Pacific Biosciences (PACB) AI Stock Analysis

• Market Cap: $431.89M
• Dividend Yield: N/A
• Average Volume (3M): 9.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• Revenue Growth: -23.19%
• EPS Growth: 6.27%
• Country: US
• Employees: 575
• Sector: Healthcare
• Sector Strength: 74
• Industry: Medical - Devices
• EPS (TTM): -1.62
• Shares Outstanding: 297,852,230
• 10 Day Avg. Volume: 11,469,909
• 30 Day Avg. Volume: 9,588,179
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.51
• Price to Cash Flow (P/CF): -3.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.15
• Price Target Upside: 55.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Pacific Biosciences' stock score is primarily impacted by financial performance challenges, including declining revenues and high debt levels. Technical analysis reflects a bearish trend, and valuation metrics are unattractive. Positive corporate events and some growth areas highlighted in the earnings call provide mild offsets to these challenges.

Positive Factors

Growth Prospects

PacBio's new products, such as Vega and SPRQ, and improved execution are expected to support future growth.

Market Expansion

Management feels better about their serviceable addressable market due to ongoing technology and cost improvements, and expansion into clinical markets.

Product Launches

The launch of Vega should unlock a new portion of the market for PacBio, and recent advancements to Revio should help the product rebound.

Negative Factors

Funding Uncertainty

The '25 guidance is expected to send the stock down in trading, as it includes notable risks from NIH funding.

Macroeconomic Pressures

Macroeconomic pressures persisted and sales cycles continue to be elongated.

Revenue Decline

Lower Revio system shipments led to a decline in instrument revenue.

Pacific Biosciences Business Overview & Revenue Model

Company Description

Pacific Biosciences of California, Inc. designs, develops, and manufactures sequencing systems to resolve genetically complex problems. The company provides PacBio's Systems, which conduct, monitor, and analyse biochemical sequencing reactions; consumable products, including single molecule real-time (SMRT) cells; and various reagent kits designed for specific workflow, such as template preparation kit to convert DNA into SMRTbell double-stranded DNA library formats, including molecular biology reagents, such as ligase, buffers, and exonucleases. It also offers binding kits, such as modified DNA polymerase used to bind SMRTbell libraries to the polymerase in preparation for sequencing; and sequencing kits comprise reagents required for on-instrument, real-time sequencing, including the phospholinked nucleotides. The company serves research institutions; commercial laboratories; genome centers; public health labs, hospitals and clinical research institutes, contract research organizations, and academic institutions; pharmaceutical companies; and agricultural companies. It markets its products through a direct sales force in North America and Europe, as well as through distribution partners in Asia, Europe, the Middle East, Africa, and Latin America. Pacific Biosciences of California, Inc. has a development and commercialization agreement with Invitae Corporation. The company was formerly known as Nanofluidics, Inc. and changed its name to Pacific Biosciences of California, Inc. in 2005. Pacific Biosciences of California, Inc. was incorporated in 2000 and is headquartered in Menlo Park, California.

How the Company Makes Money

Pacific Biosciences generates revenue primarily through the sale of its high-performance sequencing systems and consumables required for sequencing operations. The company offers instruments such as the Sequel and Sequel II systems, which are widely used by research institutions, pharmaceutical companies, and clinical labs. In addition to equipment sales, a significant portion of the company's revenue comes from consumables, including reagent kits and other materials essential for sequencing processes. PACB also provides service contracts and support for its installed systems, adding another layer to its revenue stream. The company may engage in strategic partnerships and collaborations with research entities and corporations to expand its technological reach and application, further contributing to its revenue growth.

Pacific Biosciences Financial Statement Overview

Summary

Pacific Biosciences faces financial challenges across income, balance sheet, and cash flow statements. Revenue decline, high debt levels, and negative cash flows indicate underlying financial vulnerabilities. Despite some asset base stability, profitability and liquidity constraints pose significant risks to future operations.

Income Statement

Pacific Biosciences has experienced declining revenue over the past year with a revenue growth rate of -23.2%. The company’s gross profit margin is 24.2% and net profit margin is negative, indicating a lack of profitability. Significant EBIT and EBITDA losses highlight operational inefficiencies and challenges in cost management.

Balance Sheet

The company exhibits a high debt-to-equity ratio of 1.33, suggesting reliance on debt financing which may lead to financial strain. With a low equity ratio of 40.2%, PACB’s balance sheet reflects limited shareholder equity relative to its assets. Return on equity is negative due to net losses, showing inefficiency in generating returns for shareholders.

Cash Flow

The negative free cash flow growth rate indicates ongoing cash outflows. The operating cash flow to net income ratio is negative, reflecting cash burn in operations. Despite investing activities generating some cash inflow, the overall cash flow position remains weak, with free cash flow to net income ratio also negative.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
154.01M	200.52M	128.30M	130.51M	78.89M
	Gross Profit
37.28M	52.78M	49.03M	58.86M	32.57M
	EBIT
-356.38M	-334.47M	-304.82M	-178.16M	-104.39M
	EBITDA
-356.38M	-277.28M	-282.24M	-250.76M	38.97M
	Net Income Common Stockholders
-309.85M	-306.74M	-296.93M	-181.22M	29.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
389.93M	631.42M	772.32M	1.04B	318.81M
	Total Assets
1.26B	1.75B	1.77B	2.01B	413.98M
	Total Debt
672.43M	933.93M	957.37M	953.75M	42.00M
	Net Debt
617.06M	754.02M	632.28M	493.02M	-276.81M
	Total Liabilities
753.85M	1.04B	1.20B	1.22B	78.49M
	Stockholders Equity
506.59M	701.30M	562.90M	790.99M	335.49M
Cash Flow		Free Cash Flow
-212.25M	-268.02M	-280.14M	-117.11M	18.46M
	Operating Cash Flow
-206.06M	-259.17M	-263.21M	-111.18M	19.50M
	Investing Cash Flow
124.00M	4.60M	116.08M	-678.53M	-219.32M
	Financing Cash Flow
-42.99M	108.89M	9.62M	1.17B	251.84M

Pacific Biosciences Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PACB, the sentiment is Neutral. The current price of 1.38 is above the 20-day moving average (MA) of 1.26, below the 50-day MA of 1.39, and below the 200-day MA of 1.69, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 35.91 is Neutral, neither overbought nor oversold. The STOCH value of 21.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PACB.

Pacific Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QGEN	66 Neutral	$8.95B	107.81	2.27%	―	0.66%	-75.89%
ILMN	49 Neutral	$12.09B	―	-30.11%	―	-2.93%	-4.69%
PACB	48 Neutral	$431.89M	―	-51.11%	―	-23.19%	6.27%
Sector *	48 Neutral	$6.36B	1.28	-45.04%	2.64%	19.24%	1.69%
TWST	47 Neutral	$2.40B	―	-37.73%	―	25.85%	6.06%
CRSP	46 Neutral	$3.01B	―	-19.20%	―	-89.95%	-123.71%
BEAM	39 Underperform	$1.63B	―	-43.94%	―	-83.18%	-144.95%

Pacific Biosciences Corporate Events

Pacific Biosciences Appoints Jim R. Gibson as CFO

On March 24, 2025, Pacific Biosciences announced the appointment of Jim R. Gibson as its new Chief Financial Officer, effective March 31, 2025. Gibson, who has extensive financial leadership experience from companies like Sequoia and GoDaddy, will replace Christian Henry, who has been serving as interim CFO. Gibson’s appointment is expected to bolster PacBio’s financial strategy and operational scale as the company aims for positive cash flows by 2027.

Pacific Biosciences Announces Board Changes for Strategic Growth

On January 30, 2025, PacBio appointed Christopher M. Smith, CEO of NeoGenomics, to its Board of Directors, leveraging his extensive experience in diagnostics and laboratory testing markets to expand into the clinical genomics market. Concurrently, David Meline resigned from the board, a member since 2023, with no disagreements noted, marking a strategic shift in board composition to strengthen PacBio’s leadership as it continues its innovative journey in sequencing technology.