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Sow Good (SOWG)
NASDAQ:SOWG
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Sow Good
(NASDAQ:SOWG)
Rating:45Neutral
Price Target:
$1.00
▲(29.87%Upside)
Sow Good (SOWG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.36M
Dividend YieldN/A
Average Volume (3M)311.64K
Price to Earnings (P/E)6.0
Beta (1Y)1.77
Revenue Growth-15.45%
EPS Growth-100.03%
CountryUS
Employees86
SectorConsumer Defensive
Sector Strength72
IndustryPackaged Foods
Share Statistics
EPS (TTM)-0.23
Shares Outstanding11,383,060
10 Day Avg. Volume414,817
30 Day Avg. Volume311,645
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.28
Price to Sales (P/S)0.00
P/FCF Ratio-0.52
Enterprise Value/Market Cap2.38
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit2.86
Enterprise Value/Ebitda1.98
Forecast
1Y Price Target
$4.00Price Target Upside419.48% Upside
Rating ConsensusHold
Number of Analyst Covering0
Sow Good Business Overview & Revenue Model
Company DescriptionSow Good Inc. provides freeze-dried snacks, smoothies, soups, and granola in the United States. The company markets its products through direct-to-consumer focused website, as well as through the business-to-business sales channel. It offers its products under the Sow Good and Sustain Us brands. The company was formerly known as Black Ridge Oil & Gas, Inc. and changed its name to Sow Good Inc. in January 2021. Sow Good Inc. was founded in 2010 and is based in Irving, Texas.
How the Company Makes MoneySow Good makes money primarily through the sale of its freeze-dried snack products. The company's revenue model is centered around selling these products directly to consumers through its e-commerce platform, as well as through various retail partnerships that place their products in supermarkets and health food stores. Additionally, Sow Good may engage in private label manufacturing, where they produce snacks for other brands, thereby diversifying their revenue streams. The company's focus on using high-quality ingredients and sustainable practices appeals to health-conscious consumers, contributing to its earnings. Significant partnerships with distributors and retailers help expand their market reach and drive sales growth.
Sow Good Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: -6.10%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The call indicates a mixed performance for Sow Good, with significant challenges from competition and financial losses countered by operational improvements and product expansion efforts. The company is optimistic about recovery and growth through innovation and new market entries.Q1-2025 Updates
Positive Updates
Significant Revenue Growth Quarter-Over-Quarter
Revenue increased by 79% from Q4 2024 to Q1 2025, showing a recovery trend despite competitive pressures.
Improved Gross Margin
Gross margin increased to 45% in Q1 2025 from 41% in the same period of 2024, due to lower cost of goods sold.
Cost Management and Efficiency Improvements
Operating expenses were reduced by approximately $400,000 in Q1 2025, with further savings targeted in Q2. Automation improvements were implemented to reduce labor costs.
New Product Expansions
Successful launch of new products and expansion into new retail channels, including entry into the Middle East market and plans for new product categories like beef jerky and freeze-dried yogurt snacks.
Positive Retailer Feedback and Reorders
Retailers like Five Below increased orders significantly, showing strong consumer interest and positive sales performance.
Negative Updates
Year-Over-Year Revenue Decline
Revenue dropped to $2.5 million in Q1 2025 from $11.4 million in Q1 2024, largely due to competitive pressures.
Net Loss and Financial Challenges
Net loss was $2.6 million in Q1 2025 compared to a net income of $511,000 in the same period of 2024. Cash and cash equivalents decreased from $3.7 million to $1.6 million by the end of Q1 2025.
Increased Competition Impact
Global CPG giants entering the category have increased competition, affecting demand and shelf space for Sow Good products.
Inventory Management Issues
Challenges in managing and converting existing inventory to cash, with some inventory affected by heat damage.
Company Guidance
In the first quarter of fiscal year 2025, Sow Good reported a 79% increase in revenue from Q4 2024, amounting to $2.5 million, although this was a decrease from $11.4 million in Q1 2024. The gross profit was $1.1 million, down from $4.6 million the previous year, but the gross margin improved to 45% from 41% due to lower costs of goods sold. Operating expenses were reduced to $3.5 million from $3.7 million, mainly due to decreased bonus compensation and legal expenses. The company saw a net loss of $2.6 million or $0.23 per diluted share, compared to a net income of $511,000 or $0.06 per share in 2024. Adjusted EBITDA was negative $0.8 million, compared to $2.5 million in the prior year. They ended the quarter with $1.6 million in cash and cash equivalents, down from $3.7 million at the end of 2024, and total debt of $2.7 million, which was restructured with notes maturing in five years. Sow Good plans to improve its cash position by converting inventory to cash and implementing cost-saving measures, while also expanding its market presence with new retail partnerships and product innovations.Sow Good Financial Statement Overview
Summary
Sow Good shows strong revenue growth potential, but struggles with profitability and cash flow management. The company has a stable balance sheet with moderate leverage, yet needs to convert revenue growth into sustainable profits and positive cash flows.Income Statement
Sow Good has seen substantial revenue growth over recent years, increasing from almost negligible levels to over $31 million. However, the company is still experiencing negative EBIT and net income, indicating profitability challenges. Despite an improvement in gross profit margins, the persistently negative net income and EBIT margins reflect ongoing operational inefficiencies.45
Neutral
Balance Sheet
The company's balance sheet shows a relatively high level of debt, with a Debt-to-Equity ratio of 0.64. The equity ratio stands at 58%, indicating moderate reliance on equity financing. The Return on Equity (ROE) is negative due to the net losses. Overall, the balance sheet reveals a fair but cautious financial position requiring improved profitability.50
Neutral
Cash Flow
Despite negative free cash flow and operating cash flow, Sow Good shows potential for improvement with significant financing cash flows suggesting efforts to bolster liquidity. However, the negative ratios of operating cash flow to net income and free cash flow to net income highlight cash generation issues that need to be addressed for better financial health.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 23.06M | 31.99M | 16.07M | 428.13K | 88.44K | 0.00 |
| Gross Profit | |||||
| 9.45M | 12.98M | 4.88M | 119.84K | 7.13K | -1.93M |
| EBIT | |||||
| -3.53M | -1.56M | -1.22M | -5.69M | -5.58M | -3.01M |
| EBITDA | |||||
| -1.56M | -114.89K | -761.34K | -10.30M | -6.82M | -3.00M |
| Net Income Common Stockholders | |||||
| -6.78M | -3.70M | -3.06M | -17.29M | -6.88M | -5.71M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.62M | 3.72M | 2.41M | 276.46K | 3.35M | 2.19M |
| Total Assets | |||||
| 52.72M | 54.70M | 21.49M | 8.90M | 14.10M | 12.34M |
| Total Debt | |||||
| 19.91M | 20.36M | 11.84M | 5.25M | 2.93M | 1.70M |
| Net Debt | |||||
| 18.29M | 16.64M | 9.43M | 4.97M | -420.27K | -210.07K |
| Total Liabilities | |||||
| 21.93M | 22.71M | 14.21M | 6.09M | 3.28M | 2.29M |
| Stockholders Equity | |||||
| 30.79M | 31.99M | 7.28M | 2.81M | 10.82M | 10.06M |
| Cash Flow | Free Cash Flow | ||||
| -16.70M | -12.70M | -7.11M | -7.83M | -6.62M | -2.80M |
| Operating Cash Flow | |||||
| -12.72M | -9.43M | -4.85M | -5.15M | -5.55M | -1.74M |
| Investing Cash Flow | |||||
| -5.41M | -5.93M | -2.27M | -2.62M | -653.05K | 3.28M |
| Financing Cash Flow | |||||
| 12.93M | 16.67M | 9.25M | 4.70M | 7.64M | 262.93K |
Sow Good Technical Analysis
Negative
0.77
Price Trends
0.74
Positive
1.69
Negative
4.99
Negative
Market Momentum
>-0.01
Negative
49.30
Neutral
43.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOWG, the sentiment is Negative. The current price of 0.77 is above the 20-day moving average (MA) of 0.74, above the 50-day MA of 0.74, and below the 200-day MA of 4.99, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.30 is Neutral, neither overbought nor oversold. The STOCH value of 43.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOWG.
Sow Good Risk Analysis
Sow Good disclosed 43 risk factors in its most recent earnings report. Sow Good 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.
We may not be able to maintain a listing of our common stock on the Nasdaq Capital Market. Q3, 2024
2.
The conflict in the Middle East between Israel and its adversaries, including Hamas, Hezbollah and Iran, may affect our operations. Q3, 2024
Sow Good Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $46.34M | 4.96 | 9.79% | ― | ― | ― | |
65 Neutral | $8.94B | 14.99 | 4.76% | 203.76% | 3.54% | -2.49% | |
54 Neutral | $5.28M | ― | -580.71% | ― | -8.72% | 94.96% | |
53 Neutral | $68.70M | ― | -7.38% | ― | 25.04% | 87.51% | |
45 Neutral | $11.36M | 6.01 | -31.05% | ― | -15.45% | -100.03% | |
43 Neutral | $5.70M | ― | -385.90% | ― | -56.65% | 99.11% | |
42 Neutral | $22.16M | ― | -2448.28% | ― | 41.44% | -1.20% |
* Consumer Defensive Sector Average
Performance Comparison
SOWG
Sow Good
0.77
-20.23
-96.33%
XXII
22nd Century
0.75
-111.15
-99.33%
LSF
Laird Superfood
6.62
1.71
34.83%
LOCL
Local Bounti Corporation
2.07
-0.73
-26.07%
EDBL
Edible Garden AG , Inc.
2.95
-40.55
-93.22%
WYHG
Wing Yip Food Holdings Group Limited Sponsored ADR
1.65
-2.39
-59.16%
Sow Good Corporate Events
Executive/Board Changes
Sow Good CFO Brendon Fischer Announces Resignation
Neutral
May 30, 2025
On May 27, 2025, Brendon Fischer, the Interim Chief Financial Officer of Sow Good Inc., announced his resignation effective June 6, 2025. Fischer’s departure is not due to any disagreements with the company’s operations or policies, and he will assist in the transition of his responsibilities before leaving.
The most recent analyst rating on (SOWG) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Sow Good stock, see the SOWG Stock Forecast page.
Delistings and Listing ChangesShareholder MeetingsStock SplitRegulatory Filings and Compliance
Sow Good Faces Nasdaq Non-Compliance Notice
Negative
May 20, 2025
On May 14, 2025, Sow Good Inc. received a notification from Nasdaq indicating non-compliance with the minimum bid price rule, as the company’s stock had closed below $1.00 for 30 consecutive business days. The company has until November 10, 2025, to regain compliance or potentially face delisting. Sow Good is considering a reverse stock split, which will be voted on at the 2025 Annual Meeting of Stockholders on June 13, 2025. The outcome of this vote and the company’s ability to meet Nasdaq’s requirements will determine its continued listing status.
The most recent analyst rating on (SOWG) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Sow Good stock, see the SOWG Stock Forecast page.
Private Placements and Financing
Sow Good Enters New Convertible Notes Agreement
Neutral
Apr 30, 2025
On April 28, 2025, Sow Good Inc. entered into an exchange agreement with related party holders of its outstanding promissory notes, valued at $2.7 million. These notes, with maturity dates from April to August 2025 and interest rates between 6% and 8%, were exchanged for new senior convertible promissory notes totaling $2.8 million, including accrued interest. The new notes, maturing on April 30, 2030, offer semiannual interest payments and can be converted into common stock. They are senior to all existing and future debt, secured by the company’s assets, and redeemable by the company or holders starting January 1, 2025. This agreement was unanimously approved by the company’s board and audit committee.
Executive/Board Changes
Sow Good Revises Executive Compensation Structure
Neutral
Apr 4, 2025
On March 31, 2025, Sow Good Inc.’s Board of Directors approved a revision to the annual compensation of its CEO, Claudia Goldfarb, and Executive Chairman, Ira Goldfarb. The revision involves receiving a portion of their salaries in company stock rather than cash, with Ms. Goldfarb receiving 28% and Mr. Goldfarb 32% of their salaries in stock, calculated based on the stock’s closing price on the grant date.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.