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

• Market Cap: €42.97M
• Dividend Yield: N/A
• Average Volume (3M): 794.00
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.53
• 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: 48 Neutral
• Price Target: €2.50 ▼(-10.07% Downside)

The score is held back primarily by weak financial health, especially negative equity and ongoing cash flow/profitability challenges, despite some improvement in revenue and operating cash flow. Technicals are mixed with overbought signals and only partial trend confirmation. Valuation is a relative positive due to the low P/E.

Positive Factors

Revenue Growth Trend

Sustained double-digit revenue growth and a 38% reported revenue increase suggest improving product/target economics and market traction. Over 2–6 months this trend supports stabilization of operations and better negotiating leverage in deal-making and capital allocation decisions.

Operating Cash Flow Improvement

Operating cash flow turning positive marks a material improvement in core cash generation, easing near-term liquidity pressure. Persisting negative free cash flow remains a caveat, but positive OCF increases resilience and gives management more flexibility to execute strategic combinations.

ESG-focused Acquisition Strategy

A targeted ESG acquisition mandate aligns the company with durable structural demand for sustainable assets. This specialization can attract dedicated investor pools and high-quality targets, improving long-term deal flow and post-combination support versus a non-specialized SPAC approach.

Negative Factors

Negative Stockholders' Equity

Negative equity indicates material balance-sheet stress and complicates solvency metrics. This reduces financing flexibility, increases refinancing risk, and limits downside absorption capacity; over months this constrains deal execution and the ability to fund integrations or unexpected cash needs.

Weak Profitability & FCF

Persistent negative free cash flow and negative EBIT margins signal structural operating inefficiencies. Without meaningful margin recovery or FCF conversion, the company will struggle to self-fund growth, pay fees, or build reserves, creating long-term pressure on sustainability and strategic optionality.

Revenue Dependent on Deal Completion

Revenue model is contingent on successfully closing a business combination; until a deal is completed, recurring revenues are limited. This dependence makes cash flow and growth highly binary and prolongs uncertainty over durable earnings and value creation for months ahead.

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

The company is experiencing financial difficulties, with negative equity and high liabilities. While revenue and operating cash flow show signs of improvement, the overall financial position remains precarious.

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: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 above the 20-day moving average (MA) of 1.69, above the 50-day MA of 2.18, and below the 200-day MA of 3.19, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 74.13 is Negative, neither overbought nor oversold. The STOCH value of 99.24 is Negative, 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	48 Neutral	€42.97M	12.50	―	―	38.50%	―
MS1	41 Neutral	€5.07M	-0.14	―	―	―	―