Euroapi SA (EAPI) AI Stock Analysis

• Market Cap: €293.55M
• Dividend Yield: N/A
• Average Volume (3M): 98.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: -9.32%
• EPS Growth: 56.88%
• Country: FR
• Employees: 3,187
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.30
• Shares Outstanding: 95,589,775
• 10 Day Avg. Volume: 98,943
• 30 Day Avg. Volume: 98,498
• PEG Ratio: 0.07
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 18.27
• 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): -0.25
• Revenue Forecast (FY): €755.41M

• Rating: 50 Neutral
• Price Target: €3.00 ▼(-2.91% Downside)

Euroapi SA's overall stock score reflects significant financial challenges, particularly in profitability and revenue growth. The technical analysis suggests a neutral outlook, while the valuation is unattractive due to negative earnings and lack of dividends. The company's strong equity position and low leverage provide some potential for recovery.

Euroapi SA Business Overview & Revenue Model

Company Description

Euroapi SA (EAPI) is a leading European contract development and manufacturing organization (CDMO) specializing in the production of active pharmaceutical ingredients (APIs) for the pharmaceutical industry. The company focuses on providing high-quality, customized solutions for its clients across various therapeutic areas, including oncology, cardiovascular, and infectious diseases. Euroapi operates several state-of-the-art manufacturing facilities and is committed to sustainability and innovation in the production of APIs.

How the Company Makes Money

Euroapi SA generates revenue primarily through its contract manufacturing services, where it partners with pharmaceutical companies to produce APIs on a contractual basis. The company charges its clients based on the volume of products manufactured, the complexity of the processes involved, and the duration of the contracts. Additionally, Euroapi earns revenue from its development services, which include formulation development and regulatory support, helping clients navigate the complexities of bringing new drugs to market. Significant partnerships with major pharmaceutical firms enhance its revenue stream, as these collaborations often lead to long-term contracts and increased production volumes.

Euroapi SA Financial Statement Overview

Summary

Euroapi SA is facing financial challenges, particularly in profitability and revenue growth, with declining revenue and negative profit margins. However, the company shows operational resilience with positive EBITDA margins and a strong equity position with low leverage.

Income Statement

Euroapi SA has faced declining revenue over the past year, with a negative revenue growth rate of 9.78% from 2023 to 2024. The company is experiencing significant challenges in profitability, as indicated by negative EBIT and net profit margins. The gross profit margin also reflects a downward trend. Despite these challenges, the company has managed to maintain a positive EBITDA margin, offering some stability in operational performance.

Balance Sheet

The balance sheet shows a moderate level of stability with a debt-to-equity ratio of 0.07, indicating low leverage. The return on equity is negative due to net losses, but the equity ratio remains healthy at 66.01%, suggesting a strong capital base. The company has been reducing its debt, which is a positive sign for future financial flexibility.

Cash Flow

Euroapi SA's cash flow remains a mixed picture with a significant improvement in operating cash flow from 2023 to 2024. However, the free cash flow growth rate is negative, reflecting high capital expenditures. The operating cash flow to net income ratio is positive, indicating efficient cash generation relative to net income, but the free cash flow to net income ratio is low.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	882.80M	919.20M	1.02B	980.90M	892.80M	944.60M
Gross Profit	116.10M	142.40M	164.60M	176.90M	109.10M	90.50M
EBITDA	-14.00M	-34.70M	71.00M	120.20M	62.40M	56.10M
Net Income	-124.30M	-130.60M	-189.70M	-15.00M	-8.10M	-6.30M
Balance Sheet
Total Assets	1.44B	1.49B	1.61B	1.74B	1.62B	1.60B
Cash, Cash Equivalents and Short-Term Investments	51.50M	73.00M	34.50M	74.50M	10.30M	100.00K
Total Debt	68.40M	69.10M	225.50M	120.80M	24.10M	73.40M
Total Liabilities	488.50M	506.00M	684.70M	625.90M	607.00M	611.60M
Stockholders Equity	953.40M	983.50M	927.70M	1.11B	1.01B	989.40M
Cash Flow
Free Cash Flow	-21.20M	14.90M	-127.70M	-122.60M	-17.10M	8.40M
Operating Cash Flow	63.30M	122.90M	5.10M	44.80M	71.50M	96.80M
Investing Cash Flow	-85.00M	-108.00M	-137.30M	-167.40M	-87.90M	-88.30M
Financing Cash Flow	-208.20M	26.50M	92.20M	187.80M	26.50M	-8.40M

Euroapi SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.09
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:EAPI, the sentiment is Neutral. The current price of 3.09 is below the 20-day moving average (MA) of 3.20, below the 50-day MA of 3.16, and above the 200-day MA of 2.96, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.34 is Neutral, neither overbought nor oversold. The STOCH value of 12.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:EAPI.

Euroapi SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALERS	55 Neutral	€241.63M	102.94	1.32%	―	12.47%	-65.87%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EAPI	50 Neutral	€293.55M	―	―	―	-9.32%	56.88%
AFME	48 Neutral	€62.53M	-4.24	-62.69%	―	―	30.04%
ALMDT	45 Neutral	€108.97M	-2.55	―	―	6.75%	15.48%