Evogene (EVGN) AI Stock Analysis

• Market Cap: $9.21M
• Dividend Yield: N/A
• Average Volume (3M): 3.65M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: -26.38%
• EPS Growth: 40.99%
• Country: US
• Employees: 117
• Sector: Healthcare
• Sector Strength: 58
• Industry: Biotechnology
• EPS (TTM): -0.38
• Shares Outstanding: 6,672,173
• 10 Day Avg. Volume: 10,858,851
• 30 Day Avg. Volume: 3,649,575
• PEG Ratio: 0.18
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.16
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 2.26
• Enterprise Value/Ebitda: -0.16
• 1Y Price Target: $3.50
• Price Target Upside: 153.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 47 Neutral
• Price Target: $1.50 ▲(8.70%Upside)

Evogene's overall stock score is primarily impacted by its weak financial performance, characterized by persistent losses and financial instability. While technical analysis shows some short-term bullish signals, the long-term outlook remains uncertain. Valuation concerns further weigh down the score, as the negative P/E ratio and lack of dividend yield limit investor appeal. Strategic efforts in expense reduction and acquisitions offer some optimism, but substantial improvements are needed for a more favorable outlook.

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 makes money primarily through collaborations, licensing agreements, and the commercialization of its technology and products. The company partners with leading industry players in agriculture and health sectors to develop and commercialize new products. Revenue is generated from upfront payments, milestone payments, and royalties from these partnerships. Additionally, Evogene may derive income from its subsidiaries, which include product-focused companies that utilize its platform for specific applications, allowing them to tap into various market opportunities.

Evogene Financial Statement Overview

Summary

Evogene's financial health is weak, with improving revenue overshadowed by persistent losses and negative cash flow. The balance sheet shows financial vulnerability, with negative equity and high liabilities. The company needs to address operational inefficiencies and improve its cash flow management to ensure long-term 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
	EBIT
-22.21M	-26.39M	-26.94M	-30.95M	-24.81M
	EBITDA
-15.38M	-23.20M	-26.93M	-27.80M	-23.18M
	Net Income Common Stockholders
-16.48M	-23.88M	-26.64M	-27.79M	-23.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.31M	31.06M	35.35M	53.87M	48.23M
	Total Assets
39.86M	51.10M	56.13M	76.30M	71.92M
	Total Debt
12.87M	11.51M	11.93M	2.67M	2.44M
	Net Debt
-2.43M	-9.27M	-17.05M	-29.66M	-43.79M
	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: 1.38
• 50DMA: Positive
• 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 1.38 is above the 20-day moving average (MA) of 1.28, above the 50-day MA of 1.19, and below the 200-day MA of 1.73, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 55.75 is Neutral, neither overbought nor oversold. The STOCH value of 29.88 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
Sector *	54 Neutral	$5.37B	3.26	-45.10%	3.30%	16.81%	0.02%
EVGN	47 Neutral	$9.21M	―	-655.00%	―	-26.38%	40.99%
CYCN	47 Neutral	$9.99M	―	-31.48%	―	―	86.52%
SINT	42 Neutral	$8.20M	―	-155.20%	―	9.90%	94.56%
SNGX	39 Underperform	$5.88M	―	-437.73%	―	―	57.83%
BTAI	37 Underperform	$9.45M	―	82.91%	―	64.20%	73.71%
ALZN		$2.60M	―	-1092.96%	―	―	―