Cyanotech (CYAN) AI Stock Analysis

• Market Cap: $2.37M
• Dividend Yield: N/A
• Average Volume (3M): 6.46K
• Price to Earnings (P/E): 549.9
• Beta (1Y): -0.08
• Revenue Growth: 8.47%
• EPS Growth: 68.88%
• Country: US
• Employees: 77
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.03
• Shares Outstanding: 7,392,243
• 10 Day Avg. Volume: 1,585
• 30 Day Avg. Volume: 6,463
• PEG Ratio: 0.02
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.10
• P/FCF Ratio: -1.72
• Enterprise Value/Market Cap: 5.88
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 1.72
• Enterprise Value/Ebitda: 15.29
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $0.29 ▼(-17.71% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by weak financial performance (loss-making margins, high leverage, and negative operating cash flow) and bearish technicals (price below major moving averages and negative MACD). Valuation further pressures the score due to an exceptionally high P/E and no indicated dividend yield.

Positive Factors

Diversified revenue streams

Cyanotech sells both finished branded supplements and bulk astaxanthin/spirulina ingredients. This dual model supports revenue resilience across retail/e‑commerce and B2B channels, reducing reliance on a single distribution route and enabling margin mix management over time.

Consistent, if modest, revenue growth

Sustained positive top-line growth, even modest, indicates ongoing demand for natural algae-derived ingredients and products. Over 2–6 months this supports operational planning and incremental scale benefits in cultivation and processing, helping stabilize production throughput.

Healthy gross margins on product

A near-30% gross margin shows the core cultivation and processing model can generate product-level profitability. This margin cushion gives management room to invest in yield improvements, marketing, or channel expansion without immediate margin compression at the cost-of-goods level.

Negative Factors

Negative net profitability

Despite product-level margins, the company reports negative net margin, indicating SG&A, interest, or other operating costs outstrip gross profit. Persisting losses erode equity and limit reinvestment capacity, risking long-term competitiveness unless structural cost or revenue improvements occur.

High financial leverage

Material leverage increases financial fixed costs and reduces flexibility to fund operations or capital projects. With elevated debt relative to equity, adverse demand or margin pressure could strain covenant compliance and amplify refinancing risk over the medium term.

Weak cash generation

Negative operating cash flow and shrinking free cash flow indicate the business consumes cash to run and grow. This undermines the firm's ability to self-fund capex, pay down debt, or invest in marketing and R&D, increasing reliance on external financing under uncertain conditions.

Cyanotech Business Overview & Revenue Model

Company Description

Cyanotech Corporation (CYAN) is a biotechnology company based in Hawaii that specializes in the cultivation and processing of microalgae. Operating primarily in the nutritional supplements and specialty chemical sectors, Cyanotech produces high-quality products such as Astaxanthin, a powerful antioxidant derived from the microalgae Haematococcus pluvialis, and Spirulina, a nutrient-rich blue-green algae. The company's core offerings are focused on health and wellness, catering to consumers seeking natural dietary supplements and functional foods.

How the Company Makes Money

Cyanotech makes money by growing microalgae at scale, harvesting it, and selling the resulting products through two primary revenue streams: (1) finished consumer products and (2) bulk ingredients. Finished consumer products include packaged dietary supplements and powders/tablets sold under the company’s brands (e.g., products positioned around spirulina and astaxanthin). Bulk ingredient revenue comes from selling astaxanthin and spirulina in ingredient form to other companies (such as dietary supplement brands and formulators) that incorporate these inputs into their own products. The company’s earnings are therefore driven by (a) volume and yield from algae cultivation, (b) selling prices for natural astaxanthin and spirulina, (c) product mix between higher value-added branded consumer items versus lower value bulk ingredient sales, and (d) distribution and customer relationships across retail/e-commerce and business-to-business ingredient channels. Specific material partnerships, customer concentration details, and channel breakdown figures are null.

Cyanotech Financial Statement Overview

Summary

Despite modest TTM revenue growth (4.69%), profitability is weak with negative net margin (-12.13%) and negative EBIT/EBITDA margins. Leverage is high (debt-to-equity 1.49) with negative ROE, and liquidity is pressured by negative operating cash flow and a 23.45% decline in free cash flow.

Income Statement

Cyanotech's income statement reveals a challenging financial situation. The company has experienced a slight revenue growth of 4.69% in the TTM period, but profitability metrics are concerning. The gross profit margin is moderate at 29.72%, yet the net profit margin is negative at -12.13%, indicating losses. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Despite some revenue growth, the company struggles with profitability, which is a significant weakness.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.49 in the TTM period, suggesting significant leverage. Return on equity is negative, indicating that the company is not generating returns for shareholders. The equity ratio is not provided, but the high leverage and negative ROE highlight financial instability. While the company has a substantial asset base, the high debt levels pose a risk.

Cash Flow

Cyanotech's cash flow statement highlights cash management challenges. The operating cash flow is negative, and free cash flow has declined by 23.45% in the TTM period. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. Although free cash flow to net income is slightly positive, the overall cash flow situation is concerning, reflecting liquidity challenges.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	25.27M	24.21M	23.07M	23.18M	35.97M	32.34M
Gross Profit	8.09M	6.88M	5.95M	7.26M	13.57M	11.12M
EBITDA	910.00K	-629.00K	-2.51M	-825.00K	4.50M	3.54M
Net Income	-1.78M	-3.20M	-5.27M	-3.44M	2.15M	920.00K
Balance Sheet
Total Assets	24.03M	23.49M	25.11M	29.73M	32.05M	30.88M
Cash, Cash Equivalents and Short-Term Investments	649.00K	257.00K	707.00K	974.00K	2.59M	3.77M
Total Debt	15.07M	11.56M	10.90M	11.17M	9.00M	10.89M
Total Liabilities	15.96M	14.61M	13.30M	13.38M	12.56M	13.84M
Stockholders Equity	8.06M	8.88M	11.81M	16.35M	19.49M	17.04M
Cash Flow
Free Cash Flow	-1.44M	-1.44M	-836.00K	-3.17M	1.11M	1.64M
Operating Cash Flow	-1.21M	-1.19M	-455.00K	-2.10M	2.38M	2.40M
Investing Cash Flow	-228.00K	-247.00K	-381.00K	-1.07M	-1.27M	-760.00K
Financing Cash Flow	1.31M	990.00K	569.00K	1.55M	-2.29M	-290.00K

Cyanotech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CYAN, the sentiment is Negative. The current price of 0.35 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.42, and below the 200-day MA of 0.38, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 42.00 is Neutral, neither overbought nor oversold. The STOCH value of 29.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CYAN.

Cyanotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SENEA	74 Outperform	$974.12M	4.20	13.51%	―	8.33%	47.71%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NATR	61 Neutral	$402.67M	19.90	12.18%	―	6.62%	-7.85%
USNA	53 Neutral	$315.43M	33.56	2.03%	―	5.88%	-68.62%
LSF	52 Neutral	$27.08M	-15.26	-14.36%	―	17.73%	-34.71%
HAIN	45 Neutral	$60.50M	-0.21	-111.73%	―	-10.13%	-532.32%
CYAN	42 Neutral	$2.37M	549.89	-31.37%	―	8.47%	68.88%