GFJ ESG Acquisition I SE Class A (LRND) AI Stock Analysis

• Market Cap: €54.09M
• Dividend Yield: N/A
• Average Volume (3M): 794.00
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.55
• Revenue Growth: 38.50%
• EPS Growth: N/A
• Country: DE
• Employees: 356
• Sector: General
• Sector Strength: N/A
• Industry: Shell Companies
• EPS (TTM): N/A
• Shares Outstanding: 24,733,236
• 10 Day Avg. Volume: 1,203
• 30 Day Avg. Volume: 794
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 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: 45 Neutral
• Price Target: €4.50 ▲(61.87% Upside)

The score is held down primarily by poor financial health—especially negative equity and negative EBIT margins—despite some improvement in revenue and operating cash flow. Technicals add support via strong trend and positive MACD, but extreme overbought signals elevate near-term risk. Valuation is neutral with a mid-range P/E and no dividend data to offset risks.

Positive Factors

Revenue Growth Trend

Sustained high revenue growth (~38.5%) indicates improving product/market fit or transaction volume, giving management runway to invest in scale and operational improvements. Over 2-6 months this trend supports strategic initiatives and potential margin recovery if cost structure is controlled.

Operating Cash Flow Improvement

Conversion to positive operating cash flow signals that core operations are starting to generate real cash, reducing immediate dependence on financing. This durable improvement enhances liquidity management and funding flexibility for investments or working capital over the medium term.

Growing Asset Base

An expanding asset base can provide collateral for financing, capacity for scaling operations, and options for monetization. If asset quality is maintained, this creates structural optionality for growth investments or balance sheet repair over several months to quarters.

Negative Factors

Negative Stockholders' Equity

Negative equity is a structural solvency concern that can restrict access to debt or equity financing, trigger covenants or regulatory scrutiny, and increase refinancing risk. This constraint materially limits strategic flexibility and raises default risk over the medium term.

Persistent Negative EBIT Margins

Continued negative EBIT margins mean the company is not converting revenue growth into operating profit. Without durable margin improvement, profitability will remain elusive, limiting reinvestment capacity and threatening long-term viability despite top-line gains.

Negative Free Cash Flow

Ongoing negative free cash flow suggests operations and capex consume more cash than generated, forcing reliance on external financing. This structural cash shortfall raises dilution or leverage risk and undermines sustainable funding for growth or debt reduction.

GFJ ESG Acquisition I SE Class A Business Overview & Revenue Model

Company Description

GFJ ESG Acquisition I SE Class A (LRND) is a special purpose acquisition company (SPAC) focused on identifying and merging with companies that prioritize environmental, social, and governance (ESG) criteria. Operating primarily in sectors that promote sustainability and responsible business practices, the company aims to leverage its expertise in the ESG field to create long-term value for shareholders. By facilitating the transition of private companies into the public market, GFJ ESG Acquisition I SE Class A seeks to support innovative firms that align with sustainable development goals.

How the Company Makes Money

GFJ ESG Acquisition I SE Class A generates revenue primarily through the process of merging with or acquiring target companies. The company raises capital through an initial public offering (IPO), which is then placed in a trust account until a business combination is completed. Upon successfully merging with a target company, GFJ ESG Acquisition I SE Class A may receive a percentage of the equity in the combined entity, which can become a significant source of revenue as the new business grows. Additionally, the company may earn management fees and success fees related to the transaction, and its ongoing performance will be tied to the success of the acquired company in the public market.

GFJ ESG Acquisition I SE Class A Financial Statement Overview

Summary

Financials are weak overall: the balance sheet shows negative stockholders’ equity (significant solvency risk), and while revenue and gross margin improved, EBIT margins remain negative. Operating cash flow turned positive in 2024, but free cash flow is still negative, indicating ongoing cash strain.

Income Statement

The income statement shows some improvement with total revenue increasing significantly from 2023 to 2024. Gross profit margin improved but net profit margin remains low. The company has struggled with negative EBIT margins, reflecting persistent operational inefficiencies. However, there is a visible trend towards revenue growth, suggesting potential stabilization.

Balance Sheet

The balance sheet reveals significant financial instability with negative stockholders' equity, indicating financial distress. The debt-to-equity ratio is indeterminable due to negative equity, highlighting potential solvency risks. The equity ratio is also negative, further emphasizing financial weakness. Despite these issues, total assets have increased, suggesting some potential for future improvement.

Cash Flow

The cash flow statement shows some positive trends in operating cash flow, which turned positive in 2024 after being negative in previous years. However, free cash flow remains negative, indicating ongoing cash management challenges. The company's efforts in improving its financing activities have provided temporary relief, though sustainable cash generation remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	69.65M	54.07M	32.11M	30.42M	0.00
Gross Profit	20.77M	19.92M	12.73M	11.53M	0.00
EBITDA	10.53M	8.25M	-47.75M	952.71K	-8.06M
Net Income	3.86M	3.57M	-49.44M	-15.57M	-8.59M
Balance Sheet
Total Assets	54.60M	46.18M	24.70M	154.26M	156.22M
Cash, Cash Equivalents and Short-Term Investments	3.52M	3.44M	1.77M	90.36K	1.45M
Total Debt	28.76M	24.35M	10.29M	8.47M	145.43M
Total Liabilities	51.56M	47.98M	37.54M	177.82M	164.21M
Stockholders Equity	3.04M	-1.80M	-12.84M	-23.56M	-7.99M
Cash Flow
Free Cash Flow	301.93K	-1.03M	-7.13M	-3.33M	-641.69K
Operating Cash Flow	710.28K	576.53K	-6.32M	-2.55M	-641.69K
Investing Cash Flow	-2.16M	-7.34M	-1.72M	-920.94K	0.00
Financing Cash Flow	-642.17K	8.43M	7.21M	848.91K	156.32M

GFJ ESG Acquisition I SE Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:LRND, the sentiment is Positive. The current price of 2.78 is below the 20-day moving average (MA) of 4.32, below the 50-day MA of 2.88, and below the 200-day MA of 3.21, indicating a bullish trend. The MACD of 0.75 indicates Positive momentum. The RSI at 56.47 is Neutral, neither overbought nor oversold. The STOCH value of 24.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:LRND.

GFJ ESG Acquisition I SE Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
LRND	45 Neutral	€54.09M	15.73	―	―	38.50%	―
MS1	41 Neutral	€5.02M	-0.13	―	―	―	―