22nd Century (XXII) AI Stock Analysis

• Market Cap: $6.48M
• Dividend Yield: N/A
• Average Volume (3M): 2.49M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.57
• Revenue Growth: -34.81%
• EPS Growth: 99.30%
• Country: US
• Employees: 56
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): -1.06
• Shares Outstanding: 6,987,290
• 10 Day Avg. Volume: 328,967
• 30 Day Avg. Volume: 2,485,312
• PEG Ratio: -0.02
• Price to Book (P/B): 4.46
• Price to Sales (P/S): 1.51
• P/FCF Ratio: -1.23
• Enterprise Value/Market Cap: 0.36
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: -0.65
• Enterprise Value/Ebitda: -0.20
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $0.73 ▼(-3.42% Downside)

The score is held down primarily by weak financial performance (declining revenue, large losses, and negative cash flow) and a clearly bearish technical trend (price below major moving averages with negative MACD). Offsetting factors include a more constructive earnings narrative (debt-free balance sheet, improved liquidity, and a shift toward higher-margin branded/VLN products), but profitability remains unproven and valuation support is limited due to negative earnings and no dividend.

Positive Factors

Debt-Free Status

Achieving a debt-free status enhances financial stability and flexibility, allowing the company to allocate resources towards growth initiatives and strategic investments without the burden of interest payments.

Strategic Shift to Higher Margin Products

Focusing on higher-margin products can improve profitability and strengthen market position, as it aligns with consumer demand for premium offerings, potentially leading to better financial performance over time.

VLN Product Expansion

Expanding VLN product distribution increases market penetration and brand visibility, which can drive revenue growth and solidify the company's position in the reduced nicotine tobacco market.

Negative Factors

Continued Losses

Ongoing losses indicate operational challenges and financial strain, which can hinder the company's ability to invest in growth and innovation, potentially impacting long-term sustainability.

Net Revenue Decline

A decline in revenue suggests potential market challenges or competitive pressures, which could affect the company's ability to achieve scale and profitability in the near to medium term.

Uncertainty in Profitability Timeline

Uncertainty in reaching profitability can deter investor confidence and limit strategic options, as it reflects challenges in achieving operational efficiency and market acceptance at the required scale.

22nd Century Business Overview & Revenue Model

Company Description

22nd Century Group, Inc., an agricultural biotechnology company, focuses on tobacco harm reduction, reduced nicotine tobacco, and enhancing health and wellness through plant science for the life science and consumer products industries. It develops very low nicotine content tobacco and cigarette products under the VLN King and VLN Menthol King names; and SPECTRUM research cigarettes for use in independent clinical studies. The company has collaboration with Keygene N.V. to develop hemp/cannabis plants for exceptional cannabinoid profiles and other superior agronomic traits for medical, therapeutic, and agricultural uses, as well as other applications. 22nd Century Group, Inc. was founded in 1998 and is headquartered in Buffalo, New York.

How the Company Makes Money

22nd Century generates revenue through multiple channels, including the sale of its proprietary reduced nicotine tobacco products, which are marketed as a healthier alternative to conventional cigarettes. The company also earns revenue from licensing agreements related to its genetic engineering technology, which allows other companies to produce modified plants. Additionally, 22nd Century has entered into strategic partnerships with major tobacco companies to develop and commercialize its products, further enhancing its revenue potential. The company may also benefit from grants and funding aimed at public health initiatives related to smoking cessation.

22nd Century Financial Statement Overview

Summary

22nd Century faces significant financial challenges across all verticals. The income statement shows declining revenues and persistent losses, while the balance sheet reflects high leverage and negative equity returns. Cash flow remains negative, with limited signs of improvement. The company needs to address operational inefficiencies and improve revenue generation to stabilize its financial position.

Income Statement

The income statement reveals significant challenges for 22nd Century. The company has experienced declining revenue, with a negative revenue growth rate of -10.66% in the TTM. Margins are deeply negative, with a gross profit margin of -16.03% and a net profit margin of -41.95%, indicating substantial losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Overall, the income statement suggests a struggling financial performance with no immediate signs of profitability.

Balance Sheet

The balance sheet shows a mixed picture. The debt-to-equity ratio has improved to 0.43 in the TTM from 2.15 in the previous year, indicating better leverage management. However, the return on equity is significantly negative at -170.04%, reflecting poor returns for shareholders. The equity ratio stands at 8.44%, suggesting a low proportion of equity financing. While debt levels are manageable, the negative equity and returns highlight financial instability.

Cash Flow

Cash flow analysis indicates ongoing cash flow challenges. The operating cash flow is negative, and the free cash flow growth rate is slightly positive at 6.68%, but this is from a negative base. The operating cash flow to net income ratio is negative, suggesting cash flow issues relative to net losses. The free cash flow to net income ratio is close to 1, indicating that free cash flow is largely in line with net losses. Overall, cash flow remains a concern with limited improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.36M	11.88M	32.20M	40.50M	30.95M	28.11M
Gross Profit	-3.56M	-2.40M	-8.70M	1.85M	1.49M	1.44M
EBITDA	-11.78M	-12.11M	-40.41M	-32.89M	-31.00M	-18.07M
Net Income	-6.80M	-15.16M	-140.78M	-59.80M	-32.61M	-19.71M
Balance Sheet
Total Assets	32.37M	21.67M	27.50M	114.65M	75.95M	51.69M
Cash, Cash Equivalents and Short-Term Investments	4.85M	4.42M	2.06M	20.40M	48.74M	22.34M
Total Debt	1.18M	8.62M	16.38M	4.65M	2.34M	786.00K
Total Liabilities	11.26M	17.66M	35.91M	18.68M	9.88M	7.58M
Stockholders Equity	21.10M	4.01M	-8.41M	95.97M	66.07M	44.11M
Cash Flow
Free Cash Flow	-14.98M	-14.51M	-60.60M	-56.14M	-23.91M	-16.14M
Operating Cash Flow	-14.87M	-14.35M	-54.99M	-51.71M	-22.84M	-15.62M
Investing Cash Flow	130.00K	-139.00K	16.82M	22.58M	-27.73M	16.47M
Financing Cash Flow	14.24M	16.85M	37.21M	30.82M	50.88M	-304.00K

22nd Century Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.76
• 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 Neutral. The current price of 0.76 is below the 20-day moving average (MA) of 0.93, below the 50-day MA of 1.05, and below the 200-day MA of 8.26, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 47.90 is Neutral, neither overbought nor oversold. The STOCH value of 67.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XXII.

22nd Century Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UVV	70 Neutral	$1.35B	12.28	7.72%	6.15%	3.01%	-7.14%
TPB	69 Neutral	$1.96B	38.72	22.54%	0.28%	6.71%	8.16%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ISPR	51 Neutral	$144.94M	-3.91	-254.99%	―	-20.13%	-88.66%
XXII	43 Neutral	$6.48M	>-0.01	-133.50%	―	-34.81%	99.30%
GNLN	43 Neutral	$2.34M	―	-240.32%	―	-78.46%	83.71%
KAVL	31 Underperform	$383.45K	-0.04	-68.63%	―	-88.85%	68.28%

22nd Century Corporate Events

22nd Century Updates Agreements to Meet Nasdaq Rules

On December 17, 2205, 22nd Century Group, Inc. amended its agreements with holders of its Series A Convertible Preferred Stock to comply with Nasdaq Listing Rules and streamline securities offerings. The amendment includes changes to stockholder approval deadlines, adjustments to conversion pricing, and provisions enabling future stock split and securities issuance. These updates aim to enhance operational flexibility and investor protections, while positioning the company for regulatory compliance and improved market opportunities.

The most recent analyst rating on (XXII) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on 22nd Century stock, see the XXII Stock Forecast page.

22nd Century Signs $25M Sales Agreement for Expansion

On November 4, 2025, 22nd Century Group, Inc. entered into a Sales Agreement with Needham & Company, LLC to issue and sell shares of common stock up to $25 million, intending to use the proceeds for corporate purposes including the expansion of its VLN® products. The company also reported its third quarter 2025 financial results, highlighting a significant balance sheet improvement with no outstanding debt and a $9.5 million insurance settlement. The company is expanding its market reach with VLN® products, increasing store counts, and securing new distribution agreements, positioning itself for future growth in the tobacco industry.

The most recent analyst rating on (XXII) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on 22nd Century stock, see the XXII Stock Forecast page.