Danimer Scientific (DNMR) AI Stock Analysis

• Market Cap: $674.14K
• Dividend Yield: N/A
• Average Volume (3M): 21.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.63
• Revenue Growth: -26.70%
• EPS Growth: 27.53%
• Country: US
• Employees: 257
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Chemicals
• EPS (TTM): -41.01
• Shares Outstanding: 3,172,439
• 10 Day Avg. Volume: 32,627
• 30 Day Avg. Volume: 21,010
• PEG Ratio: -0.07
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -0.09
• 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: $5.50
• Price Target Upside: 2519.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 32 Underperform
• Price Target: ―

Danimer Scientific's low score is driven by significant financial challenges, including declining revenue, high leverage, and liquidity issues. Technical indicators reflect bearish sentiment, and recent corporate events add to the uncertainties. Despite some progress in partnerships and cost-saving initiatives, the overall outlook remains difficult.

Positive Factors

Cost-cutting initiatives

Analyst remains positive on Danimer's underlying technology and highlights management's recent cost-cutting initiative, which should improve operating leverage.

Negative Factors

Earnings and financial guidance

FY24 EBITDA guidance and liquidity target were both reduced.

Liquidity concerns

Liquidity issue needs to be rectified before 10K, as going concern language triggers a default of the company's senior secured term loan, which in turn triggers a default of the rest of the company's debt.

Danimer Scientific Business Overview & Revenue Model

Company Description

Live Oak Acquisition Corp is a blank check company.

How the Company Makes Money

Danimer Scientific generates revenue primarily through the sale of its biodegradable materials to businesses seeking sustainable alternatives to conventional plastic products. The company's key revenue streams include product sales to consumer goods companies, partnerships with firms in the packaging and materials industries, and licensing agreements for its proprietary PHA technology. Additionally, Danimer's collaborations with major brands that are committed to reducing their environmental footprint significantly contribute to its earnings by driving demand for its innovative materials.

Danimer Scientific Financial Statement Overview

Summary

Danimer Scientific faces significant financial hurdles, with declining revenues, persistent losses, and high leverage. Cash flow issues exacerbate these challenges, impacting the company's ability to sustain operations without external financing.

Income Statement

The company's income statement reflects significant challenges with profitability and growth. The TTM (Trailing-Twelve-Months) data shows a negative gross profit margin and a net loss, indicating cost management issues. Revenue has decreased over the years, with a negative revenue growth rate from the previous year, signaling declining demand or competitive pressures. Margins such as EBIT and EBITDA are also deeply negative, suggesting operational inefficiencies.

Balance Sheet

The balance sheet shows a high level of debt relative to equity, with a debt-to-equity ratio of 1.95, which raises concerns about financial leverage and risk. The equity ratio is moderate at 32.87%, indicating a fair level of asset backing by equity. However, the consistently negative net income over the years has resulted in a negative return on equity, further highlighting profitability issues.

Cash Flow

The cash flow statement reveals that the company is struggling with cash generation. The operating cash flow is negative, and free cash flow is worsening, leading to a negative free cash flow growth rate. This indicates ongoing liquidity challenges. The ratios of operating cash flow to net income and free cash flow to net income are not favorable, suggesting difficulties in converting sales into cash.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
37.43M	46.68M	53.22M	58.75M	47.33M	32.34M
	Gross Profit
-31.50M	-26.96M	-10.41M	884.00K	11.46M	11.11M
	EBIT
-87.50M	-125.62M	-187.43M	-99.39M	-15.74M	-10.40M
	EBITDA
-59.42M	-96.13M	-103.49M	-87.72M	-10.30M	-6.89M
	Net Income Common Stockholders
-111.20M	-155.47M	-179.76M	-60.11M	-14.97M	-19.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.32M	59.17M	62.79M	286.49M	377.58M	6.26M
	Total Assets
0.00	698.13M	712.27M	838.60M	546.20M	144.57M
	Total Debt
0.00	408.07M	313.82M	287.32M	83.76M	103.07M
	Net Debt
6.32M	348.90M	251.03M	834.00K	-293.82M	96.81M
	Total Liabilities
0.00	420.11M	334.66M	338.33M	107.30M	128.00M
	Stockholders Equity
27.19M	278.02M	377.61M	500.26M	438.90M	16.58M
Cash Flow		Free Cash Flow
-38.55M	-74.95M	-226.32M	-248.37M	-52.06M	-38.23M
	Operating Cash Flow
-29.10M	-47.26M	-61.84M	-62.96M	-13.80M	-1.67M
	Investing Cash Flow
-8.28M	-27.66M	-182.48M	-336.17M	-38.26M	-49.09M
	Financing Cash Flow
-18.18M	84.03M	21.75M	306.20M	422.68M	53.50M

Danimer Scientific Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.21
• 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 DNMR, the sentiment is Negative. The current price of 0.21 is below the 20-day moving average (MA) of 0.79, below the 50-day MA of 1.15, and below the 200-day MA of 10.84, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 32.10 is Neutral, neither overbought nor oversold. The STOCH value of 11.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DNMR.

Danimer Scientific Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXT	76 Outperform	$8.63B	17.36	39.33%	―	21.46%	123.22%
AVNT	69 Neutral	$3.44B	34.76	4.32%	2.87%	3.58%	-5.17%
ENS	67 Neutral	$3.51B	9.97	19.82%	1.07%	-2.94%	22.32%
Sector *	51 Neutral	$2.04B	-1.15	-21.24%	3.95%	2.91%	-30.44%
GEVO	50 Neutral	$292.27M	―	-16.11%	―	145.38%	-22.02%
PCT	38 Underperform	$1.98B	―	-67.71%	―	―	-180.10%
DNMR	32 Underperform	$674.14K	―	-43.11%	―	-26.70%	27.53%

Danimer Scientific Corporate Events

Danimer Scientific Faces Delisting and Market Transition

Danimer Scientific has been notified by the New York Stock Exchange (NYSE) that it will commence proceedings to delist the company’s Class A common stock due to non-compliance with the NYSE’s market capitalization requirements. Trading of the stock was suspended, and the company is considering an appeal. Meanwhile, Danimer expects its common stock to begin trading on the OTCQX Market. The transition is not anticipated to affect the company’s business operations, but there are uncertainties regarding the OTCQX Market’s ability to provide an efficient trading environment.

Danimer Scientific Enhances Liquidity with New Financial Moves

Danimer Scientific announced the issuance of a $11.25 million super senior secured promissory note to enhance its liquidity and financial structure. This move is expected to strengthen the company’s balance sheet and support its efforts in expanding production of biodegradable plastics, positioning the company at the forefront of sustainable plastic alternatives.

Danimer Scientific Secures Leadership Stability with Retention Deals

Danimer Scientific has entered into retention agreements with its Chief Financial Officer, Chief Marketing Officer, and Interim Chief Executive Officer to provide retention payments contingent on continued employment and adherence to confidentiality obligations. These agreements aim to ensure leadership stability and continuity in the company’s operations during a transitional period, with financial incentives tied to employment conditions until early 2025.

Danimer Scientific Reports Improved Q3 Results Amid Challenges

Danimer Scientific, a leader in bioplastics, reported third quarter 2024 results, showing a net loss improvement and continued progress on key projects like a 20-million-pound cutlery award and a 100% compostable Skittles bag. Despite revenue drops due to Starbucks’ straw business changes, Danimer remains focused on growing its PHA business and managing liquidity amidst high debt. The company is also exploring financial strategies to bolster its capital structure as it anticipates significant commercial growth.