Last Updated: 12 Sep 2024
Executive Summary
Farmmi Inc. (FAMI), a Chinese agricultural products processor, has a market capitalization of $2.15 billion. Despite reporting a trailing price-to-earnings (PE) ratio of 0.0948, the company's quarterly earnings and revenue growth have declined year-over-year. With a beta of 1.236, FAMI exhibits moderate volatility compared to the market. The stock's latest price of $0.23 is below its 52-week high of $2.34, indicating potential undervaluation.
Company Overview
Farmmi Inc. processes and distributes agricultural products globally. Headquartered in China, the company has operations in various countries, including the US, Japan, and Europe. FAMI primarily focuses on canned fruits, vegetables, preserves, jams, and jellies.
Fundamental Analysis
Revenue and Earnings: In the latest quarter ended June 30, 2024, FAMI reported revenue of $86.26 million, a 0.398% decline year-over-year. Diluted EPS stood at $2.12, representing an 0.848% decrease from the same period last year.
Profitability: FAMI's gross profit margin is 0.0185, while its operating margin is 0.0251. These margins indicate a low level of profitability.
Valuation: With a trailing PE ratio of 0.0948, FAMI appears undervalued compared to industry peers. However, the company's low profitability and declining growth metrics warrant caution.
Technical Analysis
Moving Averages: The stock's 50-day moving average is $0.488, while its 200-day moving average is $0.855. The price is below both moving averages, indicating a bearish trend.
Support and Resistance Levels: The stock has support at $0.165 (52-week low) and resistance at $2.34 (52-week high).
Short Term Outlook
In the short term, FAMI's stock price may continue to face downward pressure due to its declining earnings and revenue growth. The stock's price is below its key moving averages, indicating a bearish trend.
Long Term Outlook
The long-term outlook for FAMI depends on the company's ability to improve its profitability and revenue growth. The company's focus on expanding its global operations and developing new products may provide opportunities for future growth.
Analyst Recommendations
Currently, there are no analyst recommendations available for FAMI.
Conclusion
Farmmi Inc. is a company with a low valuation but also faces challenges with declining growth and profitability. Investors should carefully consider the company's fundamentals and technical indicators before making any investment decisions.
