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Origin Agritech Limited (SEED)
NASDAQ:SEED
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Origin Agritech
(NASDAQ:SEED)
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Rating:46Neutral
Price Target:
$2.00
▲(75.44% Upside)
The overall stock score is heavily influenced by Origin Agritech's poor financial performance, characterized by unstable revenues and high leverage. While technical indicators provide some positive signals, the negative valuation metrics, particularly the negative P/E ratio, significantly impact the stock's attractiveness.
Positive Factors
CEO Investment
The CEO's personal investment signals confidence in the company's future prospects and can strengthen investor trust, potentially aiding long-term strategic initiatives.
Market Expansion
Investment in market expansion and R&D enhances competitive positioning and can drive sustainable growth by tapping into new opportunities in the agriculture sector.
Board Restructuring
Board restructuring with new appointments can bring fresh perspectives and expertise, potentially improving governance and strategic decision-making for long-term success.
Negative Factors
Unstable Revenues
Unstable revenues indicate difficulty in maintaining consistent sales, which can hinder long-term financial planning and operational stability.
High Leverage
High leverage increases financial risk, limiting the company's ability to invest in growth opportunities and potentially leading to financial distress.
Negative Cash Flow
Negative cash flow from operations suggests inefficiencies in core business activities, potentially impacting the company's ability to fund operations and growth initiatives.
Origin Agritech (SEED) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.84M
Dividend YieldN/A
Average Volume (3M)2.25M
Price to Earnings (P/E)―
Beta (1Y)1.31
Revenue Growth-21.82%
EPS Growth-104.92%
CountryUS
Employees68
SectorBasic Materials
Sector Strength58
IndustryAgricultural Inputs
Share Statistics
EPS (TTM)-0.49
Shares Outstanding12,143,526
10 Day Avg. Volume6,011,928
30 Day Avg. Volume2,246,586
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)-4.41
Price to Sales (P/S)1.22
P/FCF Ratio-6.90
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue0.14
Enterprise Value/Gross Profit2.04
Enterprise Value/Ebitda-0.21
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Origin Agritech Business Overview & Revenue Model
Company DescriptionOrigin Agritech Limited, together with its subsidiaries, operates an agricultural biotechnology and an e-commerce platform in the People's Republic of China. The company engages in crop seed breeding and genetic improvement activities. It develops, produces, and distributes hybrid crop seeds, as well as develops hybrid seed technology. The company also operates an e-commerce platform, which provides range of products, including agricultural seed products that comprise corn, rice, and vegetable seeds; other agricultural inputs, such as fertilizers and agricultural chemicals; foods; household products; and other consumer products to farmers through online and mobile ordering. It has a collaboration agreement with Chinese Academy of Agricultural Sciences, the National Maize Improvement Center, China Agricultural University, and Zhejiang University. Origin Agritech Limited was founded in 1997 and is headquartered in Beijing, China.
How the Company Makes MoneyOrigin Agritech generates revenue primarily through the sale of genetically modified seeds and other agricultural products. The company's revenue model is based on the commercialization of its proprietary seed technology, which allows it to charge premium prices for its high-yield, pest-resistant seeds. Key revenue streams include direct sales to farmers, licensing agreements for its biotechnology innovations, and potential partnerships with agricultural companies for product development and distribution. Additionally, the company may benefit from government subsidies and incentives aimed at promoting agricultural advancements and biotechnology in China, contributing further to its earnings.
Origin Agritech Earnings Call Summary
Earnings Call Date:Feb 10, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Jan 12, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth and technological advancements, such as the GMO safety certificate and gene editing breakthroughs. However, these were tempered by challenges including decreased net income and increased expenses.Q4-2024 Updates
Positive Updates
Revenue Growth
Origin Agritech achieved a revenue of $16.2 million in fiscal year 2024, representing a 24.6% increase from the previous year.
GMO Safety Certificate
Received a GMO safety certificate for BBL2-2 transgenic maize, enhancing insect resistance and herbicide tolerance.
Gene Editing Breakthrough
Published breakthrough in induction line gene editing technology, allowing for faster development of improved maize traits.
New Product Pipeline
Eight new varieties launching in 2025, targeting different regions with several more in advanced trials.
Increased R&D Investment
R&D investment increased to $1.5 million from $1 million, advancing biotechnology platforms and developing new seed varieties.
Negative Updates
Decreased Net Income
Net income from continuing operations was $2.7 million, down from $8.7 million in the prior year due to one-time gains.
Increased General and Administrative Expenses
General and administrative expenses rose to $5.1 million from $1.99 million, driven by investments in talent and systems.
Reduced Cash Position
Cash and cash equivalents decreased to $1.2 million from $3.3 million the previous year.
Company Guidance
During the Origin Agritech Fiscal Year 2024 Earnings Conference Call, CEO Weibin Yan and CFO Patrick Cheng presented a comprehensive update on the company's financial and strategic performance. The company reported a 24.6% increase in revenue, reaching $16.2 million, primarily driven by increased corn seed sales. Origin Agritech achieved significant milestones, including obtaining a GMO safety certificate for their BBL2-2 transgenic maize and advancing gene editing technology. While general and administrative expenses rose to $5.1 million, reflecting investments in talent and systems, R&D spending also increased to $1.5 million. The company's net income from continuing operations was $2.7 million, down from the previous year's $8.7 million due to one-time gains from subsidiary disposals. With $1.2 million in cash and cash equivalents, Origin Agritech aims for cash flow breakeven and plans further expansion, targeting a top-five position in China's corn seed industry by 2030-2032. The call emphasized the company's strategic roadmap and confidence in achieving long-term growth and profitability through biotechnology innovation and expanded seed offerings.Origin Agritech Financial Statement Overview
Summary
Origin Agritech faces substantial financial challenges, with unstable revenues, operational inefficiencies, high leverage, and negative cash flows. These factors collectively indicate a need for strategic improvements to enhance financial health and stability.Income Statement
Origin Agritech has shown inconsistent revenue growth with significant fluctuations in net income. Despite a positive net income in the latest period, the company has experienced negative EBIT and volatile EBITDA margins, indicating operational challenges.Balance Sheet
The company exhibits a negative stockholders' equity, reflecting a concerning financial position. The high debt-to-equity ratio indicates significant leverage, posing potential risks to financial stability.Cash Flow
Origin Agritech has struggled with negative free cash flow and operating cash flow, reflecting challenges in generating cash from operations. The company's reliance on financing activities to manage cash flow needs further highlights cash management issues.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 93.68M | 113.38M | 93.31M | 52.58M | 46.42M | 52.51M |
| Gross Profit | 6.46M | 16.07M | 17.25M | 16.19M | 12.81M | 3.51M |
| EBITDA | -62.20M | 23.08M | 67.84M | -8.99M | -59.77M | -86.01M |
| Net Income | -6.23M | 20.71M | 55.33M | -6.26M | -91.53M | -102.84M |
Balance Sheet | ||||||
| Total Assets | 88.71M | 131.56M | 238.51M | 135.96M | 119.04M | 254.88M |
| Cash, Cash Equivalents and Short-Term Investments | 2.40M | 8.38M | 23.71M | 17.67M | 15.35M | 22.48M |
| Total Debt | 21.73M | 5.08M | 241.00K | 139.28M | 140.77M | 140.89M |
| Total Liabilities | 151.36M | 190.16M | 319.77M | 308.60M | 304.64M | 340.35M |
| Stockholders Equity | -31.16M | -31.29M | -57.40M | -133.87M | -140.67M | -77.19M |
Cash Flow | ||||||
| Free Cash Flow | -22.84M | -20.00M | -17.66M | 2.67M | -26.79M | -5.62M |
| Operating Cash Flow | -14.71M | -15.03M | -5.46M | 3.29M | -25.08M | -5.62M |
| Investing Cash Flow | -8.13M | -4.97M | -11.22M | -1.10M | -1.21M | -42.24M |
| Financing Cash Flow | 15.05M | 4.50M | 22.93M | -332.00K | 19.84M | 65.92M |
Origin Agritech Technical Analysis
Negative
1.14
Price Trends
1.37
Negative
1.35
Negative
1.28
Negative
Market Momentum
-0.08
Positive
40.04
Neutral
21.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEED, the sentiment is Negative. The current price of 1.14 is below the 20-day moving average (MA) of 1.26, below the 50-day MA of 1.37, and below the 200-day MA of 1.28, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 40.04 is Neutral, neither overbought nor oversold. The STOCH value of 21.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SEED.
Origin Agritech Risk Analysis
Origin Agritech disclosed 53 risk factors in its most recent earnings report. Origin Agritech 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
Origin Agritech Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
49 Neutral | $85.36M | -1.47 | -20.52% | ― | -27.90% | -4194.67% | |
46 Neutral | $13.84M | -17.17 | ― | ― | -21.82% | -104.92% | |
45 Neutral | $107.89M | -0.97 | -40.84% | ― | -4.29% | -276.74% | |
45 Neutral | $3.78M | -0.74 | -64.08% | ― | -1.80% | 15.74% | |
45 Neutral | $115.76M | -7.46 | -200.22% | ― | 45.88% | 43.12% | |
45 Neutral | $138.66M | -0.36 | ― | ― | ― | ― |
* Basic Materials Sector Average
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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.