Farmmi (FAMI) AI Stock Analysis

• Market Cap: $1.98M
• Dividend Yield: N/A
• Average Volume (3M): 263.12K
• Price to Earnings (P/E): 1.3
• Beta (1Y): 0.95
• Revenue Growth: -41.89%
• EPS Growth: -392.78%
• Country: US
• Employees: 42
• Sector: Consumer Defensive
• Sector Strength: 94
• Industry: Packaged Foods
• EPS (TTM): -0.71
• Shares Outstanding: 1,250,500
• 10 Day Avg. Volume: 28,414
• 30 Day Avg. Volume: 263,122
• PEG Ratio: 0.03
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.02
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Farmmi faces significant financial challenges with declining revenues and profitability, which weigh heavily on its overall score. Technical indicators confirm a negative market sentiment, with a downward trend in stock price. The company's valuation is further hindered by a negative P/E ratio and no dividend yield, indicating potential risks for investors. While the balance sheet shows some stability, the overall outlook remains concerning, necessitating strategic improvements.

Farmmi Business Overview & Revenue Model

Company Description

Farmmi, Inc., together with its subsidiaries, processes and sells agricultural products in China, the United States, Japan, Canada, Europe, Korea, and the Middle East. The company offers shiitake and Mu Er mushrooms; and other edible fungi products, including bamboo fungi, agrocybe aegerila, pleurotus eryngii, coprinus comatus, grifola frondosa, and hericium erinaceus. It also operates Farmmi Jicai, an online store that sells edible fungi products under Forasen and Farmmi Liangpin brands. In addition, the company processes dried mushroom and dried black fungus. It offers its products to restaurants, cafeterias, and local specialty stores, as well as through distributors. Farmmi, Inc. was incorporated in 2015 and is headquartered in Lishui, China.

How the Company Makes Money

Farmmi generates revenue primarily through the sale of its agricultural products, particularly edible fungi. The company operates a vertically integrated business model, managing everything from cultivation to distribution, which allows it to capture more value at each stage of the supply chain. Revenue streams include direct sales to wholesalers, retailers, and food service companies, as well as exports to international markets. Farmmi's earnings are further supported by its strategic partnerships with distributors and its focus on expanding its global market presence. The company's ability to maintain product quality and leverage its technological expertise in agriculture contributes significantly to its revenue generation.

Farmmi Financial Statement Overview

Summary

Farmmi is experiencing financial difficulties with declining revenues and profitability, as evidenced by negative net income and cash flow challenges. The balance sheet remains relatively strong with high equity, but increased debt levels pose potential risks. Overall, the financial health of the company is under pressure, requiring strategic measures to improve financial performance.

Income Statement

Farmmi's revenue has decreased significantly from the previous year, indicating a negative growth rate. The net profit margin has also turned negative, highlighting profitability challenges. Despite a positive gross profit margin, the EBIT and EBITDA margins have also declined, pointing to operational inefficiencies.

Balance Sheet

The company's balance sheet shows a solid equity base with a high equity ratio, indicating financial stability. However, the debt-to-equity ratio has increased, suggesting a higher reliance on debt financing. Return on equity has turned negative, reflecting weakened profitability.

Cash Flow

Farmmi's cash flow position has deteriorated with a negative free cash flow growth rate. The operating cash flow to net income ratio is unfavorable, indicating cash flow challenges. The company faces difficulties in generating cash from operations relative to its net income.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
64.13M	110.36M	99.21M	39.29M	30.17M
	Gross Profit
3.87M	4.29M	5.44M	5.11M	4.96M
	EBIT
795.68K	2.04M	1.82M	2.85M	1.12M
	EBITDA
-2.35M	3.80M	2.66M	2.92M	2.33M
	Net Income Common Stockholders
-4.65M	2.54M	2.22M	2.36M	823.61K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
486.52K	12.79M	76.32M	62.05M	548.15K
	Total Assets
186.73M	174.80M	163.78M	165.69M	38.19M
	Total Debt
15.05M	11.06M	4.55M	3.08M	6.10M
	Net Debt
14.57M	-1.73M	-36.62M	-56.18M	5.55M
	Total Liabilities
16.72M	12.82M	9.10M	4.89M	9.04M
	Stockholders Equity
169.99M	161.98M	154.68M	159.88M	28.29M
Cash Flow		Free Cash Flow
-16.80M	-75.75M	20.63M	-946.27K	-1.86M
	Operating Cash Flow
-16.78M	-75.75M	20.64M	-941.59K	-1.62M
	Investing Cash Flow
2.07M	35.90M	-41.99M	-122.73M	-247.24K
	Financing Cash Flow
1.83M	11.02M	11.63M	124.19M	3.20M

Farmmi Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.68
• 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 FAMI, the sentiment is Negative. The current price of 1.68 is below the 20-day moving average (MA) of 1.71, below the 50-day MA of 2.32, and below the 200-day MA of 3.76, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 38.37 is Neutral, neither overbought nor oversold. The STOCH value of 65.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FAMI.

Farmmi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$9.90B	14.43	3.80%	201.21%	4.14%	9.08%
ALCO	55 Neutral	$224.93M	32.96	-17.05%	0.69%	14.59%	-194.05%
CRESY	46 Neutral	$763.36M	―	-8.05%	8.23%	-3.06%	-124.82%
VFF	45 Neutral	$63.53M	―	-12.88%	―	17.71%	-10.34%
FAMI	43 Neutral	$1.98M	1.27	-2.80%	―	-41.89%	-392.78%
SEED	41 Neutral	$10.08M	2.84		―	18.41%	-64.88%
AGFY	39 Underperform	$34.32M	―	-438.92%	―	-42.61%	91.66%