Evogene Ltd. (NASDAQ: EVGN)

Sector: Healthcare Industry: Biotechnology CIK: 0001574565
Market Cap 9.29 Mn
P/B 8.13
P/E -3.38
P/S 1.83
ROIC (Qtr) -165.13
Div Yield % 0.00
Rev 1y % (Qtr) -82.07
Total Debt (Qtr) 2.52 Mn
Debt/Equity (Qtr) 2.21
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About

Evogene Ltd., a leading computational biology company, trades under the ticker symbol EVGN and operates primarily in the life-science product discovery and development sector, spanning human health, agriculture, and other industrial applications. Established in 1999, the company's headquarters are located in Israel. Evogene's primary business activities revolve around the creation of computational biology platforms and engines, harnessing the power of big data and artificial intelligence to identify and optimize life-science products. The company...

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Investment thesis

Bull case

  • Healthy cash reserves of 5.63M provide 8.33x coverage of short-term debt 675000, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (15.38M) provides exceptional 56.95x coverage of minority interest expenses (270000), showing strong core operations.
  • Strong tangible asset base of 26.09M provides 10.35x coverage of total debt 2.52M, indicating robust asset backing and low credit risk.
  • Tangible assets of 26.09M provide exceptional 277.51x coverage of deferred revenue 94000, showing strong service capability backing.
  • Operating cash flow of (15.38M) provides strong 80.09x coverage of operating expenses (192000), showing operational efficiency.

Bear case

  • Operating cash flow of (15.38M) barely covers its investment activities of 16.23M, with a coverage ratio of -0.95, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (15.38M) provides insufficient coverage of deferred revenue obligations of 94000, which is -163.59x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (15.38M) shows concerning coverage of stock compensation expenses of 762000, with a -20.18 ratio indicating potential earnings quality issues.
  • Free cash flow of (15.80M) provides weak coverage of capital expenditures of 420000, with a -37.61 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (15.38M) provides minimal -1708.56x coverage of tax expenses of 9000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,204.25 Bn -1,306.67 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 486.51 Bn 7,097.20 97.84 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.05 Bn 30.87 10.17 1.85 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.00 Bn 18.42 5.79 2.71 Bn
5 ARGX Argenx Se 50.78 Bn 33.71 26,480.10 -
6 ALNY Alnylam Pharmaceuticals, Inc. 43.66 Bn 139.17 11.76 2.97 Bn
7 BNTC Benitec Biopharma Inc. 43.61 Bn -941.82 0.00 0.00 Bn
8 INSM INSMED Inc 28.88 Bn -24.40 64.61 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.52 11.06
EV to Cash from Ops. EV/CFO -0.89 26.32
EV to Debt EV to Debt 5.41 762.61
EV to EBIT EV/EBIT -14.39 -13.49
EV to EBITDA EV/EBITDA -1.24 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF -0.86 25.66
EV to Market Cap EV to Market Cap 1.47 203.37
EV to Revenue EV/Rev 2.69 156.31
Price to Book Value [P/B] P/B 8.13 20.59
Price to Earnings [P/E] P/E -3.38 -0.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.64
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.17
Dividend per Basic Share Div per Share (Qtr) 0.00 0.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.14
Interest Coverage Int. cover (Qtr) -0.53 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -10.82 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -50.29 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 95.32 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 48.57 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) 95.34 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) 88.35 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) 93.44 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) 26.34 -40.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2.14 264.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.19 0.14
Cash Payout Ratio Cash Payout Ratio 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 1.38 3.92
Current Ratio Curr Ratio (Qtr) 5.11 7.33
Debt to Equity Ratio Debt/Equity (Qtr) 2.21 0.48
Interest Cover Ratio Int Coverage (Qtr) -0.53 956.66
Times Interest Earned Times Interest Earned (Qtr) -0.53 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.40 -17,888.70
EBIT Margin % EBIT Margin % (Qtr) -18.65 -18,246.34
EBT Margin % EBT Margin % (Qtr) -53.92 -19,108.08
Gross Margin % Gross Margin % (Qtr) 50.80 -10.30
Net Profit Margin % Net Margin % (Qtr) -54.10 -19,056.96