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Codexis (CDXS)
NASDAQ:CDXS
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Codexis
(NASDAQ:CDXS)
51Neutral
Positive Factors
Commercial Strategy
The recent licensing of their genomics/life sciences enzyme portfolio to Alphazyme is an important point of execution that should now keep the focus on maximizing the commercial success of ECO Synthesis.
Financial Position
Codexis extended their cash runway into 2027 with a $31M raise, which should increase confidence in the company's ability to reach cash flow positivity.
Long-term Outlook
Encouraging progress in Q4 laying the groundwork for ECO's long-term outlook.
Production Strategy
Some enzyme production is being brought in-house, which should be a meaningful tailwind to margins if it accelerates growth accordingly.
Negative Factors
Partnerships
Executing on the right partnerships remains critical to the long-term outlook.
Revenue Performance
Q4 revenues of $21.5M missed consensus estimates of $27.4M.
Codexis (CDXS) vs. S&P 500 (SPY)
Market Cap
$232.77M
Dividend YieldN/A
Average Volume (3M)1.03M
Price to Earnings (P/E)―
Beta (1Y)3.04
Revenue Growth-15.39%
EPS Growth19.42%
CountryUS
Employees188
SectorHealthcare
Sector Strength72
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.90
Shares Outstanding82,837,310
10 Day Avg. Volume964,877
30 Day Avg. Volume1,025,461
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.56
Price to Cash Flow (P/CF)-3.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.67Price Target Upside165.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Codexis Business Overview & Revenue Model
Company DescriptionCodexis, Inc. (CDXS) is a leading biotechnology company that specializes in the development of high-performance enzymes for various industries. Leveraging its proprietary CodeEvolver® technology platform, Codexis engineers customized enzymes for applications in pharmaceuticals, food and beverage, agriculture, and other sectors. The company's innovations help enhance the efficiency and sustainability of manufacturing processes, thereby supporting the development of cleaner and greener products.
How the Company Makes MoneyCodexis generates revenue primarily through product sales, research and development (R&D) collaborations, and licensing agreements. The company sells engineered enzymes to pharmaceutical companies and other industries, where these enzymes are used to improve manufacturing processes. Additionally, Codexis partners with leading firms to co-develop enzyme solutions, earning milestone payments and royalties. Key partnerships, such as those with major pharmaceutical companies, significantly contribute to its revenue through collaborative projects and long-term agreements. Codexis also licenses its CodeEvolver® technology platform, enabling partners to develop their own enzyme-based solutions, which provides another stream of income through licensing fees and royalties.
Codexis Financial Statement Overview
Summary
Codexis operates in a challenging financial environment characterized by declining revenues, persistent losses, and increasing leverage. While the company maintains strong product margins, operational inefficiencies and high leverage pose significant risks. Continued negative cash flows highlight the need for structural improvements to achieve financial stability.Income Statement
Codexis has experienced a declining revenue trend, with a significant drop of 15.39% from 2023 to 2024. The company has consistently struggled with profitability, as evidenced by its negative net and EBIT margins, which have widened over the years. The gross profit margin remains high at 72.53% in 2024, indicating strong product margins, but it is overshadowed by operational inefficiencies leading to negative bottom-line figures.45
Neutral
Balance Sheet
The balance sheet reveals a concerning increase in leverage, with the debt-to-equity ratio rising to 0.89 in 2024, indicating higher financial risk. However, the company's equity ratio remains robust at 35.14%, showing a strong equity base relative to assets. The return on equity is negative due to substantial net losses, highlighting ongoing profitability challenges.60
Neutral
Cash Flow
Codexis faces significant cash flow issues, with a negative free cash flow in 2024 and a decline in operating cash flow. The free cash flow to net income ratio is concerning, as it indicates the company is generating insufficient cash relative to its losses. However, financing cash flow remains positive due to external funding, which temporarily supports liquidity.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 59.34M | 70.14M | 138.59M | 104.75M | 69.06M | Gross Profit |
| 43.06M | 57.33M | 100.56M | 82.55M | 55.31M | EBIT |
| -58.52M | -68.07M | -31.71M | -22.70M | -23.92M | EBITDA |
| -58.52M | -49.28M | -23.07M | -16.75M | -19.37M | Net Income Common Stockholders |
| -65.28M | -76.24M | -33.59M | -21.28M | -24.01M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 73.46M | 65.12M | 113.98M | 116.80M | 150.12M | Total Assets |
| 149.01M | 136.56M | 250.39M | 246.38M | 221.65M | Total Debt |
| 59.90M | 16.02M | 43.64M | 47.65M | 24.95M | Net Debt |
| 40.63M | -49.09M | -70.35M | -69.14M | -124.17M | Total Liabilities |
| 82.08M | 49.95M | 105.60M | 81.99M | 51.54M | Stockholders Equity |
| 66.93M | 86.61M | 144.80M | 164.39M | 170.10M |
| Cash Flow | Free Cash Flow | |||
| -53.72M | -57.06M | 2.98M | -28.09M | -20.21M | Operating Cash Flow |
| -49.41M | -52.64M | 11.28M | -14.27M | -16.46M | Investing Cash Flow |
| -56.98M | -4.86M | -13.58M | -21.42M | -5.75M | Financing Cash Flow |
| 60.52M | 8.17M | -575.00K | 3.77M | 80.81M |
Codexis Technical Analysis
Negative
2.51
Price Trends
3.63
Negative
4.19
Negative
3.65
Negative
Market Momentum
-0.25
Negative
36.51
Neutral
32.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDXS, the sentiment is Negative. The current price of 2.51 is below the 20-day moving average (MA) of 2.75, below the 50-day MA of 3.63, and below the 200-day MA of 3.65, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 36.51 is Neutral, neither overbought nor oversold. The STOCH value of 32.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CDXS.
Codexis Risk Analysis
Codexis disclosed 49 risk factors in its most recent earnings report. Codexis 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
Codexis Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $232.77M | ― | -85.03% | ― | -15.39% | 19.42% | |
48 Neutral | $6.84B | 1.02 | -53.11% | 2.50% | 16.84% | 0.92% | |
46 Neutral | $3.17B | ― | -19.20% | ― | -89.95% | -123.71% | |
42 Neutral | $2.15B | ― | -37.40% | ― | -100.00% | -144.79% | |
41 Neutral | $835.39M | ― | -54.00% | ― | 59.55% | 3.09% | |
39 Underperform | $103.72M | ― | -98.10% | ― | -58.64% | -40.05% | |
37 Underperform | $147.36M | ― | -187.83% | ― | -67.20% | 64.66% |
* Healthcare Sector Average
Performance Comparison
CDXS
Codexis
2.51
-0.82
-24.62%
SGMO
Sangamo Biosciences
0.57
-0.01
-1.72%
EDIT
Editas Medicine
1.13
-5.74
-83.55%
NTLA
Intellia Therapeutics
6.66
-18.44
-73.47%
CRSP
Crispr Therapeutics AG
33.14
-31.89
-49.04%
DNLI
Denali Therapeutics
12.29
-7.09
-36.58%
Codexis Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -36.13% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
Codexis demonstrated strong progress in its ECO Synthesis platform and Pharma Biocatalysis business, positioning itself for revenue growth and reduced losses. However, challenges remain in revenue generation without PAXLOVID and improving gross margins.Highlights
Progress in Enzymatic siRNA Synthesis
Codexis made significant strides in enzymatic siRNA synthesis, showcasing the ECO Synthesis platform, which includes synthesizing inclisiran through various methods. They completed feasibility studies with leading siRNA innovator companies, preparing for revenue-generating contracts in Q2 2025.
Strong Traction in Pharma Biocatalysis
Codexis expanded its reach in the Pharma Biocatalysis sector, particularly with mid-tier pharma and large biotech segments, achieving commercial success and establishing new dialogues with existing customers.
Revenue Guidance for 2025
The company guided total 2025 revenue to range between $64 million to $68 million, expecting double-digit growth across its entire business base, driven by the ECO Synthesis platform and Pharma Biocatalysis.
Significant Reduction in Net Loss
Net loss for 2024 was reduced to $65.3 million from $84.4 million in the previous year, indicating improved financial management and cost reduction efforts.
Lowlights
Decline in Revenue without PAXLOVID
Annual revenue without PAXLOVID was $59.3 million, down from $62 million in the previous year, reflecting challenges in transitioning business models.
Decrease in Product Gross Margin
Product gross margin fell to 56% for the year, down from 63% previously (excluding PAXLOVID), primarily due to product mix changes.
Uncertainty in Gross Margin Improvement
Despite efforts to increase gross margins by retiring lower-margin products, there remains uncertainty about achieving significant improvement in 2025.
Company Guidance
In the recent Codexis earnings call for the fourth quarter and full year 2024, the company provided guidance for 2025, projecting total revenue between $64 million and $68 million, an increase from the $59.3 million earned in 2024. The guidance underscores the anticipated growth driven by their ECO Synthesis platform and a double-digit growth expectation for the entire revenue base. The company aims to transition its ECO Synthesis technology from development to commercial execution, with plans to sign revenue-generating contracts for siRNA manufacturing services by early Q2. Codexis expects significant contributions from their Pharma Biocatalysis business and new agreements, including a longer-term partnership with Pfizer. They project the back half of 2025 to experience substantial revenue growth as new contracts translate into financial results. The company ended 2024 with $73.5 million in cash and plans to achieve cash flow positivity by the end of 2026.Codexis Corporate Events
Executive/Board Changes
Codexis Appoints Cynthia Collins to Board of Directors
Positive
Mar 31, 2025
On March 28, 2025, Codexis, Inc. appointed Cynthia Collins as a Class II director on its Board of Directors, effective immediately. Ms. Collins, who is recognized as an independent director under Nasdaq rules, will also serve on the Compensation Committee. Her extensive experience includes roles as CEO of various biotech and healthcare companies, such as Editas Medicine and Human Longevity Inc. This strategic appointment is expected to enhance Codexis’s governance and operational oversight, leveraging Ms. Collins’s expertise in the biotech sector.
Executive/Board ChangesBusiness Operations and Strategy
Codexis Appoints Christos Richards to Board of Directors
Neutral
Jan 16, 2025
On January 14, 2025, Codexis, Inc. announced the appointment of Christos Richards to its Board of Directors as a Class II director, with his term extending to the 2027 annual meeting of stockholders. Richards, an experienced executive in the healthcare and life sciences sectors, joins the Nominating and Corporate Governance Committee and the Strategy Committee. His compensation package includes a cash retainer and restricted stock units, emphasizing the company’s strategic focus on enhancing governance and strategy. Richards’ extensive background in executive search and healthcare positions him to contribute significantly to Codexis’ future endeavors.
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.