Pacific Biosciences (PACB) AI Stock Analysis

• Market Cap: $441.12M
• Dividend Yield: N/A
• Average Volume (3M): 10.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: -23.99%
• EPS Growth: -100.40%
• Country: US
• Employees: 575
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Devices
• EPS (TTM): -1.44
• Shares Outstanding: 300,084,700
• 10 Day Avg. Volume: 12,075,309
• 30 Day Avg. Volume: 10,589,358
• PEG Ratio: -0.13
• Price to Book (P/B): 3.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.55
• Enterprise Value/Market Cap: 5.60
• Enterprise Value/Revenue: 3.69
• Enterprise Value/Gross Profit: 100.22
• Enterprise Value/Ebitda: -1.64
• 1Y Price Target: $2.16
• Price Target Upside: 46.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 47 Neutral
• Price Target: $1.50 ▲(2.04%Upside)

Pacific Biosciences faces significant financial challenges, with declining revenues and high leverage being the most impactful factors. While there are some positive technical indicators and strategic initiatives to reduce costs, the negative valuation metrics and macroeconomic pressures weigh heavily on the stock's overall score.

Positive Factors

Financial Performance

Gross Margins came in at 40% vs. prior/Consensus 36.3%/31.6% as SMRT cell inventory write-downs ended.

Market Strategy

PacBio's commitment to its long-read roots and cost-cutting may position the company to achieve positive cash flow in the medium term.

Product Launch

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

Academic Funding

Academic market weakness unsurprisingly weighs on instrumentation.

Macroeconomic Pressures

Macroeconomic pressures persisted and sales cycles continue to be elongated.

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 (PACB) is a biotechnology company specializing in the development of innovative sequencing technologies. It operates in the genomics sector and is known for its cutting-edge DNA sequencing platforms that enable scientists and researchers to conduct high-resolution genetic analysis. The company's core products include its Sequel and Revio sequencing systems, which offer comprehensive solutions for a wide range of genomic applications such as human biomedical research, plant and animal sciences, and microbiology.

How the Company Makes Money

Pacific Biosciences generates revenue primarily through the sale of its sequencing instruments and consumables. The company offers its Sequel and Revio systems, which are sold to research institutions, healthcare providers, and pharmaceutical companies around the world. In addition to hardware sales, a significant portion of its revenue comes from the sale of consumables needed to operate these sequencing systems, which are recurring purchases for its customers. Additionally, service contracts and software solutions contribute to its revenue streams. Key partnerships with research institutions and collaborations with other biotech firms further enhance its market presence and drive sales.

Pacific Biosciences Financial Statement Overview

Summary

Pacific Biosciences is experiencing severe financial difficulties, marked by declining revenues, ongoing losses, and high leverage. The negative profitability margins and weak cash flow generation indicate financial instability and significant risks.

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	152.36M	154.01M	200.52M	128.30M	130.51M	78.89M
Gross Profit	24.63M	37.28M	52.78M	49.03M	58.86M	32.57M
EBITDA	-581.59M	-242.78M	-287.20M	-282.24M	-250.76M	38.97M
Net Income	-657.75M	-309.85M	-306.74M	-314.25M	-181.22M	29.40M
Balance Sheet
Total Assets	860.79M	1.26B	1.75B	1.77B	2.01B	413.98M
Cash, Cash Equivalents and Short-Term Investments	343.11M	389.93M	631.42M	772.32M	1.04B	318.81M
Total Debt	699.11M	672.43M	933.93M	957.37M	955.36M	42.00M
Total Liabilities	769.15M	753.85M	1.04B	1.20B	1.22B	78.49M
Stockholders Equity	91.64M	506.59M	701.30M	562.90M	790.99M	335.49M
Cash Flow
Free Cash Flow	-183.13M	-212.25M	-268.02M	-280.14M	-117.11M	18.46M
Operating Cash Flow	-174.43M	-206.06M	-259.17M	-263.21M	-111.18M	19.50M
Investing Cash Flow	203.37M	124.00M	4.60M	116.08M	-678.53M	-219.32M
Financing Cash Flow	-47.58M	-42.99M	108.89M	9.62M	1.17B	251.84M

Pacific Biosciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.47 is above the 20-day moving average (MA) of 1.28, above the 50-day MA of 1.15, and below the 200-day MA of 1.56, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 62.27 is Neutral, neither overbought nor oversold. The STOCH value of 85.53 is Negative, 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
CTKB	59 Neutral	$430.64M	―	-2.91%	―	-1.86%	-2.01%
QTRX	57 Neutral	$244.79M	―	-14.51%	―	7.71%	-38.97%
MASS	56 Neutral	$229.87M	―	-44.97%	―	21.06%	-99.70%
Sector *	52 Neutral	$7.45B	0.30	-61.93%	2.28%	16.62%	1.04%
BVS	50 Neutral	$560.22M	―	-19.79%	―	8.60%	-42.76%
PACB	47 Neutral	$441.12M	―	-177.29%	―	-23.99%	-100.40%
BFLY	47 Neutral	$464.90M	―	-29.16%	―	25.77%	49.44%

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.