AFYREN (ALAFY) AI Stock Analysis

• Market Cap: €67.76M
• Dividend Yield: N/A
• Average Volume (3M): 11.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.04
• Revenue Growth: -3.05%
• EPS Growth: -15.79%
• Country: FR
• Employees: 130
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Chemicals - Specialty
• EPS (TTM): -0.27
• Shares Outstanding: 26,110,088
• 10 Day Avg. Volume: 13,159
• 30 Day Avg. Volume: 11,933
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €2.50
• Price Target Upside: -3.85% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: €2.50 ▼(-3.85% Downside)

AFYREN's overall stock score is primarily impacted by its financial performance challenges, including negative margins and cash flow issues. Technical analysis provides mixed signals, with short-term stability but longer-term weakness. Valuation is unattractive due to negative earnings and no dividend yield.

AFYREN Business Overview & Revenue Model

Company Description

AFYREN SAS, a sustainable chemical company, produces biomolecules derived from the recycling of non-food biomass, primarily used in human and animal nutrition, flavors and fragrances, life sciences, materials sciences, and lubricants sectors. It offers biosourced organic acids, such as acetic acid, propionic acid, butyric acid, isobutyric acid, valeric acid, isovaleric acid, and caproic acid. The company was incorporated in 2012 and is headquartered in Clermont-Ferrand, France.

How the Company Makes Money

AFYREN makes money by producing and selling bio-based chemicals derived from renewable resources. The company utilizes patented fermentation technology to convert agricultural by-products into high-value organic acids and other sustainable chemicals. AFYREN generates revenue through the sale of these products to industries that require bio-based alternatives for traditional petrochemical products. Key revenue streams include direct sales contracts with manufacturers in sectors like food and beverages, cosmetics, and pharmaceuticals. Partnerships with industry players and investments in scaling production capacity also contribute to AFYREN's financial performance.

AFYREN Financial Statement Overview

Summary

AFYREN faces significant operational and profitability challenges, with negative margins and cash flow issues. Despite a strong equity position and low leverage, the company needs to improve revenue growth and operational efficiency. Liquidity from cash reserves provides some buffer, but sustained operational improvements are crucial.

Income Statement

The company has seen a decline in revenue over the past year, with a revenue decrease from €3.38 million in 2023 to €2.86 million in 2024, indicating a negative growth rate of approximately -15%. The gross profit margin is negative at -6.08% for 2024, highlighting challenges in covering its cost of goods sold. Net profit margin remains deeply negative, reflecting ongoing losses, which is a concern for profitability. Additionally, EBIT and EBITDA margins are negative, indicating operating inefficiencies.

Balance Sheet

The balance sheet shows a strong equity base with a debt-to-equity ratio of 0.06, suggesting low leverage and reduced financial risk. However, the equity ratio of 90% underscores the company's reliance on equity financing. Return on equity remains negative due to continued net losses, which is a concern. The company's cash position is strong, which provides liquidity support.

Cash Flow

Operating cash flow is negative, indicating the company is not generating sufficient cash from its operations. Free cash flow has also declined, reflecting challenges in cash generation. The operating cash flow to net income ratio is above 1, which suggests that the company is able to translate a portion of its net losses into cash flow, albeit insufficiently to cover capital expenditures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.86M	3.38M	3.46M	3.04M	3.99M
Gross Profit	-174.00K	288.00K	1.06M	1.47M	2.91M
EBITDA	-8.81M	-8.59M	-4.71M	-2.78M	476.00K
Net Income	-9.75M	-9.59M	-9.20M	-3.61M	-2.13M
Balance Sheet
Total Assets	58.56M	70.43M	84.82M	93.15M	35.89M
Cash, Cash Equivalents and Short-Term Investments	33.65M	49.66M	62.40M	67.36M	9.51M
Total Debt	3.31M	4.79M	8.54M	8.95M	9.40M
Total Liabilities	5.86M	8.63M	13.84M	15.29M	16.32M
Stockholders Equity	52.70M	61.80M	70.98M	77.86M	19.57M
Cash Flow
Free Cash Flow	-5.84M	-5.60M	-3.83M	-3.06M	-872.00K
Operating Cash Flow	-5.62M	-5.04M	-3.30M	-2.71M	-387.00K
Investing Cash Flow	-9.11M	-3.08M	-362.00K	-436.00K	-13.55M
Financing Cash Flow	-1.28M	-4.66M	-1.14M	60.77M	21.65M

AFYREN Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ALAFY, the sentiment is Positive. The current price of 2.6 is above the 20-day moving average (MA) of 2.54, above the 50-day MA of 2.47, and above the 200-day MA of 2.13, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.26 is Neutral, neither overbought nor oversold. The STOCH value of 75.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ALAFY.

AFYREN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.48B	7.52	-0.05%	2.87%	2.87%	-36.73%
ALAFY	48 Neutral	€67.76M	―	-22.07%	―	-3.05%	-15.79%
COOSF	―	$185.53M	―	-15.38%	―	―	―
0VW	―	€74.23M	―	-14.10%	―	―	―
7W5	―	€59.93M	40.33	2.14%	―	―	―
ALCOG	―	€15.87M	30.22		―	―	―
LHYFE	40 Underperform	€141.40M	―		―	287.17%	13.13%