Farmmi (FAMI) AI Stock Analysis

• Market Cap: $2.59M
• Dividend Yield: N/A
• Average Volume (3M): 16.52K
• Price to Earnings (P/E): 1.3
• Beta (1Y): 0.68
• Revenue Growth: -49.19%
• EPS Growth: -394.71%
• Country: US
• Employees: 42
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.71
• Shares Outstanding: 1,315,207
• 10 Day Avg. Volume: 16,013
• 30 Day Avg. Volume: 16,517
• PEG Ratio: 0.05
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.35
• P/FCF Ratio: -1.35
• Enterprise Value/Market Cap: 5.29
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 5.39
• Enterprise Value/Ebitda: -24.46
• 1Y Price Target: $2.00
• Price Target Upside: 3.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: $2.00 ▲(3.09% Upside)

Farmmi's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and profitability. Technical analysis suggests some short-term recovery potential, but the long-term trend remains bearish. The valuation is unattractive due to negative earnings and lack of dividends, further weighing down the score.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.83M	64.13M	110.36M	99.21M	39.29M	30.17M
Gross Profit	2.54M	3.87M	4.29M	5.44M	5.11M	4.96M
EBITDA	-559.92K	-2.35M	3.80M	2.66M	2.58M	2.33M
Net Income	-5.33M	-4.65M	2.54M	2.22M	2.36M	823.61K
Balance Sheet
Total Assets	230.43M	186.73M	174.80M	163.78M	165.69M	38.19M
Cash, Cash Equivalents and Short-Term Investments	890.34K	486.52K	12.79M	76.32M	62.05M	548.15K
Total Debt	12.98M	15.05M	11.06M	4.55M	3.08M	6.10M
Total Liabilities	64.20M	16.72M	12.82M	9.10M	4.89M	9.04M
Stockholders Equity	166.41M	169.99M	161.98M	154.68M	159.88M	28.29M
Cash Flow
Free Cash Flow	12.65M	-16.80M	-75.75M	20.63M	-946.27K	-1.86M
Operating Cash Flow	12.70M	-16.78M	-75.75M	20.64M	-941.59K	-1.62M
Investing Cash Flow	-15.91M	2.07M	35.90M	-41.99M	-12.26M	-247.24K
Financing Cash Flow	2.72M	1.83M	11.02M	11.63M	122.41M	3.20M

Farmmi Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.94 is above the 20-day moving average (MA) of 1.91, above the 50-day MA of 1.78, and below the 200-day MA of 2.21, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 54.90 is Neutral, neither overbought nor oversold. The STOCH value of 65.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FAMI.

Farmmi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WYHG	67 Neutral	$38.95M	9.95	4.29%	―	6.91%	-54.09%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
FAMI	49 Neutral	$2.59M	1.27	-3.22%	―	-49.19%	-394.71%
SOWG	46 Neutral	$9.35M	6.01	-45.00%	―	-77.72%	-282.16%
NAII	42 Neutral	$16.99M	―	-17.98%	―	13.83%	-82.27%
STKH	33 Underperform	$2.67M	―	-136.13%	―	―	―