Evogene (EVGN) AI Stock Analysis

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Evogene

(NASDAQ:EVGN)

Rating:41Neutral

Price Target:―

Evogene's overall stock score is low, primarily due to weak financial performance marked by negative earnings and cash flow, and technical indicators pointing to a lack of upward momentum. Despite positive developments in partnerships and revenue growth, the fundamental financial instability overshadows these gains. Valuation challenges and operational inefficiencies further weigh down the score.

Positive Factors

Cost Management

Cost controls have appropriately been implemented, leading to a lower than expected operating expense and an EBITDA beat despite lower revenues.

Potential Growth

Casterra is believed to be a potential catalyst for the stock via commercial successes, with material value also seen in AgPlenus and Lavie Bio.

Negative Factors

Order Delays

Delays in current order delivery and a follow-on order continue to be a material headwind for investors.

Order Visibility

There is little visibility of a follow-on order at Casterra, which was expected to be a significant commercial catalyst.

Stock Dilution

The diluted share base effectively doubled due to a $5.5M raise, contributing to the decision to lower the price target.

Evogene (EVGN) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$8.47M

Dividend YieldN/A

Average Volume (3M)760.17K

Price to Earnings (P/E)―

Beta (1Y)1.25

Revenue Growth50.90%

EPS Growth42.10%

CountryUS

Employees117

SectorHealthcare

Sector Strength43

IndustryBiotechnology

Share Statistics

EPS (TTM)-0.38

Shares Outstanding6,672,173

10 Day Avg. Volume50,384

30 Day Avg. Volume760,172

Financial Highlights & Ratios

PEG Ratio0.03

Price to Book (P/B)-1.75

Price to Sales (P/S)0.00

P/FCF Ratio-0.34

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$5.50

Price Target Upside366.10% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Evogene Business Overview & Revenue Model

Company DescriptionEvogene Ltd., together with its subsidiaries, operates as a computational biology company. It focuses on product discovery and development in multiple life-science based industries, including human health and agriculture, through the use of its Computational Predictive Biology (CPB) platform. The CPB platform, incorporating a deep understanding of biology leveraged through big data and artificial intelligence, designed to computationally discover and uniquely guide the development of life-science products based on microbes, small molecules, and genetic elements. The company operates through three segments: Agriculture, Human Health, and Industrial Applications. The Agriculture segment develops seed traits, ag-chemical products, and ag-biological products to enhance plant performance. Its products focus on various crops, such as corn, soybean, wheat, rice, and cotton. The Industrial Applications segment develops enhanced castor bean seeds to serve as a feedstock source for other industrial uses. The Human Health segment discovers and develops human microbiome-based therapeutics for the treatment of immuno-oncology, GI related disorders, and antimicrobial resistance organisms. The company also provides medical cannabis products. It operates in the United States, Israel, Brazil, and internationally. The company has strategic collaborations and licensing agreements with agricultural companies, such as BASF SE, Corteva, and Bayer; and through its subsidiary, Canonic Ltd., has a collaboration agreement with Cannbit Ltd. for the development of novel medical cannabis products. Evogene Ltd. was founded in 1999 and is headquartered in Rehovot, Israel.

How the Company Makes MoneyEvogene makes money primarily through collaborations, licensing agreements, and the commercialization of its technology and products. The company partners with leading industry players in agriculture and health sectors to develop and commercialize new products. Revenue is generated from upfront payments, milestone payments, and royalties from these partnerships. Additionally, Evogene may derive income from its subsidiaries, which include product-focused companies that utilize its platform for specific applications, allowing them to tap into various market opportunities.

Evogene Financial Statement Overview

Summary

Evogene is experiencing significant financial challenges, with operational losses impacting the income statement, a highly leveraged balance sheet with negative equity, and liquidity strains in cash flow. Despite a 32.6% revenue growth, persistent profitability issues and high leverage risk are concerning.

Income Statement

Neutral

Evogene's income statement reveals a mixed picture with some positive revenue growth of 32.6% from 2023 to 2024 TTM. However, the company faces challenges with negative EBIT and net profit margins, indicating persistent profitability issues. Despite a gross profit margin of 51.8% in TTM, the negative net income suggests ongoing operational inefficiencies.

Balance Sheet

Negative

The balance sheet of Evogene highlights significant concerns with a negative stockholders' equity in the 2024 TTM due to accumulated losses. The debt-to-equity ratio is not applicable as equity is negative, and total liabilities exceed equity, reflecting a high leverage risk. The equity ratio is effectively negative, underscoring the financial instability.

Cash Flow

Negative

Evogene's cash flow statement shows improvement in free cash flow from the previous period, but it remains negative, indicating cash consumption. The operating cash flow to net income ratio is unfavorable due to negative operating cash flow, and the free cash flow situation underscores liquidity pressures.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
7.48M	5.64M	1.68M	930.00K	1.04M	753.00K
	Gross Profit
3.88M	1.40M	766.00K	163.00K	466.00K	419.00K
	EBIT
-25.27M	-26.39M	-26.94M	-30.95M	-24.81M	-21.17M
	EBITDA
-19.88M	-23.20M	-26.93M	-27.80M	-23.18M	-15.97M
	Net Income Common Stockholders
-23.51M	-23.88M	-26.64M	-27.79M	-23.37M	-18.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
55.13M	31.06M	35.35M	53.87M	48.23M	46.88M
	Total Assets
64.86M	51.10M	56.13M	76.30M	71.92M	71.36M
	Total Debt
0.00	11.51M	11.93M	2.67M	2.44M	2.97M
	Net Debt
-24.26M	-9.27M	-17.05M	-29.66M	-43.79M	-31.78M
	Total Liabilities
16.60M	22.42M	21.34M	12.88M	15.03M	11.15M
	Stockholders Equity
48.26M	12.05M	27.93M	54.03M	46.05M	50.14M
Cash Flow		Free Cash Flow
-20.54M	-22.36M	-24.85M	-25.56M	-20.20M	-18.26M
	Operating Cash Flow
-20.15M	-21.58M	-23.68M	-24.84M	-19.51M	-17.36M
	Investing Cash Flow
312.65K	-4.54M	13.27M	-20.44M	9.41M	37.14M
	Financing Cash Flow
4.07M	18.15M	9.34M	30.28M	20.37M	9.00M

Evogene Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.18

Price Trends

50DMA

1.21

Negative

100DMA

1.38

Negative

200DMA

1.95

Negative

Market Momentum

MACD

0.02

Negative

RSI

48.39

Neutral

STOCH

29.03

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVGN, the sentiment is Negative. The current price of 1.18 is below the 20-day moving average (MA) of 1.18, below the 50-day MA of 1.21, and below the 200-day MA of 1.95, indicating a bearish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 48.39 is Neutral, neither overbought nor oversold. The STOCH value of 29.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EVGN.

Evogene Risk Analysis

Evogene disclosed 62 risk factors in its most recent earnings report. Evogene reported the most risks in the “Tech & Innovation” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Evogene Peers Comparison

Overall Rating

UnderperformOutperform

Sector (53)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	53 Neutral	$5.14B	3.06	-43.57%	2.81%	16.81%	-0.12%
CYCN	47 Neutral	$10.54M	―	-31.48%	―	―	86.52%
SINT	42 Neutral	$7.05M	―	-155.20%	―	9.90%	94.56%
EVGN	41 Neutral	$8.47M	―	-310.98%	―	50.90%	42.10%
SNGX	39 Underperform	$5.97M	―	-437.73%	―	―	57.83%
BTAI	37 Underperform	$8.30M	―	82.91%	―	64.20%	73.71%
ALZN		$2.85M	―	-1092.96%	―	―	―

* Healthcare Sector Average

Performance Comparison

EVGN

Evogene

1.18

-7.02

-85.61%

SINT

Sintx Technologies

2.81

-10.71

-79.22%

SNGX

Soligenix

1.83

-4.01

-68.66%

BTAI

Bioxcel Therapeutics

1.37

-28.39

-95.40%

CYCN

Cyclerion Therapeutics

3.25

0.39

13.64%

ALZN

Alzamend Neuro

3.56

-50.44

-93.41%

Evogene Earnings Call Summary

Earnings Call Date:May 21, 2025

(Q1-2025)

% Change Since: -7.09%|

Next Earnings Date:Aug 06, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted Evogene's strategic efforts to reduce expenses and successfully execute acquisitions, leading to a more sustainable financial position. However, it also revealed a significant revenue decline and the need for additional funding for certain projects, balancing out the positive achievements.

Q1-2025 Updates

Positive Updates

Expense Reduction Plan

Evogene has established an expense reduction plan reflected in the first-quarter results and expects it to be completed by the second quarter of 2025. This plan led to a decrease in total operating expenses from $8 million in Q1 2024 to $5 million in Q1 2025.

Successful Acquisition of Lavie Bio by ICL

Evogene announced the acquisition of Lavie Bio's activities by ICL for $15.25 million, plus $3.5 million for the MicroBoost AI tech-engine. The deal is expected to close in the second quarter of 2025.

Casterra's Seed Sales Growth

Casterra delivered 250 tons of castor seeds in Q1 2025, surpassing the 215 tons delivered in the entire year of 2024, indicating strong growth in this segment.

AgPlenus' New Fungicide Discovery

AgPlenus discovered a new mode of action for fungicides against Septoria in wheat, with plans to engage licensing partners by year-end.

Advancements in ChemPass-AI for Pharma

Evogene has made substantial progress in refining ChemPass-AI for pharma, particularly in its collaboration with Google Cloud to develop a foundation model application.

Negative Updates

Revenue Decline

Total revenues in Q1 2025 were $2.4 million, a significant decrease from $4.2 million in Q1 2024, primarily due to the absence of license fee payments that were included in the previous year's results.

Decreased R&D and Marketing Expenses

R&D expenses decreased from $4.8 million in Q1 2024 to $3.2 million in Q1 2025, and sales and marketing expenses decreased from $1 million to $0.6 million, mainly due to reduced activities in Lavie Bio and Biomica.

Need for Additional Funding for Biomica

Additional funding is necessary for Biomica to advance to Phase II of its clinical study for BMC128. The company is also implementing an expense reduction plan to be completed by Q3 2025.

Company Guidance

During the first quarter of 2025, Evogene reported total revenues of approximately $2.4 million, a decrease from $4.2 million in the same period in 2024. This decline was primarily due to the previous year's inclusion of significant license fee payments. The primary revenue driver in 2025 was an increase in seed sales by Casterra. The company implemented an expense reduction plan, reflected in reduced operating expenses of approximately $5 million compared to $8 million in 2024. R&D expenses were reduced to $3.2 million from $4.8 million, and sales and marketing expenses decreased to $645,000 from $1 million. As of the end of the first quarter, cash and short-term bank deposits were approximately $9.8 million. Evogene also highlighted a transaction with ICL, expected to close in the second quarter, involving the acquisition of Lavie Bio's assets, valued at $15.25 million, and the MicroBoost AI for Ag tech-engine for $3.5 million.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.