Healthy Choice Wellness Corp. Class A (HCWC) AI Stock Analysis

• Market Cap: $5.98M
• Dividend Yield: N/A
• Average Volume (3M): 376.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 450
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): N/A
• Shares Outstanding: 18,165,750
• 10 Day Avg. Volume: 157,381
• 30 Day Avg. Volume: 376,152
• PEG Ratio: 0.04
• Price to Book (P/B): 4.66
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -3.34
• Enterprise Value/Market Cap: 3.54
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 0.67
• Enterprise Value/Ebitda: 11.70
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.16
• Revenue Forecast (FY): $91.30M

• Rating: 40 Underperform
• Price Target: $0.31 ▼(-48.69% Downside)

Healthy Choice Wellness Corp. faces significant challenges with profitability and high leverage, reflected in a low financial performance score. Technical indicators suggest bearish momentum, and the lack of valuation metrics further highlights financial instability. The recent corporate event is a positive step but does not significantly impact the overall score.

Positive Factors

Free Cash Flow Growth

A 36.5% increase in free cash flow TTM reflects improving cash conversion and operational cash generation. Durable FCF strengthens liquidity, reduces near-term refinancing needs, and can fund working capital or targeted acquisitions, aiding deleveraging and flexibility.

Healthy Gross Margin

A near-40% gross margin indicates solid product economics and potential pricing power in packaged foods. This structural margin buffer helps absorb distribution and SG&A costs; with tighter operating controls the company can more plausibly convert to sustained operating profitability over several quarters.

Capital Raise Enhances Flexibility

The $2M sale of convertible preferred stock provides immediate liquidity for working capital and possible acquisitions, reducing short-term funding pressure. Convertible, registrable securities lower near-term refinancing risk and give management breathing room to execute strategic moves.

Negative Factors

High Leverage

A D/E of 3.38 and negative ROE reflect heavy reliance on debt financing and weak equity returns. Structurally higher fixed obligations elevate default and refinancing risk, constrain capital allocation, and limit the company's ability to invest in growth or absorb shocks over the medium term.

Persistent Negative Profitability

Ongoing negative operating and EBITDA margins indicate structural cost or scale shortfalls. Modest revenue growth has not translated to profitability, meaning sustainable earnings require significant cost restructuring or material revenue expansion, which is uncertain in the near term.

Limited Cash vs Reported Losses

FCF-to-net income below 1 shows reported losses are not fully matched by cash generation, implying dependence on financing or equity to fund operations. This structural cash shortfall raises vulnerability to rate rises and constrains capex, deleveraging, and strategic flexibility over months.

Healthy Choice Wellness Corp. Class A Business Overview & Revenue Model

Company Description

Healthy Choice Wellness Corp., through its subsidiaries, operates natural and organic retail stores in the United States. The company operates retail stores, including Ada's Natural Market, a natural and organic grocery store; Paradise Health and Nutrition stores; Mother Earth's Storehouse, a two-store organic and health food and vitamin chain; Ellwood Thompson's, an organic and natural health food and vitamin store; and GreenAcres Market, an organic and natural health food and vitamin chain, as well as Healthy Choice Wellness Centers that offer IV nutrient drip infusion and intramuscular injection treatments. It also operates Greens Natural Foods stores, which offer organic produce and all-natural products, non-GMO groceries, and bulk food and local products; an organic juice and smoothie bar; a fresh food department that provides fresh and healthy products under the grab & go foods name; and vitamins, supplements, and health and beauty products, as well as sells vitamins and supplements, health products, and beauty and personal care products through its website, TheVitaminStore.com. The company was incorporated in 2022 and is based in Hollywood, Florida.

How the Company Makes Money

HCWC generates revenue through multiple streams, including direct sales of its products via online platforms and physical retail locations. The company has established a subscription model for its wellness programs, providing customers with regular access to new products and personalized health plans. Additionally, HCWC partners with health professionals and wellness influencers to promote its products, which drives brand awareness and sales. The company also explores collaborations with gyms and wellness centers, offering tailored products and services to their clientele, thereby expanding its market reach and enhancing its earnings.

Healthy Choice Wellness Corp. Class A Financial Statement Overview

Summary

Healthy Choice Wellness Corp. shows revenue and cash flow growth, but struggles with profitability and high leverage. The company needs to improve operational efficiency and reduce debt for better financial stability.

Income Statement

Healthy Choice Wellness Corp. has shown a positive revenue growth rate of 3.5% TTM, indicating some growth momentum. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively healthy at 39.7% TTM, but the negative EBITDA margin highlights operational inefficiencies.

Balance Sheet

The company's balance sheet reveals high leverage with a debt-to-equity ratio of 3.38 TTM, which poses a financial risk. The return on equity is negative, indicating that the company is not generating profit from its equity base. The equity ratio is low, suggesting a reliance on debt financing.

Cash Flow

Cash flow analysis shows improvement, with a 36.5% growth in free cash flow TTM. The operating cash flow to net income ratio is positive, indicating some cash generation capability. However, the free cash flow to net income ratio is below 1, suggesting limited cash flow relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	79.15M	69.37M	55.69M	29.01M	11.24M	11.46M
Gross Profit	31.45M	27.07M	20.35M	10.08M	4.05M	4.35M
EBITDA	1.81M	-406.17K	-2.99M	-3.16M	-1.31M	-727.05K
Net Income	-2.83M	-4.51M	-9.93M	-3.32M	-1.81M	-1.68M
Balance Sheet
Total Assets	33.73M	34.11M	28.43M	33.15M	8.42M	9.58M
Cash, Cash Equivalents and Short-Term Investments	3.00M	2.06M	1.42M	2.02M	356.37K	82.00K
Total Debt	19.97M	25.52M	14.32M	13.18M	3.00M	4.11M
Total Liabilities	27.82M	31.73M	19.44M	17.65M	3.40M	4.79M
Stockholders Equity	5.91M	2.38M	8.99M	15.51M	5.03M	4.78M
Cash Flow
Free Cash Flow	2.40M	-3.32M	-2.70M	-1.76M	-905.43K	-2.00M
Operating Cash Flow	2.75M	-3.06M	-2.53M	-1.37M	-852.00K	-1.98M
Investing Cash Flow	-354.68K	-4.98M	-929.62K	-10.68M	-128.44K	-22.51K
Financing Cash Flow	-1.18M	8.68M	2.86M	13.71M	1.25M	1.50M

Healthy Choice Wellness Corp. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCWC, the sentiment is Negative. The current price of 0.61 is above the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.39, and above the 200-day MA of 0.47, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 38.63 is Neutral, neither overbought nor oversold. The STOCH value of 29.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HCWC.

Healthy Choice Wellness Corp. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PETZ	49 Neutral	$11.87M	7.00	6.15%	―	-39.41%	―
SOWG	48 Neutral	$8.07M	-0.33	-84.22%	―	-81.88%	-672.01%
BON	46 Neutral	$13.41M	-5.85	1.32%	―	-15.44%	-94.04%
HCWC	40 Underperform	$5.98M	―	―	―	―	―
STKH	40 Underperform	$3.73M	-0.03	-136.13%	―	―	―

Healthy Choice Wellness Corp. Class A Corporate Events

Healthy Choice Wellness Corp. Sells Preferred Stock for $2M

On November 13, 2025, Healthy Choice Wellness Corp. completed a transaction to sell 2,000 shares of its Series A Convertible Preferred Stock for $2,000,000. The proceeds from this sale are intended for general working capital and potential acquisitions. The preferred stock is convertible into Class A Common Stock, and the company has agreed to register these shares for conversion. This strategic move aims to enhance the company’s financial flexibility and support its growth initiatives.

The most recent analyst rating on (HCWC) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Healthy Choice Wellness Corp. Class A stock, see the HCWC Stock Forecast page.

Healthy Choice Wellness Corp. Converts Debt to Equity

On October 24, 2025, Healthy Choice Wellness Corp. entered into an Exchange Agreement with certain holders of its indebtedness to convert $2,000,000 of principal into shares of the company’s Class A common stock. This strategic move aims to manage the company’s debt by leveraging its equity, potentially impacting its financial structure and market perception.

The most recent analyst rating on (HCWC) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Healthy Choice Wellness Corp. Class A stock, see the HCWC Stock Forecast page.