Rapid Micro Biosystems (RPID) AI Stock Analysis

• Market Cap: $163.11M
• Dividend Yield: N/A
• Average Volume (3M): 181.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• 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: 295,892
• 30 Day Avg. Volume: 181,591
• 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: 0.82
• Enterprise Value/Revenue: 4.36
• Enterprise Value/Gross Profit: 23.72
• Enterprise Value/Ebitda: -3.21
• 1Y Price Target: $8.00
• Price Target Upside: 117.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.86
• Revenue Forecast (FY): $38.88M

• Rating: 52 Neutral
• Price Target: $3.50 ▼(-4.89% Downside)

The score is held back primarily by weak financial performance (large losses and negative operating cash flow despite rapid revenue growth). Offsetting this, the earnings call pointed to improving demand and raised guidance, and technicals show moderately constructive price positioning, while valuation lacks support due to a negative P/E and no dividend.

Positive Factors

Strong Revenue Momentum

Sustained high top-line growth indicates strong product-market fit and accelerating adoption of Growth Direct systems. Over 2-6 months this momentum supports scale economies, expands installed base for recurring consumables, and underpins management's ability to invest in commercialization and R&D.

Recurring Consumables & Services Expansion

Rapid growth in consumables and service contracts builds a sticky, recurring revenue stream that enhances revenue visibility and lifetime customer value. Durable consumables demand supports margin recovery over time and creates high-frequency revenue less sensitive to new system placements.

Large Order Wins & Strategic Partnership

A major multi-system order validates product utility at large pharma scale while the MilliporeSigma collaboration can lower unit costs and extend global reach. Together these structural developments strengthen commercial credibility and improve long-term margin and distribution prospects.

Negative Factors

Persistent Negative Profitability

Very large negative margins reflect structural profitability gaps despite revenue growth. Unless product margins and operating leverage improve, ongoing losses will erode capital, limit reinvestment, and require continued financing, constraining sustainable free cash flow generation.

Negative Operating Cash Flow

Negative operating cash flow despite improving free cash flow signals cash conversion issues from core operations. Over months this reduces liquidity flexibility, increases dependence on external funding, and raises execution risk if investment or working capital needs rise.

Rising Leverage and Negative ROE

Increased leverage paired with deeply negative ROE indicates the company is destroying equity while taking on more debt. Structurally this limits financial flexibility, raises refinancing risk, and can pressure strategic options if profitability and cash generation do not improve.

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

Rapid Micro Biosystems shows strong revenue growth but faces significant profitability and cash flow challenges. The increase in leverage and negative net income highlight the need for improved cost management and operational efficiency.

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: Positive
• Last Price: 3.68
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RPID, the sentiment is Positive. The current price of 3.68 is above the 20-day moving average (MA) of 3.16, above the 50-day MA of 3.57, and above the 200-day MA of 3.19, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 53.06 is Neutral, neither overbought nor oversold. The STOCH value of 70.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RPID.

Rapid Micro Biosystems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPID	52 Neutral	$163.11M	-3.46	-68.83%	―	16.63%	10.43%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LUNG	51 Neutral	$82.49M	-1.30	-73.73%	―	15.59%	4.13%
HYPR	50 Neutral	$120.49M	-2.33	-94.03%	―	-20.10%	7.87%
SGHT	48 Neutral	$364.29M	-7.37	-57.91%	―	-4.39%	11.70%
LUCD	47 Neutral	$162.56M	-1.39	-331.24%	―	5.01%	20.76%
LNSR	45 Neutral	$141.78M	-2.73	-422.35%	―	21.02%	-200.88%