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Genus PLC (GB:GNS)
LSE:GNS

Genus plc (GNS) AI Stock Analysis

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GB

Genus plc

(LSE:GNS)

67Neutral
Genus plc shows a moderate overall stock score, driven by strong strategic progress and positive earnings call insights. However, financial performance concerns, particularly in cash flow and valuation challenges due to negative P/E, temper the outlook. Positive technical indicators and a stable balance sheet provide some support.
Positive Factors
Financial Performance
Genus announced that adjusted profit before tax for the first half of FY25 will be at least £35m, which is ahead of expectations.
Growth Prospects
The execution of VAP Phase 2 is on track, expected to further help ABS deliver significant profit growth.
Market Sentiment
A recent relief rally in the stock price reflects positive sentiment following prior weakness.
Negative Factors
Economic Conditions
There is caution due to continued economic weakness in China and the possibility of tariff wars, which could impact the business negatively.
Regulatory Challenges
Uncertainty exists due to important regulatory and commercial hurdles for the PRP programme, affecting near-term confidence.
Stock Rating
The stock rating has been downgraded from Buy to Hold due to weaker sentiment and a cautious outlook.

Genus plc (GNS) vs. S&P 500 (SPY)

Genus plc Business Overview & Revenue Model

Company DescriptionGenus plc is a leading global animal genetics company dedicated to enhancing the productivity and efficiency of livestock farming. Operating primarily in the dairy, beef, and pork sectors, Genus delivers superior genetic products and services that enhance animal breeding and production. The company leverages advanced scientific research and biotechnological innovations to develop genetic solutions that increase the quality and profitability of livestock for farmers across the world.
How the Company Makes MoneyGenus plc makes money by producing and selling high-quality genetic materials, including semen and embryos, which are utilized to improve the livestock of farmers and breeders globally. Its core revenue streams include the sale of these genetic products and related services in the bovine and porcine sectors. The company also engages in strategic partnerships and collaborations with academic institutions, research organizations, and industry partners to enhance its product offerings and reach. Additional revenue is generated through consulting services and technology licensing agreements, which provide farmers with advanced breeding techniques and genetic management solutions that optimize livestock productivity and quality.

Genus plc Financial Statement Overview

Summary
Genus plc's financial performance is moderate. The income statement reveals diminishing revenue growth and declining net income, although the company maintains a positive EBITDA margin. The balance sheet suggests manageable leverage with a stable equity ratio but increasing debt levels. The cash flow statement indicates potential liquidity challenges due to declining free cash flow, necessitating careful debt management and a focus on cash generation.
Income Statement
65
Positive
Genus plc shows diminishing revenue growth with a significant decline in net income from the previous year, affecting profitability. The gross profit margin has weakened, indicating rising costs or pricing pressure. However, the company maintains a positive EBITDA margin, reflecting operational efficiency despite recent setbacks.
Balance Sheet
70
Positive
The balance sheet is stable with a moderate debt-to-equity ratio, suggesting manageable leverage. The equity ratio remains robust, highlighting a solid capital structure. However, recent increases in total debt could pose future risk if not managed properly.
Cash Flow
55
Neutral
The cash flow statement reveals a sharp decline in free cash flow, reflecting increased capital expenditures or reduced cash generation. Operating cash flow remains positive, but decreases in free cash flow to net income ratio indicate potential liquidity challenges if trends continue.
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
668.80M689.70M593.40M574.30M551.40M
Gross Profit
178.70M239.30M226.00M232.20M211.60M
EBIT
6.40M40.50M56.60M61.50M45.40M
EBITDA
73.70M87.50M79.80M82.30M68.00M
Net Income Common Stockholders
7.90M33.30M40.90M47.30M35.30M
Balance SheetCash, Cash Equivalents and Short-Term Investments
42.50M36.30M38.80M46.00M41.30M
Total Assets
1.03B1.01B1.02B851.00M855.40M
Total Debt
291.20M232.10M223.80M151.60M143.90M
Net Debt
248.70M195.80M185.00M105.60M102.60M
Total Liabilities
485.00M440.30M445.80M354.40M360.90M
Stockholders Equity
548.20M569.40M578.50M498.10M495.50M
Cash FlowFree Cash Flow
5.10M15.20M-7.80M38.80M35.50M
Operating Cash Flow
29.80M50.40M34.30M67.50M60.10M
Investing Cash Flow
-19.30M-30.90M-67.20M-46.70M-25.00M
Financing Cash Flow
-2.80M-18.20M21.90M-14.20M-23.10M

Genus plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1706.00
Price Trends
50DMA
1857.64
Negative
100DMA
1743.96
Negative
200DMA
1788.09
Negative
Market Momentum
MACD
14.23
Positive
RSI
43.90
Neutral
STOCH
13.36
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GNS, the sentiment is Negative. The current price of 1706 is below the 20-day moving average (MA) of 1892.60, below the 50-day MA of 1857.64, and below the 200-day MA of 1788.09, indicating a bearish trend. The MACD of 14.23 indicates Positive momentum. The RSI at 43.90 is Neutral, neither overbought nor oversold. The STOCH value of 13.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GNS.

Genus plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBABF
82
Outperform
£13.98B10.0213.06%3.35%1.64%44.38%
75
Outperform
£8.94B31.0816.90%0.94%11.94%20.48%
GBGNS
67
Neutral
£1.15B147.63-0.73%1.83%-0.22%-111.98%
63
Neutral
£3.66B23.106.84%4.16%-3.92%-7.32%
GBPZC
52
Neutral
£292.49M-2.48%5.15%-16.16%80.50%
48
Neutral
$6.27B1.17-48.19%2.68%17.28%1.24%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:GNS
Genus plc
1,706.00
-5.34
-0.31%
GB:CRDA
Croda International
2,685.00
-1,900.27
-41.44%
GB:PZC
PZ Cussons
72.80
-10.07
-12.15%
GB:ABF
Associated British Foods
1,958.50
-369.68
-15.88%
GB:HLMA
Halma plc
2,456.00
180.73
7.94%

Genus plc Earnings Call Summary

Earnings Call Date: Feb 27, 2025 | % Change Since: -6.27% | Next Earnings Date: Sep 4, 2025
Earnings Call Sentiment Positive
Genus demonstrated strong financial performance and strategic progress, particularly in the porcine and ABS segments, despite challenges in Brazilian beef, Chinese dairy, and currency headwinds.
Highlights
Strong Financial Performance
Adjusted operating profit grew 19% in actual currency to GBP 45.2 million, and adjusted profit before tax grew 21% in actual currency to GBP 35.4 million. Group adjusted operating profit increased 31% in constant currency.
Porcine Segment Growth
PIC achieved a 13% increase in operating profit in H1 excluding China, with new royalty contracts signed with 3 of the top 5 producers in China.
Value Acceleration Program (VAP) Achievements
VAP is on track to deliver GBP 21 million run rate benefit by the end of this fiscal year, with a notable improvement in bovine cash flow from better inventory management.
FDA Progress on PRRS Resistant Pig (PRP)
The FDA has accepted the environmental assessment and conducted site inspections of PRP facilities, with expected approval in calendar year 2025.
ABS Segment Recovery
ABS achieved strong sexed growth with a 13% increase, and adjusted operating profit grew 38% in constant currency and by 18% in actual currency to GBP 8.6 million.
Acquisition of Minority Interest in De Novo
Genus acquired the minority interest in ABS' De Novo joint venture, enhancing control and benefits of full ownership.
Lowlights
Challenges in Brazilian Beef and Chinese Dairy
Demand for beef genetics in LATAM continues to be weak, with ABS LATAM performance impacted by FX translation. Chinese dairy production contracted by 9% in Q4 2024, affecting ABS China performance.
FX Headwinds
Currency fluctuations posed a significant headwind, with an expected GBP 8 million to GBP 9 million FX impact for the full year.
Company Guidance
In the recent call, Genus provided an extensive overview of its strategic and financial performance up to the first half of fiscal year 2025. Key highlights include a 19% increase in adjusted operating profit, reaching £45.2 million, and a 21% rise in adjusted profit before tax to £35.4 million. The company maintained an interim dividend of 10.3p per share. Genus emphasized its three strategic priorities: continued growth in porcine, notably with a 13% increase in operating profit excluding China, commercialization of the PRRS Resistant Pig (PRP) with expected FDA approval in 2025, and driving greater value from bovine operations. The ABS division is on track to deliver a £21 million run rate benefit by year-end, aided by the Value Acceleration Program (VAP). Despite challenges in markets like Brazilian beef and Chinese dairy, the company remains optimistic about stable conditions in Europe and North America for the second half of the year. The call also touched on the company's focus on reducing working capital and generating strong free cash flows, having returned to positive free cash flow generation in H1.

Genus plc Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Genus plc Announces Vesting of Share Awards for Executive Team Member
Neutral
Apr 2, 2025

Genus plc, a company listed on the London Stock Exchange, has announced the vesting of share awards granted to Jim Low, a member of its Executive Leadership Team. These awards were initially granted to compensate for remuneration forfeited due to his resignation from a previous employer. On March 31, 2025, 10,680 shares vested, and Jim Low sold 4,350 shares to cover tax liabilities, retaining 6,330 shares. This transaction reflects Genus’s commitment to retaining key talent and ensuring competitive compensation packages, which may impact its operational stability and stakeholder confidence.

Other
Genus PLC Announces Change in Voting Rights Held by BlackRock
Neutral
Apr 2, 2025

Genus PLC has announced a change in the voting rights held by BlackRock, Inc., which now holds a total of 5.04% of the company’s voting rights. This change, effective from April 1, 2025, reflects BlackRock’s increased stake in Genus PLC, potentially impacting the company’s shareholder dynamics and market perception.

Executive/Board Changes
Genus plc Appoints Andy Russell as New CFO
Positive
Mar 13, 2025

Genus plc has appointed Andy Russell as the new Chief Financial Officer, effective August 1, 2025, succeeding Alison Henriksen. Russell brings extensive experience from Smith & Nephew plc, where he held senior finance roles. His appointment is expected to support Genus’s strategic priorities and growth opportunities, enhancing its position in the animal genetics industry.

Regulatory Filings and Compliance
Genus plc Announces Total Voting Rights Update
Neutral
Mar 3, 2025

Genus plc has announced that as of 28 February 2025, its issued share capital comprises 66,036,538 ordinary shares with voting rights, and none are held in treasury. This information is crucial for shareholders to calculate their interests or changes in interests under the FCA’s Disclosure Guidance and Transparency Rules.

Executive/Board ChangesBusiness Operations and Strategy
Genus CEO Sells Shares to Cover Tax Liabilities
Neutral
Feb 28, 2025

Genus plc announced the vesting of 44,933 nil-cost options granted over ordinary shares, with CEO Jorgen Kokke selling 19,967 shares to cover tax liabilities and retaining 24,966 shares. This transaction highlights the company’s ongoing management of executive compensation and shareholding strategies, reflecting its commitment to aligning leadership interests with shareholder value.

DividendsBusiness Operations and StrategyFinancial Disclosures
Genus plc Reports Strong First Half Performance and Strategic Advances
Positive
Feb 27, 2025

Genus plc reported a strong financial performance for the first half of the fiscal year, with a 19% increase in adjusted operating profit and a 21% rise in adjusted profit before tax. The company achieved significant cash generation and maintained its interim dividend. Strategic progress was noted in the porcine sector with new customer wins in China and advancements in gene editing technology, while the bovine sector saw improvements through the Value Acceleration Programme. Genus expects continued growth, although geopolitical and currency challenges remain.

Executive/Board Changes
Genus plc Announces Board Changes as Professor Jason Chin Retires
Neutral
Feb 26, 2025

Genus plc has announced the retirement of Professor Jason Chin from its Board of Directors, effective May 2025, as he assumes a new role at the Ellison Institute of Technology. Professor Chin, who has served as a Non-Executive Director and Chairman of the Scientific Advisory Board, will continue as a member of the advisory board. The company has begun searching for his successor, highlighting the importance of his contributions to Genus’s scientific advancements.

Regulatory Filings and Compliance
Genus plc Updates on Total Voting Rights
Neutral
Feb 3, 2025

Genus plc has announced that as of January 31, 2025, its issued share capital is composed of 66,036,295 ordinary shares, each with voting rights. There are no shares held in treasury, and all shares possess identical voting rights. This information is useful for shareholders to determine their interests in Genus under the FCA’s Disclosure Guidance and Transparency Rules.

Genus Exceeds Expectations with Strong First Half Performance
Jan 15, 2025

Genus plc has reported a strong performance in the first half of FY25, surpassing expectations with a projected Group adjusted profit before tax of at least £35 million. The company’s innovative PRRS Resistant Pig programme is progressing through regulatory processes, and the Board anticipates adjusted profit for FY25 to reach the top-end of market expectations, despite an expected currency headwind.

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.