Fermentalg SA (ALGAE) AI Stock Analysis

• Market Cap: €44.43M
• Dividend Yield: N/A
• Average Volume (3M): 224.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: 59.05%
• EPS Growth: 56.18%
• Country: FR
• Employees: 58
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.04
• Shares Outstanding: 89,844,100
• 10 Day Avg. Volume: 242,064
• 30 Day Avg. Volume: 224,333
• PEG Ratio: 0.04
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 2.21
• P/FCF Ratio: -12.69
• 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: 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: 52 Neutral
• Price Target: €0.47 ▲(10.00% Upside)

The score is driven primarily by strong revenue growth and improved operating cash flow, tempered by continued large losses and very weak margins. Technicals are moderately supportive in the short term, while valuation is constrained by negative earnings and the absence of a dividend yield.

Positive Factors

Revenue Growth

183% revenue growth demonstrates meaningful commercial traction for Fermentalg's microalgae ingredients. Sustainable top-line expansion supports scale economics, helps absorb fixed costs, enables reinvestment in capacity and R&D, and strengthens long-term customer relationships if continued.

Improved Operating Cash Flow

The sharp improvement in operating cash flow (deficit down to €0.53M) indicates better cash management and operational execution. If sustained, this reduces near-term funding needs, extends runway for commercialization, and allows reinvestment into production and margin improvement initiatives.

Moderate Leverage / Strong Equity Ratio

A D/E of 0.38 and a 64% equity ratio provide financial flexibility and a meaningful equity cushion. Moderate leverage lowers solvency risk during scale-up, preserves ability to access debt markets if needed, and supports continued investment in commercializing microalgae products over the medium term.

Negative Factors

Large Net Losses and Negative Margins

A €12.88M net loss with EBIT/EBITDA margins around -80%/-87% shows current unit economics are far from sustainable. Without durable margin recovery through cost improvements, pricing, or mix shifts toward higher-margin products, continued losses will require ongoing financing and hinder path to profitability.

Negative Free Cash Flow

Despite OCF improvement, FCF remains negative at €-2.0M, meaning the business still consumes cash after investments. Persistent negative FCF forces reliance on external financing, risks dilution or higher-cost borrowing, and limits the company's ability to self-fund capacity expansion or R&D long term.

Rising Total Liabilities

An increase in total liabilities reduces financial headroom and can raise refinancing, interest, or covenant risk if growth slows. Higher liabilities limit flexibility for strategic investments, raise fixed obligations, and could necessitate operational tightening or expensive financing to preserve liquidity during scale-up.

Fermentalg SA Business Overview & Revenue Model

Company Description

Fermentalg SA develops, produces, and sells active ingredients extracted from microalgae for the food, health, nutrition, and environment sectors in France and internationally. It offers DHA ORIGINS, a plant-based DHA oil; KALVEA PLUS, a nutritious algal protein concentrate dedicated to aquafeed applications; Everzure, an extract of natural acid stable blue color; BLUE ORIGINS AOX, an antioxidant and anti-inflammatory activities; BLUE ORIGIN, a natural color; and environmental and clean air solutions that captures CO2 in industries. The company was incorporated in 2009 and is headquartered in Libourne, France.

How the Company Makes Money

Fermentalg generates revenue through multiple streams, primarily by selling its microalgae-derived products to various sectors. The company engages in direct sales of its omega-3 fatty acids and other ingredients to manufacturers in the food, dietary supplements, and cosmetic industries. Additionally, Fermentalg collaborates with strategic partners and companies to develop customized solutions tailored to specific market needs, which can lead to joint ventures or co-development agreements that further enhance its revenue. The company also benefits from research grants and subsidies aimed at promoting sustainable biotechnology and innovation, which support its R&D efforts and operational costs.

Fermentalg SA Financial Statement Overview

Summary

Fermentalg SA is demonstrating strong revenue growth in the biotechnology sector but faces significant profitability challenges. While leverage is moderate, and equity levels are stable, the company must continue to manage cash flow effectively to support its growth trajectory. The financials reflect a company in transition, emphasizing growth but needing continued focus on improving margins and cash generation.

Income Statement

The company has shown significant revenue growth, increasing from €4.06 million in 2023 to €11.50 million in 2024, reflecting a revenue growth rate of 183.45%. However, the company is not yet profitable, with a net loss of €12.88 million in 2024. Margins remain under pressure as evidenced by negative EBIT (-80.49%) and EBITDA (-86.87%) margins, indicating ongoing operational challenges.

Balance Sheet

The company maintains a positive equity position with a debt-to-equity ratio of 0.38, suggesting moderate leverage. However, total liabilities have increased, which may pose risks if revenue growth does not continue. The equity ratio stands at 64.02%, indicating a reasonable level of financial stability despite losses.

Cash Flow

The operating cash flow improved significantly from a deficit of €8.66 million in 2023 to a deficit of €0.53 million in 2024. Free cash flow remains negative at €-2.00 million, but the company has managed to reduce its free cash flow deficit. The operating cash flow to net income ratio improved, reflecting better cash management despite ongoing losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.78M	11.50M	4.06M	7.65M	5.65M	2.21M
Gross Profit	2.68M	2.50M	536.00K	-828.00K	-675.00K	-1.25M
EBITDA	-8.60M	-9.99M	-10.91M	-7.19M	-8.91M	-6.16M
Net Income	-11.54M	-12.88M	-14.15M	-9.87M	-6.85M	-6.88M
Balance Sheet
Total Assets	46.99M	51.14M	50.24M	57.54M	60.88M	41.89M
Cash, Cash Equivalents and Short-Term Investments	12.84M	20.58M	11.16M	15.90M	26.01M	11.84M
Total Debt	9.41M	12.60M	15.35M	11.02M	9.61M	15.84M
Total Liabilities	16.64M	18.39M	19.40M	15.56M	13.87M	21.58M
Stockholders Equity	30.35M	32.76M	30.85M	41.98M	47.00M	20.30M
Cash Flow
Free Cash Flow	-5.37M	-2.00M	-11.18M	-13.72M	-12.55M	-11.70M
Operating Cash Flow	-4.87M	-531.00K	-8.69M	-8.24M	-7.66M	-8.57M
Investing Cash Flow	-1.54M	-1.13M	-1.76M	-7.29M	-4.75M	-2.05M
Financing Cash Flow	-2.01M	11.08M	5.71M	5.42M	26.58M	14.44M

Fermentalg SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ALGAE, the sentiment is Positive. The current price of 0.43 is below the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.44, and below the 200-day MA of 0.48, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 72.17 is Negative, neither overbought nor oversold. The STOCH value of 87.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ALGAE.

Fermentalg SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALPAT	59 Neutral	€8.89M	-6.64	―	―	―	―
ALGAE	52 Neutral	€44.43M	-4.03	-33.26%	―	59.05%	56.18%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ALVAL	49 Neutral	€16.58M	-1.16	―	―	―	―
ABNX	44 Neutral	€131.05M	-28.05	-62.40%	―	-10.91%	-25.57%