Fermentalg SA (ALGAE) AI Stock Analysis

• Market Cap: €43.67M
• Dividend Yield: N/A
• Average Volume (3M): 224.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: 59.05%
• EPS Growth: 57.39%
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: €0.50 ▲(11.11% Upside)

The overall stock score of 45 reflects significant revenue growth but ongoing profitability challenges. Technical indicators show bearish momentum, and the valuation is unattractive due to negative earnings and no dividend yield. The company's financial stability is moderate, but it must improve margins and cash flow to enhance its investment appeal.

Positive Factors

Revenue Growth

Strong revenue growth of 183.45% indicates robust demand for Fermentalg's products, enhancing its market position and potential for future profitability.

Product Diversification

Diversification across multiple sectors reduces dependency on a single market, providing stability and growth opportunities in various industries.

Strategic Partnerships

Strategic partnerships and co-development agreements expand market reach and foster innovation, supporting long-term growth and competitive advantage.

Negative Factors

Profitability Challenges

Ongoing losses and negative margins highlight operational challenges, which may hinder investment and expansion efforts if not addressed.

Margin Pressure

Negative margins indicate cost management issues, impacting cash flow and necessitating efficiency improvements for sustainable profitability.

Cash Flow Deficit

Persistent cash flow deficits limit financial flexibility, potentially constraining growth initiatives and increasing reliance on external funding.

Fermentalg SA Business Overview & Revenue Model

Company Description

Fermentalg SA is a biotechnology company based in France that specializes in the production of high-value microalgae-based products. Operating primarily in the sectors of nutrition, cosmetics, and pharmaceuticals, Fermentalg focuses on harnessing the potential of microalgae to develop sustainable solutions that contribute to health and well-being. The company's core products include omega-3 fatty acids, natural colorants, and other bioactive compounds derived from microalgae, which are utilized in various industries, including food, dietary supplements, and cosmetics.

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: Neutral
• Last Price: 0.45
• 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 FR:ALGAE, the sentiment is Neutral. The current price of 0.45 is above the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.47, and below the 200-day MA of 0.47, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 49.77 is Neutral, neither overbought nor oversold. The STOCH value of 77.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:ALGAE.

Fermentalg SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ALVAL	49 Neutral	€14.45M	-1.01	―	―	―	―
ALGAE	45 Neutral	€43.67M	-4.07	-33.26%	―	59.05%	57.39%
ABNX	44 Neutral	€145.17M	-31.60	-62.40%	―	-10.91%	-25.57%