Pacific Biosciences (PACB) AI Stock Analysis

• Market Cap: $673.25M
• Dividend Yield: N/A
• Average Volume (3M): 10.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: -10.72%
• EPS Growth: -16.00%
• Country: US
• Employees: 575
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.13
• Shares Outstanding: 301,907,440
• 10 Day Avg. Volume: 10,034,810
• 30 Day Avg. Volume: 10,470,462
• PEG Ratio: 0.25
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 3.26
• P/FCF Ratio: -2.37
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 5.09
• Enterprise Value/Gross Profit: 20.02
• Enterprise Value/Ebitda: -7.60
• 1Y Price Target: $2.30
• Price Target Upside: -0.86% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -1.86
• Revenue Forecast (FY): $157.22M

• Rating: 52 Neutral
• Price Target: $2.50 ▲(7.76% Upside)

Pacific Biosciences' stock score is primarily impacted by its poor financial performance, characterized by declining revenues and high leverage. Despite positive technical indicators suggesting bullish momentum, the negative valuation metrics due to ongoing losses weigh heavily on the overall score. The earnings call provided a mixed outlook, with some positive developments in consumable revenue and gross margins, but these were not enough to offset the financial challenges.

Positive Factors

Consumable Revenue Growth

The growth in consumable revenue indicates strong adoption of the company's sequencing technology, which can lead to sustained revenue streams and improved margins.

Gross Margin Improvement

Improved gross margins reflect better cost management and product mix, enhancing profitability potential and financial stability over time.

Clinical Advancements

Regulatory approval in China expands market access and supports growth in clinical applications, strengthening the company's competitive position.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in maintaining market share and could impact long-term growth prospects if not addressed.

Decreased Instrument Revenue

A significant drop in instrument revenue suggests potential issues in product demand or competitive pressures, affecting future sales and profitability.

High Leverage

High leverage can strain financial resources and limit flexibility, posing risks to long-term financial health and operational stability.

Pacific Biosciences Business Overview & Revenue Model

Company Description

Pacific Biosciences (PACB) is a biotechnology company specializing in the development and manufacture of innovative DNA sequencing technologies. Founded in 2004 and headquartered in Menlo Park, California, the company operates primarily in the genomics sector, providing high-quality, long-read sequencing solutions that empower researchers in various fields such as genomics, transcriptomics, and epigenomics. Its core products include the Sequel II and Sequel IIe systems, which are designed to deliver comprehensive and accurate genomic data for applications ranging from basic research to clinical diagnostics.

How the Company Makes Money

Pacific Biosciences generates revenue primarily through the sale of its DNA sequencing systems, consumables, and related services. The company's revenue model includes the direct sale of sequencing instruments, reagents, and flow cells used in the sequencing process, as well as service contracts for maintenance and support. Additionally, PACB earns revenue from collaborations and partnerships with academic institutions, pharmaceutical companies, and research organizations, which often include grants and funding for joint projects. The increasing demand for genomic data in both research and clinical settings, along with strategic partnerships that enhance its market reach, contribute significantly to its earnings.

Pacific Biosciences Financial Statement Overview

Summary

Pacific Biosciences is facing significant financial challenges characterized by declining revenues, persistent losses, and high leverage. The company's profitability margins are negative, and cash flow generation is weak. These factors indicate financial instability and potential risks, requiring strategic interventions to improve financial health.

Income Statement

Pacific Biosciences shows a declining revenue trend with a significant drop from the previous year. The company has a negative EBIT and EBITDA margin, reflecting operational inefficiencies. The TTM gross profit margin is also low at 16.17%, indicating challenges in maintaining profitability. The net profit margin is deeply negative, highlighting ongoing financial losses.

Balance Sheet

The company has a high debt-to-equity ratio, indicating financial risk with significant leverage. The equity ratio is low at 10.64%, suggesting limited equity buffer against liabilities. Return on equity is negative, consistent with losses. Overall, the balance sheet reflects financial instability and potential risks due to high leverage.

Cash Flow

The cash flow statement reveals negative operating and free cash flows, with no positive free cash flow growth rate. The operating cash flow to net income ratio is negative, indicating inefficiencies in cash generation relative to net losses. The company faces challenges in generating cash, impacting liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	154.58M	154.01M	200.52M	128.30M	130.51M	78.89M
Gross Profit	39.27M	37.28M	52.78M	49.03M	58.86M	32.57M
EBITDA	-103.44M	-242.77M	-271.13M	-282.24M	-250.76M	38.97M
Net Income	-503.63M	-309.85M	-306.74M	-314.25M	-181.22M	29.40M
Balance Sheet
Total Assets	803.16M	1.26B	1.75B	1.77B	2.01B	413.98M
Cash, Cash Equivalents and Short-Term Investments	298.65M	389.93M	631.42M	772.32M	1.04B	318.81M
Total Debt	703.08M	672.43M	933.93M	948.48M	955.36M	42.00M
Total Liabilities	767.07M	753.85M	1.04B	1.20B	1.22B	78.49M
Stockholders Equity	36.09M	506.59M	701.30M	562.90M	790.99M	335.49M
Cash Flow
Free Cash Flow	-131.26M	-212.25M	-275.39M	-280.14M	-117.11M	18.46M
Operating Cash Flow	-122.79M	-206.06M	-266.55M	-263.21M	-111.18M	19.50M
Investing Cash Flow	147.66M	124.00M	4.60M	116.08M	-678.53M	-219.32M
Financing Cash Flow	-46.77M	-42.99M	116.27M	9.62M	1.17B	251.84M

Pacific Biosciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PACB, the sentiment is Positive. The current price of 2.32 is above the 20-day moving average (MA) of 2.00, above the 50-day MA of 1.81, and above the 200-day MA of 1.41, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 62.38 is Neutral, neither overbought nor oversold. The STOCH value of 63.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PACB.

Pacific Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NPCE	61 Neutral	$533.59M	―	-169.27%	―	24.08%	24.08%
CTKB	58 Neutral	$689.19M	―	-3.36%	―	-2.18%	-30.96%
BFLY	55 Neutral	$692.13M	―	-41.42%	―	16.04%	28.91%
PACB	52 Neutral	$673.25M	―	-205.41%	―	-10.72%	-16.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MASS	45 Neutral	$220.42M	―	-42.72%	―	4.49%	3.61%
OM	43 Neutral	$76.52M	―	-92.33%	―	4.65%	68.71%

Pacific Biosciences Corporate Events

Pacific Biosciences’ Earnings Call: Mixed Results and Strategic Outlook

The recent earnings call for Pacific Biosciences presented a mixed sentiment, highlighting both achievements and challenges. On the positive side, the company celebrated significant milestones in consumable revenue, gross margin improvements, and clinical advancements. However, these successes were overshadowed by a decline in total revenue and difficulties in the funding environment, which affected instrument sales.

Pacific Biosciences Reports Q3 2025 Financial Results

Pacific Biosciences (PacBio) is a leading life science technology company specializing in advanced sequencing solutions aimed at addressing genetically complex problems across various research applications, including human germline sequencing and oncology.