Codexis (CDXS) AI Stock Analysis

• Market Cap: $116.52M
• Dividend Yield: N/A
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.12
• Revenue Growth: -17.87%
• EPS Growth: 14.42%
• Country: US
• Employees: 188
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.22
• Shares Outstanding: 90,324,390
• 10 Day Avg. Volume: 1,704,148
• 30 Day Avg. Volume: 1,146,380
• PEG Ratio: 0.26
• Price to Book (P/B): 5.23
• Price to Sales (P/S): 5.90
• P/FCF Ratio: -6.52
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 3.03
• Enterprise Value/Gross Profit: 3.82
• Enterprise Value/Ebitda: -2.90
• 1Y Price Target: $6.00
• Price Target Upside: 361.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $1.00 ▼(-23.08% Downside)

Codexis's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and high leverage. While the earnings call provided some optimism with strategic partnerships and platform growth, the technical analysis and valuation remain weak, reflecting ongoing challenges in achieving profitability and market confidence.

Positive Factors

Supply Assurance Agreement with Merck

A supply assurance agreement with Merck provides nondilutive revenue and demand visibility, materially reducing near-term commercial execution risk. It supports predictable manufacturing volumes and helps underwrite investment in scaling the ECO platform over the next several quarters.

ECO Synthesis Platform Commercial Traction

Rapid growth in revenue-bearing contracts and a large pipeline indicate product-market fit for enzymatic oligonucleotide manufacturing. Durable contract flow and demonstrated 3kg siRNA production evidence scalable capability and potential for repeatable, higher-margin commercial manufacturing revenue.

Improved liquidity and operational runway

A cash balance and explicit runway into 2027, augmented by the Merck agreement, materially reduce near-term financing pressure. This gives management time to commercialize ECO, convert pipeline contracts, and execute operational optimizations without immediate capital raises.

Negative Factors

High leverage

Elevated leverage constrains financial flexibility and increases fixed interest obligations, making the company more sensitive to revenue shortfalls. With ongoing operating losses, high debt raises refinancing and covenant risks and limits capacity for strategic investments over the medium term.

Declining revenues and negative margins

Sustained revenue decline and deeply negative profitability margins (large net and EBIT deficits) undermine cash generation and long-term sustainability. Persistent top-line volatility from customer schedules makes scaling fixed-cost manufacturing risky and delays achieving operating leverage.

Exit from small-molecule biocatalysis risks revenue mix

Abandoning the historical small-molecule services reduces diversification and may depress near-term service revenue. The transition concentrates execution on ECO and oligo manufacturing, raising execution risk if platform commercialization or customer adoption lags initial forecasts.

Codexis Business Overview & Revenue Model

Company Description

Codexis, Inc. discovers, develops, and sells enzymes and other proteins. It offers biocatalyst products and services; intermediate chemicals products that are used for further chemical processing; and Codex biocatalyst panels and kits that enable customers to perform chemistry screening. The company also provides biocatalyst screening and protein engineering services. In addition, it offers CodeEvolver protein engineering technology platform, which helps in developing and delivering biocatalysts that perform chemical transformations and enhance the efficiency and productivity of manufacturing processes. The company's platform is also used to discover novel biotherapeutic drug candidates for targeted human diseases, as well as for molecular biology and in vitro diagnostic enzymes. It sells its products to pharmaceutical manufacturers through its direct sales and business development force in the United States and Europe. The company was incorporated in 2002 and is headquartered in Redwood City, California.

How the Company Makes Money

Codexis generates revenue primarily through its enzyme product sales, licensing agreements, and collaborations with pharmaceutical and industrial partners. The company earns money by selling its engineered enzymes directly to customers in sectors such as pharmaceuticals, where they are used in drug manufacturing processes to improve yields and reduce costs. Additionally, Codexis establishes partnerships with other companies to develop and commercialize specific enzyme products, sharing in the revenues generated from these collaborations. The company also receives upfront payments and milestone payments from its partners, contributing to its overall earnings. Codexis's focus on unlocking the potential of biocatalysis in various markets, combined with its innovative platform, positions it to capitalize on growing demand for sustainable and efficient enzyme solutions.

Codexis Financial Statement Overview

Summary

Codexis faces significant financial challenges, including declining revenues, negative profitability margins, and increased leverage. The company's ability to generate cash is constrained, and its financial stability is at risk due to high debt levels and ongoing losses.

Income Statement

Codexis has experienced declining revenue growth with a negative rate of -7.40% in the TTM period. The company also shows negative profitability margins, with a net profit margin of -120.82% and an EBIT margin of -83.71%. These figures indicate significant challenges in achieving profitability and managing costs effectively.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.78 in the TTM period, indicating higher leverage and potential financial risk. The return on equity is negative at -121.39%, reflecting ongoing losses. The equity ratio is low, suggesting limited equity financing relative to total assets.

Cash Flow

Codexis has a negative free cash flow growth rate of -9.01% in the TTM period, indicating challenges in generating cash. The operating cash flow to net income ratio is -3.03, highlighting inefficiencies in converting income into cash. However, the free cash flow to net income ratio is slightly positive at 1.10, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	52.93M	59.34M	70.14M	138.59M	104.75M	69.06M
Gross Profit	41.98M	43.06M	57.33M	100.56M	82.55M	55.31M
EBITDA	-55.27M	-58.52M	-49.28M	-26.31M	-16.75M	-19.37M
Net Income	-63.95M	-65.28M	-76.24M	-33.59M	-21.28M	-24.01M
Balance Sheet
Total Assets	123.96M	149.01M	136.56M	250.39M	246.38M	221.65M
Cash, Cash Equivalents and Short-Term Investments	59.19M	73.46M	65.12M	113.98M	116.80M	150.12M
Total Debt	68.62M	59.90M	16.02M	43.64M	47.65M	24.95M
Total Liabilities	85.42M	82.08M	49.95M	105.60M	81.99M	51.54M
Stockholders Equity	38.54M	66.93M	86.61M	144.80M	164.39M	170.10M
Cash Flow
Free Cash Flow	-61.66M	-53.72M	-57.06M	2.98M	-28.09M	-20.21M
Operating Cash Flow	-55.94M	-49.41M	-52.64M	11.28M	-14.27M	-16.46M
Investing Cash Flow	14.93M	-56.98M	-4.86M	-13.58M	-21.42M	-5.75M
Financing Cash Flow	28.88M	60.52M	8.17M	-575.00K	3.77M	80.81M

Codexis Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.3 is below the 20-day moving average (MA) of 1.63, below the 50-day MA of 1.66, and below the 200-day MA of 2.31, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 32.48 is Neutral, neither overbought nor oversold. The STOCH value of 9.42 is Positive, 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
OABI	55 Neutral	$266.32M	-3.15	-22.37%	―	3.36%	5.15%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
RNAC	51 Neutral	$189.31M	-0.13	―	―	―	―
CABA	50 Neutral	$274.36M	-1.09	-101.06%	―	―	-17.21%
VOR	50 Neutral	$301.05M	-0.04	―	―	―	-1072.48%
ELTX	43 Neutral	$143.24M	-2.38	―	―	―	17.36%
CDXS	42 Neutral	$116.52M	-1.73	-114.26%	―	-17.87%	14.42%

Codexis Corporate Events

Codexis Announces Workforce Reduction and New CEO

On November 6, 2025, Codexis announced a 24% workforce reduction to streamline operations and focus on its ECO Synthesis platform, expecting to incur a $3.5 million expense in the fourth quarter of 2025. Additionally, the company appointed Alison Moore as the new CEO, succeeding Stephen Dilly, who will remain as Chair of the Board. Codexis also signed a $37.8 million Supply Assurance Agreement with Merck, which, along with organizational changes, is expected to extend its cash runway through 2027.

The most recent analyst rating on (CDXS) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Codexis stock, see the CDXS Stock Forecast page.