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Pacific Biosciences (PACB)
NASDAQ:PACB
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Pacific Biosciences
(NASDAQ:PACB)
Rating:44Neutral
Price Target:
$1.00
▼(-9.09%Downside)
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 Development
The launch of Vega should unlock a new portion of the market for PacBio, and recent advancements to Revio should help the product rebound.
Product Performance
Strong Vega traction offsets lower than expected Revio system placements.
Negative Factors
Funding Uncertainty
Academic funding uncertainty may pressure near term.
Macroeconomic Factors
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 (PACB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$273.14M
Dividend YieldN/A
Average Volume (3M)7.46M
Price to Earnings (P/E)―
Beta (1Y)1.21
Revenue Growth-23.99%
EPS Growth-100.40%
CountryUS
Employees575
SectorHealthcare
Sector Strength40
IndustryMedical - Devices
Share Statistics
EPS (TTM)-1.44
Shares Outstanding300,084,700
10 Day Avg. Volume9,340,885
30 Day Avg. Volume7,461,157
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)0.63
Price to Sales (P/S)0.00
P/FCF Ratio-1.58
Enterprise Value/Market Cap3.49
Enterprise Value/Revenue1.33
Enterprise Value/Gross Profit31.32
Enterprise Value/Ebitda-0.82
Forecast
1Y Price Target
$2.25Price Target Upside104.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Pacific Biosciences Business Overview & Revenue Model
Company DescriptionPacific Biosciences (PACB), headquartered in Menlo Park, California, is a prominent biotechnology company specializing in the development of advanced sequencing technologies. The company is best known for its innovative Single Molecule, Real-Time (SMRT) sequencing platforms, which provide high-resolution insights into genetic sequences. These platforms are utilized in various sectors, including life sciences research, agriculture, and clinical diagnostics, to enable comprehensive genomic analysis and discovery.
How the Company Makes MoneyPacific 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 Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -8.33%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in consumable revenue growth and strategic initiatives to reduce costs and enhance product offerings. However, challenges such as decreased instrument revenue, macroeconomic pressures, and adjustments in revenue guidance present notable concerns. The strategic pause in short-read sequencing development underscores the focus on long-read technology amidst a difficult funding environment.Q1-2025 Updates
Positive Updates
Record Consumable Revenue
Consumable revenue reached a record $20.1 million, reflecting 26% year-over-year growth and steady utilization across the growing base of Revio systems.
Strong Performance with Spark Chemistry
Customer uptake of Spark chemistry exceeded expectations with nearly 90% of Revio reagent kit shipments in the first quarter being Spark chemistry, leading to significant yield increases.
Expansion in Clinical and Translational Research
Growth among hospital and clinic customers, with notable placements in leading institutions like the Lurie Children's Hospital and Imagine Institute.
Restructuring Plan for Cost Reduction
Implemented a restructuring plan to reduce operating expenses, aiming for an annualized reduction of $45 million to $50 million by year-end.
New CFO Appointment
Jim Gibson, bringing over three decades of financial leadership experience, joins PacBio as the new CFO.
Negative Updates
Decreased Instrument Revenue
Instrument revenue for the quarter was $11 million, a decrease of 42% from the first quarter of 2024 due to lower Revio system shipments.
Macroeconomic and Funding Challenges
Increased uncertainty in academic funding and challenges related to newly implemented tariffs between the U.S. and China, affecting revenue projections.
Reduced Revenue Guidance
Full-year 2025 revenue guidance was adjusted to $150 million to $170 million, reducing the lower end by $5 million due to trade and funding uncertainties.
Pause in Short-Read Sequencing Development
Development of the high-throughput short-read sequencing platform was paused due to macroeconomic conditions, focusing resources on HiFi technology.
Company Guidance
During PacBio’s Q1 2025 earnings call, the company provided detailed guidance for the year, adjusting its revenue expectations to a range of $150 million to $170 million, down from the previous lower end due to newly implemented U.S.-China tariffs and potential NIH budget reductions. The call highlighted a 26% year-over-year growth in consumable revenue to $20.1 million, despite a 42% decline in instrument revenue to $11 million. The company shipped 12 Revio systems and 28 Vega systems, with a focus on expanding its clinical and hospital customer base. PacBio aims to achieve non-GAAP gross margins between 35% and 40% for 2025 and plans to lower annualized non-GAAP operating expenses by $45 million to $50 million by year-end through restructuring efforts. The company remains committed to turning cash flow positive by the end of 2027, driven by innovations in its long-read sequencing technology and strategic cost management.Pacific Biosciences Financial Statement Overview
Summary
Pacific Biosciences faces financial challenges with declining revenue, high debt levels, and negative cash flows. The company shows operational inefficiencies and profitability issues, as indicated by negative EBIT and EBITDA.Income Statement
Pacific Biosciences has experienced declining revenue over the past year with a revenue growth rate of -23.2%. The company’s gross profit margin is 24.2% and net profit margin is negative, indicating a lack of profitability. Significant EBIT and EBITDA losses highlight operational inefficiencies and challenges in cost management.30
Negative
Balance Sheet
The company exhibits a high debt-to-equity ratio of 1.33, suggesting reliance on debt financing which may lead to financial strain. With a low equity ratio of 40.2%, PACB’s balance sheet reflects limited shareholder equity relative to its assets. Return on equity is negative due to net losses, showing inefficiency in generating returns for shareholders.40
Negative
Cash Flow
The negative free cash flow growth rate indicates ongoing cash outflows. The operating cash flow to net income ratio is negative, reflecting cash burn in operations. Despite investing activities generating some cash inflow, the overall cash flow position remains weak, with free cash flow to net income ratio also negative.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 154.01M | 200.52M | 128.30M | 130.51M | 78.89M | Gross Profit |
| 37.28M | 52.78M | 49.03M | 58.86M | 32.57M | EBIT |
| -356.38M | -334.47M | -304.82M | -178.16M | -104.39M | EBITDA |
| -242.78M | -277.28M | -282.24M | -250.76M | 38.97M | Net Income Common Stockholders |
| -309.85M | -306.74M | -296.93M | -181.22M | 29.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 389.93M | 631.42M | 772.32M | 1.04B | 318.81M | Total Assets |
| 1.26B | 1.75B | 1.77B | 2.01B | 413.98M | Total Debt |
| 672.43M | 933.93M | 957.37M | 953.75M | 42.00M | Net Debt |
| 617.06M | 754.02M | 632.28M | 493.02M | -276.81M | Total Liabilities |
| 753.85M | 1.04B | 1.20B | 1.22B | 78.49M | Stockholders Equity |
| 506.59M | 701.30M | 562.90M | 790.99M | 335.49M |
| Cash Flow | Free Cash Flow | |||
| -212.25M | -268.02M | -280.14M | -117.11M | 18.46M | Operating Cash Flow |
| -206.06M | -259.17M | -263.21M | -111.18M | 19.50M | Investing Cash Flow |
| 124.00M | 4.60M | 116.08M | -678.53M | -219.32M | Financing Cash Flow |
| -42.99M | 108.89M | 9.62M | 1.17B | 251.84M |
Pacific Biosciences Technical Analysis
Neutral
1.10
Price Trends
1.17
Negative
1.38
Negative
1.60
Negative
Market Momentum
-0.06
Positive
51.24
Neutral
30.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PACB, the sentiment is Neutral. The current price of 1.1 is above the 20-day moving average (MA) of 1.07, below the 50-day MA of 1.17, and below the 200-day MA of 1.60, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 51.24 is Neutral, neither overbought nor oversold. The STOCH value of 30.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PACB.
Pacific Biosciences Risk Analysis
Pacific Biosciences disclosed 66 risk factors in its most recent earnings report. Pacific Biosciences reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Our expense reduction initiatives could be disruptive to our operations and adversely affect our results of operations and financial condition, and we may not realize some or all of the anticipated benefits of these initiatives, whether in the time frame anticipated or at all. Q2, 2024
Pacific Biosciences Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $325.51M | ― | -2.91% | ― | -1.86% | -2.01% | |
54 Neutral | $625.64M | ― | -29.16% | ― | 25.77% | 49.44% | |
54 Neutral | $195.08M | ― | -44.97% | ― | 21.06% | -99.70% | |
53 Neutral | $5.19B | 3.33 | -45.04% | 2.83% | 17.58% | -0.66% | |
51 Neutral | $197.45M | ― | -14.51% | ― | 7.71% | -38.97% | |
47 Neutral | $536.40M | ― | -19.79% | ― | 8.60% | -42.76% | |
44 Neutral | $273.14M | ― | -177.29% | ― | -23.99% | -100.40% |
* Healthcare Sector Average
Performance Comparison
PACB
Pacific Biosciences
1.10
-0.72
-39.56%
QTRX
Quanterix
5.28
-10.90
-67.37%
BFLY
Butterfly Network
2.63
1.63
163.00%
MASS
908 Devices
5.96
-0.35
-5.55%
BVS
Bioventus
6.53
-0.28
-4.11%
CTKB
Cytek Biosciences
2.49
-3.27
-56.77%
Pacific Biosciences Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Pacific Biosciences Appoints Jim R. Gibson as CFO
Positive
Mar 27, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.