S&W Seed Company (SANW) AI Stock Analysis

• Market Cap: $772.85K
• Dividend Yield: N/A
• Average Volume (3M): 12.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: -45.02%
• EPS Growth: -7.27%
• Country: US
• Employees: 134
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Farm Products
• EPS (TTM): N/A
• Shares Outstanding: 2,146,806
• 10 Day Avg. Volume: 3,987
• 30 Day Avg. Volume: 12,394
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 56.77
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 4.72
• Enterprise Value/Ebitda: -3.08
• 1Y Price Target: $1.50
• Price Target Upside: 316.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 42 Neutral
• Price Target: $1.50 ▲(316.67% 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

Operational Efficiency

Achieving positive adjusted EBITDA reflects successful cost-saving initiatives and improved operational efficiencies, which can enhance long-term profitability and competitiveness.

Product Development

The successful launch and sell-out of the Prussic Acid Free trait indicate strong market demand and potential for future growth, supporting long-term revenue expansion.

Gross Margin Improvement

Significant gross margin improvement due to operational efficiencies and higher-margin products suggests enhanced profitability potential and strategic focus on value-added offerings.

Negative Factors

Revenue Decline

A significant revenue decline indicates challenges in market demand or competitive positioning, which can impact long-term growth prospects and financial stability.

Financial Distress

The planned collateral sale due to financial obligations highlights severe financial distress, potentially affecting operational capabilities and stakeholder confidence.

Nasdaq Delisting

Delisting from Nasdaq reduces market visibility and access to capital markets, potentially impacting investor confidence and the company's ability to raise funds.

S&W Seed Company Business Overview & Revenue Model

Company Description

S&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 Money

S&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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.76M	60.44M	73.52M	71.35M	84.05M	79.58M
Gross Profit	9.30M	15.81M	14.54M	6.36M	13.68M	14.93M
EBITDA	-14.24M	-15.01M	25.85M	-27.34M	-10.69M	-11.80M
Net Income	-32.37M	-30.03M	14.41M	-36.32M	-19.11M	-19.75M
Balance Sheet
Total Assets	69.61M	120.73M	151.99M	133.79M	151.47M	155.96M
Cash, Cash Equivalents and Short-Term Investments	354.50K	294.01K	3.40M	2.06M	3.53M	4.12M
Total Debt	21.94M	52.86M	53.21M	51.08M	47.22M	47.53M
Total Liabilities	42.79M	75.69M	83.17M	82.38M	77.08M	74.62M
Stockholders Equity	26.78M	44.99M	68.76M	51.37M	74.42M	81.46M
Cash Flow
Free Cash Flow	497.70K	-7.18M	-20.01M	-20.47M	-15.30M	-7.74M
Operating Cash Flow	1.03M	-5.64M	-18.98M	-18.37M	-14.22M	-5.76M
Investing Cash Flow	-62.84K	5.88M	8.37M	-909.43K	2.47M	-10.29M
Financing Cash Flow	649.78K	-3.35M	11.95M	17.14M	10.89M	17.05M

S&W Seed Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SANW, the sentiment is Neutral. The current price of 0.36 is above the 20-day moving average (MA) of 0.35, below the 50-day MA of 0.66, and below the 200-day MA of 4.82, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 36.23 is Neutral, neither overbought nor oversold. The STOCH value of 62.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SANW.

S&W Seed Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SDOT	57 Neutral	5.41M	0.85	13.67%	―	4.42%	―
LOCL	53 Neutral	64.83M	-0.21	119.31%	―	39.74%	16.76%
AQB	43 Neutral	7.13M	-0.10	―	―	-46.91%	-174.16%
SANW	42 Neutral	$772.85K	―	-59.79%	―	-45.02%	-7.27%
EDBL	41 Neutral	5.41M	-0.05	-785.74%	―	-16.60%	96.72%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

S&W Seed Company Corporate Events

S&W Seed Faces Collateral Sale Amid Financial Distress

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.

S&W Seed Company Delists from Nasdaq

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.

S&W Seed Secures Additional Revolving Loans July 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.

S&W Seed Company Amends Credit Agreement Amid Challenges

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.