Moolec Science SA, a science-based ingredient company, focuses on producing animal proteins in plants through Molecular Farming, a disruptive technology in the alternative protein landscape. The company's product portfolio and pipeline leverage the agronomic efficiency of used target crops, such as soybeans and peas. It operates in the United States, Europe, and South America. The company was founded in 2008 and is based in Luxembourg.

Luxembourg

Moolec Science 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. 

Over the past six months, the stock has consistently climbed, resulting in 4% total increase. When compared to its international counterparts in the same sector and industry (as shown above), the stock has exceeded their performances, leading by 18ppts in total. There is a distinction between the stock's performance and that of its peers from the same country and industry. Over six months its performance trailed that of this peer group by 9ppts and accelerated its growth by 14ppts in the recent month. Given the stock's valuation versus its peers, its total price movement is mildly favourable.

The company has reported very poor EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -66.5% in the last 12 months, up from -236.4% in FY23. 

Historically, MLEC has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -105.7%, a growth from -223.7% in FY23. 

Moolec Science SA reported a return on equity (RoE) of -296.1% in the last 12 months, down from -174.7% in FY24. The market consensus projects an RoE of -405.2% in FY25, again behind its peers. 

Another important profitability metric, return on assets (RoA), amounted to -26.4% in the last 12 months, an increase from -31.4% in FY24. The market analysts predict that RoA will be -36.1% in FY25, again weaker than its peers. 

In the last 12 months, the return on capital employed (RoCE) grew to -33.2%, below the peers. The consensus estimate for FY25 for RoCE is -35.2%, again behind the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -8.8 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.

MLEC has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is very unstable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. 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 bleak profitability, negligible return on capital, poor working capital management, 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, MLEC 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, MLEC 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. 

Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. 

Moolec Science SA

$ 0.89

1

Moolec Science SA

$ 0.89

1

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Profitability factor

Risk / Profitability

Risk factor

Profitability factor

$ 0.89

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