Codexis (CDXS) AI Stock Analysis

• Market Cap: $212.13M
• Dividend Yield: N/A
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.45
• Revenue Growth: -6.12%
• EPS Growth: 24.99%
• Country: US
• Employees: 188
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.16
• Shares Outstanding: 90,267,460
• 10 Day Avg. Volume: 706,975
• 30 Day Avg. Volume: 1,147,242
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 3.68
• Enterprise Value/Gross Profit: 4.74
• Enterprise Value/Ebitda: -3.93
• 1Y Price Target: $6.33
• Price Target Upside: 169.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 46 Neutral
• Price Target: $2.50 ▲(6.38% Upside)

Codexis faces substantial financial challenges, with weak profitability and cash flow metrics being the most significant factors. While the earnings call provided some positive insights, including revenue growth and improved margins, the overall financial instability and bearish technical indicators weigh heavily on the stock's score. The valuation remains unattractive due to ongoing losses and the absence of dividends.

Positive Factors

Revenue Growth

The significant increase in revenue indicates strong demand for Codexis's products, particularly in the Pharma Biocatalysis business, which suggests a positive trend in market adoption and potential for future growth.

Improved Margins

The improvement in product gross margin reflects a successful shift towards more profitable products, enhancing the company's ability to sustain profitability and invest in growth opportunities.

Strong Cash Position

A strong cash position provides Codexis with the financial flexibility to invest in R&D and expand its production capacity, supporting long-term strategic initiatives and operational stability.

Negative Factors

Revenue Variability

Revenue variability poses a challenge to financial predictability and planning, potentially impacting the company's ability to forecast and manage resources effectively.

Increased R&D Expenses

Rising R&D expenses, driven by higher headcount and internal reclassification, could strain financial resources and impact short-term profitability, although it may support long-term innovation.

Declining Revenue

The ongoing decline in revenue indicates challenges in maintaining market share and competitive positioning, which could affect long-term growth prospects and operational sustainability.

Codexis Business Overview & Revenue Model

Company Description

Codexis, Inc. (CDXS) is a biotechnology company that specializes in the development of engineered enzymes and proteins for use in pharmaceuticals, food, and industrial applications. The company operates primarily in the biotechnology sector, focusing on providing innovative solutions that enhance the efficiency and sustainability of manufacturing processes. Codexis's core products include enzyme products that serve diverse applications, from improving drug manufacturing to enabling more sustainable food production.

How the Company Makes Money

Codexis generates revenue primarily through the sale of its engineered enzymes and related products, as well as through collaboration agreements and licenses with pharmaceutical and industrial partners. The company's revenue model includes upfront payments, milestone payments, and royalties from product sales associated with its partnerships. Significant collaborations with major pharmaceutical companies contribute to its earnings by allowing Codexis to leverage its technology to enhance drug development processes. Additionally, the company may receive funding through grants and contracts aimed at advancing its research and development efforts.

Codexis Financial Statement Overview

Summary

Codexis is facing significant financial challenges, with declining revenues, persistent losses, and increasing leverage. The company's profitability and cash flow metrics indicate operational inefficiencies and financial instability. While there are some minor improvements in certain areas, the overall financial health remains weak.

Income Statement

Codexis has experienced a decline in revenue over the past few years, with a notable drop in 2023. The company has consistently reported negative net profit margins, indicating ongoing profitability challenges. While there was a slight improvement in gross profit margin in the TTM period, the EBIT and EBITDA margins remain negative, reflecting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has increased significantly in the TTM period, suggesting a higher reliance on debt financing. Return on equity is negative, indicating that the company is not generating profits from shareholders' equity. The equity ratio has also decreased, pointing to a weakened financial position.

Cash Flow

Codexis has faced challenges with negative operating and free cash flows, although there was a slight improvement in free cash flow growth in the TTM period. The operating cash flow to net income ratio remains negative, highlighting cash flow issues. The free cash flow to net income ratio is positive, but this is due to both metrics being negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.16M	59.34M	70.14M	138.59M	104.75M	69.06M
Gross Profit	44.36M	43.06M	57.33M	100.56M	82.55M	55.31M
EBITDA	-53.60M	-58.52M	-49.28M	-23.07M	-16.75M	-19.37M
Net Income	-64.98M	-65.28M	-76.24M	-33.59M	-21.28M	-24.01M
Balance Sheet
Total Assets	138.25M	149.01M	136.56M	250.39M	246.38M	221.65M
Cash, Cash Equivalents and Short-Term Investments	66.33M	73.46M	65.12M	113.98M	116.80M	150.12M
Total Debt	68.98M	59.90M	16.02M	43.64M	47.65M	24.95M
Total Liabilities	82.61M	82.08M	49.95M	105.60M	81.99M	51.54M
Stockholders Equity	55.63M	66.93M	86.61M	144.80M	164.39M	170.10M
Cash Flow
Free Cash Flow	-67.77M	-53.72M	-57.06M	2.98M	-28.09M	-20.21M
Operating Cash Flow	-61.22M	-49.41M	-52.64M	11.28M	-14.27M	-16.46M
Investing Cash Flow	10.07M	-56.98M	-4.86M	-13.58M	-21.42M	-5.75M
Financing Cash Flow	59.30M	60.52M	8.17M	-575.00K	3.77M	80.81M

Codexis Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2.35 is below the 20-day moving average (MA) of 2.56, below the 50-day MA of 2.78, and below the 200-day MA of 3.24, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 34.42 is Neutral, neither overbought nor oversold. The STOCH value of 48.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CDXS.

Codexis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVCT	48 Neutral	157.58M	-5.50	0.00%	―	0.00%	10.63%
AVIR	47 Neutral	230.93M	-1.80	0.00%	―	0.00%	23.24%
IKT	46 Neutral	116.25M	-1.43	0.00%	―	-100.00%	62.82%
CDXS	46 Neutral	$212.13M	―	-111.00%	―	-6.12%	24.99%
FHTX	46 Neutral	271.34M	-3.87	98.35%	―	-31.30%	36.26%
TERN	45 Neutral	647.58M	-7.08	0.00%	―	0.00%	20.37%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Codexis Corporate Events

Codexis Stockholders Approve Key Proposals at Annual Meeting

Codexis recently held its Annual Meeting where stockholders voted on several key proposals. David V. Smith and Dennis P. Wolf were elected as directors for a term expiring in 2028. Stockholders also ratified KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, approved executive compensation on a non-binding basis, and approved an amendment to the 2019 Incentive Award Plan.