Evogene (EVGN) AI Stock Analysis

• Market Cap: $10.89M
• Dividend Yield: N/A
• Average Volume (3M): 99.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: -26.38%
• EPS Growth: 40.99%
• Country: US
• Employees: 117
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.38
• Shares Outstanding: 8,714,230
• 10 Day Avg. Volume: 96,326
• 30 Day Avg. Volume: 99,096
• 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: 1.59
• Enterprise Value/Revenue: 2.03
• Enterprise Value/Gross Profit: 3.31
• Enterprise Value/Ebitda: -1.12
• 1Y Price Target: $2.83
• Price Target Upside: 112.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 46 Neutral
• Price Target: $1.50 ▲(12.78% Upside)

Evogene's overall stock score is primarily impacted by its weak financial performance, characterized by persistent losses and negative cash flow. While the company has made strategic moves to reduce expenses and execute acquisitions, these are offset by a significant revenue decline and the need for additional funding. Technical indicators suggest a bearish trend, and valuation metrics are unattractive due to ongoing losses.

Positive Factors

Cost Management

Cost controls have appropriately been implemented, leading to a lower than expected operating expense and an EBITDA beat despite lower revenues.

Potential Growth

Casterra is believed to be a potential catalyst for the stock via commercial successes, with material value also seen in AgPlenus and Lavie Bio.

Negative Factors

Order Delays

Delays in current order delivery and a follow-on order continue to be a material headwind for investors.

Order Visibility

There is little visibility of a follow-on order at Casterra, which was expected to be a significant commercial catalyst.

Stock Dilution

The diluted share base effectively doubled due to a $5.5M raise, contributing to the decision to lower the price target.

Evogene Business Overview & Revenue Model

Company Description

Evogene Ltd., together with its subsidiaries, operates as a computational biology company. It focuses on product discovery and development in multiple life-science based industries, including human health and agriculture, through the use of its Computational Predictive Biology (CPB) platform. The CPB platform, incorporating a deep understanding of biology leveraged through big data and artificial intelligence, designed to computationally discover and uniquely guide the development of life-science products based on microbes, small molecules, and genetic elements. The company operates through three segments: Agriculture, Human Health, and Industrial Applications. The Agriculture segment develops seed traits, ag-chemical products, and ag-biological products to enhance plant performance. Its products focus on various crops, such as corn, soybean, wheat, rice, and cotton. The Industrial Applications segment develops enhanced castor bean seeds to serve as a feedstock source for other industrial uses. The Human Health segment discovers and develops human microbiome-based therapeutics for the treatment of immuno-oncology, GI related disorders, and antimicrobial resistance organisms. The company also provides medical cannabis products. It operates in the United States, Israel, Brazil, and internationally. The company has strategic collaborations and licensing agreements with agricultural companies, such as BASF SE, Corteva, and Bayer; and through its subsidiary, Canonic Ltd., has a collaboration agreement with Cannbit Ltd. for the development of novel medical cannabis products. Evogene Ltd. was founded in 1999 and is headquartered in Rehovot, Israel.

How the Company Makes Money

Evogene generates revenue primarily through the commercialization of its proprietary technologies and products in the agriculture and pharmaceutical sectors. Key revenue streams include licensing agreements with agricultural companies for its seed traits and technologies, partnerships with industry leaders for co-development projects, and the sale of bio-stimulants and other agricultural solutions. Additionally, the company benefits from strategic collaborations and joint ventures that provide funding and resources for its research and development efforts, further contributing to its earnings.

Evogene Financial Statement Overview

Summary

Evogene's financial health is weak, with persistent losses, negative cash flow, and financial instability. Despite revenue growth, the balance sheet shows negative equity and high liabilities, indicating a need for improved cash flow management to ensure sustainability.

Income Statement

Evogene has shown revenue growth over the years, with a notable increase in 2024. However, the company consistently reports negative EBIT and Net Income, indicating substantial operational challenges. Gross Profit Margin improved significantly in 2024, but the negative Net Profit Margin remains concerning.

Balance Sheet

The balance sheet reflects a high level of liabilities compared to equity, with a negative Stockholders' Equity in 2024, indicating financial instability. The Debt-to-Equity Ratio is not meaningful due to negative equity, while the Equity Ratio has declined sharply.

Cash Flow

The company generates negative Free Cash Flow, with no positive growth trend. Operating Cash Flow remains negative and unstable, indicating cash management issues. There is a reliance on financing activities to fund operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.51M	5.64M	1.68M	930.00K	1.04M
Gross Profit	5.83M	1.40M	766.00K	163.00K	466.00K
EBITDA	-15.48M	-23.20M	-26.93M	-27.80M	-23.18M
Net Income	-16.48M	-23.88M	-26.64M	-27.79M	-23.37M
Balance Sheet
Total Assets	39.86M	51.10M	56.13M	76.30M	71.92M
Cash, Cash Equivalents and Short-Term Investments	15.31M	31.06M	35.35M	53.87M	48.23M
Total Debt	12.87M	11.51M	11.93M	2.67M	2.44M
Total Liabilities	25.03M	22.42M	21.34M	12.88M	15.03M
Stockholders Equity	-1.45M	12.05M	27.93M	54.03M	46.05M
Cash Flow
Free Cash Flow	-20.33M	-22.36M	-24.85M	-25.56M	-20.20M
Operating Cash Flow	-19.70M	-21.58M	-23.68M	-24.84M	-19.51M
Investing Cash Flow	9.62M	-4.54M	13.27M	-20.44M	9.41M
Financing Cash Flow	4.66M	18.15M	9.34M	30.28M	20.37M

Evogene Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.33
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVGN, the sentiment is Positive. The current price of 1.33 is above the 20-day moving average (MA) of 1.27, below the 50-day MA of 1.34, and below the 200-day MA of 1.44, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 53.90 is Neutral, neither overbought nor oversold. The STOCH value of 57.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EVGN.

Evogene Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOLT	52 Neutral	$10.54M	―	-83.92%	―	-67.87%	0.40%
Sector *	51 Neutral	$7.43B	-0.36	-45.45%	2.27%	22.98%	-2.34%
EVGN	46 Neutral	$10.89M	―	-655.00%	―	-26.38%	40.99%
PHGE	44 Neutral	$14.71M	―	-99.35%	―	―	80.30%
IBIO	42 Neutral	$9.30M	―	-90.83%	―	650.00%	85.42%
KZIA	31 Underperform	$9.50M	―	-3028.18%	―	―	-32.63%
WINT	28 Underperform	$14.85M	―	-120.01%	―	―	34.39%