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

• Market Cap: $3.54K
• Dividend Yield: N/A
• Average Volume (3M): 16.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 28.56
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 12
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): N/A
• Shares Outstanding: 7,090,728
• 10 Day Avg. Volume: 35,374
• 30 Day Avg. Volume: 16,556
• PEG Ratio: <0.01
• Price to Book (P/B): -0.11
• Price to Sales (P/S): 0.08
• P/FCF Ratio: -0.12
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -199.5
• Revenue Forecast (FY): $12.63M

• Rating: 29 Underperform
• 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.

Positive Factors

Product Innovation

Smart for Life's focus on product innovation allows it to adapt to consumer demand for healthy lifestyle solutions, potentially driving long-term growth.

Market Position

Operating in the expanding health and wellness market positions Smart for Life to capitalize on increasing consumer interest in nutraceutical products.

Revenue Channels

Diverse revenue channels, including online and retail partnerships, enhance market reach and resilience against market fluctuations.

Negative Factors

Declining Revenues

Significant revenue decline indicates challenges in market demand or competitive positioning, impacting long-term financial stability.

Negative Equity

Negative equity reflects financial instability, limiting the company's ability to invest in growth and manage debt effectively.

Cash Flow Challenges

Persistent negative cash flow, despite slight improvement, indicates operational inefficiencies and potential liquidity issues.

Smart for Life, Inc. Business Overview & Revenue Model

Company Description

Smart for Life, Inc. acquires, develops, manufactures, operates, markets, and sells nutraceutical and related products in the United States and internationally. It offers natural health and wellness meal replacement products, including nutrition bars, cookies, soups and shakes, vitamins, and supplements; dietary supplements; nutritional supplements for athletes and active lifestyle consumers comprising powders, tablets, and soft gels; and various nutritional supplements. It sells its products through online market platforms. The company was formerly known as Bonne Santé Group, Inc. and changed its name to Smart for Life, Inc. in August 2021. Smart for Life, Inc. was founded in 2002 and is based in Miami, Florida.

How the Company Makes Money

Smart 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

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

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

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	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	3.41M	8.23M	15.90M	9.02M	1.96M	2.36M
Gross Profit	944.22K	3.09M	3.19M	2.90M	127.97K	48.19K
EBITDA	-12.02M	-14.21M	-10.38M	-4.54M	-1.75M	-2.22M
Net Income	-18.17M	-22.68M	-29.98M	-7.77M	-3.17M	-2.52M
Balance Sheet
Total Assets	12.73M	19.66M	29.15M	22.61M	1.97M	2.37M
Cash, Cash Equivalents and Short-Term Investments	35.61K	188.60K	69.71K	205.09K	484.95K	12.21K
Total Debt	3.33M	14.46M	22.42M	23.22M	6.35M	4.24M
Total Liabilities	11.79M	26.05M	31.51M	28.70M	9.09M	6.45M
Stockholders Equity	938.46K	-6.39M	-2.36M	-6.09M	-7.13M	-4.08M
Cash Flow
Free Cash Flow	-874.89K	-5.85M	-9.44M	-5.16M	-1.97M	-1.75M
Operating Cash Flow	-869.54K	-5.85M	-9.38M	-5.02M	-1.94M	-1.75M
Investing Cash Flow	-5.34K	-3.45K	-3.06M	-8.24M	-32.97K	0.00
Financing Cash Flow	1.36M	5.97M	12.31M	12.98M	2.49M	1.76M

Smart for Life, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.02
• 50DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMFL, the sentiment is Positive. The current price of 0.02 is above the 20-day moving average (MA) of 0.01, above the 50-day MA of 0.02, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.78 is Neutral, neither overbought nor oversold. The STOCH value of 106.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMFL.

Smart for Life, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATR	73 Outperform	$368.46M	25.95	9.52%	―	6.62%	-7.85%
FTLF	71 Outperform	$170.68M	26.13	17.77%	―	12.44%	-20.33%
SENEA	70 Outperform	$831.08M	14.06	9.41%	―	8.33%	47.71%
LWAY	69 Neutral	$375.54M	34.01	14.46%	―	12.14%	-17.80%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
STKL	51 Neutral	$638.71M	―	2.23%	―	11.31%	99.83%
SMFL	29 Underperform	$3.54K	―	―	―	―	―