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Ginkgo Bioworks Holdings, Inc. (DNA)
:DNA
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Ginkgo Bioworks Holdings
(NYSE:DNA)48Neutral
Positive Factors
Cost Management
Ginkgo has made dramatic reductions on the cost side and expects additional savings by the end of third quarter 2025.
New Offerings
Newer Tools and AI offerings could drive upside for the company.
Negative Factors
Revenue Guidance
Ginkgo initiated a 2025 revenue guide well below the Street, as the company cited ongoing end market pressures, coupled with some impacts as a result of completing its ~40% workforce reduction.
Ginkgo Bioworks Holdings (DNA) vs. S&P 500 (SPY)
Market Cap
$466.72M
Dividend YieldN/A
Average Volume (3M)2.02M
Price to Earnings (P/E)―
Beta (1Y)3.19
Revenue Growth-9.71%
EPS Growth42.17%
CountryUS
Employees1,218
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)-10.62
Shares Outstanding45,808,500
10 Day Avg. Volume2,377,841
30 Day Avg. Volume2,016,083
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.08
Price to Cash Flow (P/CF)-2.80
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
$9.00Price Target Upside8.96% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering6
Ginkgo Bioworks Holdings Business Overview & Revenue Model
Company DescriptionGinkgo Bioworks Holdings (NYSE:DNA) is a biotechnology company that offers a platform for cell programming that enables the biological production of various products across the food, pharmaceutical, and fragrance industry. Its platform provides equipment, software, robotic automation, and tools to support genetic engineering, analytics, and fermentation.
How the Company Makes MoneyGinkgo Bioworks makes money primarily through its platform, which allows customers to design and produce custom microorganisms for various applications. The company generates revenue by providing organism engineering services, which are typically delivered through collaborative partnerships with other companies in industries such as pharmaceuticals, agriculture, and specialty chemicals. These partnerships often involve milestone payments and royalties based on the successful development and commercialization of products. Additionally, Ginkgo may also earn revenue from licensing its proprietary technologies and intellectual property to third parties. The company's strategic partnerships with major corporations and its ability to scale its platform to address diverse biological challenges play a significant role in its revenue generation.
Ginkgo Bioworks Holdings Financial Statement Overview
Summary
Ginkgo Bioworks Holdings faces significant financial challenges, characterized by declining revenues, persistent losses, and negative cash flows. While the balance sheet shows manageable leverage, ongoing profitability and liquidity issues pose risks.Income Statement
Ginkgo Bioworks Holdings has experienced a significant decline in revenue over the past year, with a negative revenue growth rate of approximately -9.7%. The company faces substantial profitability challenges, as indicated by negative gross and net profit margins. EBIT and EBITDA margins are also negative, highlighting ongoing operational and profitability issues.45
Neutral
Balance Sheet
The balance sheet shows a relatively stable equity base with a debt-to-equity ratio at 0.61, suggesting manageable leverage. However, the return on equity is negative due to persistent net losses. The equity ratio of 52% indicates a healthy proportion of equity financing, providing some stability amidst financial challenges.60
Neutral
Cash Flow
The cash flow statement reveals negative operating and free cash flows, consistent with the company's net losses. There is a modest improvement in operating cash flow to net income ratio, but free cash flow remains negative, reflecting ongoing cash burn and potential liquidity risks.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 227.04M | 251.46M | 477.71M | 313.84M | 76.66M | Gross Profit |
| 188.49M | 197.45M | 273.49M | 184.15M | 61.05M | EBIT |
| -559.76M | -864.41M | -2.21B | -1.83B | -137.03M | EBITDA |
| -484.39M | -821.29M | -2.06B | -1.81B | -108.58M | Net Income Common Stockholders |
| -547.03M | -892.87M | -2.10B | -1.83B | -126.61M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 561.57M | 944.07M | 1.32B | 1.55B | 380.80M | Total Assets |
| 1.38B | 1.67B | 2.54B | 2.07B | 675.15M | Total Debt |
| 438.77M | 241.77M | 442.59M | 23.03M | 17.00M | Net Debt |
| -122.81M | -702.30M | -873.20M | -1.53B | -363.80M | Total Liabilities |
| 661.39M | 568.19M | 803.04M | 503.61M | 205.10M | Stockholders Equity |
| 716.06M | 1.10B | 1.74B | 1.51B | 461.38M |
| Cash Flow | Free Cash Flow | |||
| -382.13M | -336.30M | -304.47M | -310.34M | -193.65M | Operating Cash Flow |
| -319.58M | -295.50M | -252.20M | -253.82M | -135.83M | Investing Cash Flow |
| -62.24M | -80.69M | -67.39M | -73.26M | -67.12M | Financing Cash Flow |
| -1.74M | -3.22M | 95.34M | 1.53B | 90.32M |
Ginkgo Bioworks Holdings Technical Analysis
Negative
8.26
Price Trends
11.24
Negative
9.85
Negative
11.54
Negative
Market Momentum
-1.07
Positive
35.42
Neutral
9.84
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNA, the sentiment is Negative. The current price of 8.26 is below the 20-day moving average (MA) of 11.53, below the 50-day MA of 11.24, and below the 200-day MA of 11.54, indicating a bearish trend. The MACD of -1.07 indicates Positive momentum. The RSI at 35.42 is Neutral, neither overbought nor oversold. The STOCH value of 9.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DNA.
Ginkgo Bioworks Holdings Risk Analysis
Ginkgo Bioworks Holdings disclosed 72 risk factors in its most recent earnings report. Ginkgo Bioworks Holdings 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
Ginkgo Bioworks Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
50 Neutral | $145.28M | ― | -78.56% | ― | 150.95% | 5.48% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
49 Neutral | $3.73B | ― | -19.20% | ― | -89.95% | -123.71% | |
48 Neutral | $466.72M | ― | -60.34% | ― | -9.71% | 42.17% | |
44 Neutral | $2.37B | ― | -43.28% | ― | 25.85% | 6.06% | |
42 Neutral | $179.37M | ― | -344.56% | ― | -74.04% | 48.16% | |
39 Underperform | $941.49M | ― | -54.00% | ― | 59.55% | 3.09% |
* Healthcare Sector Average
Performance Comparison
DNA
Ginkgo Bioworks Holdings
8.26
-40.54
-83.07%
SGMO
Sangamo Biosciences
0.87
-0.14
-13.86%
EDIT
Editas Medicine
2.05
-7.03
-77.42%
NTLA
Intellia Therapeutics
9.36
-20.59
-68.75%
CRSP
Crispr Therapeutics AG
43.84
-36.99
-45.76%
TWST
Twist Bioscience
42.05
3.97
10.43%
Ginkgo Bioworks Holdings Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -19.73% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. While the company showcased strong cash management, cost reduction, and growth in Cell Engineering revenue, it faced challenges with declining full-year revenue in Cell Engineering and Biosecurity, as well as uncertainty in government contracts. The successful launch of new tools and services offerings provided a positive outlook, but these were offset by the revenue declines in key segments.Highlights
Cash and Cost Management Achievements
Ended Q4 2024 with $562 million in cash and no bank debt, significantly exceeding original cost-cutting target for 2024 and reducing cash burn from $114 million in Q3 to $55 million in Q4.
Cell Engineering Revenue Growth
Cell Engineering revenue increased by 29% in Q4 2024 compared to Q4 2023, driven by growth with large biopharma customers and government accounts.
Record Number of Technical Milestones
Achieved a record number of technical milestones in Q4 2024, demonstrating strong delivery capability for customers.
Restructuring and Cost Reduction Success
Achieved $190 million annualized run rate reduction through Q4 compared to Q1 2024, surpassing the $100 million spending cut target for 2024.
New Customer Acquisition and Tools Offering
Added 31 new programs and contracts in Q4 2024, with significant traction in new tools and services offerings, including data points and automation.
Lowlights
Decline in Full Year Cell Engineering Revenue
Full year 2024 Cell Engineering revenue, excluding a noncash item, decreased by 10% compared to 2023, due to customer mix shift and commercial changes.
Biosecurity Revenue Decline
Biosecurity revenue decreased by 51% from $108 million in 2023 to $53 million in 2024 due to the end of K-12 COVID testing contracts.
Government Contract Uncertainty
Uncertainties in government funding posed risks to growth in the Cell Engineering and Biosecurity segments for 2025.
Company Guidance
During the call, Ginkgo Bioworks provided detailed guidance and updates on various business metrics. The company ended the fourth quarter of 2024 with $562 million in cash, no bank debt, and managed to exceed its original cost-cutting target for the year. Revenue from the Cell Engineering business reached $35 million in Q4, marking a 29% increase from the same quarter in 2023, primarily due to growth with large biopharma and government customers. Despite a full year revenue of $174 million from Cell Engineering services, excluding a $45 million noncash deferred revenue release, the figure was down 10% year-over-year. The Biosecurity business generated $9 million in Q4 with a gross margin of 17%, and its full year revenue was $53 million, down 51% from 2023. Ginkgo aims to achieve adjusted EBITDA breakeven by the end of 2026, with 2025 revenue guidance set between $160 million and $180 million. The company also highlighted significant operational cost reductions and a decrease in cash burn from $114 million in Q3 to $55 million in Q4 of 2024.Ginkgo Bioworks Holdings Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Ginkgo Bioworks Reports 61% Revenue Jump in Q3 2024
Positive
Nov 12, 2024
Ginkgo Bioworks reported a significant revenue increase of 61% in Q3 2024, primarily due to a $45 million non-cash deferred revenue release, despite a shift towards larger customers impacting cell engineering revenue. The company is advancing its strategic partnerships, including new deals with Novo Nordisk and Merck, and is focused on cost-cutting and site consolidation to achieve EBITDA breakeven by 2026. With the recent board changes, Ginkgo is poised to strengthen its position in the biosecurity market while enhancing its promising cell programming platform.
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.