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Pacific Biosciences (PACB)
NASDAQ:PACB
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Pacific Biosciences
(NASDAQ:PACB)
Rating:53Neutral
Price Target:
$1.50
▲(0.67%Upside)
Positive Factors
Financial Performance
Strong Vega traction offsets lower than expected Revio system placements.
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
Funding Uncertainty
Macroeconomic and NIH funding uncertainty weigh on the 2025 guidance.
Revenue Guidance
The company anticipates lower revenue in 1Q25 due to NIH funding uncertainty and decreased customer spending.
Pacific Biosciences (PACB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$492.14M
Dividend YieldN/A
Average Volume (3M)9.21M
Price to Earnings (P/E)―
Beta (1Y)1.29
Revenue Growth-23.99%
EPS Growth-100.40%
CountryUS
Employees575
SectorHealthcare
Sector Strength42
IndustryMedical - Devices
Share Statistics
EPS (TTM)-1.44
Shares Outstanding300,084,700
10 Day Avg. Volume8,708,153
30 Day Avg. Volume9,214,584
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)4.65
Price to Sales (P/S)0.00
P/FCF Ratio-2.35
Enterprise Value/Market Cap2.18
Enterprise Value/Revenue1.60
Enterprise Value/Gross Profit43.56
Enterprise Value/Ebitda-0.71
Forecast
1Y Price Target
$2.18Price Target Upside46.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Pacific Biosciences Business Overview & Revenue Model
Company DescriptionPacific 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 MoneyPacific 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 Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 24.17%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in consumable revenue growth and strategic initiatives to reduce costs and enhance product offerings. However, challenges such as decreased instrument revenue, macroeconomic pressures, and adjustments in revenue guidance present notable concerns. The strategic pause in short-read sequencing development underscores the focus on long-read technology amidst a difficult funding environment.Q1-2025 Updates
Positive Updates
Record Consumable Revenue
Consumable revenue reached a record $20.1 million, reflecting 26% year-over-year growth and steady utilization across the growing base of Revio systems.
Strong Performance with Spark Chemistry
Customer uptake of Spark chemistry exceeded expectations with nearly 90% of Revio reagent kit shipments in the first quarter being Spark chemistry, leading to significant yield increases.
Expansion in Clinical and Translational Research
Growth among hospital and clinic customers, with notable placements in leading institutions like the Lurie Children's Hospital and Imagine Institute.
Restructuring Plan for Cost Reduction
Implemented a restructuring plan to reduce operating expenses, aiming for an annualized reduction of $45 million to $50 million by year-end.
New CFO Appointment
Jim Gibson, bringing over three decades of financial leadership experience, joins PacBio as the new CFO.
Negative Updates
Decreased Instrument Revenue
Instrument revenue for the quarter was $11 million, a decrease of 42% from the first quarter of 2024 due to lower Revio system shipments.
Macroeconomic and Funding Challenges
Increased uncertainty in academic funding and challenges related to newly implemented tariffs between the U.S. and China, affecting revenue projections.
Reduced Revenue Guidance
Full-year 2025 revenue guidance was adjusted to $150 million to $170 million, reducing the lower end by $5 million due to trade and funding uncertainties.
Pause in Short-Read Sequencing Development
Development of the high-throughput short-read sequencing platform was paused due to macroeconomic conditions, focusing resources on HiFi technology.
Company Guidance
During PacBio’s Q1 2025 earnings call, the company provided detailed guidance for the year, adjusting its revenue expectations to a range of $150 million to $170 million, down from the previous lower end due to newly implemented U.S.-China tariffs and potential NIH budget reductions. The call highlighted a 26% year-over-year growth in consumable revenue to $20.1 million, despite a 42% decline in instrument revenue to $11 million. The company shipped 12 Revio systems and 28 Vega systems, with a focus on expanding its clinical and hospital customer base. PacBio aims to achieve non-GAAP gross margins between 35% and 40% for 2025 and plans to lower annualized non-GAAP operating expenses by $45 million to $50 million by year-end through restructuring efforts. The company remains committed to turning cash flow positive by the end of 2027, driven by innovations in its long-read sequencing technology and strategic cost management.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.22
Negative
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.35
Negative
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.28
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 |
| EBITDA | -242.78M | -287.20M | -282.24M | -250.76M | 38.97M |
| Net Income | -309.85M | -306.74M | -314.25M | -181.22M | 29.40M |
Balance Sheet | |||||
| Total Assets | 1.26B | 1.75B | 1.77B | 2.01B | 413.98M |
| Cash, Cash Equivalents and Short-Term Investments | 389.93M | 631.42M | 772.32M | 1.04B | 318.81M |
| Total Debt | 672.43M | 933.93M | 957.37M | 955.36M | 42.00M |
| 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
Neutral
1.49
Price Trends
1.28
Positive
1.25
Positive
1.54
Negative
Market Momentum
0.07
Positive
52.55
Neutral
50.41
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 1.49 is below the 20-day moving average (MA) of 1.51, above the 50-day MA of 1.28, and below the 200-day MA of 1.54, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 52.55 is Neutral, neither overbought nor oversold. The STOCH value of 50.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PACB.
Pacific Biosciences Risk Analysis
Pacific Biosciences disclosed 66 risk factors in its most recent earnings report. Pacific Biosciences reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pacific Biosciences Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $474.97M | ― | -2.91% | ― | -1.86% | -2.01% | |
59 Neutral | $262.86M | ― | -44.97% | ― | 21.06% | -99.70% | |
56 Neutral | $283.66M | ― | -14.51% | ― | 7.71% | -38.97% | |
53 Neutral | $492.14M | ― | -177.29% | ― | -23.99% | -100.40% | |
53 Neutral | $479.74M | ― | -29.16% | ― | 25.77% | 49.44% | |
52 Neutral | $7.58B | 0.48 | -62.71% | 2.36% | 15.33% | 0.41% | |
47 Neutral | $536.40M | ― | -19.79% | ― | 8.60% | -42.76% |
* Healthcare Sector Average
Performance Comparison
PACB
Pacific Biosciences
1.49
-0.57
-27.67%
QTRX
Quanterix
6.09
-8.67
-58.74%
BFLY
Butterfly Network
1.81
0.71
64.55%
MASS
908 Devices
6.95
1.26
22.14%
BVS
Bioventus
6.54
-0.47
-6.70%
CTKB
Cytek Biosciences
3.60
-3.11
-46.35%
Pacific Biosciences Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Pacific Biosciences Approves Key Proposals at Annual Meeting
Neutral
Jun 6, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.