Last Updated: 17 Sep 2024
Executive Summary
Biofrontera Inc. (BFRI) is a biopharmaceutical company specializing in dermatological products. Despite a strong revenue growth of 0.34% year-over-year, the company faces challenges reflected in its negative profitability metrics, including an EBITDA of -$18.3 million and an EPS of -$2.74. The stock is currently trading at $1.25, below its 52-week high of $9.52.
Company Overview
Headquartered in Massachusetts, Biofrontera develops and markets treatments for skin conditions. The company's primary product is Ameluz, a topical solution used in photodynamic therapy for actinic keratosis.
Fundamental Analysis
Revenue: TTM revenue stands at $35.2 million, indicating a 0.34% growth year-over-year.
Profitability: The company reported a negative EBITDA of -$18.3 million and an EPS of -$2.74, reflecting ongoing profitability challenges.
Financial Ratios: Biofrontera has a low price-to-sales ratio of 0.203, indicating potential undervaluation. However, its negative profit margins and return on assets and equity highlight the need for operational improvements.
Technical Analysis
Trend: The stock is currently trading below its 50-day and 200-day moving averages, indicating a bearish trend.
Support and Resistance: The stock has immediate support at $1.133 (50-day moving average) and resistance at $1.535 (200-day moving average).
Momentum Indicators: The relative strength index (RSI) is below 30, suggesting oversold conditions.
Short Term Outlook
In the short term, BFRI may face continued pressure due to its negative profitability and bearish technical indicators. A break below $1.133 could lead to further declines.
Long Term Outlook
The long-term outlook for BFRI depends on the company's ability to improve its profitability and execute its growth strategy. Positive catalysts include the potential for new product approvals and increased market penetration. However, competition in the dermatological market remains intense.
Analyst Recommendations
Strong Buy: 0
Buy: 2
Hold: 0
Sell: 0
Strong Sell: 0
The majority of analysts covering BFRI have a "Buy" rating, indicating a positive outlook for the stock's long-term potential. However, investors should proceed with caution due to the company's current profitability challenges.
