Local Bounti Corporation (LOCL) AI Stock Analysis

• Market Cap: $51.00M
• Dividend Yield: N/A
• Average Volume (3M): 47.67K
• Price to Earnings (P/E): ―
• Beta (1Y): -2.99
• Revenue Growth: 31.61%
• EPS Growth: 37.02%
• Country: US
• Employees: 333
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): -1.18
• Shares Outstanding: 22,271,082
• 10 Day Avg. Volume: 30,280
• 30 Day Avg. Volume: 47,674
• PEG Ratio: 0.02
• Price to Book (P/B): -0.17
• Price to Sales (P/S): 0.46
• P/FCF Ratio: -0.16
• Enterprise Value/Market Cap: 10.72
• Enterprise Value/Revenue: 11.89
• Enterprise Value/Gross Profit: 487.31
• Enterprise Value/Ebitda: -10.52
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $2.50 ▲(9.65% Upside)

Local Bounti Corporation's overall stock score is primarily impacted by its weak financial performance, characterized by high leverage, negative equity, and persistent losses. While the earnings call showed some operational improvements, the technical analysis and valuation metrics remain concerning. The company needs to address its financial instability to improve its stock attractiveness.

Positive Factors

Operational Efficiencies

The implementation of automated systems enhances productivity and reduces costs, which can lead to improved margins and long-term profitability.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective expansion strategies, supporting long-term business sustainability.

Cost Reductions

Significant cost reductions enhance financial health by improving margins and providing more resources for strategic investments.

Negative Factors

High Leverage

High leverage and negative equity can limit financial flexibility and increase risk, potentially impacting long-term viability.

Cash Flow Challenges

Negative cash flows indicate difficulties in funding operations and investments, which can hinder growth and stability over time.

Profitability Issues

Persistent profitability challenges suggest difficulties in cost management and pricing strategy, affecting long-term financial health.

Local Bounti Corporation Business Overview & Revenue Model

Company Description

Local Bounti Corporation grows fresh greens and herbs in the United States. It produces lettuce, herbs, and loose-leaf lettuce. The company sells its products to food retailers and food service distributors. Local Bounti Corporation was founded in 2018 and is headquartered in Hamilton, Montana.

How the Company Makes Money

Local Bounti generates revenue through the sale of its fresh produce products to retail grocery chains, food service providers, and direct-to-consumer platforms. The company’s revenue model primarily relies on wholesale and retail sales, with a significant portion coming from long-term contracts with grocery retailers who value the consistency and quality of Local Bounti's products. Additionally, the company may explore partnerships with delivery services and meal kit companies, expanding its market reach and customer base. The emphasis on sustainable practices and local sourcing also positions Local Bounti favorably in the growing market for organic and environmentally friendly produce, contributing to its earnings.

Local Bounti Corporation Financial Statement Overview

Summary

Local Bounti Corporation is facing significant financial challenges across all verticals. The income statement shows persistent losses and low margins, the balance sheet indicates high leverage and negative equity, and the cash flow statement reveals substantial cash outflows. The company needs to focus on improving profitability, reducing leverage, and enhancing cash flow management to stabilize its financial position.

Income Statement

Local Bounti Corporation has shown some revenue growth with a TTM increase of 4.45%. However, the company is struggling with profitability, as indicated by negative net profit margins of -294.95% and EBIT margins of -158.07%. The gross profit margin is relatively low at 11.10%, suggesting challenges in managing production costs. Overall, the income statement reflects significant financial pressure and a need for improved cost management and profitability.

Balance Sheet

The balance sheet reveals a concerning financial structure with a negative stockholders' equity of -$158.14 million, leading to a negative debt-to-equity ratio of -3.98. This indicates high financial leverage and potential solvency issues. The return on equity is also negative, reflecting ongoing losses. The equity ratio is not favorable, suggesting a weak capital structure. Overall, the balance sheet highlights significant financial instability and high leverage risks.

Cash Flow

Cash flow analysis shows negative operating cash flow and free cash flow, with a TTM free cash flow growth rate of -29.38%. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is positive at 1.98, suggesting some ability to cover net losses with free cash flow. Despite this, the overall cash flow position is weak, with significant cash outflows and limited cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.98M	38.14M	27.56M	19.47M	638.00K	82.00K
Gross Profit	1.12M	4.09M	2.22M	2.21M	206.00K	-9.00K
EBITDA	-51.96M	-42.11M	-85.14M	-83.91M	-48.79M	-7.60M
Net Income	-121.94M	-119.90M	-124.02M	-111.07M	-56.09M	-8.41M
Balance Sheet
Total Assets	417.76M	428.04M	381.75M	278.74M	143.93M	9.10M
Cash, Cash Equivalents and Short-Term Investments	12.71M	937.00K	10.33M	13.67M	96.66M	45.00K
Total Debt	535.53M	437.16M	327.42M	120.08M	24.31M	9.37M
Total Liabilities	575.90M	528.53M	366.48M	157.41M	42.25M	11.67M
Stockholders Equity	-158.14M	-100.50M	15.27M	121.33M	101.68M	-2.57M
Cash Flow
Free Cash Flow	-47.85M	-109.52M	-195.42M	-130.64M	-49.77M	-7.26M
Operating Cash Flow	-25.96M	-27.06M	-33.16M	-48.81M	-20.11M	-3.84M
Investing Cash Flow	-21.90M	-82.45M	-162.26M	-172.38M	-29.67M	-3.42M
Financing Cash Flow	53.76M	100.09M	187.38M	145.05M	150.81M	5.17M

Local Bounti Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOCL, the sentiment is Negative. The current price of 2.28 is below the 20-day moving average (MA) of 2.45, below the 50-day MA of 2.62, and below the 200-day MA of 2.57, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 41.78 is Neutral, neither overbought nor oversold. The STOCH value of 16.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LOCL.

Local Bounti Corporation 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%
SDOT	44 Neutral	$2.85M	-0.12	-46.64%	―	-29.40%	-535.63%
LOCL	43 Neutral	$51.00M	-0.20	―	―	31.61%	37.02%
AQB	43 Neutral	$3.30M	-0.04	―	―	―	―
EDBL	41 Neutral	$5.13M	-0.04	-179.10%	―	-10.77%	97.27%

Local Bounti Corporation Corporate Events

Local Bounti Approves New Stock Issuance

On October 14, 2025, Local Bounti Corporation held a Special Meeting of Stockholders where 74.2% of the company’s common stock was represented. Stockholders approved the issuance of up to 5,681,871 shares of Common Stock to U.S. Bounti, LLC, as well as the potential adjournment of the meeting to solicit additional proxies if necessary.