Pacific Biosciences (PACB) AI Stock Analysis

• Market Cap: $393.49M
• Dividend Yield: N/A
• Average Volume (3M): 8.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: -17.35%
• EPS Growth: -19.34%
• Country: US
• Employees: 575
• Sector: Healthcare
• Sector Strength: 50
• Industry: Medical - Devices
• EPS (TTM): -0.14
• Shares Outstanding: 300,370,600
• 10 Day Avg. Volume: 9,795,062
• 30 Day Avg. Volume: 8,239,486
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.92
• Enterprise Value/Revenue: 4.85
• Enterprise Value/Gross Profit: -2.30
• Enterprise Value/Ebitda: -6.75
• 1Y Price Target: $2.08
• Price Target Upside: 60.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 46 Neutral
• Price Target: $1.50 ▲(15.38% Upside)

Pacific Biosciences faces significant financial challenges with declining revenues and high leverage, which heavily impact its overall score. While technical indicators suggest a bearish trend, the earnings call provided some optimism with strong international growth and technological advancements. However, the negative valuation metrics further weigh down the score.

Positive Factors

Earnings

Pacific Biosciences reported strong 2Q results that came in ahead of street expectations, driven by strong instrument placements despite a challenging macroenvironment.

Market Expansion

PacBio's systems are gaining clinical uptake, with a third of Revios shipped to labs.

Product Development

The development of multi-use SMRT cells is expected to lower the cost per genome for customers and improve PACB's gross margin.

Negative Factors

Guidance

The company's guidance range has been narrowed, but policy uncertainty still weighs on near-term visibility.

Policy Uncertainty

The new product cycles underway inherently limit near-term P&L visibility, particularly against a challenging macro backdrop, NIH funding uncertainty, and an evolving tariff rate regime.

Revenue Guidance

PACB decreased the lower end of its 2025 revenue guidance range due to U.S./China tariffs and NIH budget reductions.

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 sequencing systems, consumables, and software. The company earns substantial revenue from the sale of its proprietary sequencing reagents and kits, which are essential for the operation of its sequencing platforms. Additionally, PACB benefits from service and support agreements, where it provides ongoing maintenance and technical assistance to its customers. Key partnerships with academic institutions, pharmaceutical companies, and research organizations further enhance its revenue streams, as these collaborations often involve joint research projects that utilize PACB's technology. Moreover, the growing demand for genomic data in personalized medicine and other sectors is contributing to an increase in the company's sales and market presence.

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	156.11M	154.01M	200.52M	128.30M	130.51M	78.89M
Gross Profit	-328.67M	37.28M	52.78M	49.03M	58.86M	32.57M
EBITDA	-112.13M	-242.78M	-271.13M	-282.24M	-250.76M	38.97M
Net Income	-526.36M	-309.85M	-306.74M	-314.25M	-181.22M	29.40M
Balance Sheet
Total Assets	825.47M	1.26B	1.75B	1.77B	2.01B	413.98M
Cash, Cash Equivalents and Short-Term Investments	314.74M	389.93M	631.42M	772.32M	1.04B	318.81M
Total Debt	699.22M	672.43M	933.93M	948.48M	955.36M	42.00M
Total Liabilities	763.98M	753.85M	1.04B	1.20B	1.22B	78.49M
Stockholders Equity	61.49M	506.59M	701.30M	562.90M	790.99M	335.49M
Cash Flow
Free Cash Flow	-152.31M	-212.25M	-268.02M	-280.14M	-117.11M	18.46M
Operating Cash Flow	-149.55M	-206.06M	-259.17M	-263.21M	-111.18M	19.50M
Investing Cash Flow	151.82M	124.00M	4.60M	116.08M	-678.53M	-219.32M
Financing Cash Flow	-47.43M	-42.99M	108.89M	9.62M	1.17B	251.84M

Pacific Biosciences Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.30
• 50DMA: Negative
• 100DMA: Positive
• 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 1.3 is below the 20-day moving average (MA) of 1.41, below the 50-day MA of 1.37, and below the 200-day MA of 1.51, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 48.20 is Neutral, neither overbought nor oversold. The STOCH value of 32.31 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
BVS	57 Neutral	$593.64M	―	-0.10%	―	5.08%	99.38%
CTKB	54 Neutral	$510.17M	―	-1.67%	―	-0.85%	61.31%
Sector *	51 Neutral	$7.73B	-0.08	-44.86%	2.23%	22.72%	-1.44%
MASS	51 Neutral	$226.26M	―	-46.85%	―	14.65%	-86.36%
QTRX	48 Neutral	$212.35M	―	-22.27%	―	-2.74%	-96.96%
PACB	46 Neutral	$393.49M	―	-189.52%	―	-17.35%	-19.34%
BFLY	44 Neutral	$362.51M	―	-29.42%	―	23.13%	46.62%

Pacific Biosciences Corporate Events

Pacific Biosciences Approves Key Proposals at Annual Meeting

On June 4, 2025, Pacific Biosciences held its Annual Meeting where stockholders approved several key proposals, including the election of four Class III directors and the ratification of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Additionally, an amendment to the 2020 Equity Incentive Plan was approved, allowing for an increase in the number of shares of the company’s common stock reserved for issuance, which reflects the company’s strategic move to enhance its equity incentive offerings.

The most recent analyst rating on (PACB) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Pacific Biosciences stock, see the PACB Stock Forecast page.