Local Bounti Corporation (LOCL) AI Stock Analysis

• Market Cap: $55.75M
• Dividend Yield: N/A
• Average Volume (3M): 47.67K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.58
• Revenue Growth: 39.74%
• EPS Growth: 16.76%
• Country: US
• Employees: 333
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): -1.18
• Shares Outstanding: 22,123,010
• 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: 9.81
• Enterprise Value/Revenue: 12.42
• Enterprise Value/Gross Profit: 111.90
• Enterprise Value/Ebitda: -11.86
• 1Y Price Target: $6.00
• Price Target Upside: 129.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $2.50 ▼(-4.58% Downside)

Local Bounti Corporation's overall stock score is primarily impacted by its poor financial performance, characterized by high leverage and negative profitability margins. While the earnings call showed some operational improvements, ongoing challenges in profitability and technical indicators suggest caution. The valuation remains unattractive due to negative earnings and lack of dividends.

Positive Factors

Revenue Growth

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

Operational Efficiencies

Enhanced operational efficiencies through automation reduce costs and improve margins, strengthening competitive positioning.

Strategic Partnerships

Strategic partnerships expand market reach and enhance product distribution, fostering long-term growth and market presence.

Negative Factors

High Leverage

High leverage poses financial risks, limiting flexibility and increasing vulnerability to economic downturns, affecting long-term stability.

Negative Profitability Margins

Persistent negative margins highlight operational inefficiencies, challenging the company's path to profitability and financial health.

Cash Flow Challenges

Ongoing cash flow issues strain liquidity, impacting the ability to invest in growth opportunities and manage debt obligations.

Local Bounti Corporation Business Overview & Revenue Model

Company Description

Local Bounti Corporation (LOCL) is an innovative agricultural company focused on sustainable and efficient farming practices. Operating primarily in the controlled environment agriculture sector, Local Bounti utilizes advanced indoor farming techniques to grow a variety of fresh produce, including leafy greens and herbs. The company aims to reduce the carbon footprint associated with traditional farming by leveraging technology to optimize production, minimize resource usage, and deliver fresh, locally grown products to consumers and retailers.

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 faces significant financial challenges, with high leverage, negative profitability margins, and cash flow difficulties. While there is some revenue growth, the company's financial health is undermined by operational inefficiencies and high debt levels, posing risks to its long-term sustainability.

Income Statement

Local Bounti Corporation shows a modest revenue growth rate of 6.43% TTM, indicating some positive momentum. However, the company struggles with profitability, as evidenced by a negative net profit margin of -294.95% and negative EBIT and EBITDA margins. These figures suggest significant operational challenges and inefficiencies.

Balance Sheet

The balance sheet reveals a concerning debt-to-equity ratio of -3.98 TTM, indicating high leverage and negative equity. This high leverage poses a risk to financial stability. The return on equity is positive at 126.11%, but this is due to negative equity, which distorts the metric.

Cash Flow

Cash flow analysis shows a negative free cash flow growth rate of -17.33% TTM, highlighting cash flow challenges. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. The free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.02M	38.14M	27.56M	19.47M	638.00K	82.00K
Gross Profit	4.89M	4.09M	2.22M	2.21M	206.00K	-9.00K
EBITDA	-46.09M	-42.11M	-85.14M	-83.91M	-50.28M	-7.60M
Net Income	-129.84M	-119.90M	-124.02M	-111.07M	-56.09M	-8.41M
Balance Sheet
Total Assets	426.77M	428.04M	381.75M	278.74M	143.93M	9.10M
Cash, Cash Equivalents and Short-Term Investments	13.17M	937.00K	10.33M	13.67M	96.66M	45.00K
Total Debt	528.88M	437.16M	327.42M	120.08M	11.20M	9.37M
Total Liabilities	559.50M	528.53M	366.48M	157.41M	42.25M	11.67M
Stockholders Equity	-132.72M	-100.50M	15.27M	121.33M	101.68M	-2.57M
Cash Flow
Free Cash Flow	-67.76M	-109.52M	-195.42M	-130.64M	-49.77M	-7.26M
Operating Cash Flow	-34.25M	-27.06M	-33.16M	-48.81M	-20.11M	-3.84M
Investing Cash Flow	-33.51M	-82.45M	-162.26M	-172.38M	-29.67M	-3.42M
Financing Cash Flow	64.76M	100.09M	187.38M	145.05M	150.81M	5.17M

Local Bounti Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.62
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 2.62 is below the 20-day moving average (MA) of 2.85, below the 50-day MA of 2.82, and above the 200-day MA of 2.55, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 44.45 is Neutral, neither overbought nor oversold. The STOCH value of 38.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	58 Neutral	$6.04M	0.82	17.52%	―	4.42%	―
LOCL	44 Neutral	$55.75M	-0.18	―	―	39.74%	16.76%
AQB	43 Neutral	$4.11M	-0.06	―	―	―	―
EDBL	40 Underperform	$4.68M	-0.04	-146.28%	―	-16.60%	96.72%

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.

The most recent analyst rating on (LOCL) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Local Bounti Corporation stock, see the LOCL Stock Forecast page.

Local Bounti’s Earnings Call: Growth Amid Challenges

The recent earnings call for Local Bounti Corporation showcased a generally positive sentiment, driven by notable revenue growth, strategic cost reductions, and expansion efforts. However, the call also highlighted ongoing challenges, particularly concerning adjusted EBITDA losses and delays in achieving positive EBITDA, which somewhat tempered the overall optimistic outlook.

Local Bounti Reports Strong Q2 2025 Growth

Local Bounti Corporation is a U.S.-based indoor agriculture company known for its innovative Stack & Flow Technology®, which enhances crop production efficiency and sustainability in the agriculture sector.