Fermentalg SA (ALGAE) AI Stock Analysis

• Market Cap: €47.75M
• Dividend Yield: N/A
• Average Volume (3M): 186.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: 183.32%
• EPS Growth: 45.34%
• Country: FR
• Employees: 58
• Sector: Healthcare
• Sector Strength: 50
• Industry: Biotechnology
• EPS (TTM): -16.91
• Shares Outstanding: 89,844,100
• 10 Day Avg. Volume: 162,325
• 30 Day Avg. Volume: 186,192
• 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: €0.50
• Price Target Upside: -9.09% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: €0.50 ▼(-9.09% Downside)

Fermentalg SA's overall stock score reflects strong revenue growth but significant profitability challenges. The technical indicators suggest a neutral to slightly bearish trend, while the valuation is unattractive due to negative earnings and no dividend yield. The company's financial performance is the most significant factor, highlighting the need for improved margins and cash management.

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 makes money through the commercialization of its microalgae-derived products, targeting various industries including nutrition, food, and environmental sectors. The company generates revenue by selling its Omega-3 rich oils to dietary supplement manufacturers and food companies, offering sustainable and natural food coloring alternatives to the food industry, and providing air purification systems that utilize microalgae for carbon capture in industrial and urban settings. Fermentalg's partnerships with industry leaders and continuous innovation in microalgae applications further bolster its revenue streams.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.50M	4.06M	7.65M	5.65M	2.21M
Gross Profit	2.50M	535.00K	1.82M	1.98M	1.09M
EBITDA	-9.99M	-10.51M	-8.63M	-5.44M	-4.83M
Net Income	-12.88M	-14.15M	-9.87M	-6.85M	-6.88M
Balance Sheet
Total Assets	51.14M	50.24M	57.54M	60.88M	41.89M
Cash, Cash Equivalents and Short-Term Investments	20.58M	11.16M	15.90M	26.01M	11.84M
Total Debt	12.60M	15.35M	11.02M	9.61M	15.84M
Total Liabilities	18.39M	19.40M	15.56M	13.87M	21.58M
Stockholders Equity	32.76M	30.85M	41.98M	47.00M	20.30M
Cash Flow
Free Cash Flow	-2.00M	-11.09M	-13.38M	-11.71M	-11.49M
Operating Cash Flow	-531.00K	-8.66M	-8.21M	-7.39M	-8.37M
Investing Cash Flow	-1.13M	-1.76M	-7.29M	-4.75M	-2.05M
Financing Cash Flow	11.08M	5.69M	5.39M	26.31M	14.23M

Fermentalg SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.55
• 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:ALGAE, the sentiment is Positive. The current price of 0.55 is above the 20-day moving average (MA) of 0.51, above the 50-day MA of 0.50, and above the 200-day MA of 0.42, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.01 is Neutral, neither overbought nor oversold. The STOCH value of 69.80 is Neutral, 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
ALGAE	48 Neutral	€47.75M	―	-40.49%	―	183.32%	45.34%
Sector *	46 Neutral	C$218.42M	-0.38	-24.34%	3.17%	19.38%	-2.35%
0RCQ	―	€34.70M	―		―	―	―
0RAG	―	€64.58M	―	-57.56%	―	―	―
8JD	―	€21.41M	―		―	―	―
82F	―	€21.24M	―	-313.76%	―	―	―
ALPAT	―	€10.44M	11.15		―	―	―