LONGMONT, Colo. – S&W Seed Company (NASDAQ: SANW), an agricultural technology firm, has launched Double Team Forage Sorghum, a non-GMO sorghum variety offering grassy weed control for forage growers. This follows the successful introduction of Double Team Grain Sorghum in 2021, which has become the leading grass control trait in its market.
The company anticipates that Double Team Grain Sorghum will be planted on over 10% of all grain sorghum acres in 2024, nearly doubling its presence from the previous year. Mark Herrmann, CEO of S&W Seed Company, expressed that the introduction of Double Team Forage Sorghum aims to provide forage sorghum growers with the same benefits that grain sorghum growers have seen, enhancing their return on investment.
Historically, sorghum growers have lacked post-emergence grass control options, affecting acreage and profitability. Double Team's introduction is seen as a significant advancement in the sorghum industry, comparable to the impact of weed control technologies on other crops like corn, soybeans, and cotton.
Field trials have reported increased yields and satisfaction among growers, with Herrmann noting that Double Team consistently delivers a positive return on investment.
Looking ahead, S&W Seed Company is developing a Prussic Acid Free (PAF) trait, expected to be introduced in 2025, which aims to eliminate prussic acid poisoning risks in grazing livestock, thereby extending the grazing season.
Double Team Forage Sorghum is now available through S&W's Sorghum Partners brand and private label partners. S&W Seed Company, established in 1980, is headquartered in Longmont, Colorado, and focuses on providing proprietary seeds for sorghum, forage, and specialty crops to meet the growing global demand for animal proteins and healthier consumer diets.
This article is based on a press release statement from S&W Seed Company.
InvestingPro Insights
As S&W Seed Company (NASDAQ: SANW) continues to innovate with the launch of Double Team Forage Sorghum, the company's financial health and market performance provide a backdrop to these developments. According to InvestingPro, SANW is trading at a low Price / Book multiple of 0.31 as of the last twelve months leading up to Q2 2024, indicating that the stock may be undervalued relative to its assets. This could be of interest to value investors looking for potential growth opportunities in the agricultural technology sector.
Moreover, the company's P/E Ratio stands at 1.51, suggesting that investors are paying less for each dollar of SANW's earnings compared to other companies in the industry. This could signal a buying opportunity, especially considering that SANW has a high shareholder yield, which is a positive sign for investors looking for returns. However, it's important to note that the company has been experiencing a decline in revenue, with a -10.5% revenue growth over the last twelve months as of Q2 2024, which may raise concerns about its near-term financial prospects.
InvestingPro Tips for S&W Seed Company also highlight that while the stock has taken a significant hit over the last year, with a -70.21% one-year price total return, it remains profitable over the last twelve months. This juxtaposition of profitability against a declining stock price may suggest the market has not yet fully recognized the company's earnings potential or has concerns about its future outlook.
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