Assessing Codexis (CDXS) Valuation After Strong Earnings And New ECO Synthesis siRNA Agreement

Why Codexis Is Back on Investors’ Radar

Codexis (CDXS) has drawn fresh attention after reporting fourth quarter 2025 results, with revenue of US$38.92 million and net income of US$9.6 million, alongside new full year 2026 revenue guidance.

The company also recently signed an agreement to manufacture 50 grams of siRNA for a pharmaceutical partner using its ECO Synthesis platform, adding a commercial data point around its RNA manufacturing capabilities.

See our latest analysis for Codexis.

At a share price of US$1.61, Codexis has seen a sharp 7 day share price return of 30.89% and a 30 day share price return of 35.29%. However, longer term total shareholder returns of 42.09% over 1 year and 92.50% over 5 years highlight how sentiment is only starting to recover following the stronger quarterly results and new siRNA manufacturing agreement.

If Codexis has put RNA manufacturing on your radar, it could be a good moment to broaden your watchlist with 33 healthcare AI stocks as potential peers and comparables in the sector.

With quarterly profit now on the board but multi year returns still weak, you have to ask yourself: is Codexis quietly mispriced after the recent jump, or is the market already factoring in all the future growth?

Most Popular Narrative: 19.5% Undervalued

With Codexis last closing at $1.61 and the most followed narrative pointing to a $2.00 fair value, the valuation debate centers on how quickly ECO Synthesis and related contracts can scale.

While the industry wide shift toward siRNA and other genomic medicines is expanding the addressable market for ECO Synthesis, the capital intensive build out of a GMP facility and potential delays in scaling to kilogram production volumes may compress net margins and extend the company’s path to sustainable profitability.

Read the complete narrative.

Want to know what justifies paying more than today’s price? This narrative leans heavily on accelerating revenue, improving margins and a future earnings multiple that needs the numbers to line up. Curious which specific growth and profitability assumptions have to click into place for that $2.00 figure to hold up?

Result: Fair Value of $2.00 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, you still need to weigh up the risk that ECO Synthesis scales more slowly than hoped and that a few large agreements keep revenue and cash flow volatile.

Find out about the key risks to this Codexis narrative.

Another Angle on Valuation

The $2.00 fair value narrative says Codexis looks 19.5% undervalued, but the P/S ratio tells a more mixed story. At 2.1x P/S, the stock is cheaper than US Life Sciences peers at 2.7x, yet slightly above its 2.0x fair ratio, which hints at some valuation risk baked in already. Are you comfortable paying a small premium to where that ratio could settle?

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Mixed messages in the story so far? If you think the clock is ticking on forming a clear view, take a moment to weigh both sides with 1 key reward and 1 important warning sign

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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