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

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SANW

S&W Seed Company

(OTC:SANW)

Rating:42Neutral
Price Target:
$1.50
▲(354.55% Upside)
S&W Seed Company's stock is rated poorly due to significant financial challenges, including negative profitability and revenue declines. The company's technical indicators are bearish, and recent corporate events highlight financial distress. While there is some optimism in operational improvements, the overall outlook remains negative.
Positive Factors
Debt Level
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 Overlook
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 (SANW) is an agricultural company specializing in the breeding, production, and sale of high-quality seeds. The company focuses primarily on alfalfa, sorghum, and sunflower seeds, catering to agricultural markets worldwide. S&W Seed Company leverages its extensive research and development capabilities to enhance seed genetics, aiming to improve crop yield and resilience.
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: |
Next Earnings Date:Sep 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for S&W Seed Company. While the company achieved its first positive adjusted EBITDA quarter in many years and made significant operational improvements, the impact of Chinese tariffs on US sorghum exports significantly affected revenue and profitability forecasts. Despite these challenges, the company remains optimistic about the long-term potential of its high-margin sorghum traits.
Q3-2025 Updates
Positive Updates
First Positive Adjusted EBITDA Quarter
S&W Seed Company reported its first positive adjusted EBITDA quarter in many years, indicating operational improvements and strategic focus on high-margin products.
Strategic Focus and Cost Savings Initiatives
The company completed the VA process in Australia, entered a new $25 million working capital facility, and implemented cost-saving measures, resulting in improved gross margins and reduced operating expenses.
Introduction of Prussic Acid Free Sorghum
Successfully launched Prussic Acid Free sorghum, selling out of launch supplies due to strong customer demand, and planning to ramp up seed production.
Strong Gross Margin Improvement
Gross profit margin for Q3 improved to 37.7% from 24.6% last year's Q3, driven by operational efficiencies and a shift in product mix.
Negative Updates
Impact of Tariffs on US Sorghum Market
Retaliatory tariffs by China on US agricultural products, including sorghum, led to decreased exports, increased domestic inventories, and depressed farm gate prices, prompting some farmers to switch from sorghum to more profitable crops.
Revised Fiscal Year Guidance
Due to tariff impacts, the company revised its fiscal year revenue guidance to $29 million to $31 million, down from $34.5 million to $38 million, and adjusted EBITDA to negative $8.5 million to negative $7 million.
Impact on High-Margin Double Team Products
The majority of the revenue and EBITDA impact is on high-margin Double Team products, which carry 60%-plus margins, affecting overall financial performance.
Company Guidance
During the S&W Seed Company's third-quarter fiscal year 2025 conference call, guidance was updated to reflect a decrease in full-year revenue expectations to between $29 million and $31 million, down from previous estimates of $34.5 million to $38 million. This revision was primarily due to the impact of tariffs on U.S. sorghum exports to China, which affected sorghum seed purchases and led to a projected adjusted EBITDA of negative $8.5 million to negative $7 million. Despite these challenges, the company achieved a positive adjusted EBITDA of $244,000 in the third quarter, a significant improvement from a negative $2.2 million in the same period last year. S&W also reported strong gross margin improvements, reaching 37.7% compared to 24.6% the previous year. The company remains optimistic about the long-term prospects of its high-margin sorghum traits and is focused on strategic alternatives to enhance shareholder value, with ongoing efforts to expand internationally and develop new products.

S&W Seed Company Financial Statement Overview

Summary
S&W Seed Company faces revenue decline and profitability challenges, reflected in negative margins and substantial net losses. While the balance sheet shows reduced debt, the low equity ratio highlights ongoing vulnerabilities. Cash flow trends are positive, but overall financial health requires strategic improvements.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue37.76M60.44M73.52M71.35M84.05M79.58M
Gross Profit9.30M15.81M14.54M6.36M13.68M14.93M
EBITDA-14.24M-15.01M25.85M-27.34M-10.69M-11.80M
Net Income-32.37M-30.03M14.41M-36.32M-19.11M-19.75M
Balance Sheet
Total Assets69.61M120.73M151.99M133.79M151.47M155.96M
Cash, Cash Equivalents and Short-Term Investments354.50K294.01K3.40M2.06M3.53M4.12M
Total Debt21.94M52.86M53.21M51.08M47.22M47.53M
Total Liabilities42.79M75.69M83.17M82.38M77.08M74.62M
Stockholders Equity26.78M44.99M68.76M51.37M74.42M81.46M
Cash Flow
Free Cash Flow497.70K-7.18M-20.01M-20.47M-15.30M-7.74M
Operating Cash Flow1.03M-5.64M-18.98M-18.37M-14.22M-5.76M
Investing Cash Flow-62.84K5.88M8.37M-909.43K2.47M-10.29M
Financing Cash Flow649.78K-3.35M11.95M17.14M10.89M17.05M

S&W Seed Company Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.33
Price Trends
50DMA
1.19
Negative
100DMA
3.16
Negative
200DMA
5.23
Negative
Market Momentum
MACD
-0.27
Negative
RSI
26.95
Positive
STOCH
5.72
Positive
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 0.33 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 1.19, and below the 200-day MA of 5.23, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 26.95 is Positive, neither overbought nor oversold. The STOCH value of 5.72 is Positive, 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
$10.36B6.350.80%2.84%3.10%-36.03%
56
Neutral
$8.93M1.4717.52%4.42%
44
Neutral
$50.44M-2448.28%39.74%16.76%
43
Neutral
$4.54M-53.80%-46.91%-174.16%
42
Neutral
$699.86K-59.79%-45.02%-7.27%
$3.29M-206.56%
41
Neutral
$5.29M-146.28%-16.60%96.72%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SANW
S&W Seed Company
0.33
-4.40
-93.02%
AQB
AquaBounty Technologies
1.17
0.12
11.43%
SDOT
Sadot Group
0.90
-2.79
-75.61%
LOCL
Local Bounti Corporation
2.28
-0.04
-1.72%
AGRI
AgriFORCE Growing Systems
2.51
-47.80
-95.01%
EDBL
Edible Garden AG , Inc.
1.81
-20.48
-91.88%

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: Aug 02, 2025