Borealis Foods (BRLS) AI Stock Analysis

• Market Cap: $39.17M
• Dividend Yield: N/A
• Average Volume (3M): 44.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: 33.43%
• EPS Growth: 25.00%
• Country: US
• Employees: 147
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -1.28
• Shares Outstanding: 21,463,306
• 10 Day Avg. Volume: 55,744
• 30 Day Avg. Volume: 44,222
• PEG Ratio: >-0.01
• Price to Book (P/B): -173.95
• Price to Sales (P/S): 4.37
• P/FCF Ratio: -7.10
• Enterprise Value/Market Cap: 2.82
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.11
• Enterprise Value/Ebitda: -0.07
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 31 Underperform
• 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.

Positive Factors

Innovative Product Development

Borealis Foods' commitment to innovation in sustainable food products positions it well to capitalize on growing consumer demand for health-conscious and environmentally friendly options, potentially driving long-term revenue growth.

Strategic Partnerships

Strategic partnerships enhance Borealis Foods' distribution network, increasing market penetration and sales volume, which can contribute to sustained revenue growth and competitive advantage in the packaged foods industry.

Revenue Growth Potential

Despite current challenges, Borealis Foods' high revenue growth rate suggests potential for market expansion and increased product adoption, which could improve financial performance over the medium term.

Negative Factors

Financial Instability

Negative equity and high leverage highlight financial instability, posing risks to Borealis Foods' ability to sustain operations without significant restructuring or external financing.

Negative Cash Flows

Consistent negative cash flows indicate liquidity challenges, potentially hindering Borealis Foods' ability to invest in growth opportunities or manage operational expenses without external support.

Operational Inefficiencies

Operational inefficiencies, as evidenced by negative margins, suggest that Borealis Foods may struggle to achieve profitability, necessitating significant improvements in cost management and operational execution.

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 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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.12B	27.67M	0.00	25.59M	13.63M
Gross Profit	1.04B	2.19M	0.00	-8.07M	-212.99K
EBITDA	-1.48B	-18.08M	-2.77M	564.79K	-7.74M
Net Income	-3.80B	-25.33M	-2.94M	-26.28M	-10.12M
Balance Sheet
Total Assets	56.30B	60.01M	22.04M	64.77M	57.38M
Cash, Cash Equivalents and Short-Term Investments	128.87M	652.97K	93.11K	5.15M	2.91M
Total Debt	23.20B	32.28M	3.99M	41.18M	13.19M
Total Liabilities	69.25B	60.70M	7.49M	60.13M	29.30M
Stockholders Equity	-12.95B	-695.89K	14.56M	4.64M	28.08M
Cash Flow
Free Cash Flow	-3.76B	-17.06M	-22.47M	-2.11M	-27.99M
Operating Cash Flow	-3.76B	-15.09M	-18.01M	-2.11M	-6.78M
Investing Cash Flow	-61.52M	-1.91M	-4.47M	0.00	-21.21M
Financing Cash Flow	3.30B	10.03M	24.94M	1.66M	27.52M

Borealis Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 1.89 is below the 20-day moving average (MA) of 2.72, below the 50-day MA of 3.04, and below the 200-day MA of 4.14, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 25.77 is Positive, neither overbought nor oversold. The STOCH value of 4.99 is Positive, 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
WYHG	66 Neutral	$28.99M	6.19	4.29%	―	6.91%	-54.09%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NAII	54 Neutral	$16.86M	-1.22	-15.93%	―	18.19%	-35.22%
LSF	46 Neutral	$27.68M	―	-14.63%	―	17.73%	-34.71%
BRLS	31 Underperform	$39.17M	―	―	―	33.43%	25.00%