Sow Good (SOWG) AI Stock Analysis

• Market Cap: $9.66M
• Dividend Yield: N/A
• Average Volume (3M): 659.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.62
• Revenue Growth: -81.88%
• EPS Growth: -672.01%
• Country: US
• Employees: 86
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.90
• Shares Outstanding: 12,223,599
• 10 Day Avg. Volume: 76,965
• 30 Day Avg. Volume: 659,977
• PEG Ratio: 0.16
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.59
• P/FCF Ratio: -1.48
• Enterprise Value/Market Cap: 2.80
• Enterprise Value/Revenue: 3.73
• Enterprise Value/Gross Profit: -2.95
• Enterprise Value/Ebitda: -1.44
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $0.77 ▲(126.47% Upside)

The score is held down primarily by sharply weakened financial performance and ongoing cash burn, which outweigh an improved leverage profile. Technicals are supportive with the stock above key moving averages, but overbought momentum and high volatility raise downside risk. Guidance and corporate actions point to restructuring progress and a potential profitability path, yet near-term fundamentals and liquidity-related uncertainty remain significant.

Positive Factors

Improved Leverage

Leverage reduced to ~25% of equity provides a firmer capital structure and lower fixed financing costs, improving resilience while the company executes a turnaround. Sustained lower debt reduces bankruptcy risk and gives management time to restore operations over the next several quarters.

Structural Cost Cuts

Large, permanent lease savings and payroll efficiencies materially lower the firm’s fixed cost base and breakeven point. These structural expense reductions enhance the odds of returning to profitability by mid-2026 if revenue stabilizes, improving cash flow durability over months.

National Private-Label Distribution

A 100-store private-label deal and new SKUs create stable wholesale distribution and scale economies. Recurring retail placement can drive predictable revenue and margin recovery if execution holds, strengthening long-term go-to-market reach and product-market fit.

Negative Factors

Dramatic Revenue Collapse

A collapse in revenue eliminates scale benefits and impairs the company’s ability to absorb fixed costs, invest in inventory or marketing, and maintain supplier terms. Without durable top-line recovery, margin fixes and cash generation will remain highly uncertain over the coming quarters.

Severe Margin Damage from Inventory Charges

Huge inventory write-downs suggest persistent pricing, quality, or demand mismatch that destroys gross profit and future margin visibility. Such structural inventory impairment undermines EBITDA recovery and can recur if product assortment and sourcing issues are not fully resolved.

Persistent Cash Burn and Liquidity Strain

Repeated negative operating and free cash flow, coupled with cash falling to sub-$0.5M, forces reliance on external financing and dilutive instruments. This creates execution and dilution risk and constrains investment in growth or inventory replenishment over the next several quarters.

Sow Good Business Overview & Revenue Model

Company Description

Sow 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 Money

Sow Good generates revenue through several key streams. Primarily, the company sells organic seeds and gardening supplies through its online platform and physical retail locations. Additionally, it earns income from its food distribution services, which include partnerships with local farmers to supply organic produce to restaurants and grocery stores. The company also conducts workshops and educational programs on sustainable agriculture, charging fees for participation. Significant partnerships with local agricultural co-operatives and eco-friendly brands enhance its product offerings and expand its customer base, contributing to its overall earnings.

Sow Good Financial Statement Overview

Summary

Sow Good shows strong revenue growth but struggles with profitability and cash flow management. The balance sheet is stable with moderate leverage, yet the company 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.27M	31.99M	16.07M	428.13K	88.44K	0.00
Gross Profit	-9.19M	12.98M	4.88M	119.84K	7.13K	-3.64K
EBITDA	-18.82M	-114.89K	-761.34K	-10.55M	-6.66M	-4.93M
Net Income	-21.86M	-3.70M	-3.06M	-12.13M	-6.87M	-5.32M
Balance Sheet
Total Assets	25.57M	54.70M	21.49M	8.90M	14.10M	12.34M
Cash, Cash Equivalents and Short-Term Investments	387.29K	3.72M	2.41M	276.46K	3.35M	2.19M
Total Debt	4.82M	20.36M	11.84M	5.25M	2.93M	1.70M
Total Liabilities	6.48M	22.71M	14.21M	6.09M	3.28M	2.29M
Stockholders Equity	19.09M	31.99M	7.28M	2.81M	10.82M	10.06M
Cash Flow
Free Cash Flow	-8.43M	-12.70M	-7.11M	-7.83M	-6.62M	-2.80M
Operating Cash Flow	-6.94M	-9.43M	-4.85M	-5.15M	-5.55M	-1.74M
Investing Cash Flow	-1.46M	-5.93M	-2.27M	-2.62M	-653.05K	3.28M
Financing Cash Flow	1.54M	16.67M	9.25M	4.70M	7.64M	262.93K

Sow Good Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOWG, the sentiment is Positive. The current price of 0.34 is below the 20-day moving average (MA) of 0.52, below the 50-day MA of 0.57, and below the 200-day MA of 0.73, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 70.57 is Negative, neither overbought nor oversold. The STOCH value of 85.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOWG.

Sow Good Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATR	80 Outperform	$389.28M	27.90	9.52%	―	6.62%	-7.85%
WYHG	63 Neutral	$27.44M	6.58	2.84%	―	0.04%	-65.10%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NAII	48 Neutral	$29.34M	-2.37	-15.93%	―	18.19%	-35.22%
SOWG	45 Neutral	$9.66M	-0.42	-84.22%	―	-81.88%	-672.01%

Sow Good Corporate Events

Sow Good Announces Leadership Shake-Up and Capital Restructuring

On January 6, 2026, Sow Good Inc. announced a $6.0 million private placement and a $1.5 million strategic asset sale aimed at shoring up liquidity, transitioning to a more asset-light operating model, and preserving its ability to continue as a going concern while it evaluates broader strategic alternatives. The private placement, agreed on December 31, 2025 with investor David Lazar, is structured in two $3.0 million tranches of convertible preferred stock and is intended to fund ongoing operations and address outstanding liabilities, while the asset sale to Trea Grove, LLC transfers significant freeze-dried snack and candy assets and establishes Trea Grove as exclusive distributor of certain Sow Good products through July 31, 2026, with Sow Good receiving a share of gross receipts. The company stressed that the transactions do not constitute a liquidation, as it will continue selling and distributing candy products, and it expects lower fixed operating costs and greater financial flexibility as it pursues potential partnerships, acquisitions or other corporate transactions to strengthen its balance sheet and long-term shareholder value. Concurrently, Sow Good enacted a leadership overhaul: David Lazar was appointed chief executive officer and chair of the board, former CEO Claudia Goldfarb became chief operating officer and remained on the board, David Natan joined the board and became audit committee chair, while Joe Mueller, Chris Ludeman and executive chairman Ira Goldfarb resigned, marking a significant shift in governance alongside the company’s strategic repositioning.

The most recent analyst rating on (SOWG) stock is a Hold with a $0.52 price target. To see the full list of analyst forecasts on Sow Good stock, see the SOWG Stock Forecast page.

Sow Good Raises Capital and Undergoes Leadership Transition

On December 31, 2025, Sow Good Inc. raised $3 million in a first closing of a $6 million private placement of new Series AA and Series AAA convertible preferred stock to investor David Lazar, with a second $3 million tranche contingent on shareholder approvals by March 31, 2026 that would also enable significant board changes, a charter amendment, a reverse stock split and an enlarged equity plan. The company plans to use the proceeds to fund operations and pay liabilities, agreed to restrictive covenants during the interim period, granted Lazar participation rights in future equity offerings, and created new preferred share classes that rank senior to common stock and are convertible into common shares after required approvals. On December 30, 2025, Sow Good agreed to sell key assets of its freeze-dried snacks and candy business to related party Trea Grove, LLC for $1.5 million payable through March 31, 2026, and on December 31, 2025 it appointed Trea Grove as exclusive distributor of certain products through July 31, 2026 in return for 10% of gross receipts, reinforcing a transition to an asset-light model rather than a liquidation. Governance at Sow Good also shifted sharply on December 31, 2025: executive chairman Ira Goldfarb resigned as an officer and settled his contractual severance for $1.25 million payable at the shareholder meeting, directors Joe Mueller and Chris Ludeman resigned, David Lazar was appointed chief executive officer, and David Lazar and David Natan joined the board, while voting agreements with major shareholders committed their shares to support board-backed proposals and restricted their activist activities for two years.

The most recent analyst rating on (SOWG) stock is a Hold with a $0.33 price target. To see the full list of analyst forecasts on Sow Good stock, see the SOWG Stock Forecast page.