Codexis, Inc. — Earnings Quality Grade F
CDXS · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 45 days, change -28 days YoY
AR growth -26.5% vs revenue growth 18.6%
Revenue 18.6%, CFFO 60.8%. Cash follows revenue
Expense Quality
Inventory growth 1.0% far exceeds COGS -42.7%, margin rising. Fraud signal
Small-cap context: Inventory ratios on a small base are noisy; a single product launch can move them sharply.
CapEx growth 3.9% vs revenue 18.6%. Normal
SG&A/Gross Profit = 77.1%, exceeds 70%
Gross margin swung +14.2pp (72.6% → 86.7%)
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.0B)
Accruals ratio = -16.6%. Low accruals
Cash $0.1B covers debt $0.1B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 5% of equity. Manageable
Interest coverage = -8.0x (<2x). Financial stress
Other assets 19.9% vs revenue 18.6%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -3.56 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25