ForFarmers N.V. (FFARM) AI Stock Analysis

• Market Cap: €611.40M
• Dividend Yield: 4.66%
• Average Volume (3M): 80.19K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.77
• Revenue Growth: 8.76%
• EPS Growth: 193.06%
• Country: NL
• Employees: 2,311
• Sector: General
• Sector Strength: N/A
• Industry: Agricultural Farm Products
• EPS (TTM): 0.30
• Shares Outstanding: 89,283,810
• 10 Day Avg. Volume: 75,719
• 30 Day Avg. Volume: 80,186
• PEG Ratio: 0.13
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 3.99
• 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: €7.50
• Price Target Upside: 67.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.6
• Revenue Forecast (FY): €3.07B

• Rating: 69 Neutral
• Price Target: €7.50 ▲(67.41% Upside)
• Action: Reiterated Date: 02/23/26
• Date: Action: Reiterated 02/23/26

The score is driven primarily by improving financial performance (earnings and cash flow rebound) tempered by thin/volatile margins and rising leverage. Valuation is favorable (low P/E and solid yield), while technicals show a strong uptrend but are extremely overbought, increasing near-term risk.

Positive Factors

Market Position

ForFarmers' position as a leading European feed supplier, with a broad product range, branch/distributor network and partnerships, provides durable scale and customer access. This supports steady structural demand, cross-selling and resilience versus smaller competitors over months.

Cash Generation

A sharp FCF rebound (98.4M, +46.6%) and strong operating cash flow indicate improved cash conversion and earnings quality. Sustained FCF supports reinvestment, dividends and debt repayment capacity, strengthening financial flexibility over the medium term.

Earnings Recovery

Revenue rebound and higher net income (49.9M) reflect a return to profitable operations and better operational leverage. Improved returns (ROE rose to ~13.9% in 2025) signal stronger earnings power and more discretionary capital for growth or shareholder returns.

Negative Factors

Margin Compression

Significant gross margin compression and very thin net margins materially reduce the company's buffer against cost inflation or pricing pressure. With modest absolute margins, small adverse input-cost moves could quickly erode profitability and cash flow sustainability.

Rising Leverage

A clear upward leverage trend weakens balance-sheet flexibility; although equity increased, higher debt-to-equity raises refinancing and covenant risk. If margins slip, elevated leverage amplifies downside and limits strategic optionality over coming quarters.

Debt Coverage

Operating cash flow covers only a modest portion of debt (coverage ~0.29), so repayment capacity is limited if debt continues to rise. This constrains capital allocation flexibility and increases sensitivity to cash-flow volatility over the medium term.

ForFarmers N.V. Business Overview & Revenue Model

Company Description

ForFarmers N.V. provides feed solutions for conventional and organic livestock farming in the Netherlands, Belgium, Germany, Poland, and the United Kingdom. It offers compound feed and blends, feed for young animals and specialties, raw materials and coproducts, seeds, and fertilizers. The company was founded in 1896 and is headquartered in Lochem, the Netherlands.

How the Company Makes Money

ForFarmers generates revenue primarily through the sale of animal feed and nutritional products to farmers and livestock producers. The company operates on a direct sales model, where it sells its products through a network of branches and distributors. Key revenue streams include the sale of compound feeds, raw materials, and specialty products tailored to specific livestock needs. Additionally, ForFarmers offers consultancy services, which provide farmers with valuable insights into optimizing their feeding strategies and improving animal health and productivity. Strategic partnerships with agricultural cooperatives and other stakeholders in the supply chain further enhance its market reach and contribute to its earnings by ensuring a steady demand for its products.

ForFarmers N.V. Financial Statement Overview

Summary

2025 results show a clear recovery with higher net income and strong operating/free cash flow. Offsets include notably compressed gross margin, thin net margins, and a step-up in leverage (debt-to-equity rising to 0.64), which increases sensitivity if costs/pricing move against the company.

Income Statement

Profitability improved meaningfully into 2025, with net income rising to 49.9M (from 31.4M in 2024) and operating profit expanding sharply versus the near-breakeven result in 2023. Revenue also rebounded strongly in 2025 (+6.4%) after two down years (2023–2024). Offsetting this, the gross margin compressed notably in 2025 (about 10.8% vs. 17.5% in 2024), and overall net margins remain thin for the period (about 1.6% in 2025), leaving earnings more sensitive to cost and pricing swings.

Balance Sheet

The balance sheet is generally solid with moderate leverage: debt-to-equity is 0.64 in 2025, higher than 2024 (0.49) and 2023 (0.35), indicating a recent step-up in debt load. Equity increased over time (357.8M in 2025 vs. 311.5M in 2023), and returns improved alongside the earnings rebound, with return on equity rising to ~13.9% in 2025 (from ~9.6% in 2024 and negative in 2023). The main watch item is the upward leverage trend in 2025, which reduces balance-sheet flexibility if margins weaken again.

Cash Flow

Cash generation strengthened in 2025 with operating cash flow of 149.3M and free cash flow of 98.4M, and free cash flow growth accelerating sharply (+46.6%) after a decline in 2024. Free cash flow remains solid relative to earnings (about 66% of net income in 2025, similar to prior years), suggesting decent earnings quality. A weakness is that operating cash flow covers a relatively small share of debt (coverage ~0.29 in 2025, though improved from 2024), implying repayment capacity is good but not exceptionally strong if debt continues to rise.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.15B	2.75B	2.97B	3.31B	2.67B
Gross Profit	339.90M	481.00M	477.30M	494.80M	436.27M
EBITDA	163.80M	82.50M	52.70M	69.30M	66.11M
Net Income	49.90M	31.40M	-1.00M	18.00M	12.00M
Balance Sheet
Total Assets	1.11B	942.10M	840.80M	1.02B	943.44M
Cash, Cash Equivalents and Short-Term Investments	109.70M	50.70M	46.50M	68.40M	68.27M
Total Debt	227.70M	159.80M	108.50M	166.80M	131.64M
Total Liabilities	672.00M	603.80M	520.40M	676.20M	577.18M
Stockholders Equity	357.80M	328.40M	311.50M	335.10M	360.53M
Cash Flow
Free Cash Flow	98.40M	43.40M	55.10M	12.90M	15.05M
Operating Cash Flow	149.30M	70.20M	86.50M	48.20M	54.68M
Investing Cash Flow	-36.00M	-78.30M	-7.20M	-34.80M	-55.64M
Financing Cash Flow	-30.30M	-7.40M	-66.90M	-17.80M	-2.49M

ForFarmers N.V. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.48
• 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 NL:FFARM, the sentiment is Positive. The current price of 4.48 is below the 20-day moving average (MA) of 5.88, below the 50-day MA of 5.20, and below the 200-day MA of 4.50, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 87.03 is Negative, neither overbought nor oversold. The STOCH value of 94.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:FFARM.

ForFarmers N.V. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRBN	71 Outperform	€1.20B	17.69	8.84%	3.50%	-3.45%	-5.55%
FFARM	69 Neutral	€611.40M	12.17	16.22%	4.66%	8.76%	193.06%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
SLIGR	54 Neutral	€636.39M	21.15	5.83%	5.12%	-2.70%	576.55%