Bedrijfsoverzicht
Farmmi, Inc. is a specialized entity focused on the processing and sale of agricultural products across international markets including China, the United States, Japan, Canada, Europe, Korea, and the Middle East. The company primarily provides a range of edible fungi such as Shiitake mushrooms, Mu Er mushrooms, bamboo fungi, agrocybe aegerila, and pleurotus varieties to its global customer base. Operating within the Consumer Defensive sector, specifically under the Packaged Foods industry, the business aims to supply essential food items that tend to maintain demand regardless of economic cycles. With a current market capitalization of $16.58M, an annual revenue of $27.97M, and a workforce of 15 employees, the firm operates as a micro-cap enterprise. These valuation and revenue figures indicate that Farmmi is a small-scale operation with limited market penetration relative to larger industry peers, suggesting a niche market presence rather than broad-scale dominance in the global packaged food landscape.
Financiële gezondheid
The company reported revenue of $27.97M over the trailing twelve months, yet generated a net income of $-53,098,648 and an EBITDA of $-47,020,984. The substantial negative gap between positive revenue and deeply negative net income reveals a cost structure where operating expenses and other deductions significantly exceed gross profits, resulting in a loss on every dollar of sales. Despite the accounting losses, the company reports a free cash flow of $43.90M, which suggests a degree of operational efficiency in managing cash outflows versus inflows, potentially due to non-cash expenses or timing differences in working capital management. This positive free cash flow provides the company with financial flexibility to fund operations without immediate reliance on external financing, although it does not offset the reported net losses. The margin analysis shows a gross margin of 2.9%, an operating margin of -393.8%, and a profit margin of -189.8%, indicating that the company struggles to cover its fixed costs and overheads after selling goods. On the balance sheet, the company holds $803,477 in cash against $20.77M in debt, resulting in a debt-to-equity ratio of 16.77, which signifies a highly leveraged position where liabilities substantially outweigh equity. The current ratio stands at 9.35, indicating that current assets are nine times larger than current liabilities, which points to strong short-term liquidity despite the overall debt load. Return on Equity is -36.3% and Return on Assets is -17.7%, metrics that reveal that management has not yet been effective in generating positive returns on the capital invested or the assets utilized by the firm.
Waarderingsbeoordeling
Both the trailing P/E ratio and forward P/E ratio are listed as N/A, reflecting the fact that the company has not generated positive earnings to support a traditional earnings-based valuation multiple. Consequently, the absence of a positive P/E ratio implies that the market is not pricing in a trajectory of immediate earnings recovery based on historical profitability. The price-to-book ratio is 0.05, indicating that the market values the company at only 5% of its book value, which suggests a deep discount or a significant lack of confidence in the company's intangible assets and future earning potential. Alternative valuation metrics provide further insight, with a price-to-sales ratio of 0.59 and an EV/EBITDA of -0.77, suggesting that the market is willing to pay less than one dollar of equity value for every dollar of sales generated. The stock has a 52-week high of $2.22 and a 52-week low of $1.10, and while the exact current price is not explicitly defined in the provided facts, the valuation context suggests the stock trades below its recent high, reflecting market hesitation. The beta value is 1.65, which means the stock is expected to be 65% more volatile than the broader market, exposing investors to higher price swings during periods of market turbulence.
Growth & Income
The company experienced a revenue growth rate of -57.3% year-over-year, while earnings growth is listed as N/A due to the lack of positive earnings in the previous comparable period. This contraction in revenue indicates a shrinking top line, and since earnings are already negative, the relationship between revenue and earnings growth cannot be evaluated in a traditional sense of expanding margins. Regarding income, Farmmi does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning the company retains all available cash rather than distributing it to shareholders. This approach implies that the firm is currently prioritizing capital preservation or attempting to rebuild its financial foundation rather than rewarding income-seeking investors. The overall growth and income profile is characterized by significant revenue contraction, negative profitability, and a complete absence of dividend distributions, painting a picture of a company in a distressed phase of its lifecycle.