MedinCell SA (MEDCL) AI Stock Analysis

• Market Cap: €522.49M
• Dividend Yield: N/A
• Average Volume (3M): 84.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: -1.66%
• EPS Growth: -6.31%
• Country: FR
• Employees: 131
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.17
• Shares Outstanding: 33,072,746
• 10 Day Avg. Volume: 73,933
• 30 Day Avg. Volume: 84,286
• PEG Ratio: -0.29
• Price to Book (P/B): -5.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.34
• 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: €24.20
• Price Target Upside: 49.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 37 Underperform
• Price Target: ―

MedinCell SA shows a promising revenue growth trajectory but suffers from significant financial instability and operational inefficiencies. The highly leveraged balance sheet and negative profitability metrics pose substantial risks. Additionally, the stock's bearish trend based on technical indicators and poor valuation metrics further exacerbate the concerns.

Positive Factors

Clinical Trial Success

TEV-44749 met its primary endpoint in the pivotal Phase 3 trial, showing statistically significant improvements in schizophrenia symptoms without major safety drawbacks.

Market Expansion

Approval of UZEDY for treatment of bipolar disorder I could expand the addressable market and increase revenue streams through royalties.

Partnerships

The collaboration with global organizations such as the Gates Foundation, GlaxoSmithKline plc, and Johnson & Johnson highlights MedinCell's strong partnerships and credibility.

Negative Factors

Revenue Projections

MedinCell received €2.8M in royalty-based revenue driven by UZEDY sales in F1H24; this royalty stream is expected to grow rapidly in the coming quarters.

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 SA (MEDCL) is a French-based pharmaceutical company that operates in the healthcare sector. The company specializes in the development of long-acting injectable drugs using its proprietary BEPO technology, which allows for the controlled release of medicine over a specified period. MedinCell focuses on creating innovative drug delivery solutions across various therapeutic areas, including pain management, mental health, and global health initiatives.

How the Company Makes Money

MedinCell SA generates revenue through partnerships and collaborations with pharmaceutical companies, leveraging its BEPO technology to develop long-acting injectable formulations. These partnerships typically involve milestone payments and royalties based on the commercialization and sales of developed products. The company also invests in its own pipeline of proprietary products, which, upon successful development and regulatory approval, contribute to income through direct sales or licensing agreements. Additionally, MedinCell may receive funding from grants or public health organizations for projects targeting global health challenges.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	13.20M	11.95M	9.89M	4.09M	8.19M	2.85M
Gross Profit	13.20M	9.16M	13.65M	8.34M	6.74M	1.88M
EBITDA	-18.81M	-20.05M	-30.18M	-22.95M	-17.69M	-18.36M
Net Income	-31.45M	-25.04M	-32.01M	-24.81M	-18.99M	-23.91M
Balance Sheet
Total Assets	58.86M	36.95M	29.34M	44.30M	63.61M	27.31M
Cash, Cash Equivalents and Short-Term Investments	38.85M	19.46M	6.47M	27.18M	50.59M	12.72M
Total Debt	69.19M	58.96M	57.71M	47.49M	43.34M	33.83M
Total Liabilities	112.89M	77.77M	71.63M	57.67M	54.43M	43.18M
Stockholders Equity	-54.03M	-40.82M	-42.29M	-13.37M	9.13M	-15.96M
Cash Flow
Free Cash Flow	21.03M	-13.11M	-26.45M	-24.37M	-16.42M	-14.92M
Operating Cash Flow	21.40M	-11.92M	-25.42M	-22.39M	-15.60M	-14.00M
Investing Cash Flow	-7.42M	-613.00K	1.25M	-411.00K	-1.10M	-3.00K
Financing Cash Flow	-9.13M	25.53M	6.02M	326.00K	51.42M	5.10M

MedinCell SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 16.2 is below the 20-day moving average (MA) of 16.31, above the 50-day MA of 16.01, and above the 200-day MA of 15.67, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 43.87 is Neutral, neither overbought nor oversold. The STOCH value of 28.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:MEDCL.

MedinCell SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VETO	76 Outperform	€886.96M	15.08	10.64%	1.19%	1.88%	5.79%
Sector *	52 Neutral	$7.49B	0.22	-61.87%	2.28%	16.62%	1.08%
MEDCL	37 Underperform	€522.49M	―		―	-1.66%	-6.31%