Moolec Science (MLEC) AI Stock Analysis

• Market Cap: $2.45M
• Dividend Yield: N/A
• Average Volume (3M): 209.37K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.53
• Revenue Growth: 170.36%
• EPS Growth: -24.98%
• Country: US
• Employees: 52
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 10,891,761
• 10 Day Avg. Volume: 506,476
• 30 Day Avg. Volume: 209,369
• PEG Ratio: 0.67
• Price to Book (P/B): 62.68
• Price to Sales (P/S): 75.94
• P/FCF Ratio: -45.03
• Enterprise Value/Market Cap: 135.65
• Enterprise Value/Revenue: 42.37
• Enterprise Value/Gross Profit: -518.91
• Enterprise Value/Ebitda: -63.66
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 37 Underperform
• Price Target: $3.00 ▲(1263.64% Upside)

Moolec Science faces significant financial challenges with negative profitability and cash flow issues despite revenue growth. The technical analysis is bearish, and the valuation appears unfavorable with a negative P/E ratio. These factors contribute to a low overall stock score, highlighting the need for improved financial performance and market sentiment.

Positive Factors

Revenue Growth

Moolec Science's substantial revenue growth indicates strong demand for its plant-based protein products, suggesting a robust market position and potential for future expansion.

Innovative Business Model

By leveraging molecular farming, Moolec Science is positioned at the forefront of biotechnology and agriculture, offering sustainable alternatives that align with global shifts towards environmentally friendly practices.

Strategic Partnerships

Collaborations with industry leaders enable Moolec Science to expand its market presence and drive innovation, potentially leading to increased adoption of its technology and products.

Negative Factors

Profitability Challenges

Despite revenue growth, Moolec Science's negative margins and high expenses hinder profitability, posing a risk to financial sustainability if not addressed.

High Debt Levels

The company's high leverage and poor returns on equity indicate financial instability, which could limit its ability to invest in growth and innovation.

Cash Flow Issues

Persistent negative cash flow suggests liquidity challenges, which may constrain operational flexibility and necessitate external financing to sustain operations.

Moolec Science Business Overview & Revenue Model

Company Description

Moolec Science SA, a science-based ingredient company, focuses on producing animal proteins in plants through Molecular Farming, a disruptive technology in the alternative protein landscape. The company's product portfolio and pipeline leverage the agronomic efficiency of used target crops, such as soybeans and peas. It operates in the United States, Europe, and South America. The company was founded in 2008 and is based in Luxembourg.

How the Company Makes Money

Moolec Science generates revenue through the sale of its plant-based protein ingredients to food manufacturers and other industry players looking to incorporate alternative proteins into their products. The company leverages its proprietary molecular farming technology to produce high-value proteins efficiently and cost-effectively. Key revenue streams include direct sales of protein ingredients and potential licensing agreements for its technology. Strategic partnerships with food industry leaders and agricultural companies also play a significant role in Moolec Science's business model, enhancing its market reach and enabling collaborative product development.

Moolec Science Financial Statement Overview

Summary

Moolec Science shows substantial revenue growth but struggles with profitability due to negative margins and high operating expenses. The balance sheet is concerning with a high debt-to-equity ratio and negative ROE, indicating financial instability. Cash flow issues are evident with negative free cash flow and inefficient cash management. Overall, significant improvements are needed in profitability and financial stability.

Income Statement

Moolec Science has shown a vast increase in revenue from zero to over $7.8 million in the TTM period, indicating strong top-line growth. However, the company struggles with profitability, highlighted by negative gross profit margin and net profit margin, primarily due to high operating expenses. Additionally, EBIT and EBITDA margins remain negative, reflecting ongoing operational challenges. Despite revenue growth, the company's margins are concerning, impacting overall income statement performance.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio due to significant liabilities compared to equity, with a current ratio of 7.9 indicating potential solvency issues. Despite this, the company maintains a reasonable equity ratio relative to total assets. However, the negative ROE suggests poor returns on shareholder investments, further highlighting financial instability. The balance sheet reflects Moolec Science's leveraged position, which could pose risks if revenue growth does not translate into profitability.

Cash Flow

Moolec Science's cash flow statement shows considerable negative free cash flow, which has worsened over time. The operating cash flow to net income ratio is unfavorable, indicating inefficient cash management from operations. Although the company has raised capital through financing activities, consistent negative free cash flow suggests potential liquidity issues. Overall, the cash flow situation is challenging, and improvements in cash management and operational efficiency are needed.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.83M	5.63M	905.05K	0.00	0.00
Gross Profit	-639.50K	472.58K	-143.31K	0.00	0.00
EBITDA	-5.21M	-6.16M	-51.74M	-3.65M	-13.80K
Net Income	-8.28M	-7.31M	-51.79M	-4.53M	-13.80K
Balance Sheet
Total Assets	31.38M	34.79M	24.05M	5.69M	138.59M
Cash, Cash Equivalents and Short-Term Investments	1.93M	5.39M	2.83M	1.08M	337.60K
Total Debt	22.09M	14.68M	2.65M	125.00K	125.00K
Total Liabilities	28.58M	27.97M	13.95M	4.09M	4.51M
Stockholders Equity	2.80M	6.82M	10.11M	1.60M	134.08M
Cash Flow
Free Cash Flow	-6.12M	-9.49M	-7.69M	-1.89M	-8.80K
Operating Cash Flow	-5.70M	-9.33M	-7.51M	-1.89M	-8.80K
Investing Cash Flow	-270.17K	134.87K	-2.34M	-138.00M	0.00
Financing Cash Flow	5.95M	11.71M	11.28M	139.05M	14.49K

Moolec Science Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MLEC, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.51, and below the 200-day MA of 3.79, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 25.88 is Positive, neither overbought nor oversold. The STOCH value of 10.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MLEC.

Moolec Science Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CYCN	47 Neutral	$5.42M	-1.78	-24.80%	―	1371.65%	64.13%
AIM	39 Underperform	$3.76M	-0.06	―	―	-41.05%	57.35%
CLDI	37 Underperform	$9.25M	-0.14	―	―	―	87.42%
MLEC	37 Underperform	$2.45M	-0.11	-174.68%	―	170.36%	-24.98%
ENSC	32 Underperform	$4.03M	-0.18	-270.54%	―	1.51%	77.64%