Generation Bio (GBIO) AI Stock Analysis

• Market Cap: $30.62M
• Dividend Yield: N/A
• Average Volume (3M): 427.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.04
• Revenue Growth: 236.92%
• EPS Growth: -0.57%
• Country: US
• Employees: 115
• Sector: Healthcare
• Sector Strength: 64
• Industry: Biotechnology
• EPS (TTM): -1.98
• Shares Outstanding: 67,007,866
• 10 Day Avg. Volume: 492,256
• 30 Day Avg. Volume: 427,362
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.69
• Price to Cash Flow (P/CF): -0.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.33
• Price Target Upside: 1493.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Generation Bio's overall score is primarily driven by significant financial challenges, including ongoing losses and cash burn, alongside negative technical indicators and valuation metrics. The lack of profitability and increased leverage are key risks. Combined with weak technical signals and an unattractive valuation, the stock presents a high-risk profile.

Positive Factors

Collaborations

GBIO continues to make progress in its collaboration with Moderna, aiming to synergize its internal work with T cells with Moderna’s ctLNPs application to CAR T cell development.

Strategic Developments

Successfully delivering mRNA directly into T-cells could differentiate Generation Bio Co. from competitors, who primarily target the liver.

Technological Innovation

Generation Bio Co. is focusing on innovative siRNA therapeutics for autoimmune disorders, which could set them apart in the market.

Negative Factors

Market Valuation

The stock is currently trading below its cash position, which is viewed as a fair discount consistent with other biotech companies with similar uncertainties.

Uncertainty in Product Development

More details on the lead indication are needed to better assess the model, so the current recommendation is maintained as is for now.

Generation Bio Business Overview & Revenue Model

Company Description

Generation Bio is a biotechnology company focused on developing gene therapies to address a range of genetic disorders. The company leverages its proprietary non-viral gene therapy platform to create treatments that can potentially provide long-lasting effects for patients with rare and prevalent diseases. By utilizing their innovative technology, Generation Bio aims to deliver genetic medicine to patients without the use of viral vectors, which are commonly used in traditional gene therapies.

How the Company Makes Money

Generation Bio makes money primarily through the development and commercialization of its gene therapy products. The company generates revenue by partnering with larger pharmaceutical firms, which may provide funding for research and development efforts in exchange for access to Generation Bio's proprietary technology platform. Additionally, upon successful development and regulatory approval of their therapies, Generation Bio earns revenue through product sales and potential milestone payments from their partners. The company's revenue model heavily relies on its ability to advance its pipeline of gene therapy candidates and bring effective treatments to market.

Generation Bio Financial Statement Overview

Summary

Generation Bio faces significant challenges, particularly in achieving profitability and managing cash flow. Despite revenue growth, the company continues to incur substantial losses and burn cash, leading to potential liquidity concerns. The balance sheet reflects increased leverage, which may pose risks unless profitability can be achieved.

Income Statement

While Generation Bio showed significant revenue growth from 2023 to 2024, the company remains unprofitable with negative EBIT and net income margins. The gross profit is positive, but the net losses have widened, indicating ongoing challenges in achieving profitability.

Balance Sheet

The company's debt-to-equity ratio has increased, reflecting higher leverage. The equity ratio has decreased, indicating reduced financial stability. However, the company retains a substantial amount of cash and short-term investments, which provides a buffer against financial instability.

Cash Flow

Free cash flow remains negative, and the operating cash flow is also negative, indicating ongoing cash burn. The slight increase in financing inflow is not enough to offset the negative cash flow from operations, suggesting potential liquidity risks.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
18.58M	19.89M	5.90M	0.00	0.00	0.00
	Gross Profit
14.04M	19.89M	-73.91M	-5.13M	-4.53M	-3.43M
	EBIT
-98.41M	-142.39M	-138.56M	-141.18M	-119.10M	-81.11M
	EBITDA
-92.47M	-142.39M	-133.30M	-136.05M	-114.57M	-77.68M
	Net Income Common Stockholders
-145.47M	-131.67M	-126.61M	-132.10M	-114.67M	-76.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
221.49M	185.22M	264.36M	279.09M	375.14M	262.33M
	Total Assets
285.88M	231.20M	374.76M	376.26M	476.77M	294.15M
	Total Debt
95.94M	93.56M	97.89M	81.71M	80.83M	0.00
	Net Debt
58.23M	17.26M	31.45M	-11.46M	-294.32M	-62.89M
	Total Liabilities
153.89M	144.99M	171.63M	93.77M	95.03M	26.14M
	Stockholders Equity
131.99M	86.20M	203.13M	282.49M	381.75M	268.01M
Cash Flow		Free Cash Flow
-104.36M	-90.96M	-60.14M	-111.25M	-97.78M	-75.66M
	Operating Cash Flow
-97.76M	-88.56M	-52.74M	-102.45M	-91.82M	-70.14M
	Investing Cash Flow
22.33M	94.53M	-9.70M	-192.51M	193.05M	-205.20M
	Financing Cash Flow
183.00K	250.00K	35.82M	12.99M	214.67M	323.10M

Generation Bio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GBIO, the sentiment is Negative. The current price of 0.46 is below the 20-day moving average (MA) of 0.51, below the 50-day MA of 0.67, and below the 200-day MA of 1.83, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 31.33 is Neutral, neither overbought nor oversold. The STOCH value of 8.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GBIO.

Generation Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEAM	50 Neutral	$2.22B	―	-43.94%	―	-83.18%	-144.95%
Sector *	49 Neutral	$6.86B	0.72	-52.93%	2.49%	20.83%	1.11%
CRSP	46 Neutral	$3.26B	―	-19.20%	―	-89.95%	-123.71%
SGMO	41 Neutral	$192.64M	―	-187.83%	―	-67.20%	64.66%
EDIT	39 Underperform	$107.87M	―	-98.10%	―	-58.64%	-40.05%
NTLA	39 Underperform	$869.55M	―	-54.00%	―	59.55%	3.09%
GBIO	30 Underperform	$30.62M	―	-91.02%	―	236.92%	-0.57%

Generation Bio Corporate Events

Generation Bio Restructures Leadership and Focuses on siRNA

Generation Bio announced significant changes in its leadership team and a strategic reorganization to focus on developing siRNA therapeutics using its ctLNP technology, targeting T cell-driven autoimmune diseases. The company plans to reduce its workforce by 20% to optimize resources for clinical development and aims to submit its first investigational new drug application by the second half of 2026, while maintaining a cash runway until the second half of 2027.