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Origin Agritech Limited (SEED)
NASDAQ:SEED
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Origin Agritech
(NASDAQ:SEED)
Rating:45Neutral
Price Target:
$1.00
▼(-10.71%Downside)
Origin Agritech (SEED) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.06M
Dividend YieldN/A
Average Volume (3M)21.12K
Price to Earnings (P/E)2.5
Beta (1Y)0.88
Revenue Growth18.41%
EPS Growth-64.88%
CountryUS
Employees68
SectorBasic Materials
Sector Strength64
IndustryAgricultural Inputs
Share Statistics
EPS (TTM)0.45
Shares Outstanding7,199,998
10 Day Avg. Volume14,826
30 Day Avg. Volume21,122
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)-2.92
Price to Sales (P/S)0.00
P/FCF Ratio-3.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Origin Agritech Business Overview & Revenue Model
Company DescriptionOrigin Agritech (NASDAQ: SEED) is a leading agricultural biotechnology company based in China, specializing in the research, development, production, and distribution of hybrid crop seeds. The company focuses on enhancing crop yield and quality through advanced genetic modification and biotechnology techniques, primarily serving the agricultural sectors in China. Origin Agritech's core products include genetically modified (GM) seeds for staple crops such as corn, rice, and other cereal grains.
How the Company Makes MoneyOrigin Agritech generates revenue primarily through the sale of its proprietary hybrid and genetically modified seeds to farmers and agricultural businesses. The company invests heavily in research and development to create high-yield, pest-resistant, and climate-resilient crop varieties, which are then marketed to enhance agricultural productivity. Key revenue streams include direct sales of seeds and licensing agreements for their biotechnology innovations. Origin Agritech also forms strategic partnerships with agricultural institutions and government bodies to support its research initiatives and expand its market reach, further contributing to its earnings.
Origin Agritech Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q4-2024)
| % Change Since: -12.50%|
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. Although there is some revenue growth, the negative equity and poor cash flow position are significant concerns.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.35
Negative
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.20
Very Negative
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.25
Negative
| Breakdown | ||||
| Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 113.38M | 93.31M | 52.58M | 46.42M | 52.51M | Gross Profit |
| 16.07M | 17.25M | 16.19M | 12.81M | 3.51M | EBIT |
| -36.60M | -14.99M | 13.45M | -68.04M | -63.49M | EBITDA |
| 23.08M | 67.84M | 17.35M | -137.91M | -86.01M | Net Income Common Stockholders |
| 20.71M | 55.33M | 2.33M | -127.08M | -102.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 8.38M | 23.71M | 17.67M | 15.35M | 22.48M | Total Assets |
| 131.56M | 238.51M | 135.96M | 119.04M | 254.88M | Total Debt |
| 5.08M | 241.00K | 139.28M | 140.77M | 140.89M | Net Debt |
| -3.30M | -23.47M | 121.61M | 125.42M | 118.41M | Total Liabilities |
| 190.16M | 319.77M | 308.60M | 304.64M | 340.35M | Stockholders Equity |
| -31.29M | -57.40M | -133.87M | -140.67M | -77.19M |
| Cash Flow | Free Cash Flow | |||
| -20.00M | -17.66M | 2.67M | -26.79M | -5.62M | Operating Cash Flow |
| -15.03M | -5.46M | 3.29M | -25.08M | -5.62M | Investing Cash Flow |
| -4.97M | -11.22M | -1.10M | -1.21M | -42.24M | Financing Cash Flow |
| 4.50M | 22.93M | -332.00K | 19.84M | 65.92M |
Origin Agritech Technical Analysis
Negative
1.12
Price Trends
1.44
Negative
1.74
Negative
2.18
Negative
Market Momentum
-0.07
Negative
37.83
Neutral
31.11
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 1.12 is below the 20-day moving average (MA) of 1.17, below the 50-day MA of 1.44, and below the 200-day MA of 2.18, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 37.83 is Neutral, neither overbought nor oversold. The STOCH value of 31.11 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
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $874.85M | 11.60 | 25.16% | 8.58% | -7.27% | -9.30% | |
64 Neutral | $306.03M | 193.48 | 0.51% | ― | -13.98% | -403.35% | |
55 Neutral | $160.20M | ― | -41.90% | 2.60% | -2.35% | -782.69% | |
55 Neutral | $6.51M | ― | -7.89% | ― | -2.81% | 72.03% | |
50 Neutral | $2.01B | -1.12 | -21.15% | 3.68% | 2.69% | -30.65% | |
47 Neutral | $285.45M | ― | -69.68% | ― | ― | ― | |
45 Neutral | $8.06M | 2.46 | ― | 18.41% | -64.88% |
* Basic Materials Sector Average
Performance Comparison
SEED
Origin Agritech
1.16
-4.08
-77.86%
AVD
American Vanguard
4.61
-4.06
-46.83%
UAN
CVR Partners
82.56
9.44
12.91%
RKDA
Arcadia Biosciences
4.61
1.67
56.80%
BIOX
Bioceres Crop Solutions
5.00
-5.76
-53.53%
LVRO
Lavoro Limited
2.44
-3.14
-56.27%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.