Company Overview
Evogene Ltd. operates as a computational biology firm with a strategic presence across Israel, the United States, Brazil, and international markets, focusing on product discovery and development within life-science industries such as human health and agriculture. The company functions within the Healthcare sector, specifically the Biotechnology industry, where it leverages computational methods to advance biological understanding and therapeutic or agricultural solutions. Currently, the organization maintains a market capitalization of $7.53M, supported by an annual revenue stream of $3.85M, while specific employee count data is not available in the provided records. These valuation and revenue figures indicate that Evogene Ltd. occupies a niche position in the biotechnology landscape, reflecting a small-cap status typical for early-stage computational biology enterprises that prioritize R&D expenditures over immediate profitability.
Financial Health
The company reported a revenue of $3.85M over the trailing twelve months, yet it recorded a net income of $-14,157,000 and an EBITDA of $-12,890,000, revealing a significant gap where operating expenses and research costs substantially exceed gross revenue generation. This disparity highlights a cost structure heavily weighted toward operational burn rates common in biotechnology development phases, where investment in product discovery outpaces current sales realization. The entity generated a free cash flow of $-18,742,124, which signifies a negative cash position that limits immediate financial flexibility and necessitates reliance on existing cash reserves or external capital sources to fund ongoing operations. Margin analysis shows a gross margin of -6.3%, an operating margin of -1659.9%, and a profit margin of -220.2%, indicating that the company is currently unprofitable at all levels of its income statement and that costs are not being covered by sales. Regarding liquidity and leverage, the company holds $12.96M in cash against $2.20M in debt, resulting in a debt-to-equity ratio of 18.36, which suggests a highly leveraged balance sheet relative to equity but is partially offset by substantial cash on hand. The current ratio stands at 4.54, indicating strong short-term liquidity as current assets are more than four times current liabilities, providing a buffer for meeting obligations despite the net income deficit. Furthermore, the return on equity is -100.7% and the return on assets is -29.3%, metrics that reveal management is currently generating negative returns on capital deployment rather than positive value accretion for shareholders.
Valuation Assessment
The trailing twelve-month P/E ratio is not available due to negative earnings, while the forward P/E is listed as -1.02, implying that the market currently prices the stock based on negative expected earnings rather than a traditional multiple of positive profit. The price-to-book ratio is reported as -90.94, which indicates that the market capitalization is significantly below the company's book value, a valuation characteristic often seen in distressed or unprofitable biotechnology firms where assets may not be easily liquidated at book value. Alternative valuation metrics such as the price-to-sales ratio of 1.95 and an EV/EBITDA of -0.65 suggest that investors are valuing the company primarily on its revenue potential and sales pipeline rather than its current profitability or earnings power. The stock has exhibited volatility within a 52-week range bounded by a high of $2.42 and a low of $0.73, meaning the current price sits somewhere between these extremes, reflecting the speculative nature of the investment. The beta value of 1.08 indicates that the stock's price volatility is slightly higher than the broader market, suggesting that the equity price is sensitive to general market movements but with a specific risk profile associated with small-cap biotechnology sectors.
Growth & Income
Evogene Ltd. experienced a revenue growth year-over-year of -80.5%, while earnings growth data is not available, indicating a sharp contraction in sales that likely outpaces any theoretical earnings recovery given the negative net income position. The company does not distribute dividends, as evidenced by a dividend yield of N/A and a payout ratio of 0.0%, which means the firm reinvests all available resources, if any remain, back into research and development rather than returning capital to shareholders. Since the earnings growth rate is not calculable due to negative earnings, the company's growth profile is defined entirely by its ability to reverse the -80.5% revenue decline and achieve profitability in future periods. Overall, the growth and income profile is characterized by significant revenue contraction and a complete absence of dividend income, positioning the equity as a high-risk, non-income generating investment reliant on future operational turnaround.