Pharma Bio Services (PBSV) AI Stock Analysis

• Market Cap: $10.90M
• Dividend Yield: N/A
• Average Volume (3M): 2.53K
• Price to Earnings (P/E): 0.1
• Beta (1Y): -0.15
• Revenue Growth: -14.75%
• EPS Growth: 89.89%
• Country: US
• Employees: 75
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): <0.01
• Shares Outstanding: 22,901,691
• 10 Day Avg. Volume: 1,930
• 30 Day Avg. Volume: 2,531
• PEG Ratio: 1.42
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 1.38
• P/FCF Ratio: -55.94
• Enterprise Value/Market Cap: -527.85
• Enterprise Value/Revenue: -1.35
• Enterprise Value/Gross Profit: -4.43
• Enterprise Value/Ebitda: 18.40K
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.11
• Revenue Forecast (FY): $12.00M

• Rating: 52 Neutral
• Price Target: $0.49 ▼(-10.19% Downside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is primarily held back by weak profitability and negative operating/free cash flow despite strong recent revenue growth; balance-sheet strength (very low leverage) is the main stabilizer. Technical indicators are mildly bearish, while valuation is mixed—negative P/E due to losses but a high dividend yield provides some support.

Positive Factors

Strong recent revenue growth

A 116% TTM revenue surge signals meaningful demand expansion or contract gains. Durable higher revenue provides a platform to scale fixed-cost absorption and supports longer-term margin improvement if growth persists and the company sustains customer retention and delivery capacity over the next several quarters.

Very low leverage

Near-zero debt materially reduces financial risk and interest burden, giving the company flexibility to fund operations, absorb losses, or pursue strategic investments without immediate refinancing pressure. This balance-sheet strength is a durable stabilizer in downturns.

Healthy gross margin

A ~29% gross margin indicates favorable unit economics in core services, leaving room to cover SG&A and R&D. If management controls operating expenses, this margin level supports potential path to sustainable profitability as revenue scales, making gross margin a lasting structural advantage.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flow erode liquidity and limit the company's ability to self-fund growth or capex. Over months, this forces dependence on external financing or equity, increases execution risk on strategic plans, and can constrain investment in sales or product development.

Weak operating profitability

Negative EBIT/EBITDA and near-zero net margins show core operations currently fail to generate operating profits. This reduces return-on-invested-capital prospects and makes the business vulnerable until cost structure is tightened or revenue mix shifts to higher-margin offerings.

Minimal/negative returns on equity

A large equity base paired with minimal or negative ROE indicates inefficient capital use and poor shareholder returns. Over the medium term, persistent weak ROE can limit investor confidence and reduce capital available for strategic initiatives unless operational performance meaningfully improves.

Pharma Bio Services Business Overview & Revenue Model

Company Description

Pharma-Bio Serv, Inc. operates as a compliance and technology transfer services consulting firm. The company provides compliance consulting services to the pharmaceutical, chemical, biotechnology, medical device, cosmetic, food industries, and allied products companies in Puerto Rico, the United States, Europe, and Brazil. Its technical consulting services comprise regulatory compliance, validation, technology transfer, engineering, project management, and process support. The company was founded in 1993 and is headquartered in Dorado, Puerto Rico.

How the Company Makes Money

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Pharma Bio Services Financial Statement Overview

Summary

Revenue surged in TTM (+116.4%) and gross margin is solid (~29.3%), but operating profitability is weak (negative EBIT/EBITDA) and cash generation is a major issue (negative operating cash flow and free cash flow in TTM and 2024–2025). A very low-leverage balance sheet (debt-to-equity near zero) supports resilience, but inconsistent earnings and deteriorating cash flow keep the score modest.

Income Statement

TTM (Trailing-Twelve-Months) shows a massive revenue jump (+116.4%) and solid gross margin (~29.3%), but profitability is very weak: EBIT and EBITDA are negative and net margin is essentially ~0%. Annual results have been volatile—profitable in 2022–2023, then losses in 2024–2025—suggesting an uneven earnings profile despite acceptable gross profitability.

Balance Sheet

Leverage appears very low, with debt-to-equity near zero across periods, which materially reduces financial risk. Equity is large relative to assets, but returns on equity are minimal/negative in the most recent periods, indicating the company is not currently generating strong profits from its capital base.

Cash Flow

Cash generation is a key weakness: operating cash flow and free cash flow are negative in TTM (Trailing-Twelve-Months) and also negative in 2024–2025, reversing the positive cash flow profile seen in 2022–2023. Free cash flow growth is sharply negative in TTM, pointing to deteriorating cash conversion and/or higher cash outlays versus recent history.

Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Jan 2022
Income Statement
Total Revenue	4.26B	9.00M	9.51M	16.98M	19.40M	20.12M
Gross Profit	1.30B	2.91M	2.52M	5.07M	4.88M	5.36M
EBITDA	-312.72K	134.81K	-1.11M	1.31M	1.23M	-3.78M
Net Income	32.75M	-100.46K	-777.62K	1.31M	1.01M	-2.09M
Balance Sheet
Total Assets	13.55B	13.65M	16.29M	19.90M	20.65M	23.92M
Cash, Cash Equivalents and Short-Term Investments	10.56B	10.85M	12.75M	14.98M	14.46M	17.47M
Total Debt	0.00	28.83K	194.03K	346.51K	487.36K	617.42K
Total Liabilities	3.31B	1.74M	2.58M	3.78M	4.09M	5.01M
Stockholders Equity	10.24B	11.91M	13.72M	16.13M	16.56M	18.91M
Cash Flow
Free Cash Flow	-153.64M	-221.53K	-726.44K	1.88M	573.19K	794.00K
Operating Cash Flow	-153.64M	-214.89K	-566.70K	1.89M	592.46K	804.84K
Investing Cash Flow	4.39B	-1.47M	-1.36M	-4.22M	-19.27K	1.30M
Financing Cash Flow	-8.43M	-1.75M	-1.73M	-1.76M	-3.53M	-1.75M

Pharma Bio Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.54
• 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 PBSV, the sentiment is Negative. The current price of 0.54 is above the 20-day moving average (MA) of 0.49, above the 50-day MA of 0.48, and above the 200-day MA of 0.50, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.77 is Neutral, neither overbought nor oversold. The STOCH value of 59.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PBSV.

Pharma Bio Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PBSV	52 Neutral	$10.90M	0.10	-0.66%	―	-14.75%	89.89%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ZCMD	43 Neutral	$5.92M	-8.07	-8.26%	―	-24.64%	92.19%
HCTI	41 Neutral	$3.03M	-0.44	-112.81%	―	-21.88%	68.40%
VSEE	38 Underperform	$11.17M	-8.71	336.68%	―	187.24%	82.90%