Farmmi (FAMI) AI Stock Analysis

• Market Cap: $18.44M
• Dividend Yield: N/A
• Average Volume (3M): 41.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: -49.19%
• EPS Growth: -394.71%
• Country: US
• Employees: 42
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): N/A
• Shares Outstanding: 13,811,335
• 10 Day Avg. Volume: 79,060
• 30 Day Avg. Volume: 41,341
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.03
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 0.07
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 27.04
• Enterprise Value/Ebitda: -0.47
• 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: 42 Neutral
• Price Target: $1.50 ▲(16.28% Upside)

Farmmi's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's declining revenues and profitability, coupled with negative cash flow, are significant concerns. Additionally, the stock's technical analysis suggests a continued downtrend, and the negative P/E ratio highlights valuation challenges. These factors collectively contribute to a low overall stock score.

Positive Factors

Low financial leverage

Modest debt-to-equity (≈0.07–0.17) limits interest burden and preserves liquidity, giving management time to execute restructuring or strategic initiatives. A lower leverage profile is a durable buffer that reduces near-term solvency risk and supports operational flexibility over months.

Cash-flow rebound in 2025

A sharp operating and free cash flow turnaround (+$52.5M in 2025) demonstrates the business can generate meaningful cash once certain pressures ease. Durable cash generation enables working-capital stability, non-dilutive investment, or debt paydown, even if sustainability requires monitoring.

U.S. regulatory/logistics foothold

FDA registration for the Chino warehousing facility creates a lawful U.S. logistics node for food and supplements, strengthening cross-border e‑commerce infrastructure. This durable capability reduces regulatory friction and supports long-term market access and distribution scale in North America.

Negative Factors

Severe revenue decline

A multi-year collapse in revenue (110.4M → 28.0M) erodes scale benefits and bargaining power with suppliers and customers. Reduced top-line size makes fixed-cost absorption harder, limits reinvestment capacity, and extends the time required to reestablish profitable distribution and market share.

Margin collapse and equity erosion

Very low gross margins (~2.9%) and a large 2025 net loss (~-$53M) materially reduced equity, shrinking the capital cushion. This structural erosion limits the company's ability to absorb further shocks, fund growth internally, or avoid dilutive financing, raising long-term rebuild difficulty.

Commodity and product exposure

Relying on processed edible fungi and agricultural goods ties earnings to volatile commodity costs and low product differentiation. Structural price competition and input cost swings compress margins and make sustained profitability dependent on commodity cycles and improved product mix or value-added services.

Farmmi Business Overview & Revenue Model

Company Description

Farmmi, Inc., together with its subsidiaries, processes and sells agricultural products in China, the United States, Japan, Canada, Europe, Korea, and the Middle East. The company offers shiitake and Mu Er mushrooms; and other edible fungi products, including bamboo fungi, agrocybe aegerila, pleurotus eryngii, coprinus comatus, grifola frondosa, and hericium erinaceus. It also operates Farmmi Jicai, an online store that sells edible fungi products under Forasen and Farmmi Liangpin brands. In addition, the company processes dried mushroom and dried black fungus. It offers its products to restaurants, cafeterias, and local specialty stores, as well as through distributors. Farmmi, Inc. was incorporated in 2015 and is headquartered in Lishui, China.

How the Company Makes Money

Farmmi generates revenue primarily through the sale of its mushroom products both in bulk and retail formats. Key revenue streams include direct sales to wholesalers, distributors, and retailers, as well as e-commerce channels where they market their products to consumers. The company has formed strategic partnerships with various distributors, enhancing its market reach and ensuring a steady demand for its products. Additionally, Farmmi may benefit from government subsidies or incentives aimed at promoting sustainable agricultural practices, contributing further to its earnings.

Farmmi Financial Statement Overview

Summary

Farmmi is experiencing financial difficulties with declining revenues and profitability, as evidenced by negative net income and cash flow challenges. The balance sheet remains relatively strong with high equity, but increased debt levels pose potential risks. Overall, the financial health of the company is under pressure, requiring strategic measures to improve financial performance.

Income Statement

Farmmi's revenue has decreased significantly from the previous year, indicating a negative growth rate. The net profit margin has also turned negative, highlighting profitability challenges. Despite a positive gross profit margin, the EBIT and EBITDA margins have also declined, pointing to operational inefficiencies.

Balance Sheet

The company's balance sheet shows a solid equity base with a high equity ratio, indicating financial stability. However, the debt-to-equity ratio has increased, suggesting a higher reliance on debt financing. Return on equity has turned negative, reflecting weakened profitability.

Cash Flow

Farmmi's cash flow position has deteriorated with a negative free cash flow growth rate. The operating cash flow to net income ratio is unfavorable, indicating cash flow challenges. The company faces difficulties in generating cash from operations relative to its net income.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	27.97M	64.13M	110.36M	99.21M	39.29M
Gross Profit	801.52K	3.87M	4.29M	5.44M	5.11M
EBITDA	-43.96M	-2.35M	3.80M	2.66M	2.58M
Net Income	-53.10M	-4.65M	2.54M	2.22M	2.36M
Balance Sheet
Total Assets	147.03M	186.73M	174.80M	163.78M	165.69M
Cash, Cash Equivalents and Short-Term Investments	804.10K	486.52K	12.79M	76.32M	62.05M
Total Debt	20.77M	15.05M	11.06M	4.55M	3.08M
Total Liabilities	23.18M	16.72M	12.82M	9.10M	4.89M
Stockholders Equity	124.12M	169.99M	161.98M	154.68M	159.88M
Cash Flow
Free Cash Flow	52.45M	-16.80M	-75.75M	20.63M	-946.27K
Operating Cash Flow	52.46M	-16.78M	-75.75M	20.64M	-941.59K
Investing Cash Flow	-59.70M	2.07M	35.90M	-41.99M	-12.26M
Financing Cash Flow	7.56M	1.83M	11.02M	11.63M	122.41M

Farmmi Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FAMI, the sentiment is Negative. The current price of 1.29 is below the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.36, and below the 200-day MA of 1.65, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 47.84 is Neutral, neither overbought nor oversold. The STOCH value of 65.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FAMI.

Farmmi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SOWG	48 Neutral	$5.39M	-0.23	-84.22%	―	-81.88%	-672.01%
HCWC	46 Neutral	$4.76M	―	―	―	―	―
FAMI	42 Neutral	$18.44M	-0.04	-3.22%	―	-49.19%	-394.71%
STKH	40 Underperform	$1.95M	-0.02	-136.13%	―	―	―