DNA Stock Overview
Ginkgo Bioworks Holdings, Inc., together with its subsidiaries, develops platform for cell programming.
Ginkgo Bioworks Holdings Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$3.52|
|52 Week High||US$15.86|
|52 Week Low||US$2.09|
|1 Month Change||40.24%|
|3 Month Change||17.73%|
|1 Year Change||-70.62%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-65.22%|
Recent News & Updates
Ginkgo stock rises on acquisition of French biotech Altar
Ginkgo Bioworks (NYSE:DNA) acquired French biotech Altar which has developed an adaptive laboratory evolution (ALE) platform. Altar is specialized in developing microorganisms for industrial applications and its technology automates ALE and offers capability to adapt microorganisms to the conditions required by industrial companies for their competitive utilization at commercial scale, Ginkgo said in an Oct. 4 press release. Altar's automated ALE instruments will be integrated into Ginkgo's Foundry to serve customers across food and beverage, biofuels, biomaterials, cosmetics, animal health and human health applications, among others. "We founded Altar to increase the feasibility and reduce time-to-market for bio-manufactured products," said Altar CEO Simon Trancart. By adding Altar's ALE platform to Ginkgo's existing strain engineering capabilities, the company expects to routinely engineer target phenotypes which can be selected based on their improved growth properties under defined process conditions. Ginkgo noted that it had previously collaborated with Altar on customer programs. DNA +4.46% to $3.28 premarket Oct. 4
Ginkgo Bioworks: Promising Upside But Not Without Risks
Summary The company has a near-term revenue driver in the form of the Joyn Bio deal and the fertilizer shortage. On the financial side, the balance sheet is in superb form given the stage of the company's development. All-in-all, the company is very well positioned to have explosive growth during an economic winter. Ginkgo Bioworks (DNA) specializes in discovering molecules, processes, or strains with commercial value. That also includes engineering organisms to create customer value. In other words, Ginkgo is a biology engineering company. The company wants to build a platform for cell programming. The simplified idea is that cells are the printers of the physical world, capable of manipulating atoms. The company designs cell programs to generate outputs of biological products like therapy molecules, food ingredients, and chemicals. The advantage is the ability to scale to a level where it becomes cost competitive to produce through biology. For instance, there are petroleum-derived chemicals that the industry might replace through cell organisms programmed by Ginkgo. The potential of this technology is amazing. It is possible to engineer microbes to fixate Nitrogen in plants' roots, thus decreasing the need for artificial fertilizers. Or, we can even produce Hydrogen from microbes, which is more promising than energy-intensive electrolysis. The applications are endless. For instance, the biosecurity line of business skyrocketed in 2021. Most of this is thanks to the Covid virus and the need for passive monitoring of wastewater and air. Ginkgo Bioworks Ginkgo's revenue spurt is impressive. However, I believe that it won't be the last we'll see. Why am I so optimistic? Well, the company seems to be in a position to rapidly take advantage of global problems by offering engineered solutions for them. DNA engineering might be the solution to a lot of our energy problems. The twentieth century marked our control over chemical reactions of existing rich energy resources, similarly, the twenty-first century might witness the start of our control over biology to replenish our energy resources. Microbes engineered to enhance hydrogen production might be the viable way to produce hydrogen instead of water electrolysis. Ginkgo's platform So, what is the advantage of Ginkgo? Its platform. Ok, I guess you keep hearing this argument many times but let's do a deep dive on this one. Two assets are the foundation of the company's platform: Foundry and Codebase. The Foundry is where the company designs, writes, and inserts the DNA into the cells. Foundry includes software and automation tools used in this engineering process, facilitating testing and iterating. According to the management, the output has increased three times annually, while the costs have decreased by 50% per year. The codebase is the database of biological assets (cells and code) that the company is constantly growing, and it can leverage for future projects, improving the odds of success. Together these two assets should improve with scale and, in turn, drive more scale. Rationale for investing As Stanley Druckenmiller says, the market is not about what is happening now but what might happen in 18 months. In my opinion, in the next year and a half, there is a big chance of the developed world facing a shortage of food supplies due to the war ramifications. Nowadays, the largest threatened product group is nitrogen-based fertilizers. The production derives from the Haber-Bosch process, which involves mixing the nitrogen in the air with hydrogen at high temperatures and pressure to produce ammonia. The supply chain from Russia, Ukraine, and Byelorussia is already unreliable. Additionally, Polish producers are halting fertilizer production due to natural gas prices. An energy crisis coupled with a food security crisis is a recipe for disaster. I'm not very optimistic about the impact on the developed world. However, if there is hope to solve these problems, I think it must come from mastering biology. Joyn Bio, the joint venture formed between Ginkgo and Bayer to develop ag biologicals, is a good example of this pursuit. Bayer was interested in testing Ginkgo's synthetic biology capabilities in the agricultural field. One of the most interesting highlights is the nitrogen-fixing program. The joint venture dissolved in the first half of 2022, but the partnership will remain. Both companies will split the Joyn Bio assets, with Ginkgo getting research assets (IP, intellectual rights, research staff). The product concepts will go to Bayer, which will commercialize them. There are some nuances. One of them is that Ginkgo will receive royalties on Bayer's net sales of the Nitrogen-fixer program that Bayer will commercialize. Ginkgo is buying the West Sacramento research site owned by Bayer (83 million in cash or stock). In my opinion, this deal can be huge for Ginkgo. First, the company will have a solid foot in the agricultural biologicals market through Bayer. Bayer already has a retail footprint in that market, which means it has the scale to commercialize the Nitrogen-fixer program. Second, the company will be adding resources to develop other agricultural solutions, which I believe will be in demand during the following years. In my opinion, revenues coming from the ag bio business might have a huge impact in the medium term, akin to the effect of the covid vaccine on Moderna. If those royalties materialize, the company might cash in enough revenues to finance the next round of growth. Ginkgo Bioworks Company development Be as it may, the company is perceived as a biotech startup and treated as such. As you can see by comparing Ginkgo's price performance against the iShares Genomics Immunology and Healthcare ETF (IDNA), the company has underperformed the IDNA by 26% in the previous year. Seeking Alpha One interpretation is that investors see the company as a cash-burning machine in a scenario of economic winter and liquidity contraction. In my opinion, this couldn't be further from the truth. The company seems to hemorrhage cash when you look at the bottom line, but the cash flow shows a more benign situation. Ginkgo Bioworks Ginkgo Bioworks The 1.3 billion dollar loss becomes much less sensational when you check that the operating cash flow was just a loss of $120 million. The main component of the income statement loss is stock-based compensation which explains the difference between the two metrics. The result is that, unlike many other tech companies, Ginkgo has been capable of maintaining a solid balance sheet. The current ratio is more than 10, which is a good indicator that Ginkgo is in great shape to navigate the liquidity contraction. Seeking Alpha Investor Takeaway Ginkgo has a couple of underlying trends going in its favor. First, the energy constraints in Europe open an opportunity for ag bio. Second, the macro scenario is daunting at a time when most tech companies have burned through lots of reserves, but not Ginkgo. The natural gas constraints might be the catalyst for commercial adoption of the nitrogen-fixing program. That, in turn, could yield royalties to Ginkgo. The increase in revenues would come at no extra cost for the company and could significantly contribute to the company reaching the 1 billion revenue watermark. If that happens, a couple of chain reactions could get on course. First, the 21% short interest in the stock could get squeezed, sending the price to sales multiples higher. Second, the extra revenues will help the company finance the younger branches of the company's R&D.
Ginkgo Bioworks: May The Ginkgo King Grow
Summary Ginkgo Bioworks is, along with Amyris, the leader in synthetic biology. A one-of-a-kind business model, solid technology and platform, a wide range of markets and applications, compounding potential, a reasonable valuation, and minimal cash burn, make Ginkgo attractive. It's difficult to ascertain whether Ginkgo has bottomed yet, but it's likely close enough. Solid appreciation potential exists within five years (as it likely does for rival Amyris). Shares of Ginkgo Bioworks (NYSE:DNA) have sharply corrected in Q1 2022 and Q4 2021. Rate hikes and inflationary pressures have recently compressed multiples for companies with distant free cash flows, resulting in an adverse macroeconomic environment for growth stocks. This provides investors with a significant opportunity, as Ginkgo exhibits some of the key features of a market leader and industry disruptor. The Case for Ginkgo Ginkgo improves the speed, reduces the cost, and augments the probability of success of cell programming. To quote the firm's 2021 annual report: We are astounded by the diversity and potential impact of the cell programs that our customers are developing, which include (...) animal free meats for Motif, cannabinoids made by fermentation for Cronos, gene therapy improvements for Biogen, and even improving the brightness of glowing petunias for Light Bio! The firm's progress is reflected in its 2021 results. As per the 10-K: We exceeded all of our public targets in 2021, even after raising our outlook mid-year. We launched 31 new cell programs for customers-up 72% from 2020-and we generated $113 million in Foundry revenue-up 91% from 2020. ... We scaled our Biosecurity business from $17 million to $201 million of revenue in one year... Furthermore, a cash balance at the end of Q2 2022 of approximately $1.4 billion (compared to $1.5 billion at Q4e 2021) demonstrates the firm's ability to minimize cash burn, a key competitive differentiator. Archrival Amyris (AMRS) has had to contend with repeated cycles of negative operating cash flows and stock dilutions to build an otherwise promising business. Amyris now seems committed to non-diluting existing shareholders via a combination of upfront technology payment, non-equity financing, and technology earnout revenue from preexisting deals. The pursuit of positive cash flow and non-dilutive financing might signal a major turn in fortune for Amyris and its shareholders (no wonder CEO John Melo initiated his first purchase of shares in the open market recently). In addition, the cash balance provides the resources Ginkgo needs to invest as it pursues profitability. Platform Foundation, Scale Economics, and Compounding Opportunities The foundation of Ginkgo's platform includes two core assets that execute a wide variety of cell programs for customers according to their specifications. One, the Foundry wraps proprietary software and automation around core cell engineering workflows-designing, writing, testing, inserting DNA into cells - and leverages data analytics to inform each iteration of design. The platform drives a strong scale economic. Key to compounding is Knight's Law, after Ginkgo co-founder Tom Knight, which stipulates that Ginkgo has roughly tripled the output of its automated labs while reducing costs by 50% every year (with the exception of 2020 due to COVID-19). Two, the Codebase includes both physical (engineered cells and genetic parts) and digital (genetic sequences and performance data) biological assets, and accumulates as Ginkgo executes more cell programs on the platform. Every program, whether successful or not, generates valuable Codebase and helps inform future experimental designs, making them more efficient. As the platform improves with scale, it drives more scale, which drives further platform improvements, etc. A virtuous cycle between Foundry, Codebase, and the value delivered to customers creates a positive feedback loop. Ginkgo thus has a powerful engine that allows for true wealth compounding, and the stock may accrue shareholders significant net worth as the business grows. In order to maintain exponential growth and innovate for scale over long periods of time, Ginkgo also leverages acquisitions. For instance, there's the recent acquisition of Zymergen, which adds new capabilities to the platform. And Ginkgo has key relationships with suppliers such as Twist. Maintaining Knight's Law and creating significant value require a long-term orientation, which stock ownership incentivizes. Ginkgo thus weighs its employee compensation toward equity rather than cash, and has implemented a multi-class stock structure that permits all employees, not just founders, to hold super-voting common stock. Ubiquity, Versatility, Market Opportunity Cell programming has the potential to be as ubiquitous in the physical world as computer programming has become in the digital world. Biology is programmable and offers the tools to transform how humans manufacture or produce. Better products might be more sustainable, have more resilient supply chains or higher quality, or require lower economic and environmental costs of manufacturing. Pharma and Biotech Biopharma has been a nexus of tremendous innovation in cell programming and synthetic biology. As illustrated below, biologics now account for slightly more than 25% of all drugs approved by the U.S. Food and Drug Administration (FDA). Drugs (New Chemical Entities and Biologics) approved by the FDA in the last 25 years (The Pharmaceutical Industry in 2021. An Analysis of FDA Drug Approvals from the Perspective of Molecules by Beatriz G. de la Torre and Fernando Albericio, Diego Muñoz-Torrero, Academic Editor) Ginkgo contributes its cell programming platform to various biologics or gene-based campaigns, thereby delivering innovations across a range of disease areas. These include helping develop "living medicines" (Synlogic (SYBX)), meet COVID-19 vaccine production requirements (Moderna (MRNA)), pursue novel antibiotics (Roche (OTCQX:RHHBY)), etc. Industrials and Environment The world must innovate new manufacturing methods in order to not only meet demand, but also clean up the environment and address climate change. Through various collaborations and the formation of Allonnia, a company targeting environmental remediation, Ginkgo helps customers create cell programs that enable cost-efficient, renewable, and sustainable production of chemicals and materials. Food and Agriculture Cell programming can likewise be leveraged to improve food availability or decrease the environmental impact of food production. Ginkgo helps leading multinational agriculture companies, including Bayer (OTCPK:BAYZF) and Corteva (CTVA), develop cell programs that can make crop production more efficient and sustainable, reducing nitrogen fertilizer and pesticide usage. Ginkgo recently announced plans to expand platform capabilities in agricultural biologics and launched a flagship partnership with Bayer. Global Opportunity For several decades, software ran in local environments: companies deployed and managed their own servers and customized their applications. The dominance of software-as-a-service and cloud computing over the past decade has demonstrated the value in having common architectures, resulting in higher efficiency, scalability, and innovation. Ginkgo might usher in a similar transition in cell programming. Given the breadth of application areas and the potential of biology, the end markets for bioengineered products seem enormous. According to McKinsey & Company, a pipeline of about 400 use cases is already percolating with a potential direct economic impact of $4 trillion a year over the next 10-20 years. Taking into account new applications yet to emerge and additional scientific breakthroughs, the full ramifications could be far larger. Fee Structure For each of the cell programs it launches, Ginkgo generates economic value in two ways. First, it charges usage fees for foundry services, in much the same way that cloud computing companies charge usage fees for utilization of computing capacity. Second, Ginkgo negotiates a value share with its customers, typically in the form of royalties, milestones, and/or equity interests. The idea is to align Ginkgo's economics with the success of the programs its platform enables. As Ginkgo adds new programs, the portfolio of downstream value potential enablers grows. Because Ginkgo typically incurs no downstream costs (e.g., manufacturing or marketing, which customers manage), these value share payments flow through with approximately 100% contribution margin. To quote Ginkgo's 10-K (linked above): This flexible business model allows for more predictable near-term revenue while not sacrificing the company's ability to create long-term value with asymmetric upside. Of course, rival Amyris gets cents per ml when selling squalene as an ingredient, but dollars when selling it in Biossance direct to consumer; the margin difference thus justifies Amyris' keenness on building brands. The critical idea here is that both Amyris and Ginkgo's business models, while radically different, have significant appeal. It's likely that we're seeing the birth of not one but two industry leaders in synthetic biology. In a similar vein, Apple (AAPL) and Microsoft (MSFT) rose to prominence in their industry and coexist to this day. The stocks of both synbio players could enjoy similar fortunes. Foundry Usage Fees The first stage of a cell program consists of R&D work being performed on Ginkgo's platform, leveraging its Foundry and Codebase. Customers regard R&D as a cost to be incurred regardless of success. Ginkgo provides a very efficient platform to conduct this R&D work, encouraging companies to adopt it. The unit costs of its cell engineering services are several times less expensive on average than a customer doing equivalent R&D in house by hand. Ginkgo typically earns usage fees tied to the increments of work that it performs on behalf of its customers. As its platform matures, Ginkgo steadily increases the portion of R&D costs covered upfront by customers; new programs are structured to fully offset its direct costs, which will eventually enable Ginkgo to earn a slim margin. Per the annual report (linked above): Foundry usage fees provide a strong foundation of predictable revenue that is independent of any commercialization efforts by our partners. As we continue to scale the Foundry and build Codebase, we expect to drive further efficiencies and decrease our average unit costs. ... We pass these efficiencies on to our customers, increasing the number of shots on goal and, therefore, the likelihood of program success given a fixed budget. ... The right choice for long-term value creation is to pass the savings to our customers, reducing the barriers to adoption and driving increased demand for our platform. The multiyear nature of an average cell programming project means that usage fees are predictable and recurring in nature. Additionally, given the lead times inherent in developing technical plans as part of a sales process, Ginkgo has good visibility into new Foundry usage fee bookings. This provides a strong foundation for the business. Downstream Multipliers and Value Share As the key enabling technology for its customers' products, Ginkgo is able to earn a share of the value of the products created using its platform. Ginkgo has structured a variety of value sharing mechanisms, including royalties, equity, and lump-sum commercial milestone payments. Because the economics should be identical, Ginkgo is agnostic on which form of downstream value capture it receives. The decision is contingent on customer size and preference. Because Ginkgo will have completed the program (and received associated usage fees) prior to realizing downstream value and incurs minimal to no costs once the strain is commercialized, cash flows from the downstream value capture component generally fall straight to the bottom line. This dynamic may enhance long-term returns as its clients successfully commercialize products generated on its platform. Ginkgo's Sustainable Competitive Advantage Ginkgo benefits from significant historical investments, a virtuous cycle that grows with scale, and a strong business model aligned with customers' outcomes. It might have taken Ginkgo over eight years of investment and iteration to reach cost parity with "by hand" cell programming. Its software and data infrastructure cannot be easily replicated without deploying a number of rare, specialized skillsets. These provide a strong sustainable advantage and likely establish Ginkgo as an industry standard. Only Amyris, which took just about as many years to reach maturity, boasts similar capabilities, with the difference being that Amyris has also developed a major manufacturing arm (Barra Bonita, etc.). Again, the pursuit of different business models, both valid, is in play. Ginkgo has no interest in manufacturing products itself. Amyris chooses to target direct-to-consumer markets in specific industries and vertically integrate into products to capture high margins and maximize value creation. This requires incurring higher costs (manufacturing and marketing) and at times burning cash. Now that Amyris has built the foundational infrastructure, however, it is entering a new stage; the stock likely is at an inflection point. Per Ginkgo's 10-K (linked above): This has a tendency to overfit the capabilities of [Amyris'] R&D team to their targets. [Ginkgo's] continued scaling and investment in flexible tools that can apply to a broad range of end markets helps us drive efficiencies in the Foundry and Codebase across our diverse programs. Conflicts of interest An advantage worth pondering is Ginkgo's systematic avoidance of conflicts of interest. Amyris might leverage its technology platform to develop superior end products in certain vertical industries (say, skincare), but then a subset of skincare companies might find it more challenging to entrust work of any kind to a potential competitor on related fronts. Put another way, why would Givaudan use Amyris' fermentation tanks to more efficiently produce rare molecules typically extracted from plants if Amyris can leverage the very same platform to build similar products that may ultimately compete? Granted, a number of non-compete and similar arrangements could delineate fronts of coexistence, but given the choice, certain firms may prefer to deal with a pure-play platform and agnostic multi-industry contributor. Biosecurity Revenue In the second quarter of 2020, in response to the pandemic, Ginkgo launched its commercial offering of COVID-19 testing products and services for businesses and other organizations. Ginkgo generates product revenue through the sale of various diagnostic test kits and service revenue through that of its end-to-end COVID-19 testing services, including sample collection kits, physician authorizations, onsite test administration, outsourced laboratory PCR analysis, and access to results reported through a web-based portal. Beginning in the first quarter of 2021, Ginkgo launched its pooled testing initiative, which focuses on providing end-to-end COVID-19 testing and reporting services to public health authorities, K-12 schools, and airports through its partnership with XpresCheck and the CDC. Critically, Ginkgo believes that testing services might in the future 1) thrive internationally, and 2) target other use cases including wastewater and air monitoring. Recent Business Highlights Demonstrate Growth Potential Top Line Full-year 2021 total revenue of $314 million is up from $77 million in 2020, an increase of 309%. Full-year 2021 foundry revenue of $113 million is up from $59 million in 2020, an increase of 91%. Full-year 2021 biosecurity revenue of $201 million beats outlook of $110 million. Quarterly results are unsurprisingly more volatile. Q2 2022 total revenue of $145 million is up from $44 million in Q2 2021, an increase of 231%, but down from $168 million in Q1 2022, up itself from $44 million in Q1 2021 - an increase of 282%. COVID-19 biosecurity demand might be receding but the emergence of variants and other factors could keep it volatile. Q2 2022 foundry revenue of $44 million is up from $22 million in Q2 2021, an increase of 105%. The firm added 13 new cell programs, representing 86% growth. It added 11 cell programs in Q1 2022, representing 175% growth over Q1 2021. Q1 2022 foundry revenue of $21 million, which did not include material downstream value share payments, was down from $23 million in Q1 2021. Q2 2022 biosecurity (Concentric) revenue of $100 million is down from $147 million in Q1 2022. An expected slowdown in COVID-related activities is likely responsible for the sequential deceleration. Concentric hopes to expand the range of biosecurity applications by piloting new modalities, including wastewater and air monitoring. Ginkgo continues to expect to add 60 cell programs to the Foundry in 2022. It further revised its total revenue expectation from $375-$390 million to $425-$440 million in 2022. Ginkgo continues to expect Foundry revenue of $165-$180 million in 2022. While Biosecurity remains an uncertain business, based on strong year-to-date performance Ginkgo expects Biosecurity revenue in 2022 of at least $260 million. Bottom Line The full-year 2021 loss from operations of $1.8 billion, inclusive of a planned "catch-up" SBC (stock-based compensation) expense of $1.7 billion, compares to -$137 million in 2020. However, 2021 adjusted EBITDA of -$106 million improved from -$121 million in 2020. Similarly, Q2 and Q1 2022 losses from operations of $647 million and $675 million, respectively (inclusive of SBC expense of $607 million and $659 million, respectively), compares to a loss from operations of $60 million and $57 million in Q2 and Q1 2021. But Q2 and Q1 2022 Adjusted EBITDA of -$23 million and -$2 million, improved from -$38 million and -$51 million in Q2 and Q1 2021, respectively. The SBC expense primarily relates to the GAAP accounting for the modification of restricted stock units issued prior to becoming a public company (as detailed below). Stock-Based Compensation In recent quarters, Ginkgo recognized billions of dollars of stock-based compensation expense. Prior to becoming a public company in September 2021, Ginkgo granted restricted stock units (RSUs) with both a service-based and a performance-based vesting condition, defined as a change in control or an initial public offering. As previously disclosed, on Nov. 17, 2021, the board of directors modified the vesting terms of RSUs, such that Ginkgo's business combination with Soaring Eagle Acquisition Corp. was deemed to have met the performance condition for vesting. This resulted in a catch-up adjustment of $1.5(+) billion of incremental SBC expense in Q4 2021. As of June 30, 2022, there was under $1.2 billion of unrecognized stock-based compensation expense related to the catch-up adjustment for those RSUs not yet vested - to be recognized over a weighted-average period of one year. Valuation The shares of synthetic biology stocks have declined by around 75% on average in Q4 2021 and Q1 2022, way more than sector proxy SPDR S&P Biotech ETF (XBI), down 28%. Rate hikes and inflation prospects have compressed multiples for companies with distant free cash flows. It is thus best to adjust risk premiums to valuations and embed higher discount rates for the future cash flows of long duration names like Ginkgo. Ginkgo should be valued based on the downstream value share as it constitutes the wealth capture model for the company and frames the investment rationale. The downstream value share-based DCF model depends upon the average value of each cell program and the number of cell programs Ginkgo can launch.
|DNA||US Chemicals||US Market|
Return vs Industry: DNA underperformed the US Chemicals industry which returned -12.1% over the past year.
Return vs Market: DNA underperformed the US Market which returned -20% over the past year.
|DNA Average Weekly Movement||13.4%|
|Chemicals Industry Average Movement||6.4%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: DNA is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.
Volatility Over Time: DNA's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
Ginkgo Bioworks Holdings, Inc., together with its subsidiaries, develops platform for cell programming. Its platform is used to program cells to enable biological production of products, such as novel therapeutics, food ingredients, and chemicals derived from petroleum. The company serves various end markets, including specialty chemicals, agriculture, food, consumer products, and pharmaceuticals.
Ginkgo Bioworks Holdings Fundamentals Summary
|DNA fundamental statistics|
Is DNA overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|DNA income statement (TTM)|
|Cost of Revenue||US$238.22m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-1.71|
|Net Profit Margin||-549.38%|
How did DNA perform over the long term?See historical performance and comparison
Is DNA undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 3/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for DNA?
Other financial metrics that can be useful for relative valuation.
|What is DNA's n/a Ratio?|
Price to Sales Ratio vs Peers
How does DNA's PS Ratio compare to its peers?
|DNA PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
AXTA Axalta Coating Systems
ESI Element Solutions
DNA Ginkgo Bioworks Holdings
Price-To-Sales vs Peers: DNA is expensive based on its Price-To-Sales Ratio (11.3x) compared to the peer average (3.6x).
Price to Earnings Ratio vs Industry
How does DNA's PE Ratio compare vs other companies in the US Chemicals Industry?
Price-To-Sales vs Industry: DNA is expensive based on its Price-To-Sales Ratio (11.3x) compared to the US Chemicals industry average (1.1x)
Price to Sales Ratio vs Fair Ratio
What is DNA's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PS Ratio||11.3x|
|Fair PS Ratio||12.5x|
Price-To-Sales vs Fair Ratio: DNA is good value based on its Price-To-Sales Ratio (11.3x) compared to the estimated Fair Price-To-Sales Ratio (12.5x).
Share Price vs Fair Value
What is the Fair Price of DNA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: DNA ($3.52) is trading below our estimate of fair value ($6.17)
Significantly Below Fair Value: DNA is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
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How is Ginkgo Bioworks Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DNA is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: DNA is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: DNA is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: DNA's revenue (33.3% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: DNA's revenue (33.3% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DNA is forecast to be unprofitable in 3 years.
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How has Ginkgo Bioworks Holdings performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
Last years earnings growth
Earnings and Revenue History
Quality Earnings: DNA is currently unprofitable.
Growing Profit Margin: DNA is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: Insufficient data to determine if DNA's year-on-year earnings growth rate was positive over the past 5 years.
Accelerating Growth: Unable to compare DNA's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: DNA is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (21.1%).
Return on Equity
High ROE: DNA has a negative Return on Equity (-189.56%), as it is currently unprofitable.
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How is Ginkgo Bioworks Holdings's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: DNA's short term assets ($1.6B) exceed its short term liabilities ($135.0M).
Long Term Liabilities: DNA's short term assets ($1.6B) exceed its long term liabilities ($292.1M).
Debt to Equity History and Analysis
Debt Level: DNA is debt free.
Reducing Debt: DNA has not had any debt for past 5 years.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: DNA has sufficient cash runway for more than 3 years based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if DNA has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
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What is Ginkgo Bioworks Holdings's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
|Ginkgo Bioworks Holdings Dividend Yield vs Market|
|Company (Ginkgo Bioworks Holdings)||n/a|
|Market Bottom 25% (US)||1.6%|
|Market Top 25% (US)||4.5%|
|Industry Average (Chemicals)||2.3%|
|Analyst forecast in 3 Years (Ginkgo Bioworks Holdings)||0%|
Notable Dividend: Unable to evaluate DNA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate DNA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if DNA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if DNA's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as DNA has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jason Kelly (41 yo)
Dr. Jason Kelly serves as Director of Genomatica, Inc. Dr. Kelly Founded Ginkgo Bioworks, Inc. (nka:Ginkgo Bioworks Holdings, Inc.) since 2008 and serves as its Chief Executive Officer and has served as Di...
CEO Compensation Analysis
|Jason Kelly's Compensation vs Ginkgo Bioworks Holdings Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$381m||US$250k|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$11m||US$250k|
Compensation vs Market: Jason's total compensation ($USD380.74M) is above average for companies of similar size in the US market ($USD8.53M).
Compensation vs Earnings: Jason's compensation has increased whilst the company is unprofitable.
Experienced Management: DNA's management team is seasoned and experienced (5 years average tenure).
Experienced Board: DNA's board of directors are considered experienced (3.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||347,137||0.02%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Ginkgo Bioworks Holdings, Inc.'s employee growth, exchange listings and data sources
- Name: Ginkgo Bioworks Holdings, Inc.
- Ticker: DNA
- Exchange: NYSE
- Founded: 2008
- Industry: Specialty Chemicals
- Sector: Materials
- Implied Market Cap: US$6.094b
- Shares outstanding: 1.73b
- Website: https://www.ginkgobioworks.com
Number of Employees
- Ginkgo Bioworks Holdings, Inc.
- 27 Drydock Avenue
- 8th Floor
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|DNA||NYSE (New York Stock Exchange)||Yes||Class A Common Stock||US||USD||Apr 2021|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/04 00:00|
|End of Day Share Price||2022/10/04 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.