Genfit SA (GNFT) AI Stock Analysis

• Market Cap: $219.92M
• Dividend Yield: N/A
• Average Volume (3M): 10.87K
• Price to Earnings (P/E): 127.8
• Beta (1Y): 0.59
• Revenue Growth: 134.52%
• EPS Growth: N/A
• Country: US
• Employees: 180
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.64
• Shares Outstanding: 49,996,185
• 10 Day Avg. Volume: 7,789
• 30 Day Avg. Volume: 10,870
• PEG Ratio: 0.02
• Price to Book (P/B): 2.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.91
• 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: $13.00
• Price Target Upside: 203.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: $4.50 ▲(4.90%Upside)

Genfit SA's overall stock score of 59 reflects a blend of significant financial recovery and positive technical momentum, indicating a promising direction for the company. However, the high P/E ratio suggests that the stock may be overvalued, which is a key risk factor. While the financial performance shows improvement, the need for better operational efficiency and more balanced capital structure remain areas for improvement to support long-term growth.

Positive Factors

Clinical Trials

Preliminary safety data from the study with GNS561 and trametinib in KRAS-mutated cholangiocarcinoma patients supports the study's continuation, highlighting positive clinical trial developments.

Financial Stability

The royalty financing agreement with HealthCare Royalty provides GENFIT with up to €185 million in funding, ensuring financial stability and resources for future projects.

Research and Development

GENFIT's progress in research and development is demonstrated by up to four clinical data readouts from its ACLF programs, indicating advancements in their efforts.

Negative Factors

Debt Management

Plans to eliminate outstanding convertible debt aim to provide further capital flexibility but may also indicate current financial challenges.

Logistics and Enrollment

A protocol amendment to improve logistics for enrolling ACLF patients suggests existing challenges in patient recruitment for clinical trials.

Genfit SA Business Overview & Revenue Model

Company Description

Genfit S.A., a biopharmaceutical company, discovers and develops drug candidates and diagnostic solutions for metabolic and liver-related diseases. The company's products include Elafibranor, which is in Phase 3 clinical trial to treat patients with primary biliary cholangitis. It also engages in the development of NIS4 technology for the diagnosis of nonalcoholic steatohepatitis (NASH) and fibrosis; GNS561, which is in Phase 1b/2 trial to treat patients with cholangiocarcinoma (CCA); and Nitazoxanide, which is in Phase 1 trial to treat acute-on-chronic liver failure. The company has a licensing agreement with Labcorp for the commercialization of NASHnext, a blood-based molecular diagnostic test; and with Genoscience Pharma to develop and commercialize the investigational treatment GNS561 for CCA. Genfit S.A. was incorporated in 1999 and is headquartered in Loos, France.

How the Company Makes Money

Genfit SA generates revenue primarily through its pharmaceutical development activities, which include licensing agreements, collaboration partnerships, and the commercialization of its drug candidates. The company engages in strategic partnerships with other pharmaceutical companies to co-develop and commercialize its products, often receiving upfront payments, milestone payments, and royalties on net sales. Additionally, Genfit may receive funding from government grants and research subsidies to support its innovative projects. The company's earnings are significantly influenced by the progress and success of its clinical trials, regulatory approvals, and the competitive landscape in the biopharmaceutical industry.

Genfit SA Financial Statement Overview

Summary

Genfit SA has demonstrated a robust recovery in 2024 with substantial revenue growth and a return to profitability. The company's high gross profit margin and improved cash flow generation are notable strengths. However, operating margins and leverage ratios suggest ongoing risks and highlight the need for strategic improvements in efficiency and capital structure management. Overall, the company is on a positive trajectory, but with areas that require attention to ensure sustainable growth.

Income Statement

Genfit SA's income statement shows a significant recovery in 2024, with total revenue increasing by 134.5% from 2023. The gross profit margin is strong at 99.55% due to high gross profits relative to revenue. The company has turned around its net profitability with a net profit margin of 2.25% in 2024 compared to losses in previous years. However, the EBIT and EBITDA margins remain relatively low at 4.90% and 12.41%, indicating room for improvement in operating efficiency.

Balance Sheet

Genfit SA's balance sheet reflects moderate stability with a debt-to-equity ratio of 0.90, suggesting a balanced use of debt and equity. The return on equity (ROE) is modest at 2.18%, reflecting limited profitability relative to equity. The equity ratio of 45.72% indicates a fair portion of assets are funded by equity, providing a stable foundation, yet there's a need to enhance asset efficiency and leverage.

Cash Flow

The cash flow statement shows a significant improvement in 2024 with a positive free cash flow of €14.57 million compared to a negative free cash flow in 2023. This indicates better cash generation from operations. The operating cash flow to net income ratio of 10.32 is strong, reflecting effective cash conversion from income. However, the past volatility in cash flows warrants careful monitoring.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
78.19M	67.00M	28.57M	20.20M	80.07M	765.00K
	Gross Profit
77.32M	66.70M	28.22M	19.95M	79.91M	563.00K
	EBIT
14.89M	3.28M	-26.58M	-27.55M	76.74M	-77.79M
	EBITDA
24.65M	8.32M	-22.24M	-23.60M	34.91M	-91.14M
	Net Income Common Stockholders
22.27M	1.51M	-28.89M	-23.72M	67.26M	-101.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
152.28M	81.79M	77.79M	140.55M	258.76M	171.03M
	Total Assets
166.21M	151.42M	173.87M	215.54M	281.72M	198.61M
	Total Debt
6.25M	62.13M	70.18M	75.28M	74.23M	185.69M
	Net Debt
-146.03M	-19.66M	-7.61M	-60.73M	-184.52M	14.66M
	Total Liabilities
23.42M	82.20M	105.92M	121.01M	162.62M	214.78M
	Stockholders Equity
142.80M	69.22M	67.95M	94.53M	119.10M	-16.16M
Cash Flow		Free Cash Flow
-42.69M	14.57M	-57.92M	-72.64M	99.38M	-97.27M
	Operating Cash Flow
-41.54M	15.55M	-55.43M	-72.64M	99.92M	-96.37M
	Investing Cash Flow
-1.14M	-1.04M	2.23M	-46.27M	-3.38M	-966.00K
	Financing Cash Flow
-7.56M	-10.57M	-5.10M	-3.79M	-8.92M	-8.26M

Genfit SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.29
• 50DMA: Positive
• 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 GNFT, the sentiment is Positive. The current price of 4.29 is above the 20-day moving average (MA) of 4.25, above the 50-day MA of 3.79, and above the 200-day MA of 4.22, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 56.97 is Neutral, neither overbought nor oversold. The STOCH value of 64.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GNFT.

Genfit SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNFT	59 Neutral	$219.92M	127.79	2.17%	―	134.52%	―
IPHA	53 Neutral	$200.26M	―	-160.99%	―	-75.67%	-552.37%
Sector *	53 Neutral	$5.14B	3.23	-45.01%	2.85%	17.55%	-0.69%
AMRN	51 Neutral	$235.36M	―	-17.22%	―	-22.93%	-65.68%
FHTX	50 Neutral	$225.75M	―	322.49%	―	-30.66%	36.48%
IKT	46 Neutral	$131.58M	―	-79.02%	―	-100.00%	38.72%
SGMO	38 Underperform	$111.19M	―	-262.12%	―	239.92%	79.41%