| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 27.38 | 1027 |
| Intrinsic value (DCF) | 1.03 | -58 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Facephi Biometria, S.A. (ALPHI.PA) is a leading Spanish biometric technology company specializing in facial recognition solutions for digital identity verification. Founded in 2012 and headquartered in Alicante, Spain, Facephi provides innovative biometric authentication and onboarding solutions primarily targeting the banking sector, with a growing presence in Latin America, the U.S., and Asia. The company's flagship products include Facephi Beyond Biometrics, SelphID, and Selphi, which enable secure digital onboarding and identity verification for financial services, insurance, healthcare, telecommunications, and public administration. Operating in the fast-growing Software - Application sector, Facephi leverages AI-driven biometrics to enhance security and user experience in digital transactions. With a market cap of approximately €60.9 million, Facephi is positioned at the intersection of fintech and cybersecurity, addressing the increasing demand for fraud prevention and regulatory compliance in digital identity management.
Facephi Biometria presents a high-risk, high-reward investment opportunity in the expanding biometric authentication market. The company operates in a rapidly growing sector driven by increasing digitalization and regulatory demands for secure identity verification. However, its financials reveal challenges, including a net loss of €8.88 million in the latest period and negative EPS (-€0.37). While revenue stands at €28.88 million, profitability remains elusive. The company's €5.52 million cash position provides some runway, but its €10.18 million debt load raises liquidity concerns. Investors should weigh Facephi's technological expertise and market positioning against its financial instability and the competitive pressures in the biometrics space. The stock's beta of 1.065 suggests higher volatility than the market, appealing to growth-oriented investors comfortable with sector-specific risks.
Facephi Biometria competes in the crowded biometric authentication market, differentiating itself through specialized facial recognition solutions tailored for financial services. The company's competitive advantage lies in its deep focus on the banking sector in Latin America, where it has established early-mover advantages in digital onboarding. Facephi's proprietary algorithms and AI-driven multi-biometric platform (Facephi Beyond Biometrics) offer accuracy and adaptability across use cases. However, the company faces intense competition from larger global players with more diversified product portfolios and greater R&D budgets. Facephi's relatively small scale (€28.9M revenue) limits its ability to compete on price or invest in expansive sales channels. Its technology stack is well-regarded but must continually innovate to stay ahead of open-source alternatives and cloud-based authentication services from tech giants. The company's niche positioning in Latin American banking provides some insulation but also creates geographic concentration risks. Success will depend on maintaining technological leadership while expanding into adjacent verticals and geographies to diversify revenue streams.