Codexis (CDXS) AI Stock Analysis

• Market Cap: $232.77M
• Dividend Yield: N/A
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.04
• Revenue Growth: -15.39%
• EPS Growth: 19.42%
• Country: US
• Employees: 188
• Sector: Healthcare
• Sector Strength: 72
• Industry: Biotechnology
• EPS (TTM): -0.90
• Shares Outstanding: 82,837,310
• 10 Day Avg. Volume: 964,877
• 30 Day Avg. Volume: 1,025,461
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.56
• Price to Cash Flow (P/CF): -3.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.67
• Price Target Upside: 137.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Codexis faces significant financial challenges, with declining revenue and persistent losses impacting its stock performance. The technical analysis reflects a bearish trend, further weighing on investor sentiment. Although the company has outlined growth prospects in its earnings call, the negative valuation metrics point to underlying financial struggles. Codexis's potential hinges on successful execution of its strategic initiatives, making it a speculative investment at this stage.

Positive Factors

Cash Flow

Codexis has cash to fund operations to cash flow positivity which management expects should occur by YE:26.

Financing

Codexis extended their cash runway into 2027 with a $31M raise, which should increase confidence in the company's ability to reach cash flow positivity.

Long-term Outlook

Encouraging progress in Q4 laying the groundwork for ECO's long-term outlook.

Negative Factors

Partnerships

Executing on the right partnerships remains critical to the long-term outlook.

Revenue Performance

Q4 revenues of $21.5M missed consensus estimates of $27.4M.

Codexis Business Overview & Revenue Model

Company Description

Codexis, Inc. (CDXS) is a leading biotechnology company that specializes in the development of high-performance enzymes for various industries. Leveraging its proprietary CodeEvolver® technology platform, Codexis engineers customized enzymes for applications in pharmaceuticals, food and beverage, agriculture, and other sectors. The company's innovations help enhance the efficiency and sustainability of manufacturing processes, thereby supporting the development of cleaner and greener products.

How the Company Makes Money

Codexis generates revenue primarily through product sales, research and development (R&D) collaborations, and licensing agreements. The company sells engineered enzymes to pharmaceutical companies and other industries, where these enzymes are used to improve manufacturing processes. Additionally, Codexis partners with leading firms to co-develop enzyme solutions, earning milestone payments and royalties. Key partnerships, such as those with major pharmaceutical companies, significantly contribute to its revenue through collaborative projects and long-term agreements. Codexis also licenses its CodeEvolver® technology platform, enabling partners to develop their own enzyme-based solutions, which provides another stream of income through licensing fees and royalties.

Codexis Financial Statement Overview

Summary

Codexis operates in a challenging financial environment characterized by declining revenues, persistent losses, and increasing leverage. While the company maintains strong product margins, operational inefficiencies and high leverage pose significant risks. Continued negative cash flows highlight the need for structural improvements to achieve financial stability.

Income Statement

Codexis has experienced a declining revenue trend, with a significant drop of 15.39% from 2023 to 2024. The company has consistently struggled with profitability, as evidenced by its negative net and EBIT margins, which have widened over the years. The gross profit margin remains high at 72.53% in 2024, indicating strong product margins, but it is overshadowed by operational inefficiencies leading to negative bottom-line figures.

Balance Sheet

The balance sheet reveals a concerning increase in leverage, with the debt-to-equity ratio rising to 0.89 in 2024, indicating higher financial risk. However, the company's equity ratio remains robust at 35.14%, showing a strong equity base relative to assets. The return on equity is negative due to substantial net losses, highlighting ongoing profitability challenges.

Cash Flow

Codexis faces significant cash flow issues, with a negative free cash flow in 2024 and a decline in operating cash flow. The free cash flow to net income ratio is concerning, as it indicates the company is generating insufficient cash relative to its losses. However, financing cash flow remains positive due to external funding, which temporarily supports liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
59.34M	70.14M	138.59M	104.75M	69.06M
	Gross Profit
43.06M	57.33M	100.56M	82.55M	55.31M
	EBIT
-58.52M	-68.07M	-31.71M	-22.70M	-23.92M
	EBITDA
-58.52M	-49.28M	-23.07M	-16.75M	-19.37M
	Net Income Common Stockholders
-65.28M	-76.24M	-33.59M	-21.28M	-24.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
73.46M	65.12M	113.98M	116.80M	150.12M
	Total Assets
149.01M	136.56M	250.39M	246.38M	221.65M
	Total Debt
59.90M	16.02M	43.64M	47.65M	24.95M
	Net Debt
40.63M	-49.09M	-70.35M	-69.14M	-124.17M
	Total Liabilities
82.08M	49.95M	105.60M	81.99M	51.54M
	Stockholders Equity
66.93M	86.61M	144.80M	164.39M	170.10M
Cash Flow		Free Cash Flow
-53.72M	-57.06M	2.98M	-28.09M	-20.21M
	Operating Cash Flow
-49.41M	-52.64M	11.28M	-14.27M	-16.46M
	Investing Cash Flow
-56.98M	-4.86M	-13.58M	-21.42M	-5.75M
	Financing Cash Flow
60.52M	8.17M	-575.00K	3.77M	80.81M

Codexis Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.81
• 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 CDXS, the sentiment is Negative. The current price of 2.81 is above the 20-day moving average (MA) of 2.76, below the 50-day MA of 3.73, and below the 200-day MA of 3.65, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 42.35 is Neutral, neither overbought nor oversold. The STOCH value of 56.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CDXS.

Codexis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CDXS	50 Neutral	$232.77M	―	-85.03%	―	-15.39%	19.42%
Sector *	49 Neutral	$6.85B	0.81	-52.91%	2.50%	17.48%	1.17%
CRSP	46 Neutral	$3.17B	―	-19.20%	―	-89.95%	-123.71%
SGMO	41 Neutral	$184.26M	―	-187.83%	―	-67.20%	64.66%
DNLI	41 Neutral	$2.15B	―	-37.40%	―	-100.00%	-144.79%
EDIT	39 Underperform	$103.72M	―	-98.10%	―	-58.64%	-40.05%
NTLA	39 Underperform	$835.39M	―	-54.00%	―	59.55%	3.09%

Codexis Corporate Events

Codexis Appoints Christos Richards to Board of Directors

On January 14, 2025, Codexis, Inc. announced the appointment of Christos Richards to its Board of Directors as a Class II director, with his term extending to the 2027 annual meeting of stockholders. Richards, an experienced executive in the healthcare and life sciences sectors, joins the Nominating and Corporate Governance Committee and the Strategy Committee. His compensation package includes a cash retainer and restricted stock units, emphasizing the company’s strategic focus on enhancing governance and strategy. Richards’ extensive background in executive search and healthcare positions him to contribute significantly to Codexis’ future endeavors.