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Stock Analysis & ValuationgenOway S.A. (ALGEN.PA)

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2.47
Sector Valuation Confidence Level
High
Valuation methodValue, Upside, %
Artificial intelligence (AI)30.101119
Intrinsic value (DCF)2.00-19
Graham-Dodd Method2.9018
Graham Formula3.4238

Strategic Investment Analysis

Company Overview

genOway SA (ALGEN.PA) is a pioneering biotechnology company specializing in the development, manufacturing, and commercialization of custom genetically modified mouse, rat, and cell line models. Founded in 1999 and headquartered in Lyon, France, genOway serves pharmaceutical companies, life science firms, and academic institutions worldwide. The company offers a diverse portfolio of genetically engineered models, including knockout (KO) and knockin (KI) mouse models, constitutive and conditional rat models, and customized cell lines. genOway's innovative humanized immune checkpoint models and immunodeficient strains are critical tools for drug discovery and biomedical research. Operating in the high-growth biotechnology sector, genOway plays a vital role in advancing precision medicine and therapeutic development. With a strong focus on R&D and a global client base, the company is well-positioned to capitalize on increasing demand for genetically modified research models.

Investment Summary

genOway presents a niche investment opportunity in the biotechnology sector, with specialized expertise in genetically modified research models. The company's strong revenue growth (€22.06M in FY 2023) and profitability (net income of €1.83M) demonstrate its ability to monetize its proprietary technologies. With a low beta (0.384), genOway may offer defensive characteristics in volatile markets. However, investors should note the company's small market cap (€30.04M) and lack of dividends, which may limit liquidity and appeal to income-focused investors. The zero capital expenditures suggest limited near-term expansion plans, while the €7.23M in total debt warrants monitoring. genOway's growth potential is tied to continued demand for customized research models from pharmaceutical and academic clients.

Competitive Analysis

genOway competes in the specialized market for genetically engineered research models, where differentiation comes from technological capabilities, model diversity, and customization speed. The company's competitive advantage lies in its comprehensive portfolio covering both mouse and rat models - a rarity in the industry where most competitors focus on one species. genOway's proprietary quick KI technology provides faster turnaround times than conventional methods, appealing to time-sensitive research projects. The company's humanized immune checkpoint models address the fast-growing immuno-oncology market, creating a specialized niche. However, genOway faces challenges from larger competitors with greater R&D budgets and global sales networks. Its French base provides strong European market access but may limit penetration in North America and Asia compared to U.S.-based rivals. The company's €4.26M cash position provides some buffer for R&D investments, but may be insufficient for major acquisitions or expansions. genOway's focus on complete solutions (from design to characterization) creates stickier customer relationships than providers offering only partial services.

Major Competitors

  • Charles River Laboratories International (CRL): Charles River is a much larger (market cap ~$10B) full-service preclinical CRO that includes research models among its offerings. Its scale and global infrastructure (50+ facilities) give it advantages in serving multinational clients, though it may lack genOway's specialization in complex genetic modifications. Charles River's diversified business model provides stability but may limit focus on cutting-edge genetic engineering.
  • TransCure bioServices (TAC): This French competitor specializes in humanized mouse models for oncology and immunology research. While smaller than genOway, TransCure's focus on immuno-oncology models creates direct competition in a key growth area. genOway's broader model portfolio and cell line capabilities provide differentiation.
  • The Jackson Laboratory (JAX): This non-profit is the global leader in mouse model production with unmatched genetic resources and repositories. While JAX dominates standard mouse models, genOway competes effectively in customized solutions and rat models. JAX's non-profit status allows aggressive pricing on catalog items but may limit customization capabilities.
  • CryoPort, Inc. (CYRX): While primarily a logistics company, CryoPort's acquisition of Charles River's Research Models Services business in 2021 created some overlap in animal model distribution. genOway's direct manufacturing capabilities and European base provide differentiation against this asset-light competitor.
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