Borealis Foods (BRLS) AI Stock Analysis

• Market Cap: $122.82M
• Dividend Yield: N/A
• Average Volume (3M): 3.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: N/A
• EPS Growth: -163.87%
• Country: US
• Employees: 147
• Sector: Financial
• Sector Strength: 83
• Industry: Packaged Foods
• EPS (TTM): -1.28
• Shares Outstanding: 21,378,890
• 10 Day Avg. Volume: 1,096
• 30 Day Avg. Volume: 3,560
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.63
• Price to Cash Flow (P/CF): -10.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Borealis Foods' overall stock score is significantly impacted by its weak financial performance, which poses major risks due to declining revenues and operational inefficiencies. Technical analysis reinforces a bearish outlook with negative trends. The valuation is unattractive with a negative P/E ratio and no dividends. These factors collectively underscore the challenges facing BRLS, warranting a cautious approach.

Borealis Foods Business Overview & Revenue Model

Company Description

Borealis Foods Inc. engages in the distribution of plant-based protein food products. The company's product includes Chef Woo, a high-protein meat alternative; and Ramen Express, vegetarian ramen noodles. Borealis Foods Inc. was incorporated in 2020 and is based in Oakville, Canada.

How the Company Makes Money

Borealis Foods generates revenue primarily through the sale of its food products to retailers, wholesalers, and directly to consumers. The company may also engage in licensing agreements for its proprietary food technologies or recipes, contributing an additional revenue stream. Strategic partnerships with retailers and distributors expand their market reach, enhancing sales volume. Furthermore, Borealis Foods might participate in government or private sector initiatives promoting sustainable food practices, occasionally resulting in grants or subsidies that supplement its income.

Borealis Foods Financial Statement Overview

Summary

Borealis Foods faces significant financial challenges across its income statement, balance sheet, and cash flow statement. The company is struggling with revenue generation and profitability, has substantial leverage, and is experiencing negative cash flows, indicating financial instability and potential risks.

Income Statement

The income statement of Borealis Foods indicates significant challenges. The company has experienced declining revenues, with a revenue of $0 in the most recent year compared to $25.6 million the previous year. Gross profit margin is negative, and net income is consistently negative, highlighting profitability issues. EBIT and EBITDA margins are also negative, underlining operational inefficiencies. Overall, the financial performance is weak with significant deterioration in revenue and profitability.

Balance Sheet

The balance sheet shows a moderate level of equity with a stockholders' equity of $14.6 million. However, the company has a high debt-to-equity ratio, indicating substantial leverage, which poses financial risk. The equity ratio is relatively stable at 66%, suggesting a reasonable proportion of equity in the capital structure. However, the high liabilities and substantial debt burden remain concerns for financial stability.

Cash Flow

Cash flow analysis reveals considerable challenges. Operating cash flow is negative, reflecting ongoing operational cash deficits. Free cash flow remains negative, indicating a lack of cash generation from operations. Although there was a significant influx in investing cash flow, primarily from asset sales, this is not sustainable for long-term operations. The negative cash flows highlight liquidity concerns and the need for financial restructuring.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
14.34M	0.00	25.59M	13.63M
	Gross Profit
-796.50K	0.00	-8.07M	-212.99K
	EBIT
-9.99M	-5.13M	-23.06M	-10.21M
	EBITDA
-8.44M	-2.94M	-2.89M	-7.74M
	Net Income Common Stockholders
-10.64M	-2.94M	-26.28M	-10.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.21M	93.11K	5.15M	2.91M
	Total Assets
70.33M	22.04M	64.77M	57.38M
	Total Debt
37.50M	3.99M	41.18M	13.19M
	Net Debt
29.29M	3.89M	36.03M	10.28M
	Total Liabilities
54.13M	7.49M	60.13M	29.30M
	Stockholders Equity
16.20M	14.56M	4.64M	28.08M
Cash Flow		Free Cash Flow
-8.97M	-2.34M	-27.43M	-27.99M
	Operating Cash Flow
-8.42M	-2.34M	-24.05M	-6.78M
	Investing Cash Flow
-4.13M	158.81M	-3.33M	-21.21M
	Financing Cash Flow
13.19M	-157.06M	29.62M	27.52M

Borealis Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRLS, the sentiment is Negative. The current price of 5.65 is below the 20-day moving average (MA) of 5.95, below the 50-day MA of 6.03, and below the 200-day MA of 6.53, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 45.54 is Neutral, neither overbought nor oversold. The STOCH value of 33.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRLS.

Borealis Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$12.32B	9.52	7.97%	79.23%	12.77%	-4.57%
STKL	58 Neutral	$504.14M	―	-6.77%	―	-5.50%	89.98%
BRCC	57 Neutral	$483.84M	―	-22.32%	―	-1.04%	86.17%
LSF	47 Neutral	$58.40M	―	-13.68%	―	26.50%	82.92%
SOWG	44 Neutral	$7.40M	6.01	-18.86%	―	99.07%	55.66%
BRLS	31 Underperform	$122.82M	―	-365.45%	―	―	-163.87%