Genfit SA (GNFTY) AI Stock Analysis

• Market Cap: $305.92M
• Dividend Yield: N/A
• Average Volume (3M): 12.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• 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: 4.66
• Enterprise Value/Gross Profit: 4.88
• Enterprise Value/Ebitda: -5.99
• 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: $6.50 ▲(6.21% Upside)

Genfit SA's overall stock score reflects a strong recovery in financial performance and bullish technical indicators. However, the negative P/E ratio and lack of dividend yield weigh down the valuation score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Recovery

A large revenue rebound signals renewed commercial traction or successful advance of pipeline commercialization efforts. Sustained revenue recovery over coming quarters would support reinvestment in R&D and stabilize operating leverage, improving the company’s ability to fund development without heavy external financing.

Very High Gross Margin

An exceptionally high gross margin suggests scalable, low-cost-of-goods revenue streams—typical of licensing or high-value diagnostics—which can sustain profitability as revenue grows. This structural margin advantage provides long-term flexibility to absorb R&D and SG&A while maintaining positive net income if sales continue.

Improved Free Cash Flow

Transitioning to positive free cash flow demonstrates improved cash conversion and operational health, reducing reliance on external capital. Durable FCF enables funding of clinical programs and partnerships, and provides a buffer for regulatory timelines common in biotech, strengthening the firm’s medium-term financing profile.

Negative Factors

Low Operating Efficiency

Modest operating margins indicate limited efficiency converting high gross profit into operating profit, leaving earnings vulnerable to higher SG&A or R&D spending. Over the medium term this constrains the company’s ability to scale profitably without continual improvements in cost structure or higher revenue growth.

Moderate Leverage and Weak ROE

A near 1.0 debt/equity ratio with low ROE points to moderate leverage and limited returns on shareholder capital. This balance sheet mix reduces financial flexibility for large investments and makes the company more sensitive to interest and refinancing risk, potentially restricting growth initiatives over several quarters.

Cash Flow Volatility

Historical cash flow swings indicate operational and funding unpredictability common in biopharma development cycles. Continued volatility can force opportunistic financing or delay programs, increasing dilution or slowing pipeline progress; managing stable cash conversion is critical for sustained execution over the next 2–6 months.

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

Genfit SA has shown a robust recovery in 2024 with substantial revenue growth and a return to profitability. The high gross profit margin and improved cash flow generation are notable strengths. However, low operating margins and moderate leverage ratios indicate ongoing risks and the need for 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	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: Positive
• RSI: Neutral
• STOCH: Neutral

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 6.18, above the 50-day MA of 5.56, and above the 200-day MA of 4.39, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 67.34 is Neutral, neither overbought nor oversold. The STOCH value of 43.99 is Neutral, 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	$305.92M	-7.70	-51.06%	―	-44.94%	-274.42%
RAPT	60 Neutral	$1.60B	-5.21	-85.37%	―	―	50.23%
ENGN	55 Neutral	$609.56M	-4.64	-53.28%	―	―	-52.86%
OMER	52 Neutral	$869.24M	-6.02	―	―	―	12.32%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
FDMT	47 Neutral	$435.37M	-2.06	-45.38%	―	―	―