Codexis (CDXS) AI Stock Analysis

• Market Cap: $242.74M
• Dividend Yield: N/A
• Average Volume (3M): 891.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.67
• Revenue Growth: -32.89%
• EPS Growth: -5.03%
• Country: US
• Employees: 188
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -0.25
• Shares Outstanding: 82,844,850
• 10 Day Avg. Volume: 895,310
• 30 Day Avg. Volume: 891,817
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 4.43
• Enterprise Value/Gross Profit: 6.42
• Enterprise Value/Ebitda: -3.41
• 1Y Price Target: $5.88
• Price Target Upside: 100.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 48 Neutral
• Price Target: $3.00 ▲(2.39% Upside)

Codexis's overall stock score is primarily impacted by its challenging financial performance, characterized by declining revenues and high leverage. While technical analysis shows mixed signals, the valuation remains unattractive due to ongoing losses. The earnings call provides some optimism with strategic advancements and a strong cash position, but significant risks remain.

Positive Factors

Contracts and Partnerships

The company secured the first revenue-generating contract for the ECO Synthesis Innovation Lab and met industrial grade criteria across first-generation enzymes.

Customer Engagement

Customer interest continues to gain steam as Codexis announced the first revenue-generating contract for ECO Synthesis, with more to come throughout the year.

Negative Factors

Financial Results

Q4 revenues of $21.5M missed consensus estimates of $27.4M.

Revenue Performance

Revenues of $7.5M were 56% lower year-over-year, missing expectations by $2.2M.

Codexis Business Overview & Revenue Model

Company Description

Codexis, Inc. (CDXS) is a biotechnology company that focuses on the development and commercialization of enzymes for a wide range of applications. Operating primarily in the biopharmaceutical and industrial sectors, Codexis utilizes its proprietary CodeEvolver® platform technology to engineer enzymes that enhance the efficacy and efficiency of pharmaceutical manufacturing, food processing, and other industrial processes. The company aims to provide sustainable solutions that improve product quality and reduce environmental impact.

How the Company Makes Money

Codexis generates revenue through the sale of its engineered enzymes and related products, as well as through licensing its proprietary CodeEvolver® technology to partners in various industries. The company engages in strategic collaborations and partnerships with pharmaceutical companies, which often involve milestone payments, royalties, and development fees. Additionally, Codexis derives income from research and development agreements, where it collaborates with other companies to innovate and optimize enzyme solutions tailored to specific customer needs.

Codexis Financial Statement Overview

Summary

Codexis is facing significant financial challenges, including declining revenues, persistent losses, and high leverage. The financial health is precarious, with a high debt-to-equity ratio and negative cash flow generation. The company must improve operational efficiency and profitability to stabilize its finances.

Income Statement

Codexis has faced declining revenues and consistent net losses. TTM revenue decreased by 16.05% compared to the previous annual period. The gross profit margin is healthy at approximately 69.06% for TTM, but the net profit margin remains deeply negative at -149.45%. The company struggles with profitability as indicated by negative EBIT and EBITDA margins.

Balance Sheet

Codexis has a precarious balance sheet with a debt-to-equity ratio of 1.20, indicating high leverage. The equity ratio is around 42.65% for TTM, showing moderate equity financing. Return on equity is negative, reflecting the company's unprofitable operations. The company needs to address its high debt levels and improve profitability to stabilize its financial health.

Cash Flow

The cash flow situation is concerning with negative free cash flow and operating cash flow for TTM. The free cash flow to net income ratio is positive due to large adjustments, but the operating cash flow to net income ratio is negative, highlighting cash generation issues. The company continues to burn cash, necessitating improvements in operational efficiency.

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
EBITDA	-58.52M	-49.28M	-23.07M	-16.75M	-19.37M
Net Income	-65.28M	-76.24M	-33.59M	-21.28M	-24.01M
Balance Sheet
Total Assets	149.01M	136.56M	250.39M	246.38M	221.65M
Cash, Cash Equivalents and Short-Term Investments	73.46M	65.12M	113.98M	116.80M	150.12M
Total Debt	59.90M	16.02M	43.64M	47.65M	24.95M
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

• Technical Analysis Sentiment: Positive
• Last Price: 2.93
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 2.93 is below the 20-day moving average (MA) of 2.94, above the 50-day MA of 2.62, and below the 200-day MA of 3.40, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 54.02 is Neutral, neither overbought nor oversold. The STOCH value of 30.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CDXS.

Codexis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.39B	0.40	-62.86%	2.37%	15.56%	-1.99%
FHTX	51 Neutral	$278.71M	―	322.49%	―	-31.30%	36.26%
CDXS	48 Neutral	$242.74M	―	-115.53%	―	-32.89%	-5.03%
NVCT	48 Neutral	$144.17M	―	-150.12%	―	―	22.99%
AVIR	47 Neutral	$301.24M	―	-30.47%	―	―	-22.66%
IKT	46 Neutral	$133.81M	―	-79.02%	―	-100.00%	38.72%
TERN	45 Neutral	$531.01M	―	-35.02%	―	―	10.98%

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.

The most recent analyst rating on (CDXS) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Codexis stock, see the CDXS Stock Forecast page.