• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Positive Sentiment Still Eludes Codexis, Inc. (NASDAQ:CDXS) Following 29% Share Price Slump

    Simply Wall St·02/12/2026 10:45:51
    Listen to the news

    Codexis, Inc. (NASDAQ:CDXS) shareholders that were waiting for something to happen have been dealt a blow with a 29% share price drop in the last month. For any long-term shareholders, the last month ends a year to forget by locking in a 71% share price decline.

    Since its price has dipped substantially, Codexis may be sending buy signals at present with its price-to-sales (or "P/S") ratio of 2x, considering almost half of all companies in the Life Sciences industry in the United States have P/S ratios greater than 2.9x and even P/S higher than 6x aren't out of the ordinary. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/S.

    Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

    View our latest analysis for Codexis

    ps-multiple-vs-industry
    NasdaqGS:CDXS Price to Sales Ratio vs Industry February 12th 2026

    How Has Codexis Performed Recently?

    Codexis could be doing better as its revenue has been going backwards lately while most other companies have been seeing positive revenue growth. It seems that many are expecting the poor revenue performance to persist, which has repressed the P/S ratio. If you still like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.

    Want the full picture on analyst estimates for the company? Then our free report on Codexis will help you uncover what's on the horizon.

    What Are Revenue Growth Metrics Telling Us About The Low P/S?

    The only time you'd be truly comfortable seeing a P/S as low as Codexis' is when the company's growth is on track to lag the industry.

    Retrospectively, the last year delivered a frustrating 18% decrease to the company's top line. As a result, revenue from three years ago have also fallen 60% overall. Therefore, it's fair to say the revenue growth recently has been undesirable for the company.

    Turning to the outlook, the next three years should generate growth of 32% per year as estimated by the six analysts watching the company. Meanwhile, the rest of the industry is forecast to only expand by 7.7% each year, which is noticeably less attractive.

    With this in consideration, we find it intriguing that Codexis' P/S sits behind most of its industry peers. Apparently some shareholders are doubtful of the forecasts and have been accepting significantly lower selling prices.

    What Does Codexis' P/S Mean For Investors?

    The southerly movements of Codexis' shares means its P/S is now sitting at a pretty low level. We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.

    To us, it seems Codexis currently trades on a significantly depressed P/S given its forecasted revenue growth is higher than the rest of its industry. When we see strong growth forecasts like this, we can only assume potential risks are what might be placing significant pressure on the P/S ratio. At least price risks look to be very low, but investors seem to think future revenues could see a lot of volatility.

    There are also other vital risk factors to consider before investing and we've discovered 2 warning signs for Codexis that you should be aware of.

    If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.