Cyanotech (CYAND) AI Stock Analysis

• Market Cap: $2.51M
• Dividend Yield: N/A
• Average Volume (3M): 6.46K
• Price to Earnings (P/E): 549.9
• Beta (1Y): -0.07
• 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: -0.29
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 12.04
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 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: 51 Neutral
• Price Target: $0.53 ▲(52.29% Upside)
• Action: Upgraded Date: 01/29/26
• Date: Action: Upgraded 01/29/26

The score is held back primarily by weak financial performance—ongoing losses, high leverage, and negative operating cash flow with declining free cash flow. Technicals are a relative bright spot with the price above key moving averages and positive momentum, but valuation remains unattractive/unclear due to loss-making earnings and no dividend support.

Positive Factors

Product portfolio & demand

Cyanotech's core products (Astaxanthin, Spirulina) address enduring consumer demand for natural, premium supplements. Specialized cultivation and high-quality sustainable production support repeat purchases, brand differentiation, and supplier credibility that sustain revenue resilience over quarters.

Gross margin level

A ~29.7% gross margin indicates product-level economics that can absorb distribution and some SG&A while preserving unit profitability. With disciplined operating cost control and scale, this gross margin provides a structural foundation to recover operating profits and reinvest in growth.

Asset-backed production capacity

The firm's substantial asset base likely reflects owned cultivation and processing facilities. These capital assets enable quality control, supply reliability and scalability, creating durable barriers to entry and long-term operational advantages versus asset-light competitors.

Negative Factors

Persistent unprofitability

A negative net margin of -12.13% shows the company fails to convert sales into profit. Sustained losses erode equity and limit internal funding for capex or marketing. Without structural margin improvements, Cyanotech will remain reliant on external capital, raising medium-term risk.

Elevated leverage

A debt-to-equity ratio of 1.49 indicates material leverage that increases fixed financial obligations. High debt servicing reduces strategic flexibility, amplifies sensitivity to interest rates or revenue shocks, and can force prioritization of deleveraging over growth or R&D investments.

Weak cash generation

Negative operating cash flow and a 23.45% decline in free cash flow signal operations don't self-fund capex or debt service. This persistent cash shortfall increases reliance on external financing, constrains strategic initiatives, and raises liquidity and refinancing risks over the next several quarters.

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 generates revenue through the sale of its microalgae-based products, with key revenue streams including the sale of Astaxanthin and Spirulina in various forms such as powder, capsules, and tablets. The company markets its products directly to consumers, health food stores, and nutritional supplement manufacturers. Additionally, Cyanotech engages in partnerships with other companies for distribution and co-branding opportunities, which enhance its market reach and product visibility. The growing consumer demand for natural and organic supplements, along with Cyanotech's commitment to sustainable and high-quality production practices, contributes significantly to its earnings.

Cyanotech Financial Statement Overview

Summary

Despite modest TTM revenue growth (4.69%) and a moderate gross margin (29.72%), overall fundamentals are weak: negative net margin (-12.13%) and negative EBIT/EBITDA margins indicate ongoing operating losses. Leverage is elevated (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	Jun 2019	Mar 2018	Mar 2017
Income Statement
Total Revenue	30.20M	34.12M	32.04M
Gross Profit	10.47M	13.37M	12.22M
EBITDA	-1.60M	2.86M	835.00K
Net Income	-3.60M	1.02M	-1.22M
Balance Sheet
Total Assets	29.63M	29.71M	29.16M
Cash, Cash Equivalents and Short-Term Investments	840.00K	1.33M	1.41M
Total Debt	720.00K	758.00K	739.00K
Total Liabilities	14.72M	11.60M	12.55M
Stockholders Equity	14.91M	18.11M	16.61M
Cash Flow
Free Cash Flow	-1.28M	485.00K	373.00K
Operating Cash Flow	-847.00K	1.49M	1.22M
Investing Cash Flow	-531.00K	-1.07M	-847.00K
Financing Cash Flow	824.00K	-498.00K	-206.00K

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 CYAND, 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 -0.02 indicates Positive momentum. The RSI at 44.82 is Neutral, neither overbought nor oversold. The STOCH value of 30.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CYAND.

Cyanotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SENEA	74 Outperform	$969.89M	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	$420.53M	19.90	12.18%	―	6.62%	-7.85%
USNA	53 Neutral	$316.35M	33.56	2.03%	―	5.88%	-68.62%
LSF	52 Neutral	$26.65M	-15.26	-14.36%	―	17.73%	-34.71%
CYAND	51 Neutral	$2.51M	549.89	-31.37%	―	8.47%	68.88%
HAIN	45 Neutral	$60.94M	-0.21	-111.73%	―	-10.13%	-532.32%