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Cibus (CBUS)
NASDAQ:CBUS
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Cibus
(NASDAQ:CBUS)
32Underperform
Positive Factors
EU Regulatory Support
The EU Council's support for advancing negotiations on gene-editing techniques is favorable, paving the way for potential use in European agriculture and global adoption.
Market Expansion
Cibus is increasing its customers for weed management in Rice, with a total of four customers representing 40% of the addressable market in North and Latin America.
Revenue Growth
Cibus' revenues increased by 135% year-over-year, mainly through collaboration agreements and sales related to developing a palm oil alternative.
Negative Factors
Dilution Concerns
Following the announcement of the equity raise, the model was adjusted to reflect the dilution effect of the revised share count.
Leadership Change
Cibus' CEO, Rory Riggs, will be stepping down from his leadership position, marking a significant leadership change.
Operational Goals
Cibus did not meet its stated goal of achieving an operational soybean platform at the cellular level by the end of 2024.
Cibus (CBUS) vs. S&P 500 (SPY)
Market Cap
$71.79M
Dividend YieldN/A
Average Volume (3M)172.55K
Price to Earnings (P/E)―
Beta (1Y)1.96
Revenue Growth134.56%
EPS Growth61.91%
CountryUS
Employees157
SectorHealthcare
Sector Strength66
IndustryBiotechnology
Share Statistics
EPS (TTM)-10.72
Shares Outstanding32,638,412
10 Day Avg. Volume220,487
30 Day Avg. Volume172,553
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)14.60
Price to Cash Flow (P/CF)-1.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.50Price Target Upside985.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Cibus Business Overview & Revenue Model
Company DescriptionCibus, Inc., a agricultural technology company, develops and licenses plant traits to seed companies for royalties. The company primarily focus on trait productivity in two areas, including productivity traits that enable farmers to have higher yields and reduce the use of the crop protection chemicals and fertilizers; and sustainable ingredients that enable corporations to replace ingredients that are fossil fuel based or whose production results in increased greenhouse gases. The company is based in San Diego, California.
How the Company Makes MoneyCibus makes money through the development and commercialization of gene-edited crops. The company generates revenue by licensing its proprietary gene-editing technologies and crop varieties to agricultural producers and seed companies. Additionally, Cibus may enter into strategic partnerships and collaborations with industry stakeholders to co-develop and market new crop varieties. These partnerships can result in milestone payments, royalties, and co-marketing agreements that contribute to the company's earnings. Cibus's business model is heavily reliant on the successful adoption of its technologies by the agricultural sector and the ongoing demand for improved crop varieties.
Cibus Financial Statement Overview
Summary
Cibus shows rapid revenue growth but faces substantial profitability and cash flow challenges. The company has a modest leverage, but negative ROE and declining equity suggest financial instability. Improvement in operational efficiency and profitability is crucial.Income Statement
Cibus shows significant revenue growth in the TTM, but profitability remains a challenge with negative net and gross profit margins. The gross profit margin for the TTM is 14.01%, and the net profit margin is -10486.01%, indicating substantial losses. The revenue growth rate from the previous year to the TTM is 128.46%, showing positive sales momentum, but the EBIT and EBITDA margins remain deeply negative, highlighting ongoing operational challenges.25
Negative
Balance Sheet
The company's debt-to-equity ratio has increased to 0.34 in the TTM, reflecting a modest level of leverage. Return on equity is deeply negative at -402.90%, driven by significant losses. The equity ratio has decreased to 29.39%, indicating lower capital adequacy and increased financial risk.35
Negative
Cash Flow
Cibus reports a negative operating cash flow to net income ratio of 0.20 in the TTM, reflecting substantial cash consumption relative to earnings. The free cash flow to net income ratio is also negative, and free cash flow has declined by 72.20% compared to the previous year, indicating deteriorating cash flow dynamics.30
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.15M | 1.82M | 157.00K | 25.99M | 23.85M | 7.30M | Gross Profit |
| 582.00K | 1.42M | -1.38M | -2.57M | -11.28M | -1.98M | EBIT |
| -509.68M | -318.88M | -22.37M | -29.33M | -43.83M | -39.67M | EBITDA |
| -493.20M | -314.58M | -15.21M | -25.43M | -41.53M | -36.52M | Net Income Common Stockholders |
| -435.48M | -267.63M | -16.89M | -29.20M | -44.84M | -39.61M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 93.79M | 32.70M | 3.43M | 13.82M | 29.00M | 58.61M | Total Assets |
| 118.79M | 544.41M | 22.42M | 37.19M | 63.33M | 88.10M | Total Debt |
| 18.48M | 24.62M | 13.54M | 17.88M | 19.76M | 18.60M | Net Debt |
| -75.31M | -8.08M | 10.12M | 4.05M | 2.46M | -40.01M | Total Liabilities |
| 25.39M | 206.12M | 15.19M | 23.06M | 26.45M | 25.59M | Stockholders Equity |
| 93.40M | 293.47M | 7.23M | 14.13M | 36.88M | 62.51M |
| Cash Flow | Free Cash Flow | ||||
| -87.04M | -50.53M | -20.88M | -19.31M | -45.46M | -34.92M | Operating Cash Flow |
| -85.45M | -46.21M | -19.36M | -18.81M | -43.67M | -31.95M | Investing Cash Flow |
| -1.59M | 55.06M | -1.52M | 11.20M | -13.48M | -2.97M | Financing Cash Flow |
| 59.18M | 20.32M | 9.99M | 3.74M | 15.41M | -330.00K |
Cibus Technical Analysis
Negative
1.98
Price Trends
2.31
Negative
3.09
Negative
4.96
Negative
Market Momentum
-0.06
Negative
42.08
Neutral
23.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBUS, the sentiment is Negative. The current price of 1.98 is below the 20-day moving average (MA) of 2.13, below the 50-day MA of 2.31, and below the 200-day MA of 4.96, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 42.08 is Neutral, neither overbought nor oversold. The STOCH value of 23.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CBUS.
Cibus Risk Analysis
Cibus disclosed 50 risk factors in its most recent earnings report. Cibus 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
Cibus Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $5.15B | 15.40 | 9.02% | 5.56% | -5.36% | -74.25% | |
58 Neutral | $262.76M | 182.17 | 0.51% | ― | -10.30% | -93.51% | |
50 Neutral | $243.54M | ― | -85.03% | ― | -15.39% | 19.42% | |
49 Neutral | $6.88B | 0.82 | -52.97% | 2.48% | 20.92% | 1.17% | |
48 Neutral | $413.20M | ― | -60.34% | ― | -9.71% | 42.17% | |
39 Underperform | $903.71M | ― | -54.00% | ― | 59.55% | 3.09% | |
32 Underperform | $71.79M | ― | -130.38% | ― | 134.56% | 61.91% |
* Healthcare Sector Average
Performance Comparison
CBUS
Cibus
1.98
-19.79
-90.90%
CDXS
Codexis
2.82
-0.69
-19.66%
FMC
FMC
42.16
-18.62
-30.64%
NTLA
Intellia Therapeutics
8.31
-18.71
-69.25%
BIOX
Bioceres Crop Solutions
4.38
-8.27
-65.38%
DNA
Ginkgo Bioworks Holdings
6.65
-37.35
-84.89%
Cibus Earnings Call Summary
Earnings Call Date: Mar 20, 2025 | % Change Since: -9.59% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in strategic partnerships, regulatory advancements, and market expansion, particularly in gene editing and sustainable ingredients. However, the company faces challenges with limited cash reserves and the need for additional financing. The transition in leadership is noteworthy, but the overall narrative remains one of cautious optimism about future revenue opportunities.Highlights
Strategic Partnerships and Collaborations
Cibus formed significant collaborations with RTDC Corporation Limited and Albaugh LLC for herbicide-resistant rice traits, and with Biographica for AI-based gene discovery. These partnerships aim to enhance commercialization efforts and disease resistance in crops.
Advances in Regulatory Environment
The EU Council's negotiation mandate on new genomic techniques regulation is expected to harmonize the global regulatory landscape for gene editing, opening new markets for Cibus' products.
Expansion in Key Markets
Cibus has agreements with major rice seed companies in North and Latin America, covering around 40% of estimated accessible rice acres in these regions. Additionally, Cibus is making progress with its Sclerotinia resistance and HT2 traits in canola and winter oilseed rape.
Financial Management and Cost Reduction
Cibus reported a decrease in R&D expenses by $1.8 million year-over-year, primarily due to cost-saving initiatives and reduced personnel costs. This led to an improvement in net loss, excluding goodwill impairment, by approximately $2 million.
Progress in Sustainable Ingredients Program
Cibus is advancing its sustainable ingredients program with a large multinational CPG partner and expects nominal revenues from biofragrance products later in the year.
Lowlights
Limited Cash Runway
Cibus' cash and cash equivalents were $14.4 million as of December 31, 2024, with expectations to fund operations only until late Q3 2025, necessitating further financing efforts.
Leadership Transition
Cibus is undergoing a leadership transition, which can be a critical moment for company stability and strategic direction.
No Immediate Revenue from Key Platforms
Despite progress, Cibus does not anticipate significant revenue from its primary platforms until 2026, indicating a continued phase of development without immediate financial returns.
Company Guidance
During the Cibus Fourth Quarter 2024 Results Conference Call, the company provided comprehensive guidance on its strategic initiatives and financial outlook. Cibus highlighted its progress in developing gene-edited productivity traits, particularly focusing on rice and canola crops, with significant advancements in herbicide tolerance traits and disease resistance. The company emphasized its proprietary Rapid Trait Development System (RTDS) that allows for precise gene editing similar to conventional breeding methods. Cibus reported a cash balance of $14.4 million as of December 31, 2024, and expects its existing cash and cash equivalents to fund operations into late Q3 2025, following a $21.6 million net proceeds from a direct offering. For the fourth quarter, research and development expenses were reported at $12.4 million, while selling, general, and administrative expenses were $6.8 million. The net loss was $25.8 million, an improvement from the previous year's $277.2 million, mainly due to cost reduction efforts. Moving forward, Cibus plans to focus on commercializing its gene-edited traits, leveraging favorable regulatory changes in the EU and expanding its global market potential.Cibus Corporate Events
Executive/Board Changes
Cibus Appoints Peter Beetham as Interim CEO
Neutral
Feb 28, 2025
On February 24, 2025, Rory Riggs resigned as CEO of Cibus, Inc., but remains as Chairman of the Board. Peter Beetham, the company’s President and COO, was appointed as Interim CEO while a search for a new CEO is conducted. Dr. Beetham, who co-founded Cibus Global and has over 30 years of experience in agriculture, brings extensive leadership and research expertise to his interim role.
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.