Formycon AG (FYB) AI Stock Analysis

• Market Cap: €411.78M
• Dividend Yield: N/A
• Average Volume (3M): 24.96K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 1.13
• Revenue Growth: -14.84%
• EPS Growth: -338.52%
• Country: DE
• Employees: 250
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -3.07
• Shares Outstanding: 17,672,928
• 10 Day Avg. Volume: 17,772
• 30 Day Avg. Volume: 24,962
• PEG Ratio: 0.03
• Price to Book (P/B): 2.01
• Price to Sales (P/S): 13.33
• P/FCF Ratio: -17.47
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €43.80
• Price Target Upside: 91.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 60 Neutral
• Price Target: €26.00 ▲(13.79% Upside)

Formycon AG's overall stock score is primarily influenced by its strong balance sheet and positive short-term technical indicators. However, significant concerns arise from its negative profitability and valuation metrics, which weigh down the score. The absence of earnings call insights and corporate events means these areas do not influence the score.

Positive Factors

Balance Sheet Stability

A strong equity base and low debt-to-equity ratio indicate financial resilience, providing the company with stability to weather economic fluctuations.

Strategic Partnerships

Strategic partnerships enhance market reach and provide revenue stability through upfront, milestone, and royalty payments, supporting long-term growth.

Operational Efficiency

Strong EBITDA performance suggests efficient operations, which can lead to improved profitability and competitiveness in the long term.

Negative Factors

Declining Revenue Growth

Declining revenue growth can hinder the company's ability to invest in R&D and expand its biosimilar portfolio, impacting future competitiveness.

Negative Cash Flow

Consistently negative cash flow from operations can strain liquidity and limit the company's ability to fund new projects or manage unexpected expenses.

Profitability Challenges

Negative profitability metrics indicate difficulty in converting revenue into profit, which can affect long-term financial health and investor confidence.

Formycon AG Business Overview & Revenue Model

Company Description

Formycon AG develops and markets biosimilar products. Its product pipeline includes FYB201, a biosimilar candidate for Lucentis, an ophthalmic drug used in the treatment of neovascular age-related macular degeneration and other serious eye diseases; FYB202, a biosimilar candidate for Stelara, a biopharmaceutical used in the treatment of inflammatory diseases, such as moderate to severe psoriasis, as well as for the treatment of Crohn's disease and ulcerative colitis, which is in the Phase III clinical trial; and FYB203, a biosimilar candidate for Eylea to treat neovascular age-related macular degeneration and other eye diseases that is in Phase III clinical trials. The company is also developing FYB206; and FYB207, an antiviral drug for the treatment of COVID-19. It has a collaboration agreement with Leukocare AG to develop stable formulations for various candidates in its product pipeline. The company was formerly known as Nanohale AG and changed its name to Formycon AG in 2012. Formycon AG was founded in 1999 and is headquartered in Planegg, Germany.

How the Company Makes Money

Formycon AG generates revenue primarily through the development and commercialization of its biosimilar products. The company earns money by entering into licensing agreements and partnerships with larger pharmaceutical firms for the marketing and distribution of its biosimilars in various global markets. Additionally, Formycon may receive milestone payments and royalties based on the sales performance of its partnered products. The company also potentially generates income through research and development collaborations, leveraging its expertise in biopharmaceutical development to assist other companies in bringing biosimilars to market.

Formycon AG Financial Statement Overview

Summary

Formycon AG exhibits a mixed financial performance with strong balance sheet stability, reflected by a healthy equity ratio and low leverage. However, challenges in profitability and cash flow generation are significant concerns. The company's reliance on external financing for cash flow is a potential risk.

Income Statement

Formycon AG demonstrates volatile revenue trends with a notable decline from 2023 to 2024. The company faces profitability challenges, evidenced by negative EBIT and net income margins in 2024. Despite this, the company experienced strong EBITDA performance in 2023, indicating potential operational efficiency. However, the negative net profit margin and declining revenue growth are areas of concern.

Balance Sheet

The company's balance sheet shows a strong equity base with a healthy equity ratio, reflecting financial stability. The debt-to-equity ratio is low, suggesting conservative leverage usage. However, the declining stockholders' equity from 2023 to 2024 could indicate potential risk. Return on equity is negative in 2024 due to net losses, which is a downside.

Cash Flow

Operating cash flows are consistently negative, highlighting challenges in generating cash from operations. Free cash flow is also negative, which may affect liquidity. Despite negative cash flows, the company has managed to improve its cash position through financing activities, which could provide short-term relief.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.78M	69.67M	77.70M	42.50M	36.61M	34.23M
Gross Profit	-514.00K	14.83M	23.30M	12.07M	10.11M	-2.19M
EBITDA	-115.52M	-4.10M	81.05M	51.53M	-12.42M	-4.92M
Net Income	-169.77M	-125.67M	75.80M	35.99M	-13.29M	-6.73M
Balance Sheet
Total Assets	742.56M	771.72M	890.36M	853.70M	70.72M	75.60M
Cash, Cash Equivalents and Short-Term Investments	27.29M	41.84M	27.04M	9.82M	25.18M	42.25M
Total Debt	10.21M	10.59M	29.49M	49.31M	5.28M	5.96M
Total Liabilities	334.23M	309.87M	387.61M	497.12M	14.82M	7.56M
Stockholders Equity	408.33M	461.84M	502.75M	356.58M	55.89M	68.04M
Cash Flow
Free Cash Flow	13.75M	-53.16M	-10.88M	-45.75M	-14.48M	-5.86M
Operating Cash Flow	14.48M	-23.22M	-9.85M	-18.99M	-13.54M	-5.21M
Investing Cash Flow	-7.26M	-1.46M	-17.38M	-37.07M	-3.93M	-650.00K
Financing Cash Flow	-20.75M	39.48M	44.44M	40.85M	491.00K	25.75M

Formycon AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FYB, the sentiment is Negative. The current price of 22.85 is below the 20-day moving average (MA) of 24.01, below the 50-day MA of 23.62, and below the 200-day MA of 28.45, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 42.77 is Neutral, neither overbought nor oversold. The STOCH value of 13.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:FYB.

Formycon AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSG	―	€379.20M	19.49	52.68%	0.16%	15.20%	6.77%
ILM1	―	$325.45M	17.29	3.56%	―	7.02%	10.58%
FYB	―	€411.78M	5.89	-34.48%	―	-14.84%	-338.52%
SBS	―	€319.70M	19.95	―	2.28%	-1.64%	22.60%
BIO3	―	€1.33B	―	―	0.14%	-18.82%	-113.85%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BIO	―	€1.33B	-61.38	―	0.11%	-18.82%	-113.85%