Equator Beverage Company (MOJO) AI Stock Analysis

• Market Cap: $11.20M
• Dividend Yield: N/A
• Average Volume (3M): 21.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: 37.87%
• EPS Growth: -3.24%
• Country: US
• Employees: 2
• Sector: Consumer Defensive
• Sector Strength: 41
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): <0.01
• Shares Outstanding: 18,070,316
• 10 Day Avg. Volume: 15,275
• 30 Day Avg. Volume: 21,347
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 2.71
• Enterprise Value/Gross Profit: 7.06
• Enterprise Value/Ebitda: -9.20
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: ―

Equator Beverage Company exhibits strong revenue growth, but its lack of profitability and inconsistent cash flows pose significant challenges. The technical indicators present a neutral to bearish outlook, with the stock trading below key moving averages. Valuation is hindered by negative earnings, making it an unattractive option for investors seeking growth or income. The absence of earnings call data and corporate events limits additional insights into the company's future prospects.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust sales momentum and expanding market reach, suggesting potential for future profitability if costs are managed.

Debt-Free Balance Sheet

A debt-free balance sheet reduces financial risk and enhances financial flexibility, allowing the company to invest in growth opportunities without the burden of debt servicing.

Operating Cash Flow

Positive operating cash flow indicates the company's core business operations are generating cash, a crucial step towards achieving financial sustainability and supporting future growth.

Negative Factors

Negative Return on Equity

Negative ROE reflects inefficiencies in generating shareholder value, which could deter investment and impact the company's ability to raise capital for future growth.

Inconsistent Cash Flows

Erratic free cash flow indicates instability in cash generation, posing risks to financial sustainability and limiting the company's ability to invest in growth initiatives.

Profitability Challenges

Persistent unprofitability despite revenue growth suggests challenges in cost management and margin improvement, which could hinder long-term financial health.

Equator Beverage Company Business Overview & Revenue Model

Company Description

Equator Beverage Company (MOJO) specializes in producing and distributing a diverse range of natural beverages, focusing on innovative and health-conscious drink options. Operating within the beverage industry, the company is committed to offering high-quality, sustainable products that cater to a growing consumer demand for organic and natural ingredients.

How the Company Makes Money

Equator Beverage Company generates revenue primarily through the sale of its various beverage products to different market segments, including retail, wholesale, and direct-to-consumer channels. The company capitalizes on its distribution partnerships with major retailers and grocery chains to expand its market reach and increase product accessibility. Additionally, Equator Beverage may engage in strategic collaborations and partnerships that enhance its product offerings and market presence, contributing to its overall revenue growth.

Equator Beverage Company Financial Statement Overview

Summary

Equator Beverage Company is experiencing robust revenue growth, but profitability remains elusive due to negative margins. The balance sheet is strengthened by zero debt, yet equity levels are low and ROE is negative, indicating inefficiencies in generating value. Cash flows are inconsistent, with positive operating cash flow but insufficient free cash flow. The company must address profitability and cash flow stability to enhance financial health.

Income Statement

The company has shown significant revenue growth with a 41.9% increase from 2023 to 2024, indicating strong sales momentum. However, despite this growth, the company remains unprofitable, with negative EBIT and net income margins at -24.1% and -24.7%, respectively, for 2024. The persistent losses highlight profitability challenges, which offset the positive revenue trajectory.

Balance Sheet

The balance sheet shows no debt, improving from a debt of $230,000 in 2023 to zero in 2024, which reduces financial risk. However, the equity ratio has weakened to 58.4% in 2024 from 46.6% in 2019, and the return on equity remains negative due to ongoing losses. While the absence of debt is a positive, the company's low equity and negative ROE highlight ongoing issues with generating shareholder value.

Cash Flow

Operating cash flow turned positive in 2024, but free cash flow growth is erratic, with a significant decline from 2023 to 2024. The operating cash flow to net income ratio is strong at 0.063 in 2024, yet the free cash flow to net income ratio remains negative, reflecting inadequate cash generation relative to losses. Cash flow stability is lacking, posing a challenge to financial sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.68M	3.25M	2.29M	1.82M	1.92M	1.74M
Gross Profit	1.41M	1.23M	1.01M	630.96K	849.04K	824.28K
EBITDA	-1.08M	-781.00K	-164.00K	-228.00K	4.38K	-85.94K
Net Income	-400.88K	-801.00K	-180.00K	-239.00K	39.89K	-83.72K
Balance Sheet
Total Assets	1.38M	576.16K	581.49K	441.12K	429.50K	341.59K
Cash, Cash Equivalents and Short-Term Investments	43.71K	22.80K	87.34K	10.74K	46.48K	50.23K
Total Debt	459.00K	115.00K	230.00K	225.00K	0.00	35.51K
Total Liabilities	869.66K	239.86K	310.62K	295.25K	58.94K	91.67K
Stockholders Equity	514.23K	336.30K	270.87K	145.87K	370.55K	249.91K
Cash Flow
Free Cash Flow	-52.38K	50.46K	123.42K	-93.00K	103.46K	-26.20K
Operating Cash Flow	-52.38K	50.46K	123.42K	-93.00K	103.46K	-26.20K
Investing Cash Flow	-3.00	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	83.00K	-115.00K	-46.81K	57.26K	-107.22K	20.46K

Equator Beverage Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MOJO, the sentiment is Positive. The current price of 0.62 is above the 20-day moving average (MA) of 0.55, above the 50-day MA of 0.56, and above the 200-day MA of 0.52, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.89 is Neutral, neither overbought nor oversold. The STOCH value of 85.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MOJO.

Equator Beverage Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COCO	77 Outperform	$2.22B	36.11	24.35%	―	11.97%	16.10%
Sector *	62 Neutral	$20.56B	14.79	-3.30%	3.19%	1.94%	-8.41%
ZVIA	54 Neutral	$185.13M	―	-22.11%	―	-1.08%	54.50%
OTLY	52 Neutral	$527.56M	―	-114.20%	―	4.47%	42.22%
MOJO	45 Neutral	$11.20M	―	-93.26%	―	37.87%	-3.24%
SHOT	40 Underperform	$84.89M	―	-111.07%	―	-63.00%	56.93%
BRFH	39 Underperform	$48.62M	―	-161.48%	―	24.52%	-7.31%