Genfit SA (GNFT) AI Stock Analysis

• Market Cap: $207.98M
• Dividend Yield: N/A
• Average Volume (3M): 7.47K
• Price to Earnings (P/E): 123.2
• Beta (1Y): 0.59
• Revenue Growth: 134.52%
• EPS Growth: N/A
• Country: US
• Employees: 180
• Sector: Healthcare
• Sector Strength: 53
• Industry: Biotechnology
• EPS (TTM): -0.64
• Shares Outstanding: 49,996,185
• 10 Day Avg. Volume: 3,144
• 30 Day Avg. Volume: 7,467
• PEG Ratio: 0.07
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.80
• 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: 218.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: $4.00 ▼(-1.96%Downside)

Genfit SA demonstrates strong financial recovery with significant revenue growth and cash flow improvement, but faces challenges with operating margins and valuation. Technical indicators provide a mixed outlook, with potential for upward movement despite current valuation concerns.

Positive Factors

Clinical Trials

Preliminary safety data from a study with GNS561 and trametinib in patients with KRAS-mutated cholangiocarcinoma supported the study's continuation, reflecting positive developments in their clinical trials.

Financial Stability

GENFIT entered into a royalty financing agreement with HealthCare Royalty (HCRx) for up to €185M in total funding, providing financial stability and resources for future projects.

Research and Development

GENFIT announced a list of its 2025 milestones that includes up to four clinical data readouts from its Acute on-Chronic Liver Failure (ACLF) programs, indicating progress in their research and development efforts.

Negative Factors

Debt Management

Plans to eliminate outstanding convertible debt should provide further capital flexibility for the company moving forward.

Operational Efficiency

A protocol amendment to improve the logistics of enrolling ACLF patients has been implemented to accelerate patient enrollment, indicating proactive steps to enhance clinical trial efficiency.

Pipeline Development

The strategic decision to focus on the development of the rare liver disease pipeline is viewed as prudent.

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 shown a significant recovery in 2024, with a strong gross profit margin and improved cash flow generation. However, operating margins and leverage ratios indicate ongoing risks, necessitating strategic improvements in efficiency and capital structure management.

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
61.65M	81.79M	77.79M	140.55M	258.76M	171.03M
	Total Assets
194.78M	151.42M	173.87M	215.54M	281.72M	198.61M
	Total Debt
67.80M	62.13M	70.18M	75.28M	74.23M	185.69M
	Net Debt
6.16M	-19.66M	-7.61M	-60.73M	-184.52M	14.66M
	Total Liabilities
97.41M	82.20M	105.92M	121.01M	162.62M	214.78M
	Stockholders Equity
97.36M	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: Neutral
• Last Price: 4.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNFT, the sentiment is Neutral. The current price of 4.08 is below the 20-day moving average (MA) of 4.27, above the 50-day MA of 4.01, and below the 200-day MA of 4.22, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.76 is Neutral, neither overbought nor oversold. The STOCH value of 15.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GNFT.

Genfit SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMRN	58 Neutral	$287.57M	―	-17.22%	―	-22.93%	-65.68%
GNFT	54 Neutral	$207.98M	123.17	2.17%	―	134.52%	―
Sector *	54 Neutral	$5.34B	3.36	-45.10%	3.39%	16.81%	-0.03%
FHTX	49 Neutral	$244.70M	―	322.49%	―	-30.66%	36.48%
IKT	46 Neutral	$144.22M	―	-79.02%	―	-100.00%	38.72%
SGMO	43 Neutral	$122.70M	―	-262.12%	―	239.92%	79.41%
IPHA	41 Neutral	$176.77M	―	-160.99%	―	-75.67%	-552.37%