Ginkgo Bioworks (NYSE:DNA) and Evo Foods have sealed a partnership to develop animal-free egg products. Demand for animal-free food is surging. However, scientists have found it challenging to replicate the nutritional properties found in real eggs, a problem that Ginkgo will begin tackling. DNA stock opened at $2.14 on May 12.
Many consumers have previously disregarded animal-free egg products, preferring the original product. Nonetheless, Ginkgo Bioworks and Evo Foods believe they’ve cracked the code by leveraging India’s crop biodiversity, which allows them to create a range of egg substitute products.
Ginkgo’s cofounder and CEO, Jason Kelly, is quoted saying, “Ginkgo is always looking for new ways to help developers solve massive societal challenges through the use of biology, and partnering with Evo Foods to create more sustainable food ingredients is the perfect opportunity.”
Evo Foods CEO Kartik Dixit said, “Evo is committed to playing a part in feeding our ever-growing world, and this partnership will support us as we develop next-generation products in this market.”
Ginkgo stock looks in good shape and could be bolstered by its deal with Evo Foods. First of all, Ginkgo released its fourth-quarter earnings report in March, revealing that its full-year revenue surged by 309% year-over-year.
Ginkgo’s topline success was driven by its 71 active programs, including offerings in pharma and biotech, food and agriculture, industrial and environmental, consumer technology and various government contracts.
Additionally, Ginkgo recently launched its cell development kit for protein production, which is expected to scale at a rapid pace.
Let’s look at Ginkgo stock from a quantitative vantage point. During the past year, Ginkgo has added a great deal of intrinsic value, with its leveraged free cash flow margin increasing by 1.35 times and its depreciation and amortization climbing by 109%.
Furthermore, Ginkgo’s gross margin of 59% suggests that the firm holds a strong market position, thus, presenting promising growth prospects to its stakeholders.
Lastly, Ginkgo is borderline oversold with a 1-year relative strength of 31, prompting me to go for DNA stock.
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On the date of publication, Steve Booyens did not hold any position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.