Sow Good (SOWG) AI Stock Analysis

• Market Cap: $8.80M
• Dividend Yield: N/A
• Average Volume (3M): 659.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.26
• 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: 3.08
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $0.57 ▼(-7.74% Downside)

Sow Good's overall stock score is primarily impacted by its financial performance and valuation concerns. Despite strategic initiatives and cost reductions, the company faces significant profitability and cash flow challenges. Technical indicators also suggest bearish momentum, further weighing on the stock's outlook.

Positive Factors

Cost Reduction and Efficiency Improvements

Significant cost reductions through lease amendments and payroll efficiencies enhance operational efficiency, positioning the company for improved profitability and scalability.

New Product Launch and Private Label Partnership

The introduction of new products and a strategic retail partnership can drive revenue growth and expand market presence, supporting long-term business sustainability.

Commitment from Insiders

Financial backing from insiders reflects confidence in the company's strategic direction and potential for long-term success, providing stability and support for future initiatives.

Negative Factors

Significant Revenue Decline

A dramatic revenue decline indicates severe market challenges and potential loss of customer base, which could hinder long-term growth and financial recovery.

Negative Gross Margin

Persistently negative gross margins highlight operational inefficiencies and cost management issues, threatening the company's ability to achieve sustainable profitability.

Decreased Cash Reserves

Diminished cash reserves limit financial flexibility and increase vulnerability to market fluctuations, posing a risk to ongoing operations and strategic investments.

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: Negative
• Last Price: 0.62
• 50DMA: Negative
• 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 SOWG, the sentiment is Negative. The current price of 0.62 is below the 20-day moving average (MA) of 0.63, below the 50-day MA of 0.73, and below the 200-day MA of 0.98, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 44.10 is Neutral, neither overbought nor oversold. The STOCH value of 31.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOWG.

Sow Good Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATR	73 Outperform	$364.78M	25.69	9.52%	―	6.62%	-7.85%
WYHG	66 Neutral	$28.99M	6.19	4.29%	―	6.91%	-54.09%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NAII	54 Neutral	$16.86M	-1.22	-15.93%	―	18.19%	-35.22%
SOWG	43 Neutral	$8.80M	-0.55	-84.22%	―	-81.88%	-672.01%

Sow Good Corporate Events

Sow Good Inc. Reports Q3 2025 Results Amid Strategic Restructuring

Sow Good Inc., a U.S.-based leader in freeze-dried snacks and candies, is renowned for its commitment to quality and innovation in the better-for-you and indulgent snack categories, utilizing proprietary freeze-drying technology and a vertically integrated manufacturing platform.

Sow Good Inc. Earnings Call: Challenges and Optimism

Sow Good Inc. Faces Revenue Challenges Amid Strategic Initiatives

Sow Good Inc. Faces Challenges Amid Optimism

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.