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

• Market Cap: €50.30M
• Dividend Yield: N/A
• Average Volume (3M): 794.00
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.54
• 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: €4.00 ▲(43.88% Upside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is primarily held back by weak financial fundamentals, especially negative equity and solvency concerns, despite improving revenue and operating cash flow. Technicals are mixed with neutral momentum, while valuation appears moderate based on the P/E but lacks dividend support.

Positive Factors

Strong Revenue Growth

Sustained ~38.5% reported revenue growth signals expanding demand or market penetration. Over 2-6 months this trend supports revenue base expansion, providing more room to leverage fixed costs and improve operating leverage if growth is maintained and integrated into strategic planning.

Operating Cash Flow Turned Positive

A shift to positive operating cash flow indicates the core business or trust operations are generating cash, improving short-term liquidity and reducing reliance on financing. If sustained, it creates a foundation for deleveraging, reinvestment, or absorbing shocks over the medium term.

Improving Gross Profit Margin

An improving gross margin points to better unit economics, pricing power, or cost control at the production level. Over months this can translate to durable profitability gains if SG&A and overhead are managed, enabling potential recovery of operating margins.

Negative Factors

Negative Stockholders' Equity

Negative equity signals solvency stress and constrains financing options; lenders may demand higher cost or limit credit. This structural weakness can force dilutive capital raises or asset sales, undermining long-term stability and strategic flexibility over the coming quarters.

Free Cash Flow Remains Negative

Persistent negative free cash flow means operations and capex are not self-funding, requiring external financing to sustain growth or operations. Over a multi-month horizon this increases refinancing risk, limits organic investment, and can pressure margins and strategic initiatives.

Persistent Negative EBIT Margins

Negative EBIT margins indicate core operational losses and inefficiencies that are not yet addressed. Without structural cost reduction or revenue quality improvement, this undermines earnings power, hinders cash flow conversion, and challenges sustainable profitability over several quarters.

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 remain weak overall: the balance sheet shows negative stockholders’ equity and heightened solvency risk, outweighing improvements. Offsetting positives include strong revenue growth from 2023 to 2024 and operating cash flow turning positive in 2024, but free cash flow remains negative and profitability/EBIT performance is still pressured.

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: Neutral
• 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 Neutral. The current price of 2.78 is below the 20-day moving average (MA) of 4.15, below the 50-day MA of 3.49, and below the 200-day MA of 3.14, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 48.21 is Neutral, neither overbought nor oversold. The STOCH value of 65.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€50.30M	14.63	―	―	38.50%	―
MS1	41 Neutral	€4.43M	-0.12	―	―	―	―