Co-Diagnostics (CODX) AI Stock Analysis

• Market Cap: $11.46M
• Dividend Yield: N/A
• Average Volume (3M): 146.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: -91.22%
• EPS Growth: 11.84%
• Country: US
• Employees: 132
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Devices
• EPS (TTM): -0.24
• Shares Outstanding: 33,712,530
• 10 Day Avg. Volume: 111,345
• 30 Day Avg. Volume: 146,125
• PEG Ratio: 0.02
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.38
• 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: $1.00
• Price Target Upside: 194.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Co-Diagnostics faces significant financial challenges, with declining revenue and ongoing losses being the primary concerns. While the company is making strategic advancements in its Co-Dx PCR platform, the financial instability and negative market sentiment weigh heavily on the stock's attractiveness. Technical indicators further suggest a bearish outlook, and poor valuation metrics do not offer support. Overall, the risks outweigh the potential rewards at this stage.

Positive Factors

Clinical Trials

The company plans to initiate clinical trials of the TB test in both South Africa and India and start a clinical trial of the respiratory multiplex test during the flu season.

New Facilities

The company has inaugurated a new manufacturing facility in South Salt Lake to manufacture its patented Co-Primers oligonucleotides, the Co-Dx PCR Pro instrument, and test cups for the new Co-Dx PCR platform.

Negative Factors

Financial Position

The price objective decreased to $1 due to a higher number of shares outstanding and a lower cash position, with a Neutral rating reiterated.

Regulatory Challenges

The company withdrew its 510(k) application submitted to the FDA for its Co-Dx PCR COVID-19 test.

Revenue Decline

Revenue for the full year 2024 was $3.9M, representing a 43% year-over-year decline.

Co-Diagnostics Business Overview & Revenue Model

Company Description

Co-Diagnostics, Inc., a molecular diagnostics company, develops, manufactures, and sells reagents used for diagnostic tests that function through the detection and/or analysis of nucleic acid molecules in the United States and internationally. It offers polymerase chain reaction (PCR) diagnostic tests for COVID-19, tuberculosis, hepatitis B and C, human papilloma virus, malaria, chikungunya, dengue, and the zika virus; three multiplexed tests to test mosquitos for the identification of diseases carried by the mosquitos; and molecular tools for detection of infectious diseases, liquid biopsy for cancer screening, and agricultural applications. The company also provides tests that identify genetic traits in plant and animal genomes; and portable PCR device designed to bring PCR to patients in point-of-care and at-home settings. In addition, it intends to sell diagnostic equipment from other manufacturers as self-contained lab systems. The company was incorporated in 2013 and is headquartered in Salt Lake City, Utah.

How the Company Makes Money

Co-Diagnostics generates revenue primarily through the sale of its diagnostic tests and reagents. The company markets its products to diagnostic laboratories, clinics, and other healthcare providers. Revenue streams include direct sales, as well as distribution partnerships that expand the reach of its products globally. Co-Diagnostics also engages in licensing agreements that allow other companies to utilize its proprietary technologies, providing additional revenue through royalties and licensing fees. The company's earnings are influenced by its ability to secure contracts, expand its market presence, and continually innovate to meet the evolving needs of the healthcare diagnostics industry.

Co-Diagnostics Financial Statement Overview

Summary

Co-Diagnostics is experiencing significant financial challenges with declining revenue, negative net income, and negative cash flow. Despite a strong equity position and low leverage, operational inefficiencies and cash management issues are concerning.

Income Statement

Co-Diagnostics has experienced a significant decline in revenue from its peak in 2021. The net income has turned negative, reflecting a challenging profitability landscape. Gross profit margins remain relatively high, but the negative EBIT and EBITDA margins indicate operational inefficiencies. The company needs to address these issues to return to profitability.

Balance Sheet

The balance sheet shows a strong equity position with minimal debt, resulting in a low debt-to-equity ratio. However, the declining total assets and stockholders' equity indicate financial deterioration. The equity ratio remains solid, suggesting stability, but the negative return on equity highlights profitability concerns.

Cash Flow

Co-Diagnostics is facing negative free cash flow, primarily due to significant operating cash outflows. Despite positive investing cash flows, the inability to generate positive free cash flow to net income ratios suggests challenges in cash management and sustainability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.61M	3.92M	6.81M	34.22M	97.89M	74.55M
	Gross Profit
-83.52K	2.92M	2.63M	28.74M	86.31M	57.96M
	EBIT
-42.71M	-40.08M	-42.71M	-11.59M	46.06M	41.69M
	EBITDA
-38.67M	-36.20M	-41.48M	-10.31M	46.40M	41.83M
	Net Income Common Stockholders
-41.28M	-37.64M	-35.33M	-14.24M	36.66M	42.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
33.80K	29.75M	58.55M	81.26M	89.86M	47.31M
	Total Assets
0.00	64.00M	95.32M	123.09M	160.03M	71.24M
	Total Debt
0.00	2.15M	2.99M	347.92K	0.00	0.00
	Net Debt
33.80K	-784.37K	-11.93M	-22.63M	-88.61M	-42.98M
	Total Liabilities
0.00	2.37M	9.31M	8.57M	25.56M	4.54M
	Stockholders Equity
-1.15M	54.31M	86.01M	114.52M	134.48M	66.70M
Cash Flow		Free Cash Flow
-26.84M	-29.90M	-23.45M	5.14M	40.41M	27.39M
	Operating Cash Flow
-25.70M	-29.16M	-22.08M	6.57M	41.08M	28.17M
	Investing Cash Flow
26.42M	17.07M	15.39M	-58.17M	4.10M	-5.82M
	Financing Cash Flow
-159.67K	103.91K	-1.36M	-14.03M	450.40K	19.74M

Co-Diagnostics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.34
• 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 CODX, the sentiment is Negative. The current price of 0.34 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.40, and below the 200-day MA of 0.88, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 42.22 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CODX.

Co-Diagnostics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.15B	3.56	-42.52%	2.83%	14.56%	-0.50%
BMRA	45 Neutral	$9.11M	―	-72.70%	―	5.05%	26.13%
CODX	39 Underperform	$11.46M	―	-56.80%	―	-91.22%	11.84%
ADGM	36 Underperform	$22.46M	―	-329.16%	―	―	-7352.45%
PAVM	36 Underperform	$13.36M	―	-499.57%	―	22.15%	―
AXDX	23 Underperform	$3.73M	―	110.26%	―	-2.99%	59.87%
MOVE	23 Underperform	$5.59M	―	-439.23%	―	―	56.73%