ForFarmers N.V. (FFARM) AI Stock Analysis

• Market Cap: €495.37M
• Dividend Yield: 4.66%
• Average Volume (3M): 80.19K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.64
• 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): 0.27
• Shares Outstanding: 89,283,810
• 10 Day Avg. Volume: 75,719
• 30 Day Avg. Volume: 80,186
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 6.97
• 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: €5.50
• Price Target Upside: 22.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: €6.00 ▲(33.93% Upside)

ForFarmers N.V. demonstrates strong valuation metrics with an attractive dividend yield and low P/E ratio, contributing positively to the score. However, financial performance concerns, particularly revenue decline and cash flow issues, weigh on the score. Technical indicators suggest bearish momentum, further impacting the overall assessment.

Positive Factors

Business model and market position

ForFarmers' integrated feed production, species coverage (cattle, pigs, poultry), advisory services and direct branch/distributor network create recurring demand, cross-sell opportunities and client stickiness. This durable model supports revenue stability and resilience to cyclical shocks.

Improving margins and operational efficiency

Sequential margin improvement reflects better cost control and operational efficiency, which can sustainably boost cash earnings if maintained. Higher gross and operating margins increase buffer against input cost volatility and support reinvestment or shareholder distributions over the medium term.

Moderate leverage and improving returns

A moderate D/E and improving ROE indicate a stable capital structure with room to fund growth or weather downturns. This financial flexibility supports strategic investments and dividend capacity, enhancing the firm's long-term operational resilience in an cyclical industry.

Negative Factors

Decline in free cash flow

A material drop in free cash flow reduces internal funding for capex, dividends and debt reduction. If this trend persists it can force external financing or operational cutbacks, limiting strategic flexibility and weakening the firm's ability to invest in efficiency or growth initiatives.

Revenue decline and earnings volatility

Top-line contraction and historical profit swings undermine scale economics and predictability of cash generation. Persistent revenue weakness can pressure margins, erode market share and necessitate structural adjustments in pricing, customer mix or cost base to restore sustainable growth.

Declining equity levels reduce balance sheet buffer

A falling equity base shrinks the shock absorber for commodity or demand shocks and reduces borrowing headroom. Over time, lower shareholders' equity increases leverage risk and can constrain investment capacity, making the company more vulnerable during industry downturns.

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

ForFarmers N.V. shows operational improvement with rising profit margins and strong cash flow generation. However, revenue decline and reduced free cash flow indicate potential challenges. The balance sheet is stable with moderate leverage, but declining equity levels should be monitored.

Income Statement

ForFarmers N.V. experienced revenue fluctuations, with a recent decline from 2023 to 2024. However, the gross profit margin improved to 17.52% in 2024 from 16.04% in 2023, indicating better cost management. The net profit margin turned positive at 1.14% in 2024, recovering from a loss in 2023. The EBIT and EBITDA margins also improved, reflecting enhanced operational efficiency. Despite these improvements, the revenue decline and past volatility in earnings pose challenges.

Balance Sheet

The company's debt-to-equity ratio stands at 0.49, indicating moderate leverage. Return on equity improved to 9.56% in 2024, demonstrating better profitability relative to equity. The equity ratio is 34.85%, showing a stable financial position but a slight decrease from previous years. Overall, the balance sheet reflects a stable capital structure with manageable debt levels, though equity has slightly decreased over the years.

Cash Flow

Free cash flow declined by 21.23% from 2023 to 2024, pointing to potential cash management issues. The operating cash flow to net income ratio is 2.24, indicating strong cash generation relative to net income. However, the decrease in free cash flow suggests challenges in sustaining cash reserves. While operating cash flow remains robust, the decreasing free cash flow warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.96B	2.75B	2.97B	3.31B	2.67B	2.35B
Gross Profit	522.80M	481.00M	477.30M	494.80M	436.27M	433.18M
EBITDA	106.60M	82.50M	52.70M	69.30M	66.11M	70.81M
Net Income	51.00M	31.40M	-1.00M	18.00M	12.00M	14.15M
Balance Sheet
Total Assets	1.05B	942.10M	840.80M	1.02B	943.44M	816.69M
Cash, Cash Equivalents and Short-Term Investments	61.10M	50.70M	46.50M	68.40M	68.27M	68.66M
Total Debt	13.90M	159.80M	108.50M	166.80M	131.64M	80.88M
Total Liabilities	643.10M	603.80M	520.40M	676.20M	577.18M	454.20M
Stockholders Equity	327.20M	328.40M	311.50M	335.10M	360.53M	356.93M
Cash Flow
Free Cash Flow	67.10M	43.40M	55.10M	12.90M	15.05M	62.39M
Operating Cash Flow	108.50M	70.20M	86.50M	48.20M	54.68M	98.14M
Investing Cash Flow	-50.80M	-78.30M	-7.20M	-34.80M	-55.64M	-28.81M
Financing Cash Flow	-15.80M	-7.40M	-66.90M	-17.80M	-2.49M	-47.53M

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 5.05, below the 50-day MA of 4.63, and above the 200-day MA of 4.34, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 79.04 is Negative, neither overbought nor oversold. The STOCH value of 94.73 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	€1.16B	17.23	8.84%	3.50%	-3.45%	-5.55%
FFARM	64 Neutral	€495.37M	9.66	16.22%	4.66%	8.76%	193.06%
SLIGR	63 Neutral	€502.74M	18.57	5.83%	5.12%	-2.70%	576.55%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%