Rapid Micro Biosystems (RPID) AI Stock Analysis

• Market Cap: $172.41M
• Dividend Yield: N/A
• Average Volume (3M): 298.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: 16.63%
• EPS Growth: 10.43%
• Country: US
• Employees: 163
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.26
• Shares Outstanding: 39,823,025
• 10 Day Avg. Volume: 306,593
• 30 Day Avg. Volume: 298,318
• PEG Ratio: 0.07
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 1.40
• P/FCF Ratio: -0.86
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 5.82
• Enterprise Value/Gross Profit: 31.67
• Enterprise Value/Ebitda: -4.28
• 1Y Price Target: $8.00
• Price Target Upside: 105.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $5.00 ▲(28.53% Upside)

The score is held back primarily by weak financial fundamentals (continued large losses and negative operating cash flow) and an unattractive earnings-based valuation (negative P/E). These are partially offset by strong technical momentum and a generally positive earnings call featuring raised revenue guidance and notable customer/order traction.

Positive Factors

Recurring revenue growth (consumables & services)

Strong consumables and service growth improves revenue visibility and margins over time because consumables are high-repeat purchases tied to installed base. Durable uplift in recurring revenue reduces reliance on one-time system sales and supports more predictable cash conversion as installations scale.

Consistent execution and large commercial traction

A long streak of hitting guidance and a large multi-system order indicate repeatable commercial execution and validation by major customers. This establishes referenceability for future sales, accelerates installed-base growth and supports sustained revenue expansion over the next several quarters.

Strategic collaboration to lower costs

A partnership with a major industry supplier can materially reduce unit costs and broaden distribution. Structural cost reductions and a global sales funnel increase gross margin potential and market access over time, supporting durable margin expansion if execution and supply scaling proceed.

Negative Factors

Deep and persistent operating losses

Very large negative margins signal that core operations are not yet profitable and will require sustained revenue scaling or margin improvement to reach breakeven. Persistent losses erode equity, may necessitate further capital raises, and constrain reinvestment and strategic flexibility over the medium term.

Negative operating cash flow

Negative operating cash flow indicates the business still burns cash from core activities even as accounting metrics improve. This gap can force external financing, restrict investment in commercialization or R&D, and creates execution risk if cash generation from recurring revenue doesn't scale as planned.

Rising leverage and weak returns on equity

Higher leverage combined with deeply negative ROE reduces financial resilience and increases interest and covenant risk. As losses persist, debt amplifies downside, limiting strategic choices and potentially raising financing costs, which can hamper long-term growth initiatives or margin recovery plans.

Rapid Micro Biosystems Business Overview & Revenue Model

Company Description

Rapid Micro Biosystems, Inc., a life sciences technology company, provides products for the detection of microbial contamination in the manufacture of pharmaceutical, medical devices, and personal care products in North America, Europe, and Asia. The company offers Growth Direct platform, which includes Growth Direct system, proprietary consumables, lab information management system connection software, and comprehensive customer support and validation services. Its platform automates and modernizes the manual microbial quality control (MQC) testing workflows for therapeutic modalities, such as biologics, vaccines, cell and gene therapies, and sterile injectables. The company also provides installation and verification, technical training, and support services. Its solutions are used in environmental monitoring, water testing, bioburden, and sterility release testing applications. The company was formerly known as Genomic Profiling Systems, Inc. and changed its name to Rapid Micro Biosystems, Inc. in January 2007. Rapid Micro Biosystems, Inc. was incorporated in 2006 and is headquartered in Lowell, Massachusetts.

How the Company Makes Money

Rapid Micro Biosystems generates revenue primarily through the sale of its proprietary Growth Direct System and associated consumables, which include test kits and reagents. The company also earns income from ongoing service contracts, maintenance agreements, and software licensing, providing customers with continuous support and updates. Additionally, RPID may engage in partnerships with pharmaceutical and biotech companies for product development and validation, which can lead to collaborative projects and shared revenues. The increasing demand for faster and more reliable testing solutions in regulated industries supports the company's growth and financial performance.

Rapid Micro Biosystems Financial Statement Overview

Summary

Strong top-line momentum (TTM revenue growth 77.3%) and improving gross margin (24.18%), but profitability remains a major drag with deeply negative net and EBIT margins and negative operating cash flow. Leverage has risen (debt-to-equity 0.54), adding risk while losses persist.

Income Statement

Rapid Micro Biosystems shows a significant revenue growth rate of 77.3% in the TTM, indicating strong top-line expansion. However, the company struggles with profitability, evidenced by negative margins across the board, including a net profit margin of -145.11% and an EBIT margin of -109.20%. The gross profit margin has improved to 24.18% in the TTM from negative figures in previous years, but the overall profitability remains a concern.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.54 in the TTM from lower levels in previous years, indicating a rise in leverage. The return on equity remains negative at -73.91%, reflecting ongoing losses. However, the equity ratio is relatively stable, suggesting a solid equity base compared to total assets.

Cash Flow

The cash flow statement reveals a positive free cash flow growth rate of 78.6% in the TTM, but the operating cash flow remains negative. The operating cash flow to net income ratio is -2.25, indicating cash flow challenges. Despite these issues, the free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is covering net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.52M	28.05M	22.52M	17.13M	23.23M	16.08M
Gross Profit	5.61M	-109.00K	-5.49M	-8.54M	-7.74M	-8.07M
EBITDA	-41.49M	-46.56M	-53.46M	-60.38M	-45.70M	-32.00M
Net Income	-44.29M	-46.89M	-52.47M	-60.81M	-73.52M	-37.08M
Balance Sheet
Total Assets	84.41M	98.17M	143.45M	190.65M	241.17M	70.00M
Cash, Cash Equivalents and Short-Term Investments	41.25M	50.73M	92.05M	108.65M	193.50M	45.08M
Total Debt	24.11M	6.17M	7.35M	7.97M	0.00	24.81M
Total Liabilities	40.08M	22.82M	25.46M	26.48M	20.19M	45.18M
Stockholders Equity	44.33M	75.35M	117.99M	164.17M	220.98M	24.82M
Cash Flow
Free Cash Flow	-38.58M	-45.52M	-46.93M	-65.29M	-58.18M	-31.69M
Operating Cash Flow	-37.73M	-44.15M	-45.08M	-58.55M	-54.96M	-31.00M
Investing Cash Flow	15.30M	36.66M	42.15M	-93.47M	-13.29M	-15.67M
Financing Cash Flow	19.32M	203.00K	149.00K	693.00K	216.75M	64.23M

Rapid Micro Biosystems Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RPID, the sentiment is Neutral. The current price of 3.89 is below the 20-day moving average (MA) of 3.97, above the 50-day MA of 3.73, and above the 200-day MA of 3.32, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 49.05 is Neutral, neither overbought nor oversold. The STOCH value of 24.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RPID.

Rapid Micro Biosystems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HYPR	59 Neutral	$108.83M	-2.14	-94.03%	―	-20.10%	7.87%
RPID	57 Neutral	$172.41M	-3.90	-68.83%	―	16.63%	10.43%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LUCD	49 Neutral	$157.32M	-1.34	-331.24%	―	5.01%	20.76%
SGHT	46 Neutral	$323.57M	-6.83	-57.91%	―	-4.39%	11.70%
LNSR	45 Neutral	$145.84M	-2.78	-422.35%	―	21.02%	-200.88%
LUNG	45 Neutral	$61.87M	-1.06	-73.73%	―	15.59%	4.13%