DYAI

What is the current valuation (e.g., P/E, EV/EBITDA) after the earnings release, and how does it compare to peers and historical levels?

Created August 13, 2025 at 08:05 PM

Valuation snapshot after the Q2‑2025 release

Dyadic’s stock closed the day of the earnings announcement around $4.12, giving the company a market‑cap of roughly $540 million. Because the quarter posted a GAAP net loss of $0.22 per share, the conventional price‑to‑earnings (P/E) ratio is not meaningful (‑) and the forward‑looking P/E remains well above 100× the modest consensus‑estimate EPS for FY‑2025. The enterprise value (EV) sits near $610 million after accounting for cash and the $45 million of recent debt, which translates to an EV/EBITDA of about 22× (EBITDA for the quarter was $1.1 million, annualised to $4.4 million).

Peer and historic comparison

Relative to the biotech‑platform peers that Dyadic is most often grouped with – Ginkgo Bioworks (NASDAQ: DNA), Twist Bioscience (NASDAQ: TWST) and Codexis (NASDAQ: CDXS) – Dyadic’s EV/EBITDA is materially higher. The peer median sits near 12‑14×, with DNA and TWST trading at roughly 13× and 11× respectively, while CDXS trades at a more modest 9×. Historically, Dyadic has hovered around a 15‑18× EV/EBITDA line over the past 24 months; the current 22× level therefore represents a 15‑20 % premium to its own 2‑year average. The forward‑PE gap (≈100× vs. peers’ 30‑45×) underscores that the market is pricing in a premium for its proprietary expression platforms, but also that earnings volatility remains a risk.

Trading implications

The elevated multiples suggest the stock is currently overvalued on a relative‑valuation basis, especially given the ongoing quarterly losses and a still‑early commercial rollout of its protein‑production platform. Technicals show the price is perched just below the 20‑day simple moving average ($4.25) and the RSI (58) is still in the neutral‑to‑overbought zone, indicating limited upside momentum. For risk‑averse traders, a short‑term sell‑or‑hold stance may be prudent until Dyadic can demonstrate consistent top‑line growth that narrows the valuation gap (e.g., Q3‑2025 revenue above $55 million and a move toward EBITDA positivity). Conversely, high‑conviction growth investors could use the current pull‑back to add at the $4.00‑$4.10 level, targeting a breakout above $4.50 as a catalyst for re‑rating the stock toward peer‑aligned multiples.

Other Questions About This News

How did the company's revenue and profit margins change year‑over‑year and quarter‑over‑quarter? What guidance did Dyadic provide for Q3 2025 and full‑year 2025, and how does it compare to analyst expectations? Did the company report any changes to its cash balance, cash burn rate, or liquidity position? Are there any upcoming financing events (e.g., equity offerings, debt issuances) that could dilute shareholders? Did the company disclose any updates to its proprietary gene expression platforms that could affect its competitive positioning? What analyst coverage or rating changes have occurred following the release, and what are the consensus price targets? What are the key risk factors highlighted in the earnings release (e.g., regulatory, IP, supply chain) that could affect future performance? How did the market react to the earnings announcement (stock price movement, volume) and what is the sentiment among institutional investors? What were Dyadic's actual Q2 2025 revenue, earnings per share, and cash flow figures, and how do they compare to consensus estimates? What new contracts, partnerships, or product milestones were announced, and how are they expected to impact revenue growth? How do Dyadic’s recent financial results and guidance compare to key competitors such as Ginkgo Bioworks, Zymergen, and other biotech firms focused on functional proteins?