Formycon AG (FYB) AI Stock Analysis

• Market Cap: €412.55M
• Dividend Yield: N/A
• Average Volume (3M): 22.51K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 1.06
• Revenue Growth: -14.84%
• EPS Growth: -338.52%
• Country: DE
• Employees: 250
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -3.07
• Shares Outstanding: 17,667,927
• 10 Day Avg. Volume: 34,666
• 30 Day Avg. Volume: 22,506
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €44.17
• Price Target Upside: 89.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 57 Neutral
• Price Target: €29.00 ▲(24.20% Upside)

Formycon AG's stock score is primarily influenced by its financial performance and valuation. The company's strong balance sheet provides stability despite its profitability issues and negative cash flow. Technical indicators suggest weak market momentum, while valuation concerns weigh heavily due to the negative P/E ratio and lack of dividends.

Positive Factors

Strong Balance Sheet

A strong balance sheet with a healthy equity ratio and low leverage provides financial stability and resilience against economic fluctuations.

Strategic Partnerships

Strategic partnerships and licensing agreements enhance market reach and provide a steady revenue stream through upfront and milestone payments.

Operational Efficiency

Strong EBITDA performance indicates potential operational efficiency, which can drive long-term profitability despite current challenges.

Negative Factors

Profitability Challenges

Persistent profitability challenges, with negative EBIT and net income margins, could hinder long-term financial growth and investor confidence.

Negative Cash Flows

Consistently negative operating cash flows highlight difficulties in generating cash from operations, potentially affecting liquidity and financial flexibility.

Declining Revenue Growth

Declining revenue growth indicates challenges in market expansion and product adoption, which could impact long-term competitive positioning.

Formycon AG Business Overview & Revenue Model

Company Description

Formycon AG is a leading German-based biotechnology company specializing in the development of biosimilar drugs, which are essentially generic versions of biologic medicines. These biosimilars are designed to provide more affordable options for patients requiring biologic treatments. Formycon's core focus is on creating high-quality biosimilars to treat chronic diseases in areas such as ophthalmology, immunology, and other critical therapeutic fields.

How the Company Makes Money

Formycon AG generates revenue through the development and commercialization of biosimilar products. The company primarily earns money by entering into partnerships and licensing agreements with larger pharmaceutical companies that market and distribute Formycon's biosimilar drugs. These partnerships often involve upfront payments, milestone payments based on development and regulatory achievements, and royalty payments based on sales of the biosimilars. Additionally, Formycon invests in its own pipeline of biosimilars, which, upon successful commercialization, contribute to its revenue streams. The company's strategic collaborations and licensing agreements are crucial for its financial performance, enabling it to leverage the distribution networks and market reach of its partners.

Formycon AG Financial Statement Overview

Summary

Formycon AG exhibits a mixed financial performance with strong balance sheet stability, reflected by a healthy equity ratio and low leverage. However, challenges in profitability and cash flow generation are significant concerns. The company's reliance on external financing for cash flow is a potential risk.

Income Statement

Formycon AG demonstrates volatile revenue trends with a notable decline from 2023 to 2024. The company faces profitability challenges, evidenced by negative EBIT and net income margins in 2024. Despite this, the company experienced strong EBITDA performance in 2023, indicating potential operational efficiency. However, the negative net profit margin and declining revenue growth are areas of concern.

Balance Sheet

The company's balance sheet shows a strong equity base with a healthy equity ratio, reflecting financial stability. The debt-to-equity ratio is low, suggesting conservative leverage usage. However, the declining stockholders' equity from 2023 to 2024 could indicate potential risk. Return on equity is negative in 2024 due to net losses, which is a downside.

Cash Flow

Operating cash flows are consistently negative, highlighting challenges in generating cash from operations. Free cash flow is also negative, which may affect liquidity. Despite negative cash flows, the company has managed to improve its cash position through financing activities, which could provide short-term relief.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.67M	77.70M	42.50M	36.61M	34.23M
Gross Profit	14.83M	23.30M	12.07M	10.11M	-2.19M
EBITDA	-4.10M	81.05M	51.53M	-12.42M	-5.90M
Net Income	-125.67M	75.80M	35.99M	-13.29M	-5.93M
Balance Sheet
Total Assets	771.72M	890.36M	853.70M	70.72M	75.60M
Cash, Cash Equivalents and Short-Term Investments	41.84M	27.04M	9.82M	25.18M	42.25M
Total Debt	10.59M	29.49M	49.31M	5.28M	4.98M
Total Liabilities	309.87M	387.61M	497.12M	14.82M	7.56M
Stockholders Equity	461.84M	502.75M	356.58M	55.89M	68.04M
Cash Flow
Free Cash Flow	-53.16M	-30.60M	-45.75M	-14.48M	-5.86M
Operating Cash Flow	-23.22M	-9.85M	-18.99M	-13.54M	-5.21M
Investing Cash Flow	-1.46M	-17.38M	-37.07M	-3.93M	-650.00K
Financing Cash Flow	39.48M	44.44M	40.85M	491.00K	25.75M

Formycon AG Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FYB, the sentiment is Neutral. The current price of 23.35 is above the 20-day moving average (MA) of 23.28, below the 50-day MA of 25.65, and below the 200-day MA of 32.51, indicating a neutral trend. The MACD of -0.82 indicates Negative momentum. The RSI at 46.56 is Neutral, neither overbought nor oversold. The STOCH value of 67.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:FYB.

Formycon AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ILM1	75 Outperform	357.08M	18.97	3.60%	―	7.02%	10.58%
PSG	75 Outperform	355.20M	17.66	61.12%	0.17%	13.80%	10.94%
SBS	64 Neutral	354.35M	22.12	6.61%	2.06%	-1.64%	22.60%
BIO3	59 Neutral	1.38B	-48.46	4.97%	0.13%	-18.82%	-113.85%
FYB	57 Neutral	€412.55M	5.89	-34.48%	―	-14.84%	-338.52%
BIO	55 Neutral	1.38B	-63.96	4.97%	0.10%	-18.82%	-113.85%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%