Moolec Science (MLEC) AI Stock Analysis

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Moolec Science

(NASDAQ:MLEC)

46Neutral

Moolec Science faces financial and operational challenges despite strong revenue growth. High leverage and negative cash flow highlight financial instability. The technical analysis suggests bearish sentiment, with oversold signals but no clear recovery signs. Unfavorable valuation metrics further contribute to the stock's low score, reflecting significant risks in the company's financial and operational outlook.

Moolec Science (MLEC) vs. S&P 500 (SPY)

Market Cap

$24.99M

Dividend YieldN/A

Average Volume (3M)17.70K

Price to Earnings (P/E)―

Beta (1Y)-0.24

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees52

SectorHealthcare

Sector Strength70

IndustryBiotechnology

Share Statistics

EPS (TTM)-0.20

Shares Outstanding40,126,840

10 Day Avg. Volume14,584

30 Day Avg. Volume17,701

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Moolec Science Business Overview & Revenue Model

Company DescriptionMoolec Science (MLEC) is a pioneering company in the field of molecular farming, operating at the intersection of biotechnology and food production. The company focuses on developing alternative protein solutions by using plants as scalable, sustainable production hosts to produce animal proteins. By leveraging their proprietary technology, Moolec Science aims to address global food security challenges while reducing the environmental impact associated with traditional animal farming.

How the Company Makes MoneyMoolec Science makes money primarily through the commercialization of its molecular farming technology and the sale of its plant-based protein products. Key revenue streams include licensing agreements with food manufacturers and agricultural companies who utilize Moolec's technology to incorporate animal proteins into their product offerings. Additionally, Moolec may engage in direct sales of its protein products to food processing companies. Significant partnerships with industry leaders and research institutions further enhance the company's ability to generate income through collaborative development projects and joint ventures.

Moolec Science Financial Statement Overview

Summary

Moolec Science is experiencing rapid revenue growth, but profitability remains a concern with negative margins and increasing leverage. The balance sheet suggests rising financial risk due to higher debt levels. Cash flow challenges persist, with negative free and operating cash flows, indicating potential liquidity issues. The company needs to address profitability and cash flow management to improve financial stability.

Income Statement

Neutral

Moolec Science's income statement reveals a significant improvement in revenue, growing from $905,049 in 2023 to $5,625,124 in 2024, indicating strong revenue growth. However, the company remains unprofitable with a negative net income of $7,312,260 in 2024. Gross profit margin improved to 8.4%, but EBIT and EBITDA margins remain negative, reflecting ongoing operational challenges.

Balance Sheet

Neutral

The balance sheet shows increased leverage with a debt-to-equity ratio of 2.15 in 2024, up from 0.26 in 2023. The equity ratio declined to 19.6%, suggesting higher financial risk. However, the company's total assets increased, indicating expansion. The negative return on equity of -107.3% highlights profitability issues.

Cash Flow

Negative

Cash flow analysis indicates a challenging cash position with negative operating and free cash flow in 2024. Free cash flow was -$9,486,551, worsening from -$7,690,539 in 2023, showing a negative growth trend. The operating cash flow to net income ratio is negative, highlighting cash flow management issues.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Breakdown
Income Statement		Total Revenue
5.44M	5.63M	905.05K	0.00	0.00
	Gross Profit
25.74K	472.58K	-143.31K	0.00	0.00
	EBIT
-9.07M	-9.04M	-6.65M	-3.65M	-13.80K
	EBITDA
-5.79M	-6.16M	-51.74M	-3.65M	-13.80K
	Net Income Common Stockholders
-7.64M	-7.31M	-51.79M	-4.53M	-13.80K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.22M	5.39M	2.83M	1.08M	980.53K
	Total Assets
19.98M	34.79M	24.05M	5.69M	5.88M
	Total Debt
160.00K	14.68M	2.65M	125.00K	295.00K
	Net Debt
-6.06M	9.29M	117.62K	-956.81K	-685.53K
	Total Liabilities
8.40M	27.97M	13.95M	4.09M	587.66K
	Stockholders Equity
11.59M	6.82M	10.11M	1.60M	5.29M
Cash Flow		Free Cash Flow
-8.98M	-9.49M	-7.69M	-1.89M	-8.80K
	Operating Cash Flow
-8.86M	-9.33M	-7.51M	-1.89M	-8.80K
	Investing Cash Flow
-99.44K	134.87K	-2.34M	-138.00M	0.00
	Financing Cash Flow
11.45M	11.71M	11.28M	2.00M	14.49K

Moolec Science Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price0.62

Price Trends

50DMA

0.70

Negative

100DMA

0.77

Negative

200DMA

0.84

Negative

Market Momentum

MACD

-0.05

Positive

RSI

35.51

Neutral

STOCH

6.23

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MLEC, the sentiment is Neutral. The current price of 0.62 is below the 20-day moving average (MA) of 0.66, below the 50-day MA of 0.70, and below the 200-day MA of 0.84, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 35.51 is Neutral, neither overbought nor oversold. The STOCH value of 6.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MLEC.

Moolec Science Risk Analysis

Moolec Science disclosed 52 risk factors in its most recent earnings report. Moolec Science reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Moolec Science Peers Comparison

Overall Rating

UnderperformOutperform

Sector (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIVN	54 Neutral	$13.31B	―	-60.48%	―	12.09%	17.65%
Sector *	48 Neutral	$6.25B	1.14	-46.26%	2.69%	19.24%	1.75%
MLEC	46 Neutral	$24.99M	―	-104.72%	―	―	―
PLUG	43 Neutral	$1.18B	―	-90.88%	―	-29.45%	-10.79%
APRE	38 Underperform	$8.70M	―	-66.65%	―	157.63%	40.52%
DNMRQ	32 Underperform	$872.32K	―	-43.11%	―	-26.70%	27.53%
BYND	29 Underperform	$220.02M	―	44.21%	―	-4.93%	53.78%

* Healthcare Sector Average

Performance Comparison

MLEC

Moolec Science

0.67

-0.53

-44.17%

PLUG

Plug Power

1.13

-1.76

-60.90%

BYND

Beyond Meat

2.71

-3.93

-59.19%

APRE

Aprea Therapeutics

1.55

-4.16

-72.85%

DNMRQ

Danimer Scientific

0.28

-31.18

-99.11%

RIVN

Rivian Automotive

11.47

2.34

25.63%

Moolec Science Earnings Call Summary

Earnings Call Date: Mar 12, 2025 | % Change Since: -34.04% | Next Earnings Date: May 28, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive sentiment with significant achievements in revenue growth, regulatory approvals, and strategic partnerships. However, there are challenges with increased operating expenses and cash utilization.

Highlights

Significant Revenue Increase

Normalized revenues increased from approximately $1 million in 2023 to $5.8 million in 2024, due to the consolidation of the soy product ingredient business.

Regulatory Approval Breakthrough

Moolec received the first-ever USDA approval for Piggy Sooy, making it the first company in the industry to achieve such a regulatory milestone.

Successful R&D and Commercialization Efforts

Moolec has successfully set up a fully owned plant molecule and biology lab, achieved significant results in transgenic events, and is preparing for the commercialization of Glaso products.

Strategic Partnerships and Growth Plans

Moolec signed an offtake agreement with a major global CPG company for Glaso and an R&D collaboration with Bunge to develop safflower varieties.

Lowlights

Increased Operating Expenses

SG&A and R&D expenses increased by $3.1 million, mainly due to non-cash items and the consolidation of the soy ingredient business.

Cash Utilization Rise

Cash used in operating activities increased by $1.8 million from $7.5 million in 2023 to $9.3 million in 2024.

Company Guidance

During Moolec Science's fourth quarter and full fiscal year 2024 conference call, the company shared key financial metrics and future guidance. The fiscal year 2024 saw a significant increase in normalized revenues, jumping from approximately $1 million in 2023 to $5.8 million in 2024, largely due to the consolidation of the soy product ingredient business. The cost of sales increased correspondingly, from close to $1 million in 2023 to $4.5 million in 2024, resulting in an annual gross margin that remains undisclosed. Expenses, including SG&A and R&D, rose by $3.1 million, reaching $9.3 million, driven by non-cash items and the soy ingredient business consolidation. Cash utilization in operating activities increased from $7.5 million in 2023 to $9.3 million in 2024, with a significant $4 million reduction in accounts payable. As of Q4 2024, the cash position stood at approximately $5.4 million, bolstered by the strategic purchase of 15,000 tons of HB4 soybean. Looking ahead, Moolec anticipates fiscal year 2025 to be pivotal, with the commercialization of new science-based ingredients like Glaso, supported by a three-year contract with a major CPG company, and efforts to enhance operational efficiencies and regulatory progress.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.