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Genus PLC (GB:GNS)
LSE:GNS

Genus plc (GNS) AI Stock Analysis

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GB:GNS

Genus plc

(LSE:GNS)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
3,154.00p
▲(15.11% Upside)
Action:ReiteratedDate:12/07/25
Genus plc's overall stock score is driven by strong corporate events and solid financial performance. However, technical indicators suggest caution due to potential overbought conditions, and the high P/E ratio indicates possible overvaluation.
Positive Factors
Market leadership in animal genetics
Leading position in animal genetics provides durable competitive advantages: proprietary breeding programs, scale in semen/embryo supply, deep industry relationships and technical expertise. These create high barriers to entry and sustained demand from commercial livestock producers worldwide.
Robust operating cash generation
Consistently strong operating cash flow indicates the core business converts earnings into cash, supporting recurring R&D, working capital needs and debt servicing. Healthy operational cash resilience underpins strategic investments and long-term stability despite FCF volatility.
Positive corporate governance and strategic positioning
Recent governance actions and board-level changes coupled with a positive FY26 outlook signal proactive management and strategic alignment. Improved leadership depth and clear planning reduce execution risk and support long-term value creation across markets and product lines.
Negative Factors
Volatile free cash flow
Volatility in free cash flow creates uncertainty for capital allocation: it can constrain steady R&D, acquisitions or shareholder returns and complicate debt repayment planning. Persistent FCF swings suggest sensitivity to capex timing or working-capital cycles.
Relatively low net profit margin
A weak net margin despite strong gross profitability points to elevated operating or non-operating costs (SG&A, R&D, financing). This limits retained earnings for reinvestment and reduces the buffer against industry cyclicality, constraining long-term profitability improvement.
Fluctuating ROE and moderate leverage
Moderate leverage combined with inconsistent ROE suggests returns to shareholders vary and may be sensitive to business cycles. Fluctuating ROE highlights execution variability and reduces predictability of capital returns, while leverage limits flexibility in adverse conditions.

Genus plc (GNS) vs. iShares MSCI United Kingdom ETF (EWC)

Genus plc Business Overview & Revenue Model

Company DescriptionGenus plc operates as an animal genetics company in North America, Latin America, the United Kingdom, rest of Europe, the Middle East, Russia, Africa, and Asia. The company operates through three segments: Genus PIC, Genus ABS, and Genus Research and Development. It sells sows, boars, and semen to breed pigs with various characteristics for pork production under the PIC brand. The company also sells bull semen and embryos to breed calves with various characteristics for milk and beef production under the ABS, Genus, and Bovec brands. In addition, it offers semen sexing, in reproductive, and other technical services to farmers. Genus plc has a strategic collaboration with Beijing Capital Agribusiness Co. Ltd to pursue the porcine reproductive respiratory syndrome virus resistant regulatory and development work in China. The company was incorporated in 1994 and is based in Basingstoke, the United Kingdom.
How the Company Makes MoneyGenus generates revenue through several key streams. Primarily, the company earns money from the sale of genetic materials, such as semen and embryos, to livestock producers. These products are essential for breeding programs aimed at improving animal traits such as growth efficiency, disease resistance, and reproductive performance. Additionally, Genus offers genetic services, including data analysis and breeding consultancy, which provide added value to their customers. Significant partnerships with agricultural producers and cooperatives enhance Genus's market reach and contribute to its earnings. The company also benefits from research and development investments that lead to innovation in genetic technologies, ensuring a competitive edge in the animal breeding industry.

Genus plc Earnings Call Summary

Earnings Call Date:Feb 27, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Sep 03, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance and strategic progress, particularly with PIC's growth and the VAP initiatives. However, ABS faces challenges in China and Brazil, and currency headwinds are impacting profitability. R&D spend has decreased, but the company remains committed to innovation. Overall, the positive aspects outweigh the negatives.
Q2-2025 Updates
Positive Updates
Strong Financial Performance in H1 FY25
Adjusted operating profit grew 19% to GBP 45.2 million, and adjusted profit before tax grew 21% to GBP 35.4 million. This was a record first-half performance.
PIC's Impressive Growth
PIC achieved a 13% increase in operating profit excluding China, and a 9% volume increase overall. Latin America showed standout growth with a 13% operating profit increase in constant currency.
Value Acceleration Program (VAP) Success
VAP initiatives have delivered significant benefits, with GBP 6.3 million achieved in the first half, and an expected GBP 21 million run rate benefit by the end of the fiscal year.
Progress in PRP Commercialization
Significant progress with the FDA for PRP approval, with site inspections conducted and expected approval in 2025, marking a major opportunity from Genus's R&D program.
Improved Cash Flow and Debt Management
Return to positive free cash flow with improved working capital and inventory management, and a net debt to EBITDA ratio of 2x, within the target range.
Negative Updates
Challenges in ABS China and Brazil
ABS China continues to be extremely challenged, with a 9% contraction in Chinese dairy production. ABS China profits were down GBP 1.6 million year-on-year. Brazil beef demand remains weak.
Currency Headwinds
Currency fluctuations have negatively impacted profits, with an expected GBP 8-9 million FX headwind for the full year due to sterling strengthening against LATAM currencies.
Reduced R&D Spend
Overall R&D spend decreased by 30%, although it remains an important aspect for the company’s future growth.
Company Guidance
In the call, Genus provided comprehensive guidance highlighting several key metrics. PIC, excluding China, achieved a notable 13% increase in operating profit for the first half of the fiscal year 2025. Despite challenges in China, Genus signed seven new royalty customers, establishing contracts with three of the top five producers in the largest porcine market globally. The company's Value Acceleration Program (VAP) is on track to deliver a GBP 21 million annual run rate benefit by the end of the fiscal year, with notable improvements in cash flow due to better inventory management. Adjusted operating profit saw a 19% growth, reaching GBP 45.2 million, and adjusted profit before tax increased by 21% to GBP 35.4 million. The interim dividend was maintained at 10.3p per share. Additionally, the company expects FDA approval for its PRRS Resistant Pig (PRP) in calendar year 2025, with ongoing regulatory engagements in other international markets showing promise. Despite foreign exchange headwinds, Genus reaffirmed its fiscal year 2025 profit before tax (PBT) guidance, anticipating significant growth in PBT in actual currency.

Genus plc Financial Statement Overview

Summary
Genus plc shows strong revenue growth and operational efficiency, with a solid balance sheet. However, profitability margins and cash flow stability present areas for improvement.
Income Statement
75
Positive
Genus plc has demonstrated consistent revenue growth over the years, with a notable increase in the latest period. The gross profit margin is strong, indicating efficient cost management. However, the net profit margin is relatively low, suggesting potential areas for cost optimization or revenue enhancement. The EBIT and EBITDA margins are healthy, reflecting good operational efficiency.
Balance Sheet
70
Positive
The company's debt-to-equity ratio is moderate, indicating a balanced approach to leveraging. Return on equity has seen some fluctuations but remains positive, suggesting that the company is generating returns on shareholders' investments. The equity ratio is stable, showing a solid capital structure.
Cash Flow
65
Positive
Genus plc's cash flow from operations is robust, but free cash flow has experienced volatility, which could impact future investments or debt repayments. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to reported earnings. However, the free cash flow to net income ratio suggests room for improvement in cash conversion efficiency.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue672.00M672.80M668.80M689.70M593.40M574.30M
Gross Profit672.50M672.80M178.70M239.30M226.00M232.20M
EBITDA111.10M93.70M73.70M87.50M79.80M82.30M
Net Income47.50M19.30M7.90M33.30M40.90M47.30M
Balance Sheet
Total Assets921.30M899.00M1.03B1.01B1.02B851.00M
Cash, Cash Equivalents and Short-Term Investments43.40M48.00M42.50M36.30M38.80M46.00M
Total Debt277.70M265.90M291.20M232.10M223.80M151.60M
Total Liabilities417.40M423.00M485.00M440.30M445.80M354.40M
Stockholders Equity504.00M475.60M548.20M569.40M578.50M498.10M
Cash Flow
Free Cash Flow57.20M48.60M5.10M15.20M-7.80M38.80M
Operating Cash Flow70.70M67.20M29.80M50.40M34.30M67.50M
Investing Cash Flow-18.50M-13.80M-19.30M-30.90M-67.20M-46.70M
Financing Cash Flow-48.90M-46.60M-2.80M-18.20M21.90M-14.20M

Genus plc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2740.00
Price Trends
50DMA
2855.20
Negative
100DMA
2690.19
Positive
200DMA
2504.99
Positive
Market Momentum
MACD
-11.44
Positive
RSI
35.93
Neutral
STOCH
12.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GNS, the sentiment is Neutral. The current price of 2740 is below the 20-day moving average (MA) of 3025.25, below the 50-day MA of 2855.20, and above the 200-day MA of 2504.99, indicating a neutral trend. The MACD of -11.44 indicates Positive momentum. The RSI at 35.93 is Neutral, neither overbought nor oversold. The STOCH value of 12.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:GNS.

Genus plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
£75.76M18.9364.40%8.33%-3.61%-6.35%
69
Neutral
£1.86B14.393.77%1.25%0.60%143.39%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
49
Neutral
£1.09B-8.50-26.01%22.03%20.01%
45
Neutral
£10.73M-0.25-407.49%72.17%79.03%
44
Neutral
£17.50M-9.67-164.37%-11.43%23.40%
41
Neutral
£83.62M-4.89-209.34%198.49%-26.66%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:GNS
Genus plc
2,740.00
876.81
47.06%
GB:BVXP
Bioventix
1,500.00
-1,168.69
-43.79%
GB:OBD
Oxford BioDynamics
0.25
-0.25
-50.00%
GB:FAB
Fusion Antibodies Plc
14.00
6.50
86.67%
GB:4BB
4basebio UK Societas
540.00
-575.00
-51.57%
GB:ONT
Oxford Nanopore Technologies PLC
124.40
32.75
35.73%

Genus plc Corporate Events

Regulatory Filings and Compliance
Genus Director Celia Baxter Increases Stake with Share Purchase
Positive
Feb 27, 2026

Genus plc has disclosed that non-executive director Celia Baxter bought 1,728 ordinary shares in the company on 27 February 2026 on the London Stock Exchange at an average price of £28.92865 per share. The purchase, classified as a director dealing under Market Abuse Regulation requirements, marginally increases insider ownership and may be viewed by investors as a signal of confidence in the company’s prospects.

The transaction was notified as an initial disclosure under Article 19 of the Market Abuse Regulation, which mandates prompt reporting of share dealings by persons discharging managerial responsibilities. While the stake acquired is relatively small in absolute terms, such purchases are often monitored by shareholders as indicators of alignment between board members and investor interests, as well as potential sentiment about future performance.

The most recent analyst rating on (GB:GNS) stock is a Hold with a £3110.00 price target. To see the full list of analyst forecasts on Genus plc stock, see the GB:GNS Stock Forecast page.

Business Operations and StrategyDividendsFinancial Disclosures
Genus Delivers Record Half-Year Profits and Advances China JV and Gene-Edited Pig Strategy
Positive
Feb 26, 2026

Genus reported record first-half profits for the six months to 31 December 2025, as adjusted operating profit jumped on strong performance at its porcine unit PIC, a milestone payment from Chinese partner Beijing Capital Agribusiness and ongoing cost and efficiency gains from its Value Acceleration Programme in bovine unit ABS. Revenue was flat at £335.6m but adjusted profit before tax rose 57%, adjusted EPS climbed 53%, free cash flow remained solid and leverage fell, prompting a higher interim dividend and underlining the benefits of royalty-led growth, lower input costs and disciplined cash generation.

Strategically, the group advanced its long-term positioning with the formation of a Chinese porcine joint venture that will deconsolidate PIC China and is expected to bring in about £100m in fiscal Q4, while Canada’s approval of its PRRS-resistant pig gene edit marked a key step toward commercialising this flagship innovation in North America. Management said second-half trading momentum remains positive and, after factoring in the PIC China deconsolidation and broadly neutral FX, full-year adjusted profit guidance is in line with market expectations, reinforcing confidence in the company’s growth trajectory despite softer ABS revenue and ongoing regulatory and trade challenges in China.

The most recent analyst rating on (GB:GNS) stock is a Hold with a £3455.00 price target. To see the full list of analyst forecasts on Genus plc stock, see the GB:GNS Stock Forecast page.

Regulatory Filings and Compliance
Genus Reports Stable Balances in Employee Share Schemes in Latest Block Listing Return
Neutral
Feb 2, 2026

Genus plc has released its latest six-monthly block listing return covering the period from 1 August 2025 to 31 January 2026, detailing movements in shares available under its employee and executive share schemes. The company reported that the 2004 Executive Share Option Plan and the International Share Incentive Plan saw no new shares allotted during the period, leaving balances of 13,897 and 79,671 unallotted securities respectively, while 840 shares were issued under the 2021 Share Incentive Plan, reducing its unallotted balance to 69,927; this indicates modest utilisation of employee share plans and stable potential future dilution for existing shareholders.

The most recent analyst rating on (GB:GNS) stock is a Hold with a £3460.00 price target. To see the full list of analyst forecasts on Genus plc stock, see the GB:GNS Stock Forecast page.

Regulatory Filings and Compliance
Genus Confirms Total Voting Rights and Share Capital Structure
Neutral
Feb 2, 2026

Genus plc has confirmed that as of 31 January 2026 its issued share capital comprises 66,538,294 ordinary shares of 10 pence each, all carrying identical voting rights and with no shares held in treasury. This clarification of the company’s total voting rights provides a clear denominator for shareholders and investors to calculate and disclose their holdings under the FCA’s Disclosure Guidance and Transparency Rules, supporting regulatory compliance and transparency in Genus’s ownership structure.

The most recent analyst rating on (GB:GNS) stock is a Hold with a £3460.00 price target. To see the full list of analyst forecasts on Genus plc stock, see the GB:GNS Stock Forecast page.

Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Genus Secures $160m from Chinese Porcine Joint Venture and Reshapes PIC China Reporting
Positive
Feb 2, 2026

Genus plc has completed the formation of its Chinese porcine joint venture with Beijing Capital Agribusiness, a move it sees as the optimal platform to accelerate the growth of its PIC China business. The deal will bring Genus a gross cash payment of US$160m, on top of a previously recognised US$7.5m milestone payment, and will result in PIC China being deconsolidated from the group’s accounts, signalling a shift in how the business is reported and potentially improving financial flexibility while maintaining significant exposure to the strategically important Chinese pork market.

The most recent analyst rating on (GB:GNS) stock is a Hold with a £3460.00 price target. To see the full list of analyst forecasts on Genus plc stock, see the GB:GNS Stock Forecast page.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
Genus Completes Chinese Porcine Joint Venture, Unlocking $160m Cash Inflow
Positive
Feb 2, 2026

Genus plc, a global leader in animal genetics focused on dairy, beef and pork sectors, operates through its ABS and PIC brands to deliver advanced breeding products and services worldwide from its headquarters in Basingstoke. The company has completed the formation of its Chinese porcine joint venture with Beijing Capital Agribusiness, triggering a gross cash payment of US$160m and an earlier US$7.5m milestone, and leading to the deconsolidation of its 49%-owned PIC China business from the group accounts, a structural shift expected to reshape its financial reporting and potentially accelerate the growth of its Chinese pork genetics operations.

The most recent analyst rating on (GB:GNS) stock is a Hold with a £3460.00 price target. To see the full list of analyst forecasts on Genus plc stock, see the GB:GNS Stock Forecast page.

Business Operations and StrategyProduct-Related AnnouncementsRegulatory Filings and Compliance
Genus Wins Canadian Approval for Gene-Edited PRRS-Resistant Pig
Positive
Jan 23, 2026

Genus plc has secured regulatory approval in Canada for the use of its gene-edited PRRS Resistant Pig (PRP), marking a key milestone toward commercialising the technology in North America after years of collaboration with Canadian authorities. The company views this clearance as a significant step but notes that further approvals in major North American export markets, particularly Mexico and Japan, as well as in other jurisdictions including China, will be critical to full rollout, especially given the heavy economic and animal health burden of PRRS, which costs U.S. producers an estimated $1.2 billion annually and has been linked to sharply higher antibiotic use.

The most recent analyst rating on (GB:GNS) stock is a Hold with a £2954.00 price target. To see the full list of analyst forecasts on Genus plc stock, see the GB:GNS Stock Forecast page.

Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Genus Lifts Profit Outlook as China Porcine JV Wins Regulatory Approval
Positive
Jan 16, 2026

Genus reported a stronger-than-expected performance for the first half of its 2026 financial year, with adjusted profit before tax (excluding a milestone payment) anticipated at about £50m, ahead of internal expectations, and around £55.6m including the milestone. Driven by robust trading at its PIC pork genetics unit and in-line performance at ABS, the board now forecasts full-year adjusted profit before tax (excluding the milestone) to come in moderately above the top end of current market expectations, signalling positive momentum in core operations. The group also confirmed that China’s SASAC has approved the formation of its porcine joint venture in China, triggering a final $7.5m milestone payment from partner BCA, with completion and cash receipt expected in the fiscal third quarter, underscoring Genus’s strategic push into the Chinese pork market and reinforcing its growth prospects in a key global protein sector.

The most recent analyst rating on (GB:GNS) stock is a Hold with a £2836.00 price target. To see the full list of analyst forecasts on Genus plc stock, see the GB:GNS Stock Forecast page.

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: Dec 07, 2025