Codexis (CDXS) AI Stock Analysis

• Market Cap: $231.08M
• Dividend Yield: N/A
• Average Volume (3M): 554.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.32
• Revenue Growth: -6.12%
• EPS Growth: 24.99%
• Country: US
• Employees: 188
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.16
• Shares Outstanding: 90,267,460
• 10 Day Avg. Volume: 608,232
• 30 Day Avg. Volume: 554,794
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 3.68
• Enterprise Value/Gross Profit: 4.74
• Enterprise Value/Ebitda: -3.93
• 1Y Price Target: $6.33
• Price Target Upside: 144.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 40 Underperform
• Price Target: $2.50 ▼(-3.47% Downside)

Codexis faces significant financial challenges, with declining revenues and persistent losses being the most impactful factors. The technical analysis indicates a bearish trend, and the valuation suggests potential overvaluation. Despite positive aspects from the earnings call, such as revenue growth and improved margins, the overall financial health remains weak, leading to a low overall stock score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for Codexis's products, particularly in the Pharma Biocatalysis sector, suggesting a robust market position and potential for future expansion.

Improved Margins

The improvement in product gross margins reflects a successful shift towards more profitable products, enhancing the company's operational efficiency and profitability potential.

Strong Cash Position

A strong cash position provides Codexis with financial stability and flexibility to invest in growth opportunities and navigate potential market challenges.

Negative Factors

Declining Revenue Trend

The ongoing decline in revenue highlights challenges in maintaining consistent sales growth, which could impact long-term financial health and market competitiveness.

Rising Debt Levels

Increased reliance on debt financing can strain Codexis's financial resources, limiting its ability to invest in growth and potentially affecting its creditworthiness.

Negative Cash Flow

Persistent negative cash flows indicate operational inefficiencies and financial instability, which could hinder Codexis's ability to sustain operations and invest in future growth.

Codexis Business Overview & Revenue Model

Company Description

Codexis, Inc. discovers, develops, and sells enzymes and other proteins. It offers biocatalyst products and services; intermediate chemicals products that are used for further chemical processing; and Codex biocatalyst panels and kits that enable customers to perform chemistry screening. The company also provides biocatalyst screening and protein engineering services. In addition, it offers CodeEvolver protein engineering technology platform, which helps in developing and delivering biocatalysts that perform chemical transformations and enhance the efficiency and productivity of manufacturing processes. The company's platform is also used to discover novel biotherapeutic drug candidates for targeted human diseases, as well as for molecular biology and in vitro diagnostic enzymes. It sells its products to pharmaceutical manufacturers through its direct sales and business development force in the United States and Europe. The company was incorporated in 2002 and is headquartered in Redwood City, California.

How the Company Makes Money

Codexis generates revenue primarily through the sale of its engineered enzymes and related products, as well as through collaboration agreements and licenses with pharmaceutical and industrial partners. The company's revenue model includes upfront payments, milestone payments, and royalties from product sales associated with its partnerships. Significant collaborations with major pharmaceutical companies contribute to its earnings by allowing Codexis to leverage its technology to enhance drug development processes. Additionally, the company may receive funding through grants and contracts aimed at advancing its research and development efforts.

Codexis Financial Statement Overview

Summary

Codexis is facing significant financial challenges, with declining revenues, persistent losses, and increasing leverage. The company's profitability and cash flow metrics indicate operational inefficiencies and financial instability. While there are some minor improvements in certain areas, the overall financial health remains weak.

Income Statement

Codexis has experienced a decline in revenue over the past few years, with a notable drop in 2023. The company has consistently reported negative net profit margins, indicating ongoing profitability challenges. While there was a slight improvement in gross profit margin in the TTM period, the EBIT and EBITDA margins remain negative, reflecting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has increased significantly in the TTM period, suggesting a higher reliance on debt financing. Return on equity is negative, indicating that the company is not generating profits from shareholders' equity. The equity ratio has also decreased, pointing to a weakened financial position.

Cash Flow

Codexis has faced challenges with negative operating and free cash flows, although there was a slight improvement in free cash flow growth in the TTM period. The operating cash flow to net income ratio remains negative, highlighting cash flow issues. The free cash flow to net income ratio is positive, but this is due to both metrics being negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.16M	59.34M	70.14M	138.59M	104.75M	69.06M
Gross Profit	44.36M	43.06M	57.33M	100.56M	82.55M	55.31M
EBITDA	-53.60M	-58.52M	-49.28M	-23.07M	-16.75M	-19.37M
Net Income	-64.98M	-65.28M	-76.24M	-33.59M	-21.28M	-24.01M
Balance Sheet
Total Assets	138.25M	149.01M	136.56M	250.39M	246.38M	221.65M
Cash, Cash Equivalents and Short-Term Investments	66.33M	73.46M	65.12M	113.98M	116.80M	150.12M
Total Debt	68.98M	59.90M	16.02M	43.64M	47.65M	24.95M
Total Liabilities	82.61M	82.08M	49.95M	105.60M	81.99M	51.54M
Stockholders Equity	55.63M	66.93M	86.61M	144.80M	164.39M	170.10M
Cash Flow
Free Cash Flow	-67.77M	-53.72M	-57.06M	2.98M	-28.09M	-20.21M
Operating Cash Flow	-61.22M	-49.41M	-52.64M	11.28M	-14.27M	-16.46M
Investing Cash Flow	10.07M	-56.98M	-4.86M	-13.58M	-21.42M	-5.75M
Financing Cash Flow	59.30M	60.52M	8.17M	-575.00K	3.77M	80.81M

Codexis Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.59
• 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 2.59 is above the 20-day moving average (MA) of 2.59, below the 50-day MA of 2.59, and below the 200-day MA of 2.91, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 49.67 is Neutral, neither overbought nor oversold. The STOCH value of 42.27 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
OABI	56 Neutral	$238.97M	―	-22.84%	―	6.05%	2.24%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CDXS	40 Underperform	$231.08M	-3.16	-111.00%	―	-6.12%	24.99%
RNAC	40 Underperform	$233.76M	-0.17	―	―	―	―
CABA	39 Underperform	$250.61M	―	-76.34%	―	―	-41.69%
VOR	33 Underperform	$189.98M	―	―	―	―	-686.12%
ELTX	30 Underperform	$152.76M	―	-9999.00%	―	―	-4.60%

Codexis Corporate Events

Codexis Reports Strong Q2 2025 Growth Amid Challenges

Codexis’ recent earnings call conveyed a generally positive sentiment, highlighting significant revenue growth, improved margins, and robust demand for its ECO Synthesis platform. Despite these optimistic indicators, the company acknowledged challenges related to revenue predictability and rising R&D expenses.

Codexis Surpasses Expectations with Strong Q2 2025 Results

Codexis, Inc. is a leading provider of enzymatic solutions for the efficient and scalable manufacturing of complex therapeutics, leveraging its proprietary technology to enhance enzyme performance in the pharmaceutical industry.

Codexis Confronts Trade Policy Challenges: Tariffs and Sanctions Threaten Operations

Codexis faces significant business risks due to international trade policies, including tariffs, sanctions, and trade barriers, which could adversely impact its operations. The global economy’s inherent uncertainties, coupled with recent U.S. government tariffs and retaliatory measures by foreign governments, pose challenges to Codexis’s supply chain and cost structure. These developments may increase research and development expenses, disrupt supply chains, and place Codexis at a competitive disadvantage compared to companies in regions with more favorable trade relationships. The ongoing uncertainty in international trade policies could materially affect Codexis’s business, financial condition, and competitive position.