MedinCell SA (MEDCL) AI Stock Analysis

• Market Cap: €573.93M
• Dividend Yield: N/A
• Average Volume (3M): 91.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: 181.43%
• EPS Growth: 28.76%
• Country: FR
• Employees: 131
• Sector: Healthcare
• Sector Strength: 49
• Industry: Biotechnology
• EPS (TTM): -0.12
• Shares Outstanding: 33,083,675
• 10 Day Avg. Volume: 112,738
• 30 Day Avg. Volume: 91,720
• 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: €25.60
• Price Target Upside: 47.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: €18.00 ▲(3.75% Upside)

The overall stock score of 53 reflects strong technical momentum, which is offset by significant financial performance challenges and poor valuation metrics. While the stock shows positive price trends, the underlying financial instability and lack of profitability are major concerns.

Positive Factors

Market Expansion

The FDA has accepted the supplemental New Drug Application for UZEDY for the treatment of bipolar disorder I in adults, potentially expanding its market and revenue stream.

Product Development

Development of a long-acting injectable formulation of macozinone could help address challenges in TB treatment, improving access, patient adherence, and lowering drug resistance risk.

Negative Factors

Valuation Concerns

Investors should be aware that no contribution from the macozinone LAI candidate is included in the current valuation assessment.

MedinCell SA Business Overview & Revenue Model

Company Description

MedinCell S.A. develops various therapeutic solutions. It develops solutions based on BEPO, a technology for long-acting injectable products based on proprietary copolymers and a biocompatible solvent, which solubilizes or suspends the active pharmaceutical ingredients. The company's products in development include mdc-IRM, a subcutaneous injection in Phase III trials for use in the treatment of schizophrenia; mdc-CWM, an intra-articular injection to treat pain and inflammation; and mdc-TJK, a subcutaneous injection in preclinical trials for use in the treatment of schizophrenia. Its product candidates in formulation research comprise subcutaneous injections, such as mdc-WWM for contraception; mdc-ANG for CNS related treatments; mdc-ELK for depression; and mdc-GRT for use in organ transplant, as well as perineural injections, including mdc-CMV for anesthesia and pain, and mdc-NVA for pain. The company is based in Jacou, France.

How the Company Makes Money

MedinCell generates revenue primarily through partnerships and collaborations with pharmaceutical companies for the development and commercialization of its proprietary drug delivery technologies. The company often enters into licensing agreements, where it receives upfront payments, milestone payments based on the achievement of development and regulatory targets, and royalties on future sales of the products developed using its technology. Significant partnerships with established pharmaceutical firms are crucial for MedinCell's revenue model, as they provide not only financial backing but also access to broader markets and distribution networks. Additionally, the company may also generate revenue through research and development services provided to partners, further diversifying its income streams.

MedinCell SA Financial Statement Overview

Summary

MedinCell SA is in a growth phase with increasing revenue but faces significant profitability and financial stability challenges. The consistently negative net income and EBIT margins highlight operational inefficiencies. The balance sheet is heavily leveraged, raising concerns about financial sustainability. While cash flow from operations has improved, reliance on external financing is high, necessitating prudent management to achieve long-term sustainability.

Income Statement

MedinCell SA has shown revenue growth from €4.09M to €11.95M over the years, indicating an upward trajectory. However, the company has consistently reported negative net income and EBIT, reflecting ongoing operational challenges. Gross profit margin has declined from previous highs, affecting overall profitability. The net profit margin remains negative due to high operating expenses relative to revenue.

Balance Sheet

The company exhibits a concerning balance sheet with a negative stockholders' equity of €-40.82M, indicating financial instability. The debt-to-equity ratio cannot be meaningfully calculated due to negative equity, but the high level of debt compared to assets suggests potential liquidity issues. The biomedical sector typically requires significant investment, but the current financial leverage poses a risk.

Cash Flow

MedinCell SA has improved its operating cash flow deficit from €-25.42M to €-11.92M, showing better cash management, but free cash flow remains negative. The company has increased its financing activities, which has supported operations but may increase future liabilities. Overall, cash flow management needs improvement to sustain operations without heavy reliance on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.20M	25.54M	11.95M	9.89M	4.09M	8.19M
Gross Profit	13.20M	25.54M	9.16M	13.65M	8.34M	6.74M
EBITDA	-18.81M	-11.20M	-20.05M	-30.18M	-22.95M	-17.69M
Net Income	-31.45M	-18.44M	-25.04M	-32.01M	-24.81M	-18.99M
Balance Sheet
Total Assets	58.86M	90.45M	36.95M	29.34M	44.30M	63.61M
Cash, Cash Equivalents and Short-Term Investments	38.85M	71.90M	19.46M	6.47M	27.18M	50.59M
Total Debt	69.19M	58.76M	58.96M	57.71M	47.49M	43.34M
Total Liabilities	112.89M	106.82M	77.77M	71.63M	57.67M	54.43M
Stockholders Equity	-54.03M	-16.37M	-40.82M	-42.29M	-13.37M	9.13M
Cash Flow
Free Cash Flow	21.03M	17.80M	-13.11M	-26.45M	-24.37M	-16.42M
Operating Cash Flow	21.40M	19.46M	-11.92M	-25.42M	-22.39M	-15.60M
Investing Cash Flow	-8.16M	-13.21M	-613.00K	1.25M	-411.00K	-1.10M
Financing Cash Flow	-8.84M	33.32M	25.53M	6.02M	326.00K	51.42M

MedinCell SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.35
• 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:MEDCL, the sentiment is Positive. The current price of 17.35 is above the 20-day moving average (MA) of 16.70, above the 50-day MA of 16.51, and above the 200-day MA of 15.83, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 57.17 is Neutral, neither overbought nor oversold. The STOCH value of 77.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:MEDCL.

MedinCell SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEDCL	53 Neutral	€573.93M	―		―	181.43%	28.76%
Sector *	51 Neutral	$7.83B	-0.15	-40.10%	2.29%	21.46%	-2.01%
0RA9	―	€5.11B	―	-148.98%	―	―	―
0QAJ	―	€220.90M	―	-152.03%	―	―	―
0RNK	―	€566.33M	―		―	―	―
0QAV	―	€352.75M	―		―	―	―
0OB3	―	€648.96M	―	-38.01%	―	―	―