Genus plc (GNS) AI Stock Analysis

• Market Cap: £1.42B
• Dividend Yield: 1.94%
• Average Volume (3M): 161.84K
• Price to Earnings (P/E): 147.6
• Beta (1Y): 1.69
• Revenue Growth: -0.22%
• EPS Growth: -111.98%
• Country: UK
• Employees: 3,500
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): 0.39
• Shares Outstanding: 66,036,770
• 10 Day Avg. Volume: 143,742
• 30 Day Avg. Volume: 161,835
• PEG Ratio: -2.24
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 93.42
• 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: £1,962.50
• Price Target Upside: -7.65% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 62 Neutral
• Price Target: 2,205.00p ▲(3.76%Upside)

Genus plc's overall stock score reflects moderate financial performance with strengths in strategic initiatives and corporate developments. However, valuation concerns and cautious technical indicators temper the outlook, suggesting challenges in achieving significant upward momentum.

Positive Factors

Financial Performance

The company reported better-than-expected performance in the first half of FY25, with significant growth in adjusted profit before tax.

Profit Forecast

Genus has announced that adjusted profit before tax for the first half of FY25 will be at least £35m, which is ahead of expectations.

Regulatory Approval

Genus has secured FDA approval for its PRP gene edited pigs for use.

Negative Factors

Economic Concerns

There is caution due to continued economic weakness in China and the possibility of tariff wars, which could impact the business negatively.

Regulatory Challenges

Uncertainty exists due to important regulatory and commercial hurdles for the PRP programme, affecting near-term confidence.

Trade Relations

Successful commercialisation requires strong harmonisation of trade between the US, Canada, Mexico, and Japan, so current tariff uncertainty is unhelpful.

Genus plc Business Overview & Revenue Model

Company Description

Genus plc operates as an animal genetics company in North America, Latin America, the United Kingdom, rest of Europe, the Middle East, Russia, Africa, and Asia. The company operates through three segments: Genus PIC, Genus ABS, and Genus Research and Development. It sells sows, boars, and semen to breed pigs with various characteristics for pork production under the PIC brand. The company also sells bull semen and embryos to breed calves with various characteristics for milk and beef production under the ABS, Genus, and Bovec brands. In addition, it offers semen sexing, in reproductive, and other technical services to farmers. Genus plc has a strategic collaboration with Beijing Capital Agribusiness Co. Ltd to pursue the porcine reproductive respiratory syndrome virus resistant regulatory and development work in China. The company was incorporated in 1994 and is based in Basingstoke, the United Kingdom.

How the Company Makes Money

Genus plc makes money primarily through the sale of genetic products and services related to animal breeding. The company's revenue model includes selling bovine and porcine genetics, such as semen and embryos, to farmers and agricultural businesses. Key revenue streams include direct sales of genetic material and licensing of proprietary breeding technologies. Genus also benefits from strategic partnerships and collaborations with research institutions and agricultural entities that enhance its product offerings and market reach. Additionally, the company invests in research and development to continuously innovate and improve its genetic solutions, which contributes to its competitive advantage and financial performance.

Genus plc Financial Statement Overview

Summary

Genus plc's financial performance is moderate, with stability in the balance sheet and operational efficiency counterbalanced by declining revenue growth and cash flow. The stable debt-to-equity ratio and positive EBITDA margin are positives, but the decrease in net income and free cash flow poses risks.

Income Statement

Genus plc shows diminishing revenue growth with a significant decline in net income from the previous year, affecting profitability. The gross profit margin has weakened, indicating rising costs or pricing pressure. However, the company maintains a positive EBITDA margin, reflecting operational efficiency despite recent setbacks.

Balance Sheet

The balance sheet is stable with a moderate debt-to-equity ratio, suggesting manageable leverage. The equity ratio remains robust, highlighting a solid capital structure. However, recent increases in total debt could pose future risk if not managed properly.

Cash Flow

The cash flow statement reveals a sharp decline in free cash flow, reflecting increased capital expenditures or reduced cash generation. Operating cash flow remains positive, but decreases in free cash flow to net income ratio indicate potential liquidity challenges if trends continue.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	671.60M	668.80M	689.70M	593.40M	574.30M	551.40M
Gross Profit	649.50M	178.70M	239.30M	226.00M	232.20M	211.60M
EBITDA	42.70M	73.70M	87.50M	79.80M	82.30M	68.00M
Net Income	-4.00M	7.90M	33.30M	40.90M	47.30M	35.30M
Balance Sheet
Total Assets	985.90M	1.03B	1.01B	1.02B	851.00M	855.40M
Cash, Cash Equivalents and Short-Term Investments	47.40M	42.50M	36.30M	38.80M	46.00M	41.30M
Total Debt	297.60M	291.20M	232.10M	223.80M	151.60M	143.90M
Total Liabilities	469.50M	485.00M	440.30M	445.80M	354.40M	360.90M
Stockholders Equity	516.60M	548.20M	569.40M	578.50M	498.10M	495.50M
Cash Flow
Free Cash Flow	38.30M	5.10M	15.20M	-7.80M	38.80M	35.50M
Operating Cash Flow	49.30M	29.80M	50.40M	34.30M	67.50M	60.10M
Investing Cash Flow	-22.30M	-19.30M	-30.90M	-67.20M	-46.70M	-25.00M
Financing Cash Flow	-19.20M	-2.80M	-18.20M	21.90M	-14.20M	-23.10M

Genus plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2125.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GNS, the sentiment is Positive. The current price of 2125 is above the 20-day moving average (MA) of 1993.00, above the 50-day MA of 1983.96, and above the 200-day MA of 1845.43, indicating a bullish trend. The MACD of 28.19 indicates Negative momentum. The RSI at 63.51 is Neutral, neither overbought nor oversold. The STOCH value of 70.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:GNS.

Genus plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BVXP	78 Outperform	£143.68M	18.30	69.08%	5.18%	0.49%	-9.52%
GNS	62 Neutral	£1.42B	147.63	-0.73%	1.94%	-0.22%	-111.98%
ONT	61 Neutral	£1.42B	―	-23.77%	―	7.97%	12.94%
PRTC	57 Neutral	£310.89M	7.86	11.74%	―	38.80%	―
Sector *	52 Neutral	$7.50B	0.31	-61.87%	2.27%	17.10%	1.59%
OXBDF		$481.91M	―	-66.23%	―	―	―
4BB		£152.53M	―	-95.28%	―	―	―

Genus plc Corporate Events

Genus plc Appoints J.P. Morgan as New Financial Adviser

Genus plc has appointed J.P. Morgan Securities plc as its new Financial Adviser and joint Corporate Broker, alongside Peel Hunt and Panmure Liberum, effective immediately. This strategic move is expected to enhance Genus’s financial advisory capabilities and strengthen its market positioning, potentially impacting its operations and stakeholder relations positively.

Genus plc Updates Total Voting Rights Information

Genus plc, listed on the London Stock Exchange under the ticker GNS, announced that as of April 30, 2025, its issued share capital consists of 66,036,776 ordinary shares with voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.

Genus plc Achieves FDA Approval for PRRS Resistant Pig

Genus plc has received FDA approval for its PRRS Resistant Pig gene edit, a significant milestone towards commercializing this innovation in the U.S. food supply chain. This approval is pivotal for the company as it seeks similar regulatory approvals in key export markets like Mexico, Canada, and Japan, and has already received positive determinations from Brazil, Colombia, and the Dominican Republic. The PRRS disease is a major concern in the pork industry, increasing antibiotic use significantly, and Genus’s breakthrough is expected to have a substantial impact on reducing these issues, marking a significant advancement for the industry.

Genus plc Announces Change in Major Shareholder Voting Rights

Genus plc has announced a change in the voting rights held by Wellington Management Company LLP, which now holds 4.93% of the voting rights, down from a previous position of 5.21%. This adjustment in holdings reflects a disposal of voting rights, indicating a slight shift in the investment stance of Wellington Management, a significant stakeholder in Genus plc. The change could impact the company’s shareholder dynamics and influence future corporate decisions.

Genus PLC Announces Change in Voting Rights Structure

Genus PLC, a UK-based company, has announced a change in its voting rights structure due to an acquisition or disposal of voting rights by Wellington Management Group LLP, a Boston-based investment management firm. The notification indicates that Wellington Management Group LLP’s voting rights in Genus PLC have decreased from 5.31% to 4.93%. This change in voting rights could impact Genus PLC’s shareholder dynamics and influence within the company, potentially affecting its strategic decisions and stakeholder relations.