Local Bounti Corporation (LOCL) AI Stock Analysis

• Market Cap: $35.84M
• Dividend Yield: N/A
• Average Volume (3M): 54.51K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.31
• Revenue Growth: 38.40%
• EPS Growth: 9.06%
• Country: US
• Employees: 301
• Sector: Consumer Defensive
• Sector Strength: 94
• Industry: Agricultural Farm Products
• EPS (TTM): -14.11
• Shares Outstanding: 10,633,947
• 10 Day Avg. Volume: 145,850
• 30 Day Avg. Volume: 54,512
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.47
• Price to Cash Flow (P/CF): -0.20
• 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: $7.50
• Price Target Upside: 122.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Local Bounti Corporation's stock score is impacted by significant financial challenges, including continued losses and high debt, which are partially offset by strong revenue growth and positive technical indicators. Recent debt restructuring and leadership changes provide a favorable outlook, yet operational hurdles continue to pose risks. Valuation remains unattractive due to negative earnings and no dividend yield, limiting the stock's appeal.

Positive Factors

Capital Partnerships

Two major new capital partnerships appear imminent to improve the balance sheet and expand production in a non-dilutive manner.

Gross Margins

Adjusted Gross Margins of 32% exceeded the 30% estimate, highlighting a critical outperformance in the company's path to EBITDA profitability.

Revenue Growth

Revenue is expected to ramp from $27M to $53M and $100M+, driving adjusted Gross Margins up and bringing EBITDA from a $34M burn to positive territory.

Negative Factors

Q3 Performance

Q3’24 results fell below expectations with a sequential ramp being delayed by 3-6 months due to shifts in SKU offerings.

Revenue Growth Expectations

50% revenue growth YoY was solid but fell below expectations.

Revenue Outlook

The Q4’24 outlook was lowered as full-year revenue guidance was taken down from $50M+ to $39M.

Local Bounti Corporation Business Overview & Revenue Model

Company Description

Local Bounti Corporation (LOCL) is an innovative agricultural technology company based in the United States, specializing in sustainable indoor farming. The company leverages advanced Controlled Environment Agriculture (CEA) and hydroponic methods to produce high-quality, non-GMO, and pesticide-free leafy greens and herbs. Local Bounti aims to revolutionize the agricultural sector by optimizing growth cycles, minimizing environmental impact, and delivering fresh produce year-round to retailers and consumers.

How the Company Makes Money

Local Bounti Corporation generates revenue through the sale of its fresh produce, which includes a variety of leafy greens and herbs. The company supplies its products to grocery stores, food service providers, and direct-to-consumer channels. By utilizing its proprietary CEA technology, Local Bounti enhances crop yields and reduces resource usage, allowing for a cost-efficient production process. Key revenue streams include sales agreements with major retailers and partnerships with food distributors, which help expand its market reach and ensure consistent demand for its products. Additionally, Local Bounti's focus on sustainability and freshness appeals to environmentally conscious consumers, contributing to its competitive edge and revenue growth.

Local Bounti Corporation Financial Statement Overview

Summary

Local Bounti Corporation has shown strong revenue growth, but struggles with profitability and financial stability. The income statement reveals significant operational challenges with negative margins, while the balance sheet indicates insolvency due to negative stockholders' equity and high debt levels. Cash flows remain negative, highlighting liquidity risks.

Income Statement

Local Bounti Corporation has demonstrated significant revenue growth, increasing from $27.56M in 2023 to $34.93M in 2024 TTM, a growth rate of 26.8%. However, the company struggles with profitability, as indicated by a negative gross profit margin of 0.3% and a substantial net loss. The EBIT and EBITDA margins also remain deeply negative, reflecting ongoing operational challenges.

Balance Sheet

The balance sheet shows a concerning financial structure, with a negative stockholders' equity of -$65.61M as of 2024 TTM, indicating insolvency. The debt-to-equity ratio cannot be calculated due to negative equity, but the high total debt level of $398.84M suggests significant financial leverage. The equity ratio is also negative, further emphasizing financial instability.

Cash Flow

Operating cash flow remains negative at -$35.46M for the 2024 TTM, with free cash flow also negative at -$153.11M. This indicates poor cash management and inadequate cash generation from operations. The company exhibits a slight improvement in operating cash flow compared to the previous year, but the overall cash flow position remains weak, posing liquidity risks.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
34.93M	27.56M	19.47M	638.00K	82.00K	0.00
	Gross Profit
103.00K	2.22M	2.21M	206.00K	-9.00K	0.00
	EBIT
-57.16M	-116.91M	-94.53M	-44.72M	-7.92M	-3.37M
	EBITDA
-84.97M	-85.14M	-83.91M	-50.28M	-7.60M	0.00
	Net Income Common Stockholders
-149.20M	-124.02M	-100.64M	-55.78M	-8.93M	-3.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.14M	10.33M	13.67M	96.66M	45.00K	2.14M
	Total Assets
0.00	381.75M	278.74M	143.93M	9.10M	5.89M
	Total Debt
0.00	327.42M	120.08M	11.20M	154.00K	2.50M
	Net Debt
2.14M	317.10M	106.42M	-85.46M	109.00K	360.00K
	Total Liabilities
0.00	366.48M	157.41M	42.25M	11.67M	3.33M
	Stockholders Equity
2.55M	15.27M	121.33M	101.68M	-2.57M	2.55M
Cash Flow		Free Cash Flow
-153.11M	-195.42M	-130.64M	-49.77M	-7.26M	-4.86M
	Operating Cash Flow
-35.46M	-33.16M	-48.81M	-20.11M	-3.84M	-1.12M
	Investing Cash Flow
-117.65M	-162.26M	-172.38M	-29.67M	-3.42M	-3.74M
	Financing Cash Flow
141.58M	187.38M	145.05M	150.81M	5.17M	7.00M

Local Bounti Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOCL, the sentiment is Positive. The current price of 3.37 is above the 20-day moving average (MA) of 2.58, above the 50-day MA of 2.38, and above the 200-day MA of 2.39, indicating a bullish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 46.47 is Neutral, neither overbought nor oversold. The STOCH value of 31.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LOCL.

Local Bounti Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$20.84B	14.17	-16.36%	3.22%	1.30%	4.55%
LOCL	49 Neutral	$35.84M	―	-2448.28%	―	38.40%	9.06%
SMG	45 Neutral	$2.94B	―	4.98%	5.16%	3.61%	94.27%
VFF	45 Neutral	$56.38M	―	-12.88%	―	17.71%	-10.34%
GRWG	43 Neutral	$52.74M	―	-33.74%	―	-16.39%	-9.08%
HYFM	41 Neutral	$12.50M	―	-25.94%	―	-16.02%	-1.84%
AGFY	39 Underperform	$35.75M	―	-438.92%	―	-42.61%	91.66%

Local Bounti Corporation Corporate Events

Local Bounti Restructures Debt and Appoints New CEO

On March 31, 2025, Local Bounti Corporation entered into a Debt Restructuring Agreement with Cargill Financial Services, resulting in the cancellation of $197 million in existing debt and the restructuring of senior loans. The agreement includes new financial covenants and extends the maturity date of the loans to December 31, 2035. Additionally, the company announced a $25 million investment through a securities purchase agreement and appointed Kathleen Valiasek as the new CEO, effective March 31, 2025, following Craig M. Hurlbert’s resignation.