Applied DNA Sciences (APDN) AI Stock Analysis

• Market Cap: $5.79M
• Dividend Yield: N/A
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.93
• Revenue Growth: -58.46%
• EPS Growth: 47.98%
• Country: US
• Employees: 46
• Sector: Healthcare
• Sector Strength: 56
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -285.87
• Shares Outstanding: 6,497,790
• 10 Day Avg. Volume: 630,073
• 30 Day Avg. Volume: 1,620,493
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.14
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 0.81
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Applied DNA Sciences faces substantial financial and operational challenges, as indicated by declining revenues and net losses. Despite some positive strategic moves, such as focusing on LineaRx, the stock suffers from poor technical indicators and valuation metrics. The company's ongoing financial struggles and the uncertainties highlighted in the earnings call contribute to a low overall stock score.

Applied DNA Sciences Business Overview & Revenue Model

Company Description

Applied DNA Sciences, Inc. develops and markets DNA-based technology solutions for use in the nucleic acid-based in vitro diagnostics and preclinical nucleic-acid based drug development and manufacturing markets; and for supply chain security, anti-counterfeiting, and anti-theft technology purposes. The company's supply chain security and product authentication solutions include SigNature molecular tags that provide forensic power and protection for various applications used to fortify brand protection efforts and strengthen supply chain security, as well as mark, track, and convict criminals; SigNify IF portable DNA readers and SigNify consumable reagent test kits that provide real-time authentication of molecular tags in the field; and CertainT, which indicates the use of tagging, testing, and tracking platforms and solutions enabling manufacturers, brands, and trade organizations to convey proof of their product claims. It also manufactures and sells COVID-19 PCR-based molecular diagnostic test kit under the LineaTM COVID-19 Assay Kit trademark; and COVID-19 diagnostic test kit to prevent virus spread within a community, school, or workplace under the safeCircle trademark. In addition, the company provides preclinical contract research and manufacturing services for the nucleic acid-based therapeutic markets; and contract research services to RNA based drug and biologic customers for preclinical studies. Further, it develops an invasive circulating tumor cell capture and identification technology that uses a patented functional assay to capture live invasive circulating tumor cell and associated lymphocytes. The company operates in the United States, Europe, Asia, and internationally. The company was formerly known as Datalink Systems, Inc. and changed its name to Applied DNA Sciences, Inc. in 2002. Applied DNA Sciences, Inc. was founded in 1983 and is headquartered in Stony Brook, New York.

How the Company Makes Money

Applied DNA Sciences generates revenue through the sale of its proprietary DNA-based solutions and services. The company earns money by providing DNA tagging and authentication services to businesses in various industries, including pharmaceuticals, textiles, and consumer goods. Additionally, APDN collaborates with partners in sectors like government and law enforcement to deliver security solutions. Key revenue streams include service fees for DNA tagging and authentication, as well as licensing fees from strategic partnerships. APDN's earnings are significantly influenced by its ability to secure contracts with major companies and government agencies, as well as its continued innovation in DNA technology applications.

Applied DNA Sciences Financial Statement Overview

Summary

Applied DNA Sciences is facing significant financial challenges with declining revenues and consistent net losses impacting profitability. The balance sheet is stable with low debt, but negative cash flows indicate operational inefficiencies. The company should focus on revenue growth and cost management to improve financial health.

Income Statement

The company shows a declining revenue trend with significant losses. Revenue has decreased from $18.17 million in 2022 to $3.73 million TTM. Gross profit margin is low, and net profit margin is negative due to substantial net losses. These indicators suggest weak profitability and potential financial challenges.

Balance Sheet

The balance sheet reveals a low debt-to-equity ratio, indicating minimal leverage and a stronger equity position. However, the equity ratio shows a decline from 58% in 2022 to 80% TTM, reflecting reduced asset base and increased equity. The return on equity is negative, which highlights profitability issues.

Cash Flow

Cash flows are under pressure with negative operating cash flow and free cash flow, indicating cash burn. Although financing cash flow is positive due to external funding, reliance on financing for operations is risky. Free cash flow to net income ratio is unfavorable, suggesting inefficiencies in cash generation.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
3.43M	13.37M	18.17M	9.03M	1.93M
	Gross Profit
1.02M	5.53M	5.05M	4.93M	1.21M
	EBIT
-14.02M	-10.95M	-13.97M	-12.29M	-12.53M
	EBITDA
-14.02M	-9.59M	-12.68M	-11.68M	-12.25M
	Net Income Common Stockholders
-6.99M	-9.95M	-8.38M	-16.03M	-12.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.43M	7.15M	15.22M	6.55M	7.79M
	Total Assets
12.79M	13.65M	22.27M	14.42M	11.34M
	Total Debt
739.16K	1.24M	0.00	0.00	2.35M
	Net Debt
-5.69M	-5.91M	-15.22M	-6.55M	-5.44M
	Total Liabilities
3.82M	8.78M	9.36M	3.30M	5.63M
	Stockholders Equity
9.14M	4.95M	12.91M	11.11M	5.72M
Cash Flow		Free Cash Flow
-14.12M	-6.30M	-9.47M	-15.94M	-12.21M
	Operating Cash Flow
-13.71M	-6.22M	-8.98M	-13.39M	-11.14M
	Investing Cash Flow
-407.90K	-1.10M	-489.55K	-2.55M	-1.06M
	Financing Cash Flow
13.40M	0.00	18.13M	14.70M	19.43M

Applied DNA Sciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APDN, the sentiment is Negative. The current price of 0.89 is below the 20-day moving average (MA) of 0.97, below the 50-day MA of 2.89, and below the 200-day MA of 19.74, indicating a bearish trend. The MACD of -0.53 indicates Negative momentum. The RSI at 25.28 is Positive, neither overbought nor oversold. The STOCH value of 70.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APDN.

Applied DNA Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INBS	53 Neutral	$9.26M	―	-279.80%	―	23.21%	57.43%
Sector *	52 Neutral	$5.36B	3.81	-42.57%	2.86%	17.10%	1.33%
PRPO	48 Neutral	$11.10M	―	-32.35%	―	21.95%	39.43%
APDN	42 Neutral	$5.79M	―	-100.40%	―	-58.46%	47.98%
ISPC	39 Underperform	$3.12M	―	-191.51%	―	-6.42%	24.85%
NDRA	34 Underperform	$3.45M	―	-280.02%	―	―	71.89%

Applied DNA Sciences Corporate Events

Applied DNA Sciences Approves Reverse Stock Split

On September 30, 2024, Applied DNA Sciences’ stockholders approved a reverse stock split to address non-compliance with Nasdaq’s minimum bid price requirements. Effective March 14, 2025, the 1-for-50 reverse stock split aims to reduce the number of outstanding shares from approximately 55.2 million to 1.1 million, helping the company regain compliance and maintain its Nasdaq listing.