| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 49.41 | 10676 |
| Intrinsic value (DCF) | 0.32 | -30 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Fermentalg SA is a pioneering French biotechnology company specializing in the development, production, and commercialization of active ingredients derived from microalgae. Headquartered in Libourne, France, the company serves diverse sectors including food, health, nutrition, and environmental solutions. Fermentalg's innovative product portfolio includes DHA ORIGINS, a plant-based DHA oil; KALVEA PLUS, a high-protein algal concentrate for aquaculture; and Everzure, a natural blue food coloring. Additionally, the company offers BLUE ORIGINS AOX, known for its antioxidant and anti-inflammatory properties, and environmental solutions aimed at CO2 capture in industrial settings. Founded in 2009, Fermentalg leverages microalgae's sustainable potential to address global challenges in nutrition and environmental sustainability. With a strong focus on R&D, the company is positioned at the intersection of biotechnology and green innovation, catering to growing demand for plant-based and eco-friendly products.
Fermentalg presents a high-risk, high-reward investment opportunity within the biotechnology sector. The company operates in the rapidly growing markets of plant-based nutrition and sustainable ingredients, benefiting from increasing consumer and industrial demand for eco-friendly solutions. However, its financials reveal significant challenges, including a net loss of €12.9 million in the latest fiscal year and negative operating cash flow. While its €20.6 million cash reserve provides some runway, the company's high beta (1.276) indicates substantial volatility relative to the market. Investors should weigh Fermentalg's innovative product pipeline and first-mover advantage in microalgae-based solutions against its current unprofitability and the capital-intensive nature of biotech R&D. Success hinges on commercialization scalability and securing additional funding or partnerships.
Fermentalg competes in the niche but expanding market of microalgae-derived ingredients, where its key competitive advantage lies in its proprietary fermentation technology and diversified product applications. Unlike competitors focused solely on nutrition or biofuels, Fermentalg spans multiple high-growth sectors (food, health, environment), reducing dependency on any single market. Its DHA ORIGINS competes with fish oil and other plant-based omega-3 sources, offering a vegan alternative with sustainability appeal. However, the company faces intense competition from larger biotechnology and ingredient firms with greater R&D budgets and global distribution networks. Fermentalg's small scale (€11.5 million revenue) limits its ability to compete on price with commoditized products, forcing a focus on premium, differentiated offerings. Strategic partnerships, such as its collaboration with SUEZ for CO2 capture technology, provide non-dilutive growth avenues. The company's environmental solutions segment is particularly well-positioned amid tightening emissions regulations, though adoption rates remain uncertain. Overall, Fermentalg's innovation pipeline is promising, but its long-term viability depends on achieving commercial scale and navigating competition from deep-pocketed rivals.