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Smart for Life, Inc. (SMFL)
OTHER OTC:SMFL
US Market

Smart for Life, Inc. (SMFL) AI Stock Analysis

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SM

Smart for Life, Inc.

(OTC:SMFL)

Rating:29Underperform
Price Target:
Smart for Life, Inc. faces significant financial difficulties, as evidenced by declining revenues and negative equity. Technical indicators suggest a bearish trend with lack of momentum. Valuation metrics are unattractive, and the recent earnings call provided limited insights. Overall, the company needs substantial strategic improvements to enhance its financial health and stock performance.

Smart for Life, Inc. (SMFL) vs. SPDR S&P 500 ETF (SPY)

Smart for Life, Inc. Business Overview & Revenue Model

Company DescriptionSmart for Life, Inc. (SMFL) is a health and wellness company that operates within the nutraceutical sector, providing a range of products designed to promote healthy living and support weight management. The company's core offerings include scientifically formulated nutritional products, including protein bars, shakes, supplements, and meal replacement products, focusing on delivering convenient and effective solutions for health-conscious consumers.
How the Company Makes MoneySmart for Life, Inc. makes money primarily through the sale of its health and wellness products, distributed via various channels such as retail stores, online platforms, and direct-to-consumer sales. The company's revenue model is built on leveraging its brand and product formulations to capture market share in the growing health and wellness sector. Key revenue streams include online sales through its own website and third-party marketplaces, as well as partnerships with retailers to reach a broader audience. The company's earnings are also supported by its ability to innovate and expand its product portfolio to meet consumer demand for healthy lifestyle solutions.

Smart for Life, Inc. Financial Statement Overview

Summary
Smart for Life, Inc. is experiencing severe financial challenges with declining revenues, significant losses, and a heavily leveraged balance sheet with negative equity. Although there is a slight improvement in free cash flow, the company faces substantial financial risks.
Income Statement
20
Very Negative
Smart for Life, Inc. has faced declining revenues, with a marked drop of about 53.7% from 2022 to 2023. The company exhibits negative profit margins, with a gross profit margin of 37.6% in 2023 but significant net losses leading to a net profit margin of -275.6%. Both EBIT and EBITDA margins are deeply negative, indicating challenges in operating profitability.
Balance Sheet
15
Very Negative
The company's balance sheet shows significant financial stress, with a negative stockholders' equity of -$6.39 million in 2023. The debt-to-equity ratio is not applicable due to negative equity, reflecting high leverage and financial instability. The equity ratio is negative, underscoring a capital structure with liabilities exceeding assets, posing significant financial risks.
Cash Flow
25
Negative
Cash flow analysis reveals ongoing negative free cash flow, improving slightly from -$9.44 million in 2022 to -$5.85 million in 2023. The operating cash flow to net income ratio indicates consistent cash flow challenges, but there is a slight improvement in free cash flow, suggesting minor operational improvements.
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
8.23M17.77M9.02M1.96M2.36M
Gross Profit
3.09M4.88M2.90M127.97K48.19K
EBIT
-17.16M-14.38M-5.24M-1.90M-2.40M
EBITDA
-14.21M-10.06M-4.54M-1.75M-2.22M
Net Income Common Stockholders
-22.68M-31.83M-10.26M-4.41M-3.16M
Balance SheetCash, Cash Equivalents and Short-Term Investments
188.60K69.71K205.09K484.95K12.21K
Total Assets
19.66M29.15M22.61M1.97M2.37M
Total Debt
14.46M23.29M22.84M6.35M4.24M
Net Debt
14.28M23.22M22.63M5.87M4.23M
Total Liabilities
26.05M31.51M28.70M9.09M6.45M
Stockholders Equity
-6.39M-2.36M-6.09M-7.13M-4.08M
Cash FlowFree Cash Flow
-5.85M-9.44M-5.16M-1.97M-1.75M
Operating Cash Flow
-5.85M-9.38M-5.02M-1.94M-1.75M
Investing Cash Flow
-3.45K-3.06M-8.24M-32.97K0.00
Financing Cash Flow
5.97M12.31M12.98M2.45M1.76M

Smart for Life, Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.04
Price Trends
50DMA
0.02
Positive
100DMA
0.09
Negative
200DMA
1.42
Negative
Market Momentum
MACD
<0.01
Negative
RSI
61.81
Neutral
STOCH
75.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMFL, the sentiment is Neutral. The current price of 0.04 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and below the 200-day MA of 1.42, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.81 is Neutral, neither overbought nor oversold. The STOCH value of 75.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SMFL.

Smart for Life, Inc. Risk Analysis

Smart for Life, Inc. disclosed 52 risk factors in its most recent earnings report. Smart for Life, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Adverse developments affecting the financial services industry, such as actual events or concerns involving liquidity, defaults, or non-performance by financial institutions or transactional counterparties, could adversely affect our current and projected business operations and our financial condition and results of operations. Q4, 2022
2.
The effect of the COVID-19 pandemic on our operations, and the operations of our customers and suppliers, has had, and is expected to continue to have, a negative effect on our business, financial condition, cash flows and results of operations. Q4, 2022

Smart for Life, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$262.42M26.726.42%2.00%-37.09%
68
Neutral
$574.71M16.906.78%-2.69%-43.24%
HLHLF
68
Neutral
$842.27M3.01-31.74%-2.45%100.59%
65
Neutral
$8.92B15.034.68%6.11%3.59%-2.49%
MEMED
54
Neutral
$149.37M66.49-3.32%-39.47%-110.28%
42
Neutral
$34.06M-35.72%-0.19%70.65%
29
Underperform
$60.98K355.00%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SMFL
Smart for Life, Inc.
0.04
-3.03
-98.70%
FARM
Farmer Brothers Company
1.54
-1.23
-44.40%
HLF
Herbalife
8.02
-3.20
-28.52%
MED
Medifast
13.28
-6.86
-34.06%
NATR
Nature's Sunshine Products
14.22
-0.79
-5.26%
USNA
USANA Health
29.85
-15.54
-34.24%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.