Genfit SA (GNFTY) AI Stock Analysis

• Market Cap: $420.83M
• Dividend Yield: N/A
• Average Volume (3M): 12.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: -44.94%
• EPS Growth: -274.42%
• Country: US
• Employees: 188
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.24
• Shares Outstanding: 50,036,790
• 10 Day Avg. Volume: 22,771
• 30 Day Avg. Volume: 12,154
• PEG Ratio: -1.18
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 2.78
• P/FCF Ratio: 12.79
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 6.43
• Enterprise Value/Gross Profit: 6.73
• Enterprise Value/Ebitda: -8.26
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $8.00 ▲(30.72% Upside)

The score is driven primarily by improving financial performance (sharp revenue rebound, return to profitability, and positive free cash flow). Technicals are supportive due to an established uptrend, but extreme overbought readings raise near-term risk. Valuation is a drag due to the negative P/E and lack of dividend yield data.

Positive Factors

Revenue rebound and return to profitability

A 134.5% revenue rebound and return to net profitability indicate strengthened commercial traction or successful milestones. This durable improvement reduces near-term financing pressure, supports continued R&D investment and partnership leverage, and improves the company’s ability to self-fund growth over months.

Very high gross margin

A 99.55% gross margin reflects exceptional product/licensing economics or low direct COGS versus revenue, providing structural profitability upside as revenues scale. High gross margins create long-term flexibility to invest in R&D and commercial expansion while absorbing SG&A without immediate margin dilution.

Positive free cash flow and improved cash conversion

A swing to positive free cash flow and strong cash conversion signals improved operational cash generation, lowering reliance on external funding. Durable FCF supports sustained R&D spending, milestone funding for pipeline programs, and gives management optionality for partnerships or debt reduction over the medium term.

Negative Factors

Low operating efficiency (EBIT/EBITDA)

Despite high gross margins, weak EBIT and modest EBITDA margins point to substantial operating costs (SG&A or R&D) that compress operating leverage. Unless management sustains revenue growth or controls operating expenses, margins may limit the durability of net profits and internal funding capacity.

Modest return on equity and asset efficiency

A low ROE indicates limited ability to convert equity into profitable returns, suggesting asset base or capital deployment is not yet delivering strong shareholder returns. Over time this can constrain organic growth and make the company more reliant on dilution or external capital to finance expansion.

Moderate leverage and need to monitor balance sheet

A debt-to-equity near 0.9 implies meaningful leverage which, combined with historically volatile cash flows, raises refinancing and interest-service risk if revenue or cash generation weakens. This limits financial flexibility and elevates the importance of sustaining FCF and profitability.

Genfit SA Business Overview & Revenue Model

Company Description

Genfit S.A., a late-stage biopharmaceutical company, discovers and develops drug candidates and diagnostic solutions for metabolic and liver-related diseases. The company develops Elafibranor, which is in Phase III 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; VS-01 for the treatment of Urea Cycle Disorder (UCD) and Organic Acidemia Disorder (OAD); GNS561, which is in Phase 1b/2a trial to treat patients with cholangiocarcinoma (CCA); VS-01-ACLF and Nitazoxanide (NTZ), which is in Phase 1 trial to treat acute-on-chronic liver failure, as well as VS-02-HE, which is in preclinical trial for the treatment of Reduction of Hyperammonemia and the Stabilization of Blood Ammonia; CML-022; SRT-015, an ASK1 inhibitor targets the inhibition of cellular apoptosis, inflammation, and fibrosis. The company has a licensing agreement with Labcorp for the commercialization of NASHnext, a blood-based molecular diagnostic test; and Genoscience Pharma to develop and commercialize the investigational treatment GNS561 for CCA. The company was incorporated in 1999 and is headquartered in Loos, France.

How the Company Makes Money

Genfit generates revenue primarily through the development and commercialization of its pharmaceutical products. The company earns money from licensing agreements and partnerships with larger pharmaceutical companies, which allow it to leverage its research and development capabilities. Additionally, Genfit may receive milestone payments and royalties based on the sales of products developed in collaboration with partners. The company also generates income from any diagnostic services it provides, although this is a smaller component of its overall revenue. Significant collaborations and strategic partnerships with industry leaders enhance its earning potential and support the advancement of its product pipeline.

Genfit SA Financial Statement Overview

Summary

2024 shows a strong recovery with revenue up 134.5% YoY, a very high gross margin (99.55%), a return to profitability (2.25% net margin), and improved free cash flow (€14.57M). Offsetting this, operating efficiency remains weaker with low EBIT/EBITDA margins (4.90%/12.41%) and only modest ROE (2.18%).

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	45.27M	67.00M	28.57M	20.20M	80.07M	872.08K
Gross Profit	43.27M	66.70M	28.22M	19.94M	79.91M	0.00
EBITDA	-35.24M	8.32M	-22.24M	-17.59M	77.17M	-103.89M
Net Income	-42.05M	1.51M	-28.89M	-23.72M	67.26M	-115.39M
Balance Sheet
Total Assets	216.68M	151.42M	173.87M	215.54M	281.72M	241.57M
Cash, Cash Equivalents and Short-Term Investments	107.51M	81.79M	77.79M	140.55M	258.76M	209.26M
Total Debt	7.31M	62.13M	70.18M	75.28M	74.23M	227.20M
Total Liabilities	164.21M	82.20M	105.92M	121.01M	162.62M	262.51M
Stockholders Equity	52.47M	69.22M	67.95M	94.53M	119.10M	-20.94M
Cash Flow
Free Cash Flow	-5.42M	14.57M	-57.92M	-72.64M	99.38M	-118.09M
Operating Cash Flow	-4.01M	15.55M	-55.43M	-72.64M	99.92M	-117.07M
Investing Cash Flow	-3.90M	-1.04M	2.23M	-46.27M	-3.38M	-1.10M
Financing Cash Flow	57.93M	-10.57M	-5.10M	-3.79M	-8.92M	-2.21M

Genfit SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNFTY, the sentiment is Positive. The current price of 6.12 is below the 20-day moving average (MA) of 7.07, below the 50-day MA of 6.43, and above the 200-day MA of 4.69, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 77.83 is Negative, neither overbought nor oversold. The STOCH value of 99.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GNFTY.

Genfit SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNFTY	60 Neutral	$420.83M	-10.00	-51.06%	―	-44.94%	-274.42%
RAPT	60 Neutral	$1.60B	-5.21	-85.37%	―	―	50.23%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OMER	50 Neutral	$828.83M	-5.79	―	―	―	12.32%
FDMT	47 Neutral	$476.92M	-2.38	-45.38%	―	―	―
ENGN	47 Neutral	$655.11M	-4.26	-53.28%	―	―	-52.86%