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Farmmi Inc (FAMI)
NASDAQ:FAMI
US Market

Farmmi (FAMI) AI Stock Analysis

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Farmmi

(NASDAQ:FAMI)

Rating:48Neutral
Price Target:
$2.00
▲(8.11%Upside)
Farmmi's overall stock score is primarily influenced by its financial struggles, with declining revenues, profitability issues, and cash flow challenges. Technical analysis provides some neutral signals, but valuation is negatively impacted by the absence of earnings and dividends.

Farmmi (FAMI) vs. SPDR S&P 500 ETF (SPY)

Farmmi Business Overview & Revenue Model

Company DescriptionFarmmi, 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 MoneyFarmmi makes money through the cultivation and sale of various mushroom products. Its primary revenue streams include the direct sale of fresh and dried mushrooms to wholesalers, retailers, and supermarkets both domestically in China and internationally. The company also benefits from its e-commerce platform, which expands its market reach. Farmmi's strategic partnerships with distributors and its focus on maintaining a robust supply chain contribute significantly to its revenue by ensuring efficient operation and fulfilling demand in different regions.

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
45
Neutral
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
60
Neutral
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
40
Negative
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue64.13M110.36M99.21M39.29M30.17M
Gross Profit3.87M4.29M5.44M5.11M4.96M
EBITDA-2.35M3.80M2.66M2.92M2.33M
Net Income-4.65M2.54M2.22M2.36M823.61K
Balance Sheet
Total Assets186.73M174.80M163.78M165.69M38.19M
Cash, Cash Equivalents and Short-Term Investments486.52K12.79M76.32M62.05M548.15K
Total Debt15.05M11.06M4.55M3.08M6.10M
Total Liabilities16.72M12.82M9.10M4.89M9.04M
Stockholders Equity169.99M161.98M154.68M159.88M28.29M
Cash Flow
Free Cash Flow-16.80M-75.75M20.63M-946.27K-1.86M
Operating Cash Flow-16.78M-75.75M20.64M-941.59K-1.62M
Investing Cash Flow2.07M35.90M-41.99M-122.73M-247.24K
Financing Cash Flow1.83M11.02M11.63M124.19M3.20M

Farmmi Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.85
Price Trends
50DMA
1.79
Positive
100DMA
2.00
Negative
200DMA
2.74
Negative
Market Momentum
MACD
<0.01
Positive
RSI
52.65
Neutral
STOCH
47.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FAMI, the sentiment is Positive. The current price of 1.85 is above the 20-day moving average (MA) of 1.83, above the 50-day MA of 1.79, and below the 200-day MA of 2.74, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.65 is Neutral, neither overbought nor oversold. The STOCH value of 47.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FAMI.

Farmmi Risk Analysis

Farmmi disclosed 70 risk factors in its most recent earnings report. Farmmi reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Farmmi Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$45.62M4.089.79%
65
Neutral
$27.34B15.12-4.22%3.16%1.01%1.94%
48
Neutral
$2.27M1.27-2.80%-41.89%-195.61%
47
Neutral
$9.44M6.01-31.05%-15.45%-100.03%
47
Neutral
$20.51M-10.25%-1.16%-146.23%
$14.90M-339.55%
33
Underperform
$1.37M-286.71%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FAMI
Farmmi
1.85
-5.33
-74.23%
NAII
Natural Alternatives International
3.32
-2.56
-43.54%
SOWG
Sow Good
0.80
-20.70
-96.28%
BTOG
China Xiangtai Food Co
0.22
-1.64
-88.17%
STKH
Steakholder Foods
1.71
-14.54
-89.48%
WYHG
Wing Yip Food Holdings Group Limited Sponsored ADR
1.37
-2.67
-66.09%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 21, 2025