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

• Market Cap: $60.98K
• Dividend Yield: N/A
• Average Volume (3M): 3.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 15.78
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 12
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Packaged Foods
• EPS (TTM): N/A
• Shares Outstanding: 7,090,728
• 10 Day Avg. Volume: 2,819
• 30 Day Avg. Volume: 3,261
• PEG Ratio: >-0.01
• Price to Book (P/B): >-0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: >-0.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• 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.

Smart for Life, Inc. Business Overview & Revenue Model

Company Description

Smart 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 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
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
8.23M	17.77M	9.02M	1.96M	2.36M
	Gross Profit
3.09M	4.88M	2.90M	127.97K	48.19K
	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 Sheet		Cash, Cash Equivalents and Short-Term Investments
188.60K	69.71K	205.09K	484.95K	12.21K
	Total Assets
19.66M	29.15M	22.61M	1.97M	2.37M
	Total Debt
14.46M	23.29M	22.84M	6.35M	4.24M
	Net Debt
14.28M	23.22M	22.63M	5.87M	4.23M
	Total Liabilities
26.05M	31.51M	28.70M	9.09M	6.45M
	Stockholders Equity
-6.39M	-2.36M	-6.09M	-7.13M	-4.08M
Cash Flow		Free 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	-32.97K	0.00
	Financing Cash Flow
5.97M	12.31M	12.98M	2.45M	1.76M

Smart for Life, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATR	77 Outperform	$262.42M	26.72	6.42%	―	2.00%	-37.09%
USNA	68 Neutral	$574.71M	16.90	6.78%	―	-2.69%	-43.24%
HLF	68 Neutral	$842.27M	3.01	-31.74%	―	-2.45%	100.59%
Sector *	65 Neutral	$8.92B	15.03	4.68%	6.11%	3.59%	-2.49%
MED	54 Neutral	$149.37M	66.49	-3.32%	―	-39.47%	-110.28%
FARM	42 Neutral	$34.06M	―	-35.72%	―	-0.19%	70.65%
SMFL	29 Underperform	$60.98K	―	355.00%	―	―	―