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Evogene Ltd. (EVGN)
:EVGN

Evogene (EVGN) AI Stock Analysis

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Evogene

(NASDAQ:EVGN)

Rating:51Neutral
Price Target:
$1.50
▲(6.38%Upside)
Evogene faces significant financial challenges, with weak financial performance being the main concern. Technical indicators suggest a neutral market sentiment, while valuation metrics reflect the company's unprofitability. Earnings call insights reveal both strategic progress and operational hurdles, contributing to a modest overall score.
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 (EVGN) vs. SPDR S&P 500 ETF (SPY)

Evogene Business Overview & Revenue Model

Company DescriptionEvogene 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 MoneyEvogene makes money primarily through partnerships and collaborations with leading companies in the agriculture and healthcare industries. The company generates revenue by licensing its technologies and products, as well as through milestone payments and royalties from its agreements. Evogene's CPB platform is a significant factor in its earnings, as it provides a competitive edge in discovering and optimizing new biological products. Additionally, Evogene has several subsidiaries, such as Lavie Bio, AgPlenus, and Biomica, which focus on specific market segments and contribute to the company's diversified revenue streams.

Evogene Earnings Call Summary

Earnings Call Date:May 21, 2025
(Q1-2025)
|
% Change Since: 11.02%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Evogene's strategic efforts to reduce expenses and successfully execute acquisitions, leading to a more sustainable financial position. However, it also revealed a significant revenue decline and the need for additional funding for certain projects, balancing out the positive achievements.
Q1-2025 Updates
Positive Updates
Expense Reduction Plan
Evogene has established an expense reduction plan reflected in the first-quarter results and expects it to be completed by the second quarter of 2025. This plan led to a decrease in total operating expenses from $8 million in Q1 2024 to $5 million in Q1 2025.
Successful Acquisition of Lavie Bio by ICL
Evogene announced the acquisition of Lavie Bio's activities by ICL for $15.25 million, plus $3.5 million for the MicroBoost AI tech-engine. The deal is expected to close in the second quarter of 2025.
Casterra's Seed Sales Growth
Casterra delivered 250 tons of castor seeds in Q1 2025, surpassing the 215 tons delivered in the entire year of 2024, indicating strong growth in this segment.
AgPlenus' New Fungicide Discovery
AgPlenus discovered a new mode of action for fungicides against Septoria in wheat, with plans to engage licensing partners by year-end.
Advancements in ChemPass-AI for Pharma
Evogene has made substantial progress in refining ChemPass-AI for pharma, particularly in its collaboration with Google Cloud to develop a foundation model application.
Negative Updates
Revenue Decline
Total revenues in Q1 2025 were $2.4 million, a significant decrease from $4.2 million in Q1 2024, primarily due to the absence of license fee payments that were included in the previous year's results.
Decreased R&D and Marketing Expenses
R&D expenses decreased from $4.8 million in Q1 2024 to $3.2 million in Q1 2025, and sales and marketing expenses decreased from $1 million to $0.6 million, mainly due to reduced activities in Lavie Bio and Biomica.
Need for Additional Funding for Biomica
Additional funding is necessary for Biomica to advance to Phase II of its clinical study for BMC128. The company is also implementing an expense reduction plan to be completed by Q3 2025.
Company Guidance
During the first quarter of 2025, Evogene reported total revenues of approximately $2.4 million, a decrease from $4.2 million in the same period in 2024. This decline was primarily due to the previous year's inclusion of significant license fee payments. The primary revenue driver in 2025 was an increase in seed sales by Casterra. The company implemented an expense reduction plan, reflected in reduced operating expenses of approximately $5 million compared to $8 million in 2024. R&D expenses were reduced to $3.2 million from $4.8 million, and sales and marketing expenses decreased to $645,000 from $1 million. As of the end of the first quarter, cash and short-term bank deposits were approximately $9.8 million. Evogene also highlighted a transaction with ICL, expected to close in the second quarter, involving the acquisition of Lavie Bio's assets, valued at $15.25 million, and the MicroBoost AI for Ag tech-engine for $3.5 million.

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
35
Negative
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
25
Negative
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
30
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.51M5.64M1.68M930.00K1.04M
Gross Profit5.83M1.40M766.00K163.00K466.00K
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 Assets39.86M51.10M56.13M76.30M71.92M
Cash, Cash Equivalents and Short-Term Investments15.31M31.06M35.35M53.87M48.23M
Total Debt12.87M11.51M11.93M2.67M2.44M
Total Liabilities25.03M22.42M21.34M12.88M15.03M
Stockholders Equity-1.45M12.05M27.93M54.03M46.05M
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 Flow9.62M-4.54M13.27M-20.44M9.41M
Financing Cash Flow4.66M18.15M9.34M30.28M20.37M

Evogene Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.41
Price Trends
50DMA
1.28
Positive
100DMA
1.29
Positive
200DMA
1.62
Negative
Market Momentum
MACD
0.01
Positive
RSI
53.01
Neutral
STOCH
50.15
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 1.41 is below the 20-day moving average (MA) of 1.45, above the 50-day MA of 1.28, and below the 200-day MA of 1.62, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 53.01 is Neutral, neither overbought nor oversold. The STOCH value of 50.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EVGN.

Evogene Risk Analysis

Evogene disclosed 62 risk factors in its most recent earnings report. Evogene reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Evogene Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
$7.45B0.27-61.87%2.30%16.62%1.04%
51
Neutral
$11.50M-655.00%-26.38%40.99%
47
Neutral
$9.92M-31.48%86.52%
42
Neutral
$8.18M-155.20%9.90%94.56%
39
Underperform
$3.66M-437.73%57.83%
37
Underperform
$11.51M82.91%64.20%73.71%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EVGN
Evogene
1.41
-4.84
-77.44%
SINT
Sintx Technologies
3.31
-1.67
-33.53%
SNGX
Soligenix
1.22
-6.51
-84.22%
BTAI
Bioxcel Therapeutics
2.01
-15.59
-88.58%
CYCN
Cyclerion Therapeutics
3.14
-0.67
-17.59%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 09, 2025