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Borealis Foods (BRLS)
NASDAQ:BRLS
US Market

Borealis Foods (BRLS) AI Stock Analysis

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Borealis Foods

(NASDAQ:BRLS)

Rating:31Underperform
Price Target:
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 (BRLS) vs. SPDR S&P 500 ETF (SPY)

Borealis Foods Business Overview & Revenue Model

Company DescriptionBorealis Foods (BRLS) is a company operating in the food sector, focusing on the development and distribution of innovative and sustainable food products. The company aims to provide high-quality, nutritious meals while emphasizing environmental responsibility and consumer health. Borealis Foods is committed to leveraging cutting-edge food technology to address the growing demand for sustainable food solutions.
How the Company Makes MoneyBorealis 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 is experiencing severe financial difficulties characterized by declining revenues, operational inefficiencies, high leverage, and negative equity. The negative cash flows further exacerbate the situation, indicating potential sustainability issues without significant operational improvements or financial restructuring.
Income Statement
25
Negative
Borealis Foods has faced significant challenges in its income statement. The company reported a negative net income for the most recent year, indicating losses. The EBIT and EBITDA margins are also negative, demonstrating operational inefficiencies. Additionally, there was no revenue growth, with the latest year showing a substantial decline in revenue compared to previous years, which suggests a struggling core business.
Balance Sheet
15
Very Negative
The balance sheet reveals financial instability with a negative stockholders' equity, indicating liabilities exceed assets, which is a major financial risk. The debt-to-equity ratio cannot be calculated due to negative equity, further highlighting financial distress. The equity ratio is negative, reinforcing the company's weak financial position.
Cash Flow
20
Very Negative
The cash flow statement shows negative operating and free cash flows, which are concerning as they reflect cash outflows from operations and capital expenditures exceeding inflows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is not favorable. These indicate liquidity challenges and potential issues in sustaining operations without external financing.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021
Income StatementTotal Revenue
14.34M27.67B0.0025.59M13.63M
Gross Profit
-796.50K27.64B0.00-8.07M-212.99K
EBIT
-9.99M-20.40M-5.13M-23.06M-10.21M
EBITDA
-8.44M-18.08M-2.94M-2.89M-7.74M
Net Income Common Stockholders
-10.64M-25.33M-2.94M-26.28M-10.12M
Balance SheetCash, Cash Equivalents and Short-Term Investments
8.21M652.97M93.11K5.15M2.91M
Total Assets
70.33M60.01M22.04M64.77M57.38M
Total Debt
37.50M32.28M3.99M41.18M13.19M
Net Debt
29.29M31.63M3.89M36.03M10.28M
Total Liabilities
54.13M60.70M7.49M60.13M29.30M
Stockholders Equity
16.20M-695.89M14.56M4.64M28.08M
Cash FlowFree Cash Flow
-8.97M-17.06M-2.34M-27.43M-27.99M
Operating Cash Flow
-8.42M-15.09M-2.34M-24.05M-6.78M
Investing Cash Flow
-4.13M-1.91M158.81M-3.33M-21.21M
Financing Cash Flow
13.19M10.03B-157.06M29.62M27.52M

Borealis Foods Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.00
Price Trends
50DMA
5.88
Negative
100DMA
5.98
Negative
200DMA
6.25
Negative
Market Momentum
MACD
-0.18
Positive
RSI
30.27
Neutral
STOCH
8.64
Positive
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 is below the 20-day moving average (MA) of 5.74, below the 50-day MA of 5.88, and below the 200-day MA of 6.25, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 30.27 is Neutral, neither overbought nor oversold. The STOCH value of 8.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRLS.

Borealis Foods Risk Analysis

Borealis Foods disclosed 27 risk factors in its most recent earnings report. Borealis Foods reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We have identified weaknesses in our internal control over financial reporting. If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud. As a result, shareholders could lose confidence in our financial and other public reporting, which would harm our business and the trading price of our Common Shares. Q3, 2024
2.
Our management team has limited experience managing a public company. Q3, 2024
3.
We are incurring significant increased costs as a result of operating as a public company, and our management is required to devote substantial time to new compliance initiatives. Q3, 2024

Borealis Foods Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$12.64B9.787.67%17015.08%12.23%-6.02%
LSLSF
58
Neutral
$74.52M-7.38%25.04%87.51%
58
Neutral
$677.04M-5.95%2.44%91.41%
45
Neutral
$392.35M-49.54%-6.69%55.07%
43
Neutral
$8.20M6.01-31.05%-15.45%-100.03%
31
Underperform
$98.14M-370.71%-163.87%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BRLS
Borealis Foods
4.59
-3.91
-46.00%
STKL
SunOpta
5.76
0.38
7.06%
SOWG
Sow Good
0.72
-16.28
-95.76%
LSF
Laird Superfood
7.05
4.54
180.88%
BRCC
BRC
1.84
-4.22
-69.64%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.