Cibus (CBUS) AI Stock Analysis

537 Followers

Top Page

Cibus

(NASDAQ:CBUS)

42Neutral

Cibus, Inc. shows significant financial challenges with ongoing losses and cash flow issues, which weigh heavily on its stock score. While there are positive signs in technical analysis and regulatory advancements, these are overshadowed by profitability concerns and high cash burn, resulting in a low overall score.

Positive Factors

Market Expansion

The recent endorsement by EU member states on the regulation of plants obtained by New Genomic Techniques could eventually translate into an expanded market opportunity for Cibus in Europe.

Regulatory Approvals

Cibus' disease resistance traits under development in Canola received an approval from the USDA's Animal and Plant Health Inspection Service, which determined that the gene-editing practices won't face higher regulatory scrutiny.

Revenue Growth

Cibus' revenues increased by 135% year-over-year, mainly through collaboration agreements and sales related to developing a palm oil alternative.

Negative Factors

Cash Reserves

Cibus has sufficient cash reserves to finance its capital requirements through late third quarter of the next year.

Financial Performance

The company produced a net loss of ~$47M, widening over 300% y/y, primarily due to a significant goodwill impairment charge.

Leadership Change

Cibus' CEO, Rory Riggs, will be stepping down from his leadership position, marking a significant leadership change.

Cibus (CBUS) vs. S&P 500 (SPY)

Market Cap

$83.55M

Dividend YieldN/A

Average Volume (3M)139.06K

Price to Earnings (P/E)―

Beta (1Y)2.45

Revenue Growth104.78%

EPS Growth40.41%

CountryUS

Employees157

SectorHealthcare

Sector Strength39

IndustryBiotechnology

Share Statistics

EPS (TTM)-1.34

Shares Outstanding32,672,180

10 Day Avg. Volume109,622

30 Day Avg. Volume139,057

Financial Highlights & Ratios

PEG Ratio-4.11

Price to Book (P/B)570.36

Price to Sales (P/S)0.00

P/FCF Ratio-0.82

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$22.00

Price Target Upside918.52% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering3

Cibus Business Overview & Revenue Model

Company DescriptionCibus, Inc., a agricultural technology company, develops and licenses plant traits to seed companies for royalties. The company primarily focus on trait productivity in two areas, including productivity traits that enable farmers to have higher yields and reduce the use of the crop protection chemicals and fertilizers; and sustainable ingredients that enable corporations to replace ingredients that are fossil fuel based or whose production results in increased greenhouse gases. The company is based in San Diego, California.

How the Company Makes MoneyCibus makes money through the development and commercialization of gene-edited crops. The company generates revenue by licensing its proprietary gene-editing technologies and crop varieties to agricultural producers and seed companies. Additionally, Cibus may enter into strategic partnerships and collaborations with industry stakeholders to co-develop and market new crop varieties. These partnerships can result in milestone payments, royalties, and co-marketing agreements that contribute to the company's earnings. Cibus's business model is heavily reliant on the successful adoption of its technologies by the agricultural sector and the ongoing demand for improved crop varieties.

Cibus Financial Statement Overview

Summary

Cibus faces financial difficulties with ongoing losses impacting overall performance. While revenue growth is positive, profitability and cash flow generation are critical challenges. The balance sheet shows moderate leverage, but continuous losses and negative cash flows pose significant risks to financial stability.

Income Statement

Very Negative

Cibus has experienced significant revenue growth from 2023 to 2024, but the company continues to incur substantial operating losses. Gross profit margin is strong, but net profit margin remains negative due to high operational expenses. The consistently negative EBIT and EBITDA margins highlight ongoing profitability challenges.

Balance Sheet

Negative

Cibus's balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the equity ratio is relatively low, indicating limited equity in proportion to total assets. Return on equity remains negative due to ongoing net losses, pointing to profitability issues.

Cash Flow

Very Negative

The company reports negative free cash flow, which has deteriorated further in 2024. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. Financing activities have been a source of cash, highlighting reliance on external funding.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
4.26M	1.82M	157.00K	25.99M	23.85M
	Gross Profit
4.26M	1.42M	-1.38M	-2.57M	-11.28M
	EBIT
-258.40M	-318.88M	-22.37M	-29.33M	-43.83M
	EBITDA
-241.63M	-314.58M	-15.21M	-25.43M	-41.53M
	Net Income Common Stockholders
-251.39M	-267.63M	-16.89M	-29.20M	-44.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.43M	32.70M	3.43M	13.82M	29.00M
	Total Assets
350.07M	544.41M	22.42M	37.19M	63.33M
	Total Debt
36.29M	24.62M	13.54M	17.88M	19.76M
	Net Debt
21.85M	-8.08M	10.12M	4.05M	2.46M
	Total Liabilities
252.24M	206.12M	15.19M	23.06M	26.45M
	Stockholders Equity
92.16M	293.47M	7.23M	14.13M	36.88M
Cash Flow		Free Cash Flow
-58.85M	-50.53M	-20.88M	-19.31M	-45.46M
	Operating Cash Flow
-58.04M	-46.21M	-19.36M	-18.81M	-43.67M
	Investing Cash Flow
-808.00K	55.06M	-1.52M	11.20M	-13.48M
	Financing Cash Flow
40.60M	20.32M	9.99M	3.74M	15.41M

Cibus Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price2.16

Price Trends

50DMA

2.02

Positive

100DMA

2.25

Negative

200DMA

3.68

Negative

Market Momentum

MACD

0.10

Negative

RSI

51.91

Neutral

STOCH

55.33

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBUS, the sentiment is Neutral. The current price of 2.16 is above the 20-day moving average (MA) of 2.07, above the 50-day MA of 2.02, and below the 200-day MA of 3.68, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 51.91 is Neutral, neither overbought nor oversold. The STOCH value of 55.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CBUS.

Cibus Risk Analysis

Cibus disclosed 50 risk factors in its most recent earnings report. Cibus reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Cibus Peers Comparison

Overall Rating

UnderperformOutperform

Sector (52)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.14B	3.39	-43.55%	2.83%	16.49%	-0.19%
KRON	46 Neutral	$44.29M	―	-59.49%	―	21.15%	46.44%
GANX	46 Neutral	$56.79M	―	-290.21%	―	-100.00%	44.28%
MGX	43 Neutral	$57.94M	―	-31.93%	―	-4.22%	18.67%
CBUS	42 Neutral	$83.55M	―	-157.73%	―	104.78%	40.41%
INZY	37 Underperform	$76.18M	―	-141.69%	―	―	-17.06%
AVTX	37 Underperform	$43.31M	―	678.24%	―	-69.59%	―

* Healthcare Sector Average

Performance Comparison

CBUS

Cibus

2.16

-16.54

-88.45%

AVTX

Avalo Therapeutics

3.60

-6.79

-65.35%

INZY

Inozyme Pharma

1.35

-3.32

-71.09%

KRON

Kronos Bio

0.72

-0.26

-26.53%

GANX

Gain Therapeutics

1.86

-0.76

-29.01%

MGX

Metagenomi, Inc.

1.50

-5.30

-77.94%

Cibus Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: -8.09%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant achievements in regulatory milestones and commercial strategy validation, particularly in gene editing and sustainable ingredients. However, financial results showed increased net loss and SG&A expenses, raising concerns about cash burn and profitability.

Q1-2025 Updates

Positive Updates

Commercial Strategy Validation

Cibus, Inc. demonstrated clear validation of its commercial strategy and the transformative potential of its RTDS technology platform, attracting significant commercial interest across rice, canola, and soybean platforms.

Regulatory Milestones

Historic regulatory milestones achieved, including the California Rice Commission's approval for gene-edited rice trials and favorable USDA APHIS designation for canola disease resistance traits.

Sustainable Ingredients Program Progress

Advanced bio-based fermentation bio fragrance products with successful first stage scale-up, anticipating commercialization agreements with consumer packaged goods partners later this year.

Significant Financial Backing

Cibus, Inc. received $21.4 million net proceeds from a registered direct offering in January 2025, with existing cash sufficient to fund planned operating expenses into the third quarter of 2025.

Negative Updates

Increased Net Loss

Net loss for the first quarter of 2025 was $49.4 million, an increase from $27 million in the year-ago period, primarily due to a $21 million non-cash goodwill impairment.

Increased SG&A Expenses

SG&A expense increased to $9.9 million from $7 million in the year-ago period, mainly due to a $3 million litigation accrual.

Cash Burn Concerns

Despite cost-saving initiatives, the company continues to project a net cash burn of around $4 million per quarter.

Company Guidance

During the Cibus, Inc. 2025 Q1 earnings call, the company provided guidance emphasizing its commercial strategy and regulatory advancements. Cibus reported cash and cash equivalents of $23.6 million as of March 31, 2025, with revenue for the first quarter at $1 million, up from $545,000 in the previous year. The net loss was $49.4 million, primarily due to a $21 million non-cash goodwill impairment. Despite this, the company focused on reducing its cash burn rate, targeting a net burn of around $4 million per quarter. Cibus highlighted advancements in its RTDS technology, achieving milestones in rice and canola trait development, and noted significant regulatory progress in Europe and Latin America. The company anticipates nominal revenues from its sustainable ingredients program later in 2025, reflecting its ongoing efforts to optimize operations and maximize shareholder value.

Cibus Corporate Events

Executive/Board Changes

Cibus Appoints Peter Beetham as Interim CEO

Neutral

Feb 28, 2025

On February 24, 2025, Rory Riggs resigned as CEO of Cibus, Inc., but remains as Chairman of the Board. Peter Beetham, the company’s President and COO, was appointed as Interim CEO while a search for a new CEO is conducted. Dr. Beetham, who co-founded Cibus Global and has over 30 years of experience in agriculture, brings extensive leadership and research expertise to his interim role.

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.