Codexis (CDXS) AI Stock Analysis

• Market Cap: $198.83M
• Dividend Yield: N/A
• Average Volume (3M): 768.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.71
• Revenue Growth: -32.89%
• EPS Growth: -5.03%
• Country: US
• Employees: 188
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.25
• Shares Outstanding: 82,844,850
• 10 Day Avg. Volume: 1,288,964
• 30 Day Avg. Volume: 768,602
• PEG Ratio: 0.27
• Price to Book (P/B): 4.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.42
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 7.14
• Enterprise Value/Ebitda: -1.19
• 1Y Price Target: $5.88
• Price Target Upside: 130.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 46 Neutral
• Price Target: $2.50 ▼(-1.96%Downside)

Codexis faces multiple financial hurdles, including declining revenues and high leverage, which weigh heavily on its stock score. While technical indicators suggest some stability, the negative valuation metrics reflect ongoing losses and risk. The earnings call provides a cautiously optimistic outlook, highlighting potential for future growth, and the recent board appointment could strengthen leadership. However, these positives are overshadowed by the pressing need for financial improvement.

Positive Factors

Customer Engagement

CDXS delivered the first order to a large pharma customer and secured an initial order from a second customer, which is a drug innovator.

Operational Funding

Codexis has cash to fund operations to cash flow positivity by the end of 2026.

Revenue Generation

The company secured the first revenue-generating contract for the ECO Synthesis Innovation Lab and met industrial grade criteria across first-generation enzymes.

Negative Factors

Financial Performance

Revenues of $7.5M were 56% lower year-over-year, missing expectations by $2.2M.

Revenue Expectations

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

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 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 faces significant financial challenges, including declining revenues and high leverage. The company's negative net profit margin and cash flow issues indicate a need for improved operational efficiency and cost management.

Income Statement

Codexis has faced declining revenues and consistent net losses. TTM revenue decreased by 16.05% compared to the previous annual period. The gross profit margin is healthy at approximately 69.06% for TTM, but the net profit margin remains deeply negative at -149.45%. The company struggles with profitability as indicated by negative EBIT and EBITDA margins.

Balance Sheet

Codexis has a precarious balance sheet with a debt-to-equity ratio of 1.20, indicating high leverage. The equity ratio is around 42.65% for TTM, showing moderate equity financing. Return on equity is negative, reflecting the company's unprofitable operations. The company needs to address its high debt levels and improve profitability to stabilize its financial health.

Cash Flow

The cash flow situation is concerning with negative free cash flow and operating cash flow for TTM. The free cash flow to net income ratio is positive due to large adjustments, but the operating cash flow to net income ratio is negative, highlighting cash generation issues. The company continues to burn cash, necessitating improvements in operational efficiency.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
49.81M	59.34M	70.14M	138.59M	104.75M	69.06M
	Gross Profit
34.41M	43.06M	57.33M	100.56M	82.55M	55.31M
	EBIT
-66.95M	-58.52M	-68.07M	-31.71M	-22.70M	-23.92M
	EBITDA
-64.79M	-58.52M	-49.28M	-23.07M	-16.75M	-19.37M
	Net Income Common Stockholders
-74.46M	-65.28M	-76.24M	-33.59M	-21.28M	-24.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
59.78M	73.46M	65.12M	113.98M	116.80M	150.12M
	Total Assets
11.64M	149.01M	136.56M	250.39M	246.38M	221.65M
	Total Debt
59.50M	59.90M	16.02M	43.64M	47.65M	24.95M
	Net Debt
41.18M	40.63M	-49.09M	-70.35M	-69.14M	-124.17M
	Total Liabilities
79.26M	82.08M	49.95M	105.60M	81.99M	51.54M
	Stockholders Equity
49.63M	66.93M	86.61M	144.80M	164.39M	170.10M
Cash Flow		Free Cash Flow
-59.85M	-53.72M	-57.06M	2.98M	-28.09M	-20.21M
	Operating Cash Flow
-55.42M	-49.41M	-52.64M	11.28M	-14.27M	-16.46M
	Investing Cash Flow
-16.65M	-56.98M	-4.86M	-13.58M	-21.42M	-5.75M
	Financing Cash Flow
32.33M	60.52M	8.17M	-575.00K	3.77M	80.81M

Codexis Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.55
• 50DMA: Positive
• 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 Positive. The current price of 2.55 is above the 20-day moving average (MA) of 2.44, above the 50-day MA of 2.44, and below the 200-day MA of 3.48, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.51 is Neutral, neither overbought nor oversold. The STOCH value of 70.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CDXS.

Codexis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	53 Neutral	$5.14B	3.23	-45.01%	2.85%	17.55%	-0.69%
FHTX	50 Neutral	$225.75M	―	322.49%	―	-30.66%	36.48%
NVCT	48 Neutral	$205.38M	―	-115.28%	―	―	22.99%
AVIR	47 Neutral	$248.18M	―	-30.47%	―	―	-22.66%
CDXS	46 Neutral	$198.83M	―	-115.53%	―	-32.89%	-5.03%
IKT	46 Neutral	$131.58M	―	-79.02%	―	-100.00%	38.72%
TERN	45 Neutral	$262.89M	―	-32.12%	―	―	10.98%

Codexis Corporate Events

Codexis Announces Board Member Retirement in April 2025

On April 9, 2025, Codexis announced that Byron Dorgan will retire from its Board of Directors at the end of his current term during the 2025 Annual Meeting of Stockholders. Dorgan, who joined the board in 2011 and served as Chairman from 2021 to 2024, will continue as a consultant for a year post-retirement. His departure will reduce the board’s size from ten to nine members. The announcement highlights Dorgan’s contributions to Codexis’s transformation into a leading therapeutics manufacturing company and his pride in the company’s progress, particularly with the ECO Synthesis platform.

Codexis Appoints Cynthia Collins to Board of Directors

On March 28, 2025, Codexis, Inc. appointed Cynthia Collins as a Class II director on its Board of Directors, effective immediately. Ms. Collins, who is recognized as an independent director under Nasdaq rules, will also serve on the Compensation Committee. Her extensive experience includes roles as CEO of various biotech and healthcare companies, such as Editas Medicine and Human Longevity Inc. This strategic appointment is expected to enhance Codexis’s governance and operational oversight, leveraging Ms. Collins’s expertise in the biotech sector.