Stock Analysis & Valuation Algreen (ALGRE.PA)

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• Sector Valuation Confidence Level: Low

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method		n/a
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

Algreen is a France-based agri-food company specializing in premium seafood products such as smoked salmon, caviar, and salmon roe, as well as functional CBD-infused sparkling beverages. Operating primarily in Europe, Algreen serves diverse markets including supermarkets, hotels, restaurants, and catering outlets. Formerly known as Les Toques Blanches du Monde Société Anonyme, the company rebranded to Algreen in 2022, reflecting its broader focus on sustainable and innovative food solutions. With a presence in Lyon, France, Algreen combines traditional food production with modern wellness trends, positioning itself in the growing functional beverage and premium seafood segments. Despite its niche focus, the company faces challenges in scaling profitability amid competitive and regulatory pressures in the CBD and seafood industries.

Investment Summary

Algreen presents a high-risk, high-reward investment case due to its niche positioning in premium seafood and CBD-infused beverages. The company's revenue of €6.04M in FY 2024 is overshadowed by a significant net loss of €40.04M, reflecting operational inefficiencies and possibly high marketing or regulatory costs. With negative operating cash flow (-€810K) and substantial debt (€6.39M), liquidity remains a concern. However, its unique product mix—especially in the emerging CBD beverage market—could offer growth potential if consumer demand rises and regulatory hurdles ease. Investors should weigh the speculative upside against financial instability and sector competition.

Competitive Analysis

Algreen operates in two distinct but competitive segments: premium seafood and CBD-infused beverages. In smoked salmon and caviar, it competes with established European seafood producers, where scale and brand recognition dominate. Its CBD beverage line faces regulatory uncertainty and competition from both niche wellness brands and large beverage companies expanding into functional drinks. Algreen’s small size limits its bargaining power with distributors, while its negative EPS (-€0.77) and thin cash reserves (€337K) constrain R&D and marketing investments. The company’s rebranding suggests a pivot toward wellness trends, but execution risks are high given its financial strain. Differentiation through product quality and sustainability could be key, but without clearer profitability metrics, its competitive edge remains unproven.

Major Competitors

• Labeyrie Fine Foods (LAB.PA): Labeyrie dominates the premium smoked salmon market in Europe with strong retail partnerships and brand loyalty. Its scale allows cost efficiencies Algreen lacks, but innovation in CBD beverages isn’t part of its portfolio, leaving Algreen a niche advantage there.
• Nissui Corporation (NHUM.L): Nissui is a global seafood giant with diversified products, including salmon and caviar. Its financial stability and distribution network outpace Algreen’s, but it lacks focus on CBD-infused products, where Algreen could carve a niche.
• Danone (DANOY): Danone’s expertise in functional beverages and vast distribution could threaten Algreen’s CBD drink ambitions if it enters the segment. However, Danone’s size may slow niche market adaptation, giving Algreen temporary breathing room.
• Hochdorf Holding (HSH.F): Hochdorf specializes in health-focused food ingredients, overlapping with Algreen’s wellness positioning. Its stronger financials and B2B focus contrast with Algreen’s B2C approach, but both face CBD regulatory risks.