Pacific Biosciences of California Inc. Common Stock (PACB)

FairStock Score: 22/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Pacific Biosciences as a Graham-style bargain hunter, and I see a speculative enterprise rather than a proven business. It sells long-read sequencing systems and consumables, a technically impressive niche. But the financial record is grim. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $39.0 million and net income was -$44.7 million, or diluted EPS -$0.14. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $37.2 million and net income was -$8.3 million. For fiscal year 2025, ended 2025-12-31, revenue was $160.0 million while net income was -$546.4 million, or EPS -$1.82; that was a wider loss than FY2024's -$309.9 million. The company has lost money in each of the last four years, so the FairStock Lynch category is 'none.' FairStock calculations show a trailing free cash flow of -$130.5 million, a free cash flow yield of -20.5%, a Piotroski F-Score of 2/9, and an Altman Z-Score of -4.34, which signal acute financial fragility. Debt-to-equity is 298.56, ROE is -929.32%, and ROCE is -14.07%. At the close on 2026-10-13, the price was $2.05, making the market cap $637.2 million; P/E is -4.88 and P/B is 112.00. The FairStock Score is 22/100. Beta is 2.31, so the shares are volatile. A competitive moat is not evident when the firm cannot earn profits or generate cash. Growth has not rescued it: revenue growth is -1.91% and profit growth -6.70% in the supplied data. Without a durable margin of safety, I would require evidence of shrinking losses and positive cash generation before calling this a value investment.

In plain English: Pacific Biosciences makes machines and chemical kits that read DNA, with a focus on long-read sequencing. The business is not strong today: it has lost money for years and burns through cash. At $2.05 a share, the price does not look cheap against those weak numbers, because there are no profits or positive cash flow to support it.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer