Carmat SA designs and develops total artificial heart for people suffering from end-stage biventricular heart failure in France and internationally. It The company was founded in 2008 and is headquartered in Vélizy-Villacoublay, France.

France

Carmat SA

Healthcare

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

ALCAR.PA reported revenue of EUR 7mn in the last 12 months, up 151% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 5% from FY23 to EUR -2.26. Market expects EPS to reach EUR -1.14 in FY25.

Over the last six months, the stock performance has varied, with an increase following a drop. When measured against its worldwide peers from the same industry (as shown above), the stock has been weaker, underperforming by 70ppts. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is slightly unfavourable.

The company has reported very poor EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -1350.6% in the last 12 months, a decline from -711.4% in FY23. 

Historically, ALCAR.PA has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -733.4%, a growth from -734.3% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to -220.3%, below the peers. The consensus estimate for FY24 for RoCE is -123.6%, again behind the peers. 

Carmat SA reported a return on equity (RoE) of 100.6% in the last 12 months, down from 207.7% in FY23. The market consensus projects an RoE of 58.3% in FY24, again ahead of its peers. 

Another important profitability metric, return on assets (RoA), amounted to -121.2% in the last 12 months, a decrease from -80.6% in FY23. The market analysts predict that RoA will be -70.2% in FY24, again weaker than its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -67.3 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

ALCAR.PA has very poor trading liquidity. It will take at least a day or two for the average private investor to sell a common position under normal market conditions. Liquidity is relatively stable and remains extremely favourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, bleak profitability, negligible return on capital, inadequate interest coverage, poor cash flow generation, and an unfavourable capital structure. We note resilient historical revenue growth and low margin volatility, among the positive credit factors. 

In highly turbulent market conditions, ALCAR.PA is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, ALCAR.PA is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

From both historical and forecast perspectives, the stock is moderately underpriced compared to similar stocks. 

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Carmat SA

€ 0.31

2

Carmat SA

€ 0.31

2

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€ 0.31

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