March. The gross margin decreased to 56% from 60.3% in the same period last year. The company recognized a non-cash goodwill impairment charge of $48 million, leading to an operating loss of $49.7 million, compared to a $2.3 million loss in the first quarter of 2024. Excluding this charge, the adjusted operating income was $0.3 million, compared to $1.2 million in the prior year. Adjusted EBITDA was $0.8 million, down from $1.6 million in the previous year, primarily due to reduced revenue. Cash flow from operations improved to $3 million from $1.4 million in the prior year, attributed to better working capital management. The company also reduced its net debt by $1 million compared to the first quarter of 2024. Looking ahead, for the second quarter, the company expects revenue between $18 million and $20 million and plans to reduce operating expenses by an additional $1 million per quarter starting in the second quarter.Harvard Bioscience Corporate Events
Executive/Board ChangesShareholder Meetings
Harvard Bioscience’s Bertrand Loy to Step Down
Neutral
Apr 16, 2025
On April 10, 2025, Bertrand Loy announced he will not seek re-election at Harvard Bioscience‘s 2025 Annual Meeting, ending his tenure that began in 2014. His departure is not due to any disagreements with the company, and he will continue his roles until the meeting, with the Board expressing gratitude for his service.
Delistings and Listing ChangesExecutive/Board ChangesRegulatory Filings and Compliance
Harvard Bioscience CFO Resignation and Interim Appointment
Negative
Apr 10, 2025
On April 4, 2025, Harvard Bioscience received a notification from Nasdaq indicating non-compliance with the minimum bid price requirement, as its stock price fell below $1.00 per share for 30 consecutive business days. The company has until October 1, 2025, to regain compliance, failing which it may transfer to the Nasdaq Capital Market for an additional compliance period. Additionally, on April 7, 2025, Jennifer Cote announced her resignation as CFO, effective upon the filing of the company’s quarterly report. Mark Frost, with over 30 years of financial experience, has been appointed as the Interim CFO, effective after Ms. Cote’s departure.
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.