22nd Century (XXII) AI Stock Analysis

• Market Cap: $5.71M
• Dividend Yield: N/A
• Average Volume (3M): 2.49M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.24
• Revenue Growth: -49.46%
• EPS Growth: 99.12%
• Country: US
• Employees: 56
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): -13.16
• Shares Outstanding: 3,781,492
• 10 Day Avg. Volume: 328,967
• 30 Day Avg. Volume: 2,485,312
• 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: 0.74
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: -1.33
• Enterprise Value/Ebitda: -0.35
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: $1.50 ▼(-0.66% Downside)

22nd Century's stock score is primarily impacted by its poor financial performance and weak technical indicators. The company's financial instability, marked by declining revenues and high leverage, is a significant concern. The technical analysis further reflects a bearish outlook, with the stock trading below key moving averages. Valuation metrics offer no support, as the P/E ratio is zero and there is no dividend yield. While the strategic shift to high-margin products is a positive development, the delay in profitability and potential cash flow issues remain significant risks.

22nd Century Business Overview & Revenue Model

Company Description

22nd Century Group, Inc. (XXII) is a biotechnology company focused on the development of innovative solutions for the tobacco and hemp industries. The company specializes in genetic engineering and plant biotechnology, aiming to create low-nicotine tobacco products designed to reduce dependence on nicotine. Additionally, 22nd Century is involved in the production and commercialization of hemp-derived products, including cannabinoid extracts and related applications. The company operates primarily in the sectors of biotechnology, agriculture, and health.

How the Company Makes Money

22nd Century generates revenue through several key streams. Primarily, the company earns income from the sale of its proprietary low-nicotine tobacco products and related technologies to tobacco manufacturers. This includes licensing agreements and royalties from the use of its patented genetic modifications. Furthermore, 22nd Century has developed a portfolio of hemp-derived products, which contributes additional revenue through direct sales and partnerships with other companies in the hemp and cannabinoid markets. Significant partnerships with major tobacco companies and ongoing collaborations in research and development help bolster its revenue potential, alongside the company's focus on regulatory compliance and product innovation to meet market demands.

22nd Century Financial Statement Overview

Summary

22nd Century faces significant financial challenges, with declining revenues, negative profitability margins, and high leverage. The company's ability to generate cash is weak, and its financial stability is at risk due to high debt levels and negative equity returns. Strategic changes are necessary to improve operational efficiency and financial health.

Income Statement

The income statement shows significant challenges with negative margins across the board. The TTM gross profit margin is -15.94%, and the net profit margin is -80.22%, indicating substantial losses relative to revenue. Revenue has declined by 16.19% in the TTM period, reflecting a downward trend in sales. The EBIT and EBITDA margins are also negative, highlighting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 0.96 in the TTM period, suggesting significant leverage. The return on equity is negative, indicating that the company is not generating profit from shareholders' equity. The equity ratio is low, showing limited equity financing relative to total assets, which could pose risks in financial stability.

Cash Flow

Cash flow analysis indicates negative operating and free cash flows, with a slight improvement in free cash flow growth but still negative at -8.55% in the TTM period. The operating cash flow to net income ratio is negative, suggesting that the company is not converting its net income into cash effectively. The free cash flow to net income ratio is slightly above 1, indicating that free cash flow is marginally covering net income losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.01M	11.88M	32.20M	40.50M	30.95M	28.11M
Gross Profit	-3.19M	-2.40M	-8.70M	1.85M	2.07M	1.44M
EBITDA	-12.04M	-12.11M	-40.41M	-32.89M	-31.00M	-18.07M
Net Income	-16.05M	-15.16M	-140.78M	-59.80M	-32.61M	-19.71M
Balance Sheet
Total Assets	22.38M	21.67M	27.50M	114.65M	75.95M	51.69M
Cash, Cash Equivalents and Short-Term Investments	3.08M	4.42M	2.06M	20.40M	48.74M	22.34M
Total Debt	5.43M	8.62M	16.38M	1.65M	2.34M	786.00K
Total Liabilities	16.75M	17.66M	35.91M	18.68M	9.88M	7.58M
Stockholders Equity	5.63M	4.01M	-8.41M	95.97M	66.07M	44.11M
Cash Flow
Free Cash Flow	-13.92M	-14.51M	-60.60M	-56.14M	-23.91M	-16.14M
Operating Cash Flow	-13.83M	-14.35M	-54.99M	-51.71M	-22.84M	-15.62M
Investing Cash Flow	582.00K	-139.00K	16.82M	22.58M	-27.73M	16.47M
Financing Cash Flow	15.05M	16.85M	37.21M	30.82M	50.88M	-304.00K

22nd Century Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.51
• 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 XXII, the sentiment is Negative. The current price of 1.51 is below the 20-day moving average (MA) of 1.56, below the 50-day MA of 1.70, and below the 200-day MA of 26.78, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 42.12 is Neutral, neither overbought nor oversold. The STOCH value of 59.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XXII.

22nd Century Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UVV	―	$1.28B	12.52	7.20%	6.26%	4.11%	-15.50%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
TPB	―	$1.64B	38.11	26.05%	0.33%	4.44%	-5.94%
ISPR	―	$135.75M	―	-223.84%	―	-16.07%	-155.70%
XXII	―	$5.71M	―	-616.13%	―	-49.46%	99.12%
GNLN	―	$4.48M	―	-149.74%	―	-72.92%	85.19%
KAVL	―	$7.10M	―	-68.63%	―	-88.85%	68.28%

22nd Century Corporate Events

22nd Century Settles Insurance Litigation for $9.5M

On September 18, 2025, 22nd Century Group, Inc. settled its litigation with its insurer regarding the November 2022 fire at its Grass Valley manufacturing facility, resulting in a $9.5 million cash payment. This settlement allows the company to transition from survival capital to growth capital, positioning it to focus on profitability by 2026 and expand distribution for its branded products.

The most recent analyst rating on (XXII) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on 22nd Century stock, see the XXII Stock Forecast page.

22nd Century Announces Full Debt Repayment

On September 18, 2025, 22nd Century Group, Inc. announced the full repayment of its senior secured debt, totaling $3.9 million, which was completed ahead of its maturity date. This financial move, following the closing of its Series A convertible preferred stock offering, results in a debt-free balance sheet and positions the company for growth by reducing ongoing cash needs and operating costs. The company plans to use its improved financial position to expand its inventory of very low nicotine tobacco leaf, supporting the production of over one million cartons of VLN products, and to focus on the growth of its branded products and intellectual property portfolio.

The most recent analyst rating on (XXII) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on 22nd Century stock, see the XXII Stock Forecast page.

22nd Century Group’s Earnings Call: Strategic Shifts Amid Challenges

In the recent earnings call, 22nd Century Group conveyed a mixed sentiment. While the company is making strategic moves towards high-margin products and has launched its VLN products, challenges such as delayed profitability and potential cash flow issues loom large.

22nd Century Group Expands VLN® Product Line Amid Financial Challenges

22nd Century Group, Inc., a leader in the tobacco harm reduction sector, focuses on developing reduced nicotine content tobacco products, including its flagship VLN® cigarettes, which are designed to help smokers control their nicotine consumption.