OmniAb (OABI) AI Stock Analysis

• Market Cap: $274.95M
• Dividend Yield: N/A
• Average Volume (3M): 561.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: 3.36%
• EPS Growth: 5.15%
• Country: US
• Employees: 114
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.14
• Shares Outstanding: 143,955,400
• 10 Day Avg. Volume: 481,153
• 30 Day Avg. Volume: 561,725
• PEG Ratio: -0.30
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 13.73
• P/FCF Ratio: -8.72
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 7.82
• Enterprise Value/Gross Profit: 10.21
• Enterprise Value/Ebitda: -3.46
• 1Y Price Target: $6.80
• Price Target Upside: 257.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $2.00 ▲(5.26% Upside)

OmniAb's overall stock score reflects significant financial challenges, with negative revenue growth and substantial losses. However, positive technical indicators and strategic initiatives provide some optimism. The company's valuation remains a concern due to ongoing losses.

Positive Factors

Partnership Expansion

The increase in active partnerships enhances OmniAb's market reach and potential revenue streams, supporting long-term growth and stability.

Innovative Product Launch

OmniUltra's launch opens new market opportunities, potentially driving future revenue and establishing OmniAb as a leader in innovative antibody solutions.

Financial Flexibility

The private placement strengthens OmniAb's balance sheet, providing the financial resources needed to invest in growth initiatives and weather economic challenges.

Negative Factors

Revenue Decline

The significant drop in revenue indicates challenges in achieving sales targets, which could hinder the company's ability to fund operations and growth.

Delayed Milestones

Delays in achieving milestones can impact revenue projections and investor confidence, potentially affecting long-term strategic goals.

Negative Profit Margins

Substantial losses and negative profit margins highlight operational inefficiencies, posing a risk to financial sustainability and shareholder value.

OmniAb Business Overview & Revenue Model

Company Description

OmniAb, Inc., a biotechnology company, provides therapeutic antibody discovery technologies in the United States. The company's discovery platform provides industry partners access to the diverse antibody repertoires and screening technologies to enable discovery of next-generation therapeutics. Its OmniAb platform is the biological intelligence of proprietary transgenic animals, including OmniRat, OmniChicken, and OmniMouse that have been genetically modified to generate antibodies with human sequences to facilitate development of human therapeutic candidates. The company's OmniFlic (transgenic rat) and OmniClic (transgenic chicken) address industry needs for bispecific antibody applications though a common light chain approach, and OmniTaur that features unique structural attributes of cow antibodies for complex targets. The company was founded in 2012 and is headquartered in Emeryville, California.

How the Company Makes Money

OmniAb generates revenue primarily through its platform technology licensing agreements and collaborative research partnerships with pharmaceutical and biotech companies. The company earns money by charging fees for access to its proprietary antibody discovery platform, which allows clients to develop their own therapeutic candidates more efficiently. Additionally, OmniAb may receive milestone payments and royalties based on the sales of products developed using its technology. Strategic partnerships with larger pharmaceutical firms also contribute to its earnings, as these collaborations often involve upfront payments and shared development costs, enhancing the company's financial stability.

OmniAb Financial Statement Overview

Summary

OmniAb's financial performance is mixed. The company shows strong gross margins and low leverage, indicating operational efficiency and financial stability. However, significant net losses, negative revenue growth, and declining free cash flow growth present substantial challenges. The company needs to focus on improving profitability and cash flow generation to enhance its financial health.

Income Statement

OmniAb's income statement reveals a challenging financial environment. The company has experienced a decline in revenue, with a negative revenue growth rate of -8.39% TTM. The gross profit margin remains strong at 76.58% TTM, indicating efficient cost management. However, the net profit margin is significantly negative at -301.83% TTM, reflecting substantial losses. EBIT and EBITDA margins are also deeply negative, suggesting operational inefficiencies. Overall, the company faces profitability challenges despite maintaining a solid gross margin.

Balance Sheet

The balance sheet of OmniAb shows a relatively low debt-to-equity ratio of 0.076 TTM, indicating conservative leverage. However, the return on equity is negative at -22.79% TTM, highlighting the company's struggle to generate returns for shareholders. The equity ratio stands at 89.58% TTM, suggesting a strong equity base relative to total assets. While the company maintains financial stability with low leverage, its inability to generate positive returns is a concern.

Cash Flow

OmniAb's cash flow statement indicates mixed performance. The operating cash flow to net income ratio is positive at 1.93 TTM, suggesting that operating activities are generating cash despite net losses. However, the free cash flow growth rate is negative at -11.37% TTM, reflecting challenges in sustaining cash flow growth. The free cash flow to net income ratio is close to 1, indicating that free cash flow is nearly matching net income losses. While cash flow from operations is a positive aspect, the decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.09M	26.39M	34.16M	59.08M	34.75M	23.27M
Gross Profit	16.15M	26.39M	34.16M	59.08M	34.75M	23.27M
EBITDA	-47.65M	-50.92M	-49.92M	-8.40M	-18.09M	-10.93M
Net Income	-63.67M	-62.03M	-50.62M	-22.33M	-27.04M	-17.56M
Balance Sheet
Total Assets	309.69M	325.56M	375.23M	421.21M	304.46M	295.38M
Cash, Cash Equivalents and Short-Term Investments	59.50M	59.43M	86.98M	88.27M	0.00	0.00
Total Debt	21.07M	23.16M	25.56M	25.80M	13.85M	2.59M
Total Liabilities	32.25M	37.94M	60.64M	79.84M	70.16M	59.84M
Stockholders Equity	277.44M	287.62M	314.58M	341.37M	234.31M	235.54M
Cash Flow
Free Cash Flow	-35.26M	-41.54M	703.00K	-20.75M	-9.74M	1.87M
Operating Cash Flow	-34.65M	-39.66M	2.35M	-3.59M	-5.67M	3.62M
Investing Cash Flow	4.14M	37.88M	-18.38M	-73.31M	-4.03M	-26.98M
Financing Cash Flow	31.81M	13.02M	-892.00K	110.74M	9.70M	23.36M

OmniAb Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OABI, the sentiment is Positive. The current price of 1.9 is below the 20-day moving average (MA) of 1.93, above the 50-day MA of 1.81, and above the 200-day MA of 1.76, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.47 is Neutral, neither overbought nor oversold. The STOCH value of 72.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OABI.

OmniAb Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVIR	58 Neutral	$276.57M	-1.99	-37.98%	―	―	14.33%
OABI	55 Neutral	$274.95M	-3.23	-22.37%	―	3.36%	5.15%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
RNAC	51 Neutral	$198.67M	-0.15	―	―	―	―
SGMT	48 Neutral	$197.48M	-3.56	-39.78%	―	―	-38.23%
VOR	47 Neutral	$323.62M	-0.04	―	―	―	-1072.48%