Is Amyris a Buy Under $5?

NASDAQ: AMRS | Amyris, Inc. News, Ratings, and Charts

AMRS – Clean health and beauty company Amyris (AMRS) is working with an immunotherapy company to accelerate the commercialization of a next-generation COVID-19 vaccine, which is expected to boost the company’s near-term prospects if approved. However, the stock has suffered a double-digit percentage price decline this year, closing the last session at $4.35. Also, considering the company’s deteriorating financials and negative profit margins, will it be wise to buy AMRS stock now? Read on to learn our view.

Synthetic biotechnology company Amyris, Inc. (AMRS) in Emeryville, Calif., operates in the clean health and beauty, and flavors and fragrance markets in Europe, North America, Asia, and South America. The company has been enhancing its skincare, hair, mother and baby, and color cosmetics product line and expects to continue expanding its offering throughout 2022 with menopause and Gen-Z beauty brands and by integrating its consumer supply chain. The company reported record consumer and core revenue in its most recent quarter. AMRS’ core revenue came in at$64.80 million, up 68% year-over-year, which included record consumer revenue of $32.20 million, which increased 86% year-over-year.

In January, AMRS and ImmunityBio, a clinical-stage immunotherapy company, completed a joint venture agreement to accelerate the commercialization of a leading next-generation COVID-19 vaccine. The joint venture’s goal is to start delivering the second-generation vaccine in 2022 as soon as practically possible. However, the companies have yet to complete human trials and receive the required regulatory approvals.

AMRS shares have slumped 76.8% in price over the past year and 19.6% year-to-date. The stock has declined 69% over the past six months to close yesterday’s trading session at $4.35. It is currently trading below its 50-day and 200-day moving averages, indicating a downtrend.

Click here to checkout our Healthcare Sector Report for 2022

Here is what could shape AMRS’ performance in the near term:

Declining Financials

AMRS’ revenues for the fiscal fourth quarter, ended Dec. 31, 2021, declined 18.8% year-over-year to $64.78 million. Also, its loss from operations grew 4,225.5% from its year-ago value to $128.86 million. Its adjusted net loss and adjusted net loss per share came in at $101.36 million and $0.33, respectively, compared to the prior-year quarter values of $6.87 million and $0.03. Also, its adjusted EBITDA decreased substantially from its year-ago value of $1.28 million to a negative $96.18 million in the fourth quarter of its fiscal 2021, due primarily to higher operating expenses and reduced strategic transaction revenue.

Poor Profitability

AMRS’ EBITDA and net income margins of negative 45.55% and 79.27%, respectively, are substantially lower than the 21.57% and 8.71% industry averages.

Moreover, AMRS’ ROE, ROA, and ROTC of negative 776.97%, 28.39%, and 24.93%, respectively, compare with the 12.86%, 5.50%, and 7.51% industry averages.

Stretched Valuation

In terms of forward EV/Sales, AMRS is currently trading at 3.58x, which is 109% higher than the 1.71x industry average Also, its 3.69 forward Price/Sales ratio is 151.4% higher than the 1.47 industry average. AMRS’ 5.45 trailing-12-month Price/Book is 128.7% higher than the industry average of 2.38x.

POWR Ratings Reflect This Bleak Prospects

AMRS has an overall D rating, which translates to Sell in our proprietary POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

The stock has a D grade for Quality, which is consistent with its negative profit margins.

AMRS has a D grade for Value. Its stretched valuations justify this grade.

Of the 89 stocks in the A-rated Chemicals industry, AMRS is ranked #86.

Beyond what I have stated above, one can also view AMRS’ grades for Sentiment, Growth, Momentum, and Stability here.

View the top-rated stocks in the Chemicals industry here.

Bottom Line

If the COVID-19 vaccine commercialization plan takes off, the company is expected to garner significant returns. However, it might take some time to complete human trials and receive commercialization approvals. In addition, AMRS’ declining financials and lean profit margins are concerning, while analysts also expect its revenues to decrease 63% in the current quarter, ending March 31, 2022. Also, considering its negative ROE, we think it could be best to avoid the stock now.

How Does Amyris, Inc. (AMRS) Stack Up Against its Peers?

While AMRS has an overall POWR Rating of D, one might want to consider investing in the following Chemicals stocks with an A (Strong Buy) rating: Valhi, Inc. (VHI), American Vanguard Corp. (AVD), and Kronos Worldwide Inc (KRO).

What To Do Next?

If you would like to see more top stocks under $10, then you should check out our free special report:

3 Stocks to DOUBLE This Year

What gives these stocks the right stuff to become big winners?

First, because they are all low-priced companies with explosive growth potential, that excel in key areas of growth, sentiment and momentum.

But even more important is that they are all top Buy rated stocks according to our coveted POWR Ratings system, Yes, that same system where top-rated stocks have averaged a +31.10% annual return.

Click below now to see these 3 exciting stocks which could double (or more!) in the year ahead:

3 Stocks to DOUBLE This Year


AMRS shares were trading at $4.35 per share on Friday morning, down $0.00 (0.00%). Year-to-date, AMRS has declined -19.59%, versus a -4.62% rise in the benchmark S&P 500 index during the same period.


About the Author: Subhasree Kar


Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
AMRSGet RatingGet RatingGet Rating
VHIGet RatingGet RatingGet Rating
AVDGet RatingGet RatingGet Rating
KROGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Recession or Not Recession…That Is the Question

Every investor appreciates that recessions and bear markets go hand in hand. But the definition of a recession often seems more difficult to pin down. So are we in a recession? And if not, then does that mean that disaster has been averted or that the pain train is still rolling towards investors? This is an important debate because it helps us appreciate what lies ahead for the stock market (SPY). We will tackle this vital topic in this week's commentary. Read on below...

:  |  News, Ratings, and Charts

3 Cybersecurity Stocks to Buy on the Pullback

Tech stocks are rallying. Within the sector, cybersecurity stocks offer the best combination of growth and value especially as the sector's importance grows everyday. Read on to find out why investors should consider buying top cybersecurity stocks like Fortinet (FTNT), Qualys (QLYS), and OneSpan (OSPN).

:  |  News, Ratings, and Charts

4 Big Reasons Why the Bear Rally Is Nearing an End…

The Stock Market (SPY) has put on an impressive rally over the last few weeks, leading many investors to believe that the bull is ready to resume its run. However, there are multiple reasons to believe the bear market is far from over. I lay out 4 of the main reasons below and explain how you can profit from the volatile markets that lie ahead. Read on below for more…

:  |  News, Ratings, and Charts

Is Costco Stock Still a Buy Amid Retail Troubles?

Retail companies have faced significant headwinds this year due to sky-high inflation and supply chain disruptions. However, Costco Wholesale's (COST) strong revenue performance and consistent margins have helped the stock to remain resilient amid retail troubles. So is this stock worth adding to your portfolio now? Let’s find out…

:  |  News, Ratings, and Charts

4 Big Reasons Why the Bear Rally Is Nearing an End…

The Stock Market (SPY) has put on an impressive rally over the last few weeks, leading many investors to believe that the bull is ready to resume its run. However, there are multiple reasons to believe the bear market is far from over. I lay out 4 of the main reasons below and explain how you can profit from the volatile markets that lie ahead. Read on below for more…

Read More Stories

More Amyris, Inc. (AMRS) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All AMRS News