Pacific Biosciences (PACB) AI Stock Analysis

• Market Cap: $333.05M
• Dividend Yield: N/A
• Average Volume (3M): 8.12M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• 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: 300,041,320
• 10 Day Avg. Volume: 6,727,403
• 30 Day Avg. Volume: 8,121,127
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.54
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 22.68
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.10
• Price Target Upside: 89.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Pacific Biosciences' overall stock score reflects notable financial, technical, and valuation challenges. Financially, the company struggles with declining revenues, high debt levels, and negative cash flows, posing significant risks. Technical analysis indicates a bearish trend, while the valuation suggests overpricing given operational issues. Despite strategic leadership changes and product growth, these factors do not significantly offset the core financial vulnerabilities at present.

Positive Factors

Market Growth

A record number of Onso units were shipped, including two-thirds to new customers, which supports growth into the future.

Operational Efficiency

PacBio is reducing costs and is on the path to achieving positive free cash flow.

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

Macroeconomic and NIH funding uncertainty weigh on the 2025 guidance.

Macroeconomic Conditions

Challenging macro conditions and limited visibility into recovery timing likely keep the stock range bound.

Revenue Decline

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

Pacific Biosciences Business Overview & Revenue Model

Company Description

Pacific Biosciences (PACB), headquartered in Menlo Park, California, is a prominent biotechnology company specializing in the development of advanced sequencing technologies. The company is best known for its innovative Single Molecule, Real-Time (SMRT) sequencing platforms, which provide high-resolution insights into genetic sequences. These platforms are utilized in various sectors, including life sciences research, agriculture, and clinical diagnostics, to enable comprehensive genomic analysis and discovery.

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: Negative
• Last Price: 1.11
• 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 Negative. The current price of 1.11 is below the 20-day moving average (MA) of 1.21, below the 50-day MA of 1.29, and below the 200-day MA of 1.67, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 41.07 is Neutral, neither overbought nor oversold. The STOCH value of 24.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PACB.

Pacific Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MASS	57 Neutral	$189.37M	―	-51.56%	―	18.72%	-86.45%
CTKB	53 Neutral	$472.12M	―	-1.53%	―	3.85%	49.09%
Sector *	52 Neutral	$5.28B	3.75	-42.72%	2.86%	17.70%	2.03%
QTRX	51 Neutral	$223.42M	―	-11.33%	―	12.30%	-31.50%
BVS	49 Neutral	$595.45M	―	-20.86%	―	11.89%	79.18%
BFLY	48 Neutral	$568.44M	―	-37.28%	―	24.51%	47.32%
PACB	40 Underperform	$333.05M	―	-51.11%	―	-23.19%	6.27%

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.