Nutritional Growth Solutions Ltd. (NGS) AI Stock Analysis

• Market Cap: AU$3.39M
• Dividend Yield: N/A
• Average Volume (3M): 95.73K
• Price to Earnings (P/E): ―
• Beta (1Y): -7.14
• Revenue Growth: -16.29%
• EPS Growth: 58.77%
• Country: AU
• Employees: N/A
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Packaged Foods
• EPS (TTM): -0.10
• Shares Outstanding: 135,482,820
• 10 Day Avg. Volume: 19,462
• 30 Day Avg. Volume: 95,730
• PEG Ratio: 0.40
• Price to Book (P/B): 2.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.76
• Enterprise Value/Market Cap: 2.15
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 8.96
• Enterprise Value/Ebitda: -0.63
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 31 Underperform
• Price Target: ―

The overall score of 30.5 reflects significant financial challenges and weak technical indicators for Nutritional Growth Solutions Ltd. The company's financial instability, negative profitability, and poor valuation metrics are primary concerns. Technical analysis shows weak momentum without clear direction. Immediate improvements in financial performance and operational efficiency are crucial for recovery.

Nutritional Growth Solutions Ltd. Business Overview & Revenue Model

Company Description

Nutritional Growth Solutions Ltd. (NGS) is a company operating in the health and wellness sector, specializing in the development and distribution of scientifically formulated nutritional products. These products are designed to support the growth and development of children, ensuring they receive essential nutrients to promote healthy growth. NGS's core offerings include a range of nutritional supplements and formulas that cater to the dietary needs of children.

How the Company Makes Money

Nutritional Growth Solutions Ltd. generates revenue primarily through the sale of its nutritional products, which are distributed via multiple channels, including direct-to-consumer online sales, partnerships with healthcare providers, and retail distribution. The company leverages scientific research and clinical studies to develop its product line, which enhances its credibility and marketability. NGS also benefits from strategic partnerships and distribution agreements with major retailers and online platforms, expanding its market reach. The company's revenue streams are bolstered by its ability to cater to a niche market focused on child nutrition, coupled with ongoing marketing efforts to raise awareness about the importance of children's health and nutritional needs.

Nutritional Growth Solutions Ltd. Financial Statement Overview

Summary

Nutritional Growth Solutions Ltd. faces significant financial challenges. The income statement reflects ongoing losses and declining revenues. The balance sheet indicates financial instability with negative equity. Cash flows are negative, though recent financing provides temporary relief. Improvement in operational efficiency and revenue growth are crucial for financial recovery.

Income Statement

The company shows significant challenges with its profitability metrics. The gross profit margin is 32.67%, indicating a decent ability to cover production costs. However, the net profit margin is negative due to a net loss, suggesting the company is not currently profitable. Additionally, there is a revenue decline compared to 2022. The negative EBIT and EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The balance sheet reveals financial instability. With a negative stockholders' equity, the company is in a precarious financial position. The debt-to-equity ratio cannot be calculated due to negative equity, and the equity ratio is also negative, indicating more liabilities than assets. The return on equity is negative, reflecting ongoing losses.

Cash Flow

The cash flow statement indicates negative free cash flow, suggesting the company is spending more than it earns. The operating cash flow to net income ratio is negative, showing issues in converting income into cash. However, the company secured financing, which might help in the short term but isn't sustainable without operational improvements.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.48M	―	2.95M	―	―
	Gross Profit
811.00K	―	1.44M	―	―
	EBIT
2.48M	―	-4.23M	―	―
	EBITDA
-2.45M	―	-4.23M	―	―
	Net Income Common Stockholders
-2.54M	―	-4.25M	―	-3.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
31.00K	172.00K	1.52M	―	―
	Total Assets
709.00K	936.00K	3.03M	―	―
	Total Debt
162.00K	362.00K	37.00K	―	―
	Net Debt
131.00K	190.00K	-1.48M	―	―
	Total Liabilities
1.37M	1.11M	954.00K	―	―
	Stockholders Equity
-658.00K	―	2.08M	―	―
Cash Flow		Free Cash Flow
-1.93M	-2.35M	-6.98M	―	―
	Operating Cash Flow
-1.93M	-2.35M	-6.97M	―	―
	Investing Cash Flow
0.00	0.00	-4.00K	―	-58.28K
	Financing Cash Flow
1.78M	998.00K	2.21M	―	―

Nutritional Growth Solutions Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$8.92B	15.03	4.68%	6.11%	3.59%	-2.49%
BUB	51 Neutral	AU$125.04M	―	-21.85%	―	30.54%	88.42%
NGS	31 Underperform	AU$3.39M	―		―	-16.29%	58.77%

Nutritional Growth Solutions Ltd. Corporate Events

Nutritional Growth Solutions Ltd Announces Proposed Securities Issue

Nutritional Growth Solutions Ltd announced a proposed issue of securities, including convertible notes and options, to be listed on the ASX. This move is aimed at raising capital, potentially impacting the company’s financial flexibility and market positioning, while offering stakeholders new investment opportunities.

Nutritional Growth Solutions Secures A$1.0 Million for U.S. Retail Expansion

Nutritional Growth Solutions Ltd. has successfully secured A$1.0 million through a convertible note placement, with the funds aimed at supporting its retail expansion into prominent U.S. retailers such as CVS and Wakefern. This financial move, backed by sophisticated and professional investors, is expected to bolster the company’s growth strategy by providing necessary capital for inventory purchases, working capital, and corporate expenses, thereby strengthening its market position and operational capabilities.

Nutritional Growth Solutions Appoints New Interim CFO to Drive Financial Strategy

Nutritional Growth Solutions Limited has appointed Mr. Manik Pujara as Interim CFO, effective immediately. Mr. Pujara, a Chartered Accountant with extensive expertise in corporate governance and financial strategy, will receive his compensation in equity as part of the company’s cost-saving initiatives. His appointment is expected to strengthen NGS’s financial position and support its growth objectives, with a focus on ensuring financial sustainability and maximizing stakeholder value. The company also acknowledges the contributions of outgoing CFO Mr. Rob Valerio, who will transition to a supportive role to ensure a smooth handover.

Nutritional Growth Solutions Ltd Releases Corporate Governance Statement

Nutritional Growth Solutions Ltd has released its corporate governance statement for the financial year ending December 31, 2024, which is now available on their website. The statement, approved by the board, outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, reflecting its commitment to transparency and accountability in its operations.

Nutritional Growth Solutions Ltd. Releases Financial Statements

Nutritional Growth Solutions Ltd. has released its consolidated financial statements, which include the independent auditors’ statement to shareholders, statements of financial position, comprehensive income, changes in shareholders’ equity, and cash flows. This release provides insights into the company’s financial health and performance, which could impact its operational strategies and stakeholder interests.

Nutritional Growth Solutions Expands US Retail Presence with Wakefern and Walmart

Nutritional Growth Solutions Ltd. has announced its expansion into Wakefern, a major grocery retailer in Northeast America, with the launch of four Healthy Heights® products across approximately 300 stores. This move is expected to generate potential annualized sales of USD 750,000 and enhance the brand’s visibility, serving as a catalyst for further retail expansion in the United States. Concurrently, the company is expanding its presence in Walmart by increasing distribution from 762 to 972 stores and adding a third product line, highlighting the growing momentum and consumer demand for Healthy Heights® in the US market.

Director Resignation at Nutritional Growth Solutions Ltd

Nutritional Growth Solutions Ltd announced the resignation of Peter Osborne from his position as a director, effective March 1, 2025. Osborne held 864,247 fully paid ordinary shares in the company. This change in the board may impact the company’s strategic direction and governance, potentially influencing stakeholders’ confidence and the company’s market positioning.

Nutritional Growth Solutions Reports Revenue Decline and Capital Raising Efforts in 2024

Nutritional Growth Solutions Ltd. reported a 17% decline in revenue for the year ending December 31, 2024, compared to the previous year, with total revenue amounting to US$2,481,000. Despite a reduction in losses from US$2,893,000 to US$2,544,000, the company did not propose any dividends for the period. The company undertook several capital raising initiatives, including a share placement and a reverse stock split, to bolster its financial position. These efforts are part of a broader strategy to enhance e-commerce sales, develop new sales channels, and invest in research and development, despite facing challenges such as increased shipping and raw material costs.

Nutritional Growth Solutions Appoints New Independent Chairman Amid Strategic Growth Plans

Nutritional Growth Solutions announced the appointment of Mr. Guy Khavia as the new Independent Chairman, succeeding Mr. Peter Osborne who is stepping down due to health reasons. Mr. Khavia, with extensive experience in financial and strategic leadership, aims to support the company’s growth strategies and potential strategic transactions, enhancing shareholder value and market positioning.