OmniAb (OABI) AI Stock Analysis

• Market Cap: $162.71M
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: 27.07%
• EPS Growth: 6.74%
• Country: US
• Employees: 114
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.17
• Shares Outstanding: 122,335,335
• 10 Day Avg. Volume: 771,703
• 30 Day Avg. Volume: 1,097,896
• PEG Ratio: -0.75
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.05
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 1.90
• Enterprise Value/Gross Profit: 39.58
• Enterprise Value/Ebitda: -0.71
• 1Y Price Target: $7.67
• Price Target Upside: 476.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 49 Neutral
• Price Target: $1.50 ▲(12.78%Upside)

OmniAb's overall stock score is impacted by significant financial challenges, including declining revenues and negative profitability. Technical indicators and valuation reflect current market skepticism. However, the positive sentiment from the earnings call and strategic initiatives provide some optimism for future improvement.

Positive Factors

Partnerships

OmniAb signed three licensing partnerships in the quarter, including ones with Wyss Institute at Harvard, Italy-based Takis Biotech, and Orion, also private, based in Finland.

Product Launch

The new product launch, xPloration instrument, is seen as upside to 2025 estimates and is differentiated on its speed, scale, and its significant ease of use in antibody screening workflows.

Revenue Stream

The launch of the xPloration partner access program adds a new revenue stream, which can enhance the company's financial outlook.

Negative Factors

Financial Concerns

Questions about its $43M cash balance vs ~$38M FY25 cash burn remain, but management is confident the milestones in the post-discovery phase can get them to cash flow profitability.

Revenue Expectations

OABI initiated guide at $20M-$25M, coming in below the Street's $46M and analyst's $33M, raising concerns about its financial outlook.

Service Revenue Decline

Milestone revenues were slightly offset by a -30% year-over-year decrease in Service revenues following completion of certain small molecule ion channel programs.

OmniAb Business Overview & Revenue Model

Company Description

OmniAb, Inc., a biotechnology company, provides therapeutic antibody discovery technologies in the United States. The company's discovery platform provides industry partners access to the diverse antibody repertoires and screening technologies to enable discovery of next-generation therapeutics. Its OmniAb platform is the biological intelligence of proprietary transgenic animals, including OmniRat, OmniChicken, and OmniMouse that have been genetically modified to generate antibodies with human sequences to facilitate development of human therapeutic candidates. The company's OmniFlic (transgenic rat) and OmniClic (transgenic chicken) address industry needs for bispecific antibody applications though a common light chain approach, and OmniTaur that features unique structural attributes of cow antibodies for complex targets. The company was founded in 2012 and is headquartered in Emeryville, California.

How the Company Makes Money

OmniAb generates revenue primarily through licensing agreements and strategic partnerships with pharmaceutical companies and research institutions. These collaborations allow OmniAb to monetize its antibody discovery platforms by providing access to its proprietary technologies in exchange for upfront payments, milestone payments, and royalties on subsequent drug sales. Additionally, the company may engage in research and development contracts, where it receives funding to conduct specific drug discovery projects. Significant partnerships with established pharmaceutical firms enhance OmniAb's earnings potential by expanding its customer base and increasing the likelihood of successful drug development outcomes.

OmniAb Financial Statement Overview

Summary

OmniAb is experiencing financial difficulties, characterized by declining revenues, persistent losses, and negative cash flows. Despite a solid equity base and low leverage, the company faces significant challenges in achieving profitability and positive cash flow.

Income Statement

OmniAb has been facing declining revenues and persistent losses. The gross profit margin is stable at 100% due to revenue equaling gross profit, but net losses have widened over time, reflecting negative EBIT and EBITDA margins. The revenue growth rate is negative, indicating a contraction in sales.

Balance Sheet

The company maintains a strong equity position with a relatively low debt-to-equity ratio, indicating conservative leverage. Return on equity is negative due to ongoing losses. The equity ratio is healthy, showing a strong capital base.

Cash Flow

Operating cash flow is negative, reflecting cash burn from operations. Free cash flow has decreased significantly, indicating challenges in generating cash. The company has managed cash inflows from financing activities, which could support liquidity temporarily.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
26.39M	34.16M	59.08M	34.75M	23.27M
	Gross Profit
6.71M	34.16M	42.83M	19.78M	23.27M
	EBIT
-74.50M	-69.42M	-26.65M	-35.61M	-25.62M
	EBITDA
-50.92M	-49.73M	-13.01M	-19.38M	-10.59M
	Net Income Common Stockholders
-62.03M	-50.62M	-22.33M	-27.04M	-17.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
59.43M	86.98M	88.27M	-13.85M	-2.59M
	Total Assets
325.56M	375.23M	421.21M	304.46M	295.38M
	Total Debt
23.16M	25.56M	25.80M	13.85M	2.59M
	Net Debt
-4.43M	9.20M	-7.59M	27.70M	5.18M
	Total Liabilities
37.94M	60.64M	79.84M	70.16M	59.84M
	Stockholders Equity
287.62M	314.58M	341.37M	234.31M	235.54M
Cash Flow		Free Cash Flow
-41.54M	703.00K	-20.75M	-9.74M	1.87M
	Operating Cash Flow
-39.66M	2.35M	-3.59M	-5.67M	3.62M
	Investing Cash Flow
37.88M	-18.38M	-73.31M	-4.03M	-26.98M
	Financing Cash Flow
13.02M	-892.00K	110.74M	9.70M	23.36M

OmniAb Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OABI, the sentiment is Negative. The current price of 1.33 is below the 20-day moving average (MA) of 1.55, below the 50-day MA of 1.93, and below the 200-day MA of 3.38, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 27.95 is Positive, neither overbought nor oversold. The STOCH value of 11.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OABI.

OmniAb Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMPX	60 Neutral	$289.01M	―	-41.31%	―	―	-7.93%
XOMA	56 Neutral	$298.21M	―	-3.42%	―	638.41%	71.89%
Sector *	53 Neutral	$5.14B	3.23	-45.01%	2.85%	17.55%	-0.69%
OABI	49 Neutral	$162.71M	―	-21.32%	―	27.07%	6.74%
VSTM	44 Neutral	$456.63M	―	-2159.50%	―	―	14.39%
HUMA	42 Neutral	$392.45M	―	-257.38%	―	―	-17.92%
CADL	33 Underperform	$280.58M	―	-98.14%	―	―	-33.79%

OmniAb Corporate Events

OmniAb Appoints New Directors to Board

On April 18, 2025, OmniAb, Inc. appointed Steven C. Crouse and Philip J. Gotwals, Ph.D. as Class II directors to its Board, with terms expiring in 2027. Mr. Crouse, with over 20 years of experience in life sciences, joins the Audit and Science and Technology Committees, while Dr. Gotwals, with 30 years in biopharmaceuticals, joins the Human Capital Management and Compensation and Science and Technology Committees. Both were granted restricted stock units and options as part of their compensation. Concurrently, Sarah Boyce resigned from the Board, which expanded from six to seven members.