Evogene Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFFF0;font-size:3em;'>EVG</div>
EVGN -- USA Stock  

USD 6.13  0.11  1.76%

The stock is still going through an active upward rally. Evogene Market Capitalization is quite stable at the moment as compared to the past year. The company's current value of Market Capitalization is estimated at 40.18 Million. Tangible Asset Value is expected to rise to about 65.8 M this year, although the value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA will most likely fall to (15.2 M). While some millenniums are indifferent towards healthcare space, it makes sense to outline Evogene as a unique investment alternative. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
Published over three months ago
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Will latest Evogene (NASDAQ:EVGN) debt levels change next month?
The company currently holds 2.62 M in liabilities with Debt to Equity (D/E) ratio of 0.05, which may suggest Evogene is not taking enough advantage from borrowing. We provide trade advice to complement the prevailing expert consensus on Evogene. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
Evogene financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Evogene, including all of Evogene's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Evogene assets, the company is considered highly leveraged. Understanding the composition and structure of overall Evogene debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Evogene Total Debt

Evogene liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Evogene has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Evogene balance sheet include debt obligations and money owed to different Evogene vendors, workers, and loan providers. Below is the chart of Evogene main long-term debt accounts currently reported on its balance sheet.
You can use Evogene financial leverage analysis tool to get a better grip on understanding its financial position

How important is Evogene's Liquidity

Evogene financial leverage refers to using borrowed capital as a funding source to finance Evogene ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Evogene financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Evogene's total debt and its cash.

What is driving Evogene Investor Appetite?

Evogene reported the previous year's revenue of 586 K. Net Loss for the year was (20.78 M) with profit before overhead, payroll, taxes, and interest of 419 K.

Asset Breakdown

24.1 M
Assets Non Current
21.2 M
60.3 M
Current Assets
Total Assets75.64 Million
Current Assets60.28 Million
Assets Non Current24.1 Million
Goodwill21.19 Million

Over 3 percent rise for Evogene. What does it mean for institutional investors?

Latest coefficient of variation is at 545.87. Evogene is displaying above-average volatility over the selected time horizon. Investors should scrutinize Evogene independently to ensure intended market timing strategies are aligned with expectations about Evogene volatility.

The Bottom Line

Whereas some firms within the biotechnology industry are still a little expensive, even after the recent corrections, Evogene may offer a potential longer-term growth to institutional investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither trade nor drop any shares of Evogene at this time. The Evogene risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Evogene.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Evogene. Please refer to our Terms of Use for any information regarding our disclosure principles.

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