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S&W Seed Company (SANW)
NASDAQ:SANW
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S&W Seed Company (SANW) AI Stock Analysis

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SANW

S&W Seed Company

(NASDAQ:SANW)

Rating:41Neutral
Price Target:
$2.00
▲(12.99%Upside)
S&W Seed Company's overall stock score is heavily impacted by its weak financial performance and severe corporate challenges, including financial distress and Nasdaq delisting. Technical analysis and valuation metrics further underscore the bearish outlook, despite minor improvements in cash flow and operational efficiency.
Positive Factors
Debt Reduction
The company ended with net debt at the lowest level since 2014, after exiting its Australian business and improving working capital.
Financial Position
The company is in its best financial position in its history as a public company, thanks to improved EBITDA and financial flexibility.
Strategic Review
The strategic review process is expected to unlock significant value, making the business highly compelling to investors.
Negative Factors
Market Oversight
Long-term guidance for the sorghum portfolio suggests a very achievable growth rate and margin expansion, which the market currently overlooks.

S&W Seed Company (SANW) vs. SPDR S&P 500 ETF (SPY)

S&W Seed Company Business Overview & Revenue Model

Company DescriptionS&W Seed Company, an agricultural company, engages in breeding, growing, processing, and selling alfalfa and sorghum seeds. It also offers sunflower, wheat germplasm, wheat, and pasture seeds. The company sells its seeds to distributors and dealers in 40 countries. S&W Seed Company was founded in 1980 and is headquartered in Longmont, Colorado.
How the Company Makes MoneyS&W Seed Company generates revenue through the sale of its seed products to farmers, distributors, and agricultural companies. The company's key revenue streams include the commercialization of proprietary seed varieties, licensing of seed genetics, and sales of conventional and genetically modified seeds. S&W Seed Company also benefits from strategic partnerships and collaborations with agricultural research institutions and seed technology companies, which enhance its product offerings and market reach. Additionally, the company may earn revenue through government and private contracts, providing seeds for specific agricultural projects and initiatives.

S&W Seed Company Earnings Call Summary

Earnings Call Date:May 15, 2025
(Q3-2025)
|
% Change Since: -67.93%|
Next Earnings Date:Sep 24, 2025
Earnings Call Sentiment Negative
The earnings call reflects a challenging period for S&W Seed Company, with positive strides in operational efficiency and product development overshadowed by the significant negative impact of tariffs on the US sorghum market. While there are strong long-term prospects for new product lines, current market disruptions have led to a downward revision of financial performance expectations.
Q3-2025 Updates
Positive Updates
First Positive Adjusted EBITDA in Many Years
S&W Seed Company reported its first positive adjusted EBITDA quarter in many years, reflecting successful cost-saving initiatives and improved operational efficiencies.
Significant Gross Margin Improvement
Gross profit margin for Q3 was 37.7%, up from 24.6% in Q3 of the previous year, driven by better lifecycle management and a shift to higher-margin products.
Successful Strategic Actions
Completion of the VA process in Australia and the establishment of a $25 million working capital facility. These actions have helped focus the company on high-margin operations in the Americas.
Strong Customer Response to New Products
The new Prussic Acid Free trait was successfully launched and sold out, indicating strong market demand and potential for future growth.
Negative Updates
Impact of Tariffs on Revenue and Outlook
The announcement and implementation of tariffs on US sorghum exports to China have significantly impacted the US sorghum market, leading to a revised revenue outlook for the fiscal year.
Adjusted EBITDA Forecast Revised Downward
Due to the impact of tariffs, the full-year adjusted EBITDA is now expected to be between negative $8.5 million and negative $7 million, down from previous guidance.
Decrease in Sorghum Sales Due to Tariffs
US sorghum exports to China dropped dramatically due to tariffs, leading to increased US sorghum inventories and lower farm gate prices.
Reduced Operating Expenses Still Insufficient
Despite significant reductions in operating expenses, the company is still projecting negative EBITDA due to the revenue shortfall.
Company Guidance
During the third quarter fiscal year 2025 conference call, S&W Seed Company provided key metrics and guidance for the remainder of the fiscal year. The company reported revenue of $9.5 million for the quarter, with a positive adjusted EBITDA of $244,000, marking their first positive EBITDA quarter in several years. However, due to the tariffs imposed by China on U.S. sorghum, S&W revised its full-year revenue expectation to $29 million to $31 million, down from the previous $34.5 million to $38 million, and adjusted EBITDA guidance to negative $8.5 million to negative $7 million. The company's gross margins improved to 37.7% from 24.6% in the same quarter last year, driven by operational efficiencies and higher-margin products. Despite the near-term challenges, S&W remains optimistic about their long-term outlook for the sorghum market, aiming for a market share of 10% to 12% this year and projecting a potential increase to 25% to 30% over the next eight years. They continue to focus on strategic initiatives, including their high-margin Double Team sorghum solutions and the new Prussic Acid Free solution, to navigate the challenges and drive future growth.

S&W Seed Company Financial Statement Overview

Summary
S&W Seed Company faces significant financial challenges with declining revenues and negative profitability, as seen in its negative net profit margin and substantial net losses. The balance sheet shows some improvement with reduced debt, but the low equity ratio highlights ongoing vulnerabilities. Cash flow has improved, particularly in free cash flow, but overall financial health remains a concern.
Income Statement
45
Neutral
S&W Seed Company has experienced significant revenue decline from 2021 to the TTM period, indicating a negative growth trajectory with a revenue drop of approximately 37.5% from 2021 to TTM. The gross profit margin for the TTM is relatively low at 24.6%, and the net profit margin is negative due to substantial net losses. This suggests challenges in achieving profitability. The negative EBIT and EBITDA margins further highlight operational inefficiencies.
Balance Sheet
50
Neutral
The company's debt-to-equity ratio improved in the TTM as total debt decreased significantly, indicating reduced financial leverage. However, the equity ratio is low at 8.8%, suggesting limited equity relative to total assets. The return on equity is negative due to net losses, which is concerning for long-term sustainability. The balance sheet shows some improvement in equity but remains vulnerable with high liabilities.
Cash Flow
55
Neutral
Free cash flow has improved significantly from a negative position in previous years to a positive $497,701 in the TTM, indicating better cash management. Operating cash flow to net income ratio is positive in the TTM, showing improved cash generation relative to net losses. However, the free cash flow to net income ratio remains low, reflecting ongoing challenges in converting earnings into free cash flow.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue60.44M73.52M71.35M84.05M79.58M
Gross Profit15.81M14.54M6.36M13.68M14.93M
EBITDA-15.01M25.85M-27.34M-10.69M-11.80M
Net Income-30.03M14.41M-36.32M-19.11M-19.75M
Balance Sheet
Total Assets120.73M151.99M133.79M151.47M155.96M
Cash, Cash Equivalents and Short-Term Investments294.01K3.40M2.06M3.53M4.12M
Total Debt52.86M53.21M46.69M47.22M47.53M
Total Liabilities75.69M83.17M82.38M77.08M74.62M
Stockholders Equity39.22M68.76M51.37M74.42M81.46M
Cash Flow
Free Cash Flow-7.18M-20.01M-20.47M-15.30M-7.74M
Operating Cash Flow-5.64M-18.98M-18.37M-14.22M-5.76M
Investing Cash Flow5.88M8.37M-909.43K2.47M-10.29M
Financing Cash Flow-3.35M11.95M17.14M10.89M17.05M

S&W Seed Company Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.77
Price Trends
50DMA
3.85
Negative
100DMA
5.03
Negative
200DMA
5.57
Negative
Market Momentum
MACD
-0.54
Negative
RSI
31.94
Neutral
STOCH
42.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SANW, the sentiment is Negative. The current price of 1.77 is below the 20-day moving average (MA) of 2.06, below the 50-day MA of 3.85, and below the 200-day MA of 5.57, indicating a bearish trend. The MACD of -0.54 indicates Negative momentum. The RSI at 31.94 is Neutral, neither overbought nor oversold. The STOCH value of 42.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SANW.

S&W Seed Company Risk Analysis

S&W Seed Company disclosed 49 risk factors in its most recent earnings report. S&W Seed Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

S&W Seed Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
kr23.79B14.5152.46%4.25%7.91%-20.51%
58
Neutral
$7.95M1.0626.62%16.65%
57
Neutral
$64.48M-2448.28%41.44%-1.20%
48
Neutral
$7.21M-580.71%-8.72%94.96%
43
Neutral
$3.09M-53.80%-46.91%-174.16%
41
Neutral
$3.80M-59.79%-45.02%-7.27%
$1.70M-170.63%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SANW
S&W Seed Company
1.77
-5.91
-76.95%
AQB
AquaBounty Technologies
0.80
-0.93
-53.76%
SDOT
Sadot Group
1.08
-3.82
-77.96%
LOCL
Local Bounti Corporation
2.97
0.11
3.85%
AGRI
AgriFORCE Growing Systems
0.59
-6.65
-91.85%
EDBL
Edible Garden AG , Inc.
2.61
-30.39
-92.09%

S&W Seed Company Corporate Events

Private Placements and FinancingFinancial Disclosures
S&W Seed Faces Collateral Sale Amid Financial Distress
Negative
Jul 17, 2025

On June 17, 2025, S&W Seed Company received a Notice of Event of Default from ABL OPCO LLC under their Credit and Security Agreement due to a violation related to the company’s financial obligations. As a result, on July 11, 2025, the company was notified of a planned private sale of its collateral by Mountain Ridge, intended to recover approximately $19 million in revolving loans owed by S&W Seed Company. This development indicates significant financial distress for the company, potentially impacting its operations and stakeholders, as it lacks sufficient funds to meet its obligations.

The most recent analyst rating on (SANW) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on S&W Seed Company stock, see the SANW Stock Forecast page.

Delistings and Listing ChangesPrivate Placements and Financing
S&W Seed Company Delists from Nasdaq
Negative
Jul 14, 2025

On July 8, 2025, S&W Seed Company‘s Board of Directors approved the voluntary delisting of its common stock from The Nasdaq Capital Market and subsequent deregistration with the SEC to terminate its reporting obligations. This decision was influenced by anticipated non-compliance with Nasdaq’s listing requirements, high costs, and regulatory burdens. Additionally, the company entered into a Third Letter Agreement with Mountain Ridge Credit Agreement on July 10, 2025, securing additional revolving loans to cover estimated costs and expenses.

The most recent analyst rating on (SANW) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on S&W Seed Company stock, see the SANW Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
S&W Seed Secures Additional Revolving Loans July 2025
Neutral
Jul 8, 2025

On July 1, 2025, S&W Seed Company entered into a Second Letter Agreement with Mountain Ridge under their existing Credit Agreement, securing additional revolving loans of $150,000 to cover payroll and professional service costs. This agreement impacts the company’s financial operations by incurring a funding fee of $85,000 and an interest rate of 18% per annum, reflecting the company’s ongoing financial strategy and obligations under the Mountain Ridge Credit Agreement.

The most recent analyst rating on (SANW) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on S&W Seed Company stock, see the SANW Stock Forecast page.

Executive/Board ChangesPrivate Placements and FinancingLegal ProceedingsBusiness Operations and Strategy
S&W Seed Company Amends Credit Agreement Amid Challenges
Negative
Jun 23, 2025

On June 18, 2025, S&W Seed Company amended its credit agreement with Mountain Ridge, securing additional revolving loans to cover operational expenses, despite an existing default under the credit agreement. The company also made significant leadership changes, including the termination of its CEO, and is exploring strategic alternatives such as asset sales or potential bankruptcy due to financial challenges.

The most recent analyst rating on (SANW) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on S&W Seed Company stock, see the SANW 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: Jul 25, 2025