ForFarmers N.V. (FFARM) AI Stock Analysis

• Market Cap: €383.80M
• Dividend Yield: 4.64%
• Average Volume (3M): 167.49K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.69
• Revenue Growth: -7.70%
• EPS Growth: N/A
• Country: NL
• Employees: 2,311
• Sector: Industrials
• Sector Strength: 89
• Industry: Agricultural Farm Products
• EPS (TTM): 0.35
• Shares Outstanding: 89,283,810
• 10 Day Avg. Volume: 270,857
• 30 Day Avg. Volume: 167,487
• PEG Ratio: 0.21
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.70
• 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: €4.05
• Price Target Upside: -2.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

ForFarmers N.V. has shown improvements in profitability and cash flow generation, contributing positively to its score. However, revenue decline and challenges in maintaining free cash flow are significant concerns. The stock's valuation is reasonable, offering some upside potential. Technical analysis is mixed, reflecting uncertainty in market direction. Overall, the stock is moderately positioned, with key strengths in operational recovery and valuation, but faces risks from declining revenue and cash flow.

ForFarmers N.V. Business Overview & Revenue Model

Company Description

ForFarmers N.V. (FFARM) is a leading European feed company that focuses on providing sustainable, total feed solutions for conventional and organic livestock farming. The company's core products include compound feed, specialties, and co-products, serving sectors such as poultry, swine, ruminant, and equine. With operations in the Netherlands, Germany, Belgium, Poland, and the United Kingdom, ForFarmers emphasizes innovation and sustainability in its offerings, aiming to enhance both farm efficiency and animal welfare.

How the Company Makes Money

ForFarmers N.V. generates revenue primarily through the sale of its animal feed products, which include compound feed, specialties, and co-products. The company serves a variety of livestock sectors including poultry, swine, ruminants, and equine, tailoring its offerings to meet the specific nutritional needs of each animal type. Revenue streams are bolstered by ForFarmers' commitment to providing integrated feed solutions that enhance productivity and efficiency on farms. Additionally, the company engages in strategic partnerships and collaborations to expand its market reach and enhance its product offerings. ForFarmers also benefits from its focus on sustainability and innovation, which helps in attracting environmentally conscious customers and staying competitive in the market.

ForFarmers N.V. Financial Statement Overview

Summary

ForFarmers N.V. shows operational improvements 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, though declining equity levels need monitoring. The company is recovering but must address revenue and cash flow issues for sustained growth.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.75B	2.97B	3.31B	2.67B	2.35B
	Gross Profit
481.00M	477.30M	494.80M	436.27M	433.18M
	EBIT
55.40M	4.60M	34.30M	30.54M	63.73M
	EBITDA
82.50M	52.70M	69.30M	66.11M	70.81M
	Net Income Common Stockholders
31.40M	-1.00M	18.00M	12.00M	14.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
50.70M	46.50M	68.40M	68.27M	68.66M
	Total Assets
942.10M	840.80M	1.02B	943.44M	816.69M
	Total Debt
159.80M	108.50M	166.80M	131.64M	80.88M
	Net Debt
109.10M	62.00M	98.40M	63.37M	12.22M
	Total Liabilities
603.80M	520.40M	676.20M	577.18M	454.20M
	Stockholders Equity
328.40M	311.50M	335.10M	360.53M	356.93M
Cash Flow		Free Cash Flow
43.40M	55.10M	12.90M	15.05M	62.39M
	Operating Cash Flow
70.20M	86.50M	48.20M	54.68M	98.14M
	Investing Cash Flow
-78.30M	-7.20M	-34.80M	-55.64M	-28.81M
	Financing Cash Flow
-7.40M	-66.90M	-17.80M	-2.49M	-47.53M

ForFarmers N.V. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 4.15 is above the 20-day moving average (MA) of 4.09, below the 50-day MA of 4.16, and above the 200-day MA of 3.40, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 61.23 is Neutral, neither overbought nor oversold. The STOCH value of 52.92 is Neutral, 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
NEDAP	72 Outperform	€424.22M	23.23	21.92%	4.92%	-4.12%	-14.85%
Sector *	64 Neutral	$4.43B	12.01	5.15%	249.50%	3.98%	-11.60%
FFARM	64 Neutral	€383.80M	12.16	9.81%	4.64%	-7.70%	―
KENDR	49 Neutral	€178.17M	―	3.69%	3.95%	-41.85%	-143.78%