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AFRI Forafric Global PLC - Fundamental Analysis

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AFRI Stock | Fundamental Analysis & Investment Insights
NASDAQ Consumer Defensive Farm Products
Current Price Live
$9.99
52W High
$11.42
52W Low
$7.47

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Confidence Score
88%
Analysis Accuracy
AFRI exhibits severe financial distress, as evidenced by a Piotroski F-Score of 3/9 (indicating weak financial health) and a lack of an Altman Z-Score, which raises red flags for potential bankruptcy risk. The company reports negative profitability across all key metrics—ROE of -156.36%, negative profit and operating margins, and a 45.3% YoY revenue decline. Its balance sheet is critically weak, with a debt/equity ratio of 17.53, current ratio of 0.38, and quick ratio of 0.16, signaling liquidity distress. Despite a modest price/sales ratio of 1.33, the stock trades at a negative price/book of -58.76, reflecting deep value erosion. The absence of dividends, analysts, and intrinsic value estimates further underscores the lack of investor confidence.

Key Strengths

Gross margin of 9.30% suggests some pricing power or cost control in core operations
Price/sales ratio of 1.33 is below the sector average, indicating potential undervaluation on a revenue basis
Recent 6-month price appreciation of +8.6% may reflect short-term speculative interest
Market cap of $0.27B places it in a small-cap niche with potential for turnaround narratives
Insider sentiment at 40/100 suggests minimal selling pressure, though not a strong signal

Key Risks

Piotroski F-Score of 3/9 indicates severe financial deterioration and poor operational efficiency
Negative ROE (-156.36%) and ROA (-0.41%) signal deep losses and inefficient capital use
Debt/Equity ratio of 17.53 is extremely high, indicating over-leveraged balance sheet
Current and quick ratios below 0.4 and 0.2, respectively, point to acute liquidity risk
45.3% YoY revenue decline reflects fundamental business contraction, not cyclical weakness

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