Pacific Biosciences (PACB) AI Stock Analysis

• Market Cap: $348.10M
• Dividend Yield: N/A
• Average Volume (3M): 8.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: -23.99%
• EPS Growth: -100.40%
• Country: US
• Employees: 575
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Devices
• EPS (TTM): -1.44
• Shares Outstanding: 300,084,700
• 10 Day Avg. Volume: 10,814,430
• 30 Day Avg. Volume: 8,614,284
• PEG Ratio: -0.13
• Price to Book (P/B): 3.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.55
• Enterprise Value/Market Cap: 7.09
• Enterprise Value/Revenue: 3.69
• Enterprise Value/Gross Profit: 100.22
• Enterprise Value/Ebitda: -1.64
• 1Y Price Target: $2.25
• Price Target Upside: 93.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 41 Neutral
• Price Target: $1.00 ▼(-13.79%Downside)

Pacific Biosciences faces significant financial challenges, including declining revenues, persistent losses, and high leverage, which are major concerns. While there are some positive strategic initiatives highlighted in the earnings call, such as cost reduction plans and revenue growth in consumables, the overall financial instability and negative valuation metrics outweigh these positives.

Positive Factors

Financial Performance

Gross Margins came in at 40% vs. prior/Consensus 36.3%/31.6% as SMRT cell inventory write-downs ended.

Product Launch

The launch of Vega should unlock a new portion of the market for PacBio, and recent advancements to Revio should help the product rebound.

Strategic Focus

PacBio's commitment to its long-read roots and cost-cutting may position the company to achieve positive cash flow in the medium term.

Negative Factors

Academic Funding

Academic funding uncertainty may pressure near term.

Macroeconomic Conditions

Macroeconomic pressures persisted and sales cycles continue to be elongated.

Revenue Guidance

PACB decreased the lower end of its 2025 revenue guidance range due to U.S./China tariffs and NIH budget reductions.

Pacific Biosciences Business Overview & Revenue Model

Company Description

Pacific Biosciences of California, Inc. designs, develops, and manufactures sequencing systems to resolve genetically complex problems. The company provides PacBio's Systems, which conduct, monitor, and analyse biochemical sequencing reactions; consumable products, including single molecule real-time (SMRT) cells; and various reagent kits designed for specific workflow, such as template preparation kit to convert DNA into SMRTbell double-stranded DNA library formats, including molecular biology reagents, such as ligase, buffers, and exonucleases. It also offers binding kits, such as modified DNA polymerase used to bind SMRTbell libraries to the polymerase in preparation for sequencing; and sequencing kits comprise reagents required for on-instrument, real-time sequencing, including the phospholinked nucleotides. The company serves research institutions; commercial laboratories; genome centers; public health labs, hospitals and clinical research institutes, contract research organizations, and academic institutions; pharmaceutical companies; and agricultural companies. It markets its products through a direct sales force in North America and Europe, as well as through distribution partners in Asia, Europe, the Middle East, Africa, and Latin America. Pacific Biosciences of California, Inc. has a development and commercialization agreement with Invitae Corporation. The company was formerly known as Nanofluidics, Inc. and changed its name to Pacific Biosciences of California, Inc. in 2005. Pacific Biosciences of California, Inc. was incorporated in 2000 and is headquartered in Menlo Park, California.

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 is experiencing severe financial difficulties, marked by declining revenues, ongoing losses, and high leverage. The negative profitability margins and weak cash flow generation indicate financial instability and significant risks.

Income Statement

Pacific Biosciences shows a declining revenue trend with a significant drop from the previous year. The company has a negative EBIT and EBITDA margin, reflecting operational inefficiencies. The TTM gross profit margin is also low at 16.17%, indicating challenges in maintaining profitability. The net profit margin is deeply negative, highlighting ongoing financial losses.

Balance Sheet

The company has a high debt-to-equity ratio, indicating financial risk with significant leverage. The equity ratio is low at 10.64%, suggesting limited equity buffer against liabilities. Return on equity is negative, consistent with losses. Overall, the balance sheet reflects financial instability and potential risks due to high leverage.

Cash Flow

The cash flow statement reveals negative operating and free cash flows, with no positive free cash flow growth rate. The operating cash flow to net income ratio is negative, indicating inefficiencies in cash generation relative to net losses. The company faces challenges in generating cash, impacting liquidity.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
152.36M	154.01M	200.52M	128.30M	130.51M	78.89M
	Gross Profit
24.63M	37.28M	52.78M	49.03M	58.86M	32.57M
	EBIT
-790.73M	-356.38M	-334.47M	-307.20M	-178.16M	-104.39M
	EBITDA
-581.59M	-242.78M	-287.20M	-282.24M	-250.76M	38.97M
	Net Income Common Stockholders
-657.75M	-309.85M	-306.74M	-314.25M	-181.22M	29.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
343.11M	389.93M	631.42M	772.32M	1.04B	318.81M
	Total Assets
860.79M	1.26B	1.75B	1.77B	2.01B	413.98M
	Total Debt
699.11M	672.43M	933.93M	957.37M	955.36M	42.00M
	Net Debt
640.60M	617.06M	754.02M	632.28M	494.63M	-39.61M
	Total Liabilities
769.15M	753.85M	1.04B	1.20B	1.22B	78.49M
	Stockholders Equity
91.64M	506.59M	701.30M	562.90M	790.99M	335.49M
Cash Flow		Free Cash Flow
-183.13M	-212.25M	-268.02M	-280.14M	-117.11M	18.46M
	Operating Cash Flow
-174.43M	-206.06M	-259.17M	-263.21M	-111.18M	19.50M
	Investing Cash Flow
203.37M	124.00M	4.60M	116.08M	-678.53M	-219.32M
	Financing Cash Flow
-47.58M	-42.99M	108.89M	9.62M	1.17B	251.84M

Pacific Biosciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.16
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PACB, the sentiment is Positive. The current price of 1.16 is above the 20-day moving average (MA) of 1.04, above the 50-day MA of 1.13, and below the 200-day MA of 1.58, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.93 is Neutral, neither overbought nor oversold. The STOCH value of 74.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PACB.

Pacific Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTKB	62 Neutral	$439.51M	―	-2.91%	―	-1.86%	-2.01%
MASS	58 Neutral	$254.61M	―	-44.97%	―	21.06%	-99.70%
QTRX	56 Neutral	$255.50M	―	-14.51%	―	7.71%	-38.97%
Sector *	54 Neutral	$5.38B	3.40	-45.06%	3.28%	16.75%	-0.02%
BFLY	51 Neutral	$645.42M	―	-29.16%	―	25.77%	49.44%
BVS	47 Neutral	$563.51M	―	-19.79%	―	8.60%	-42.76%
PACB	41 Neutral	$348.10M	―	-177.29%	―	-23.99%	-100.40%

Pacific Biosciences Corporate Events

Pacific Biosciences Approves Key Proposals at Annual Meeting

On June 4, 2025, Pacific Biosciences held its Annual Meeting where stockholders approved several key proposals, including the election of four Class III directors and the ratification of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Additionally, an amendment to the 2020 Equity Incentive Plan was approved, allowing for an increase in the number of shares of the company’s common stock reserved for issuance, which reflects the company’s strategic move to enhance its equity incentive offerings.

The most recent analyst rating on (PACB) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Pacific Biosciences stock, see the PACB Stock Forecast page.

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.