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Sow Good (SOWG)
NASDAQ:SOWG
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Sow Good
(NASDAQ:SOWG)
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Rating:43Neutral
Price Target:
$0.50
▼(-19.35% Downside)
Sow Good's overall stock score is primarily impacted by its financial performance challenges, including profitability and cash flow issues. Technical analysis indicates bearish momentum, and valuation metrics are weak due to negative earnings. The earnings call provided some optimism with potential for future recovery, but significant risks remain.
Sow Good (SOWG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.80M
Dividend YieldN/A
Average Volume (3M)659.98K
Price to Earnings (P/E)―
Beta (1Y)2.26
Revenue Growth-77.72%
EPS Growth-282.16%
CountryUS
Employees86
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)-0.36
Shares Outstanding12,223,599
10 Day Avg. Volume76,965
30 Day Avg. Volume659,977
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)0.59
Price to Sales (P/S)0.59
P/FCF Ratio-1.48
Enterprise Value/Market Cap3.08
Enterprise Value/Revenue2.92
Enterprise Value/Gross Profit86.96
Enterprise Value/Ebitda-2.59
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 generates revenue through multiple streams. Primarily, it sells organic seeds and soil health products to both individual consumers and commercial farmers. Additionally, the company earns income from subscription services for community-supported agriculture (CSA), where customers pay in advance for regular deliveries of fresh produce. Educational workshops and training sessions for farmers, along with consulting services in sustainable practices, also contribute significantly to its earnings. Strategic partnerships with local farms and agricultural organizations enhance its reach and customer base, further solidifying its revenue potential.
Sow Good Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 14, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a challenging quarter for Sow Good with significant revenue, margin, and cash declines due to increased competition and operational issues. However, there were positive signs of demand rebound, retail expansion, and strategic leadership appointments which could support future recovery.Q2-2025 Updates
Positive Updates
Rebound in Demand
Despite short-term operational challenges, demand has rebounded strongly, outpacing current labor capacity, indicating a positive market reception for Sow Good's products.
Expansion of Retail Partnerships
Sow Good has completed production, packaging, and shipping of its entire holiday inventory, and retail partners are requesting new items, validating the depth of the innovation pipeline and the enduring appeal of the Sow Good brand.
New CFO Appointment
Donna Guy has been appointed as the new CFO, bringing over 25 years of public company finance experience, and has already strengthened forecasting, cash management, and performance tracking.
Distribution and Product Expansion
Sow Good is expanding distribution with new Halloween products for Albertsons and exclusive items for Five Below, showing strong performance in various retail categories.
International Expansion
Strong early success in the Middle East with growing demand and expanding SKU offerings, indicating positive international market penetration.
Negative Updates
Significant Revenue Decline
Revenue in Q2 2025 was $1.9 million compared to $15.6 million in Q2 2024, a significant decline primarily due to increased competitive pressure.
Gross Margin Challenges
Gross loss of $0.1 million and a negative gross margin of 7% in Q2 2025 compared to a gross profit and margin of $9 million and 58% respectively in Q2 2024, largely due to lower sales and higher occupancy costs.
Net Loss and EBITDA Decline
Net loss of $4.2 million in Q2 2025 compared to net income of $3.3 million in Q2 2024. Adjusted EBITDA was negative $2.7 million compared to $6.2 million in the prior year period.
Decreased Cash Reserves
Cash and cash equivalents declined to $1 million by the end of Q2 2025 from $3.7 million at the end of 2024, indicating reduced liquidity.
Company Guidance
During the second quarter of 2025, Sow Good reported a revenue of $1.9 million, a decrease from $15.6 million in the same period of 2024, primarily due to increased competitive pressure. The company faced a gross loss of $0.1 million and a negative gross margin of 7%, compared to a gross profit of $9 million and a 58% margin the previous year. Operating expenses decreased slightly to $3.9 million, while the net loss was $4.2 million, or negative $0.36 per diluted share, compared to a net income of $3.3 million last year. Adjusted EBITDA was negative $2.7 million, down from $6.2 million. Cash and cash equivalents stood at $1 million at the end of the quarter, a drop from $3.7 million at the end of 2024. Despite these challenges, the company remains focused on driving top-line growth, improving operational leverage, and expanding its distribution, with plans to achieve cash flow breakeven before the end of the year.Sow Good Financial Statement Overview
Summary
Sow Good has shown strong revenue growth but continues to face profitability and cash flow challenges. 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.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 | 9.27M | 31.99M | 16.07M | 428.13K | 88.44K | 0.00 |
| Gross Profit | 311.46K | 12.98M | 4.88M | 119.84K | 7.13K | -1.93M |
| EBITDA | -10.44M | -114.89K | -761.34K | -10.55M | -6.66M | -4.93M |
| Net Income | -14.31M | -3.70M | -3.06M | -12.13M | -6.88M | -5.71M |
Balance Sheet | ||||||
| Total Assets | 49.99M | 54.70M | 21.49M | 8.90M | 14.10M | 12.34M |
| Cash, Cash Equivalents and Short-Term Investments | 959.42K | 3.72M | 2.41M | 276.46K | 3.35M | 2.19M |
| Total Debt | 19.00M | 20.36M | 11.84M | 5.25M | 2.93M | 1.70M |
| Total Liabilities | 21.41M | 22.71M | 14.21M | 6.09M | 3.28M | 2.29M |
| Stockholders Equity | 28.57M | 31.99M | 7.28M | 2.81M | 10.82M | 10.06M |
Cash Flow | ||||||
| Free Cash Flow | -13.48M | -12.70M | -7.11M | -7.83M | -6.62M | -2.80M |
| Operating Cash Flow | -11.00M | -9.43M | -4.85M | -5.15M | -5.55M | -1.74M |
| Investing Cash Flow | -3.95M | -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
Negative
0.62
Price Trends
0.78
Negative
0.81
Negative
1.14
Negative
Market Momentum
-0.04
Positive
31.94
Neutral
11.35
Positive
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 0.62 is below the 20-day moving average (MA) of 0.76, below the 50-day MA of 0.78, and below the 200-day MA of 1.14, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 31.94 is Neutral, neither overbought nor oversold. The STOCH value of 11.35 is Positive, 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 0 New Risks
Sow Good Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $313.52M | 22.08 | 9.52% | ― | 6.62% | -7.85% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $29.64M | 7.50 | 4.29% | ― | 6.91% | -54.09% | |
45 Neutral | $16.86M | -1.22 | -17.98% | ― | 13.83% | -82.27% | |
43 Neutral | $8.80M | -0.55 | -45.00% | ― | -77.72% | -282.16% |
* Consumer Defensive Sector Average
SOWG
Sow Good
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WYHG
Wing Yip Food Holdings Group Limited Sponsored ADR
0.90
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-77.72%
Sow Good Corporate Events
Sow Good Inc. Faces Challenges Amid Optimism
Sep 1, 2025
Sow Good Inc. recently held its earnings call, reflecting a challenging quarter marked by significant revenue, margin, and cash declines due to increased competition and operational issues. Despite these hurdles, the company expressed optimism about future recovery, citing a rebound in demand, retail expansion, and strategic leadership appointments as positive indicators.
Sow Good Inc. Faces Challenges Amid Growth Plans
Aug 15, 2025
Sow Good Inc., a pioneering company in the freeze-dried candy and snack industry, is known for its innovative and flavorful treats. The company recently released its financial results for the second quarter of 2025, highlighting a challenging period marked by production delays and competitive pressures. Despite these hurdles, Sow Good has maintained strong partnerships and is expanding its product offerings globally.
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.