Nrgene (NRGN) AI Stock Analysis

• Market Cap: ₪30.32M
• Dividend Yield: N/A
• Average Volume (3M): 27.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: -23.68%
• EPS Growth: 31.97%
• Country: IL
• Employees: 29
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -52.50
• Shares Outstanding: 13,269,536
• 10 Day Avg. Volume: 57,803
• 30 Day Avg. Volume: 27,561
• PEG Ratio: 0.07
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 6.44
• P/FCF Ratio: -1.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: 217.00 ▲(5.96% Upside)

The score is driven primarily by weak financial performance (declining revenue, ongoing losses, and negative operating/free cash flow), reinforced by bearish technical signals (below major moving averages and negative MACD). Valuation provides limited support due to the negative P/E and lack of a dividend yield.

Positive Factors

Proprietary IP

Nrgene's proprietary algorithms and genomic tools provide durable differentiation and technical barriers. This IP supports licensing, bespoke services and deeper integration with partner pipelines, enabling recurring fees and higher switching costs that sustain competitive advantage over months.

Diversified Revenue Model

The mix of per-project service contracts, software licensing and strategic partnerships spreads revenue risk across streams. This multi-channel model supports recurring and milestone-based cash inflows, reduces single-client dependence and enhances resilience over a multi-month horizon.

Balance Sheet Improvement

The shift away from prior negative equity to a more balanced 2024 structure reduces immediate insolvency risk. Improved leverage gives management more flexibility to fund operations or partnerships and extend runway while addressing operational weaknesses over the medium term.

Negative Factors

Steep Revenue Decline

A multi-year drop from $7.6M to $1.29M materially reduces scale and operating leverage. Lower top-line volumes weaken pricing power and margins, constrain R&D and sales investment, and make it difficult to rebuild commercial momentum without new products or sizable new contracts.

Persistent Negative Cash Flow

Ongoing negative operating and free cash flow signals the company cannot self-fund growth or cover recurring costs. Persistent cash burn increases dependence on external financing, elevates dilution or debt risk, and limits capacity to invest in product development required to reverse declines.

Negative Profitability & Margin Erosion

Negative EBIT and shrinking gross margins indicate structural profitability issues. Without margin recovery or sustained revenue growth, losses will likely persist, eroding retained capital and forcing strategic trade-offs between investment, pricing and cost-cutting that impair long-term competitiveness.

Nrgene Business Overview & Revenue Model

Company Description

NRGene Technologies Ltd, an AI genomics company, provides computational tools and develops advanced algorithms in North America, Europe, Middle East, Africa, Asia Pacific, and internationally. It offers software tools; and turnkey solutions to breeding agricultural and food technology companies, academia, research institutes, and agribiotech companies. The company also develops custom panels for various plants including wheat, canola, corn, soybean, maize, etc., as well as cannabis. NRGene Technologies Ltd was incorporated in 2009 and is based in Ness Ziona, Israel.

How the Company Makes Money

Nrgene generates revenue through a diversified model that includes service contracts for genomic analysis, licensing of its proprietary software and algorithms, and partnerships with agricultural companies and research institutions. The company offers customized genomic data solutions, which are charged on a per-project basis, providing a significant source of income. Additionally, Nrgene may earn revenue through collaborations with agricultural firms seeking to utilize its technology for crop improvement, as well as potential royalties from licensing agreements. Strategic partnerships with industry leaders enhance its market reach and contribute to stable revenue streams.

Nrgene Financial Statement Overview

Summary

Very weak fundamentals: revenue has fallen sharply over multiple years, profitability remains negative (negative EBIT and net margins), and cash flow is persistently negative. The balance sheet has improved versus earlier negative equity, but leverage and liquidity risk remain elevated.

Income Statement

The company has experienced a consistent decline in revenue over the past several years, with a significant decrease from $7.6M in 2019 to $1.29M in 2024. Both EBIT and net income margins are negative, indicating ongoing operational and profitability challenges. The gross profit margin has also been declining, highlighting increased cost pressures or reduced pricing power. These factors collectively suggest weak income statement performance.

Balance Sheet

The balance sheet shows a relatively stable equity base, but the debt-to-equity ratio has improved significantly from negative equity positions in earlier years to a more balanced structure in 2024. However, the equity ratio remains low, indicating a high level of liabilities relative to assets. While the company has managed to reduce total debt, the overall financial health remains fragile.

Cash Flow

The company has consistently reported negative operating and free cash flows, suggesting challenges in generating cash from core operations. The free cash flow has further declined in recent years, reflecting increased capital expenditure or reduced cash generation. The operating cash flow to net income ratio remains negative, indicating cash flow issues. Overall, cash flow performance is poor, with significant risks to liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	902.00K	1.29M	2.00M	3.16M	4.46M	7.04M
Gross Profit	59.00K	267.00K	901.00K	1.71M	2.46M	4.51M
EBITDA	-1.89M	-2.69M	-4.53M	-5.59M	-8.37M	-1.75M
Net Income	-2.34M	-3.36M	-5.24M	-6.21M	-8.34M	-3.15M
Balance Sheet
Total Assets	6.10M	6.00M	10.79M	17.30M	26.36M	3.80M
Cash, Cash Equivalents and Short-Term Investments	1.96M	1.37M	6.45M	12.28M	22.87M	1.48M
Total Debt	150.00K	288.00K	797.00K	1.61M	3.34M	5.08M
Total Liabilities	3.72M	2.00M	3.57M	5.04M	8.68M	9.33M
Stockholders Equity	2.35M	3.96M	7.21M	12.26M	17.68M	-5.53M
Cash Flow
Free Cash Flow	-3.24M	-5.19M	-5.58M	-7.83M	-6.67M	-1.44M
Operating Cash Flow	-1.67M	-3.56M	-3.91M	-6.12M	-5.57M	-1.42M
Investing Cash Flow	-208.50K	-1.30M	-1.27M	12.47M	-14.83M	-33.00K
Financing Cash Flow	663.50K	-317.00K	-410.00K	-2.46M	27.59M	326.00K

Nrgene Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 204.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:NRGN, the sentiment is Negative. The current price of 204.8 is below the 20-day moving average (MA) of 224.48, below the 50-day MA of 237.17, and below the 200-day MA of 263.33, indicating a neutral trend. The MACD of -1.22 indicates Negative momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 87.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:NRGN.

Nrgene Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ONE	76 Outperform	₪6.72B	24.56	―	2.55%	14.11%	25.79%
MTRX	66 Neutral	₪9.02B	30.41	―	2.41%	8.82%	14.25%
ABRA	64 Neutral	₪632.47M	47.04	―	―	19.46%	-27.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PHTM	43 Neutral	₪50.34M	-2.64	―	―	14.39%	-1797.14%
NRGN	40 Underperform	₪30.32M	-2.45	―	―	-23.68%	31.97%