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Else Nutrition Holdings (TSE:BABY)
TSX:BABY
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Else Nutrition Holdings
(TSX:BABY)
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Rating:44Neutral
Price Target:
C$0.09
▼(-23.33% Downside)
Action:ReiteratedDate:01/16/26
The score is weighed down primarily by weak financial performance (revenue contraction, negative gross profit, continued losses, negative equity, and ongoing cash burn). Technical indicators are only modestly supportive (some short-term improvement but a weaker longer-term trend), while valuation is not compelling given the negative P/E and no dividend yield.
Positive Factors
Secular plant‑based demand
Else operates in a durable secular market: rising adoption of plant-based diets among parents expands the addressable market for infant and toddler nutrition. That tailwind supports longer-term revenue opportunity, partner interest, and strategic distribution expansion over months.
Multi‑channel distribution
A combined direct‑to‑consumer e‑commerce model plus retail partnerships provides diversified, durable go‑to‑market channels. This reduces single‑channel concentration risk, supports scale as retail listings and DTC traction build, and aids longer‑term customer acquisition strategies.
Improving cash burn trend
Trailing‑period operating cash flow has improved versus the prior year, indicating progress on cash management or revenue mix. While still negative, an improving cash‑flow trend reduces near‑term financing urgency and signals management execution that can be sustained over months if continued.
Negative Factors
Negative gross margin
Selling product below cost or carrying large write‑downs creates a structurally unsustainable unit economics profile. Persistently negative gross margins prevent internal funding of SG&A and R&D, and undermines any durable path to profitability without meaningful cost or pricing changes.
Severe revenue contraction
A very large, recent decline in trailing revenue indicates loss of scale and weak demand or execution. Significant top‑line deterioration impairs fixed‑cost leverage, raises customer retention and distribution questions, and weakens prospects for margin recovery over the medium term.
Negative shareholders' equity
Negative equity reflects cumulative losses and materially weakens the capital structure. It constrains financing flexibility, increases dilution or creditor risk for future capital raises, and reduces resilience to shocks—adverse for sustained operations without external funding.
Else Nutrition Holdings (BABY) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.24M
Dividend YieldN/A
Average Volume (3M)97.69K
Price to Earnings (P/E)―
Beta (1Y)0.30
Revenue Growth-25.08%
EPS Growth65.57%
CountryCA
Employees32
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)-0.02
Shares Outstanding37,411,427
10 Day Avg. Volume142,494
30 Day Avg. Volume97,689
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.43
Price to Sales (P/S)0.32
P/FCF Ratio-0.28
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Else Nutrition Holdings Business Overview & Revenue Model
Company DescriptionElse Nutrition Holdings Inc. engages in the development, production, and sale of food and nutrition products for infants, toddlers, children, and adults in North America and Israel. It offers baby snacks; baby feeding accessories, such as feeding bottles and teats; plant-based baby formula products; toddler, children, and adult nutrition products; and complementary food products. The company also offers its products through online. Else Nutrition Holdings Inc. is headquartered in Tel Aviv-Yafo, Israel.
How the Company Makes MoneyElse Nutrition Holdings generates revenue primarily through the sale of its plant-based infant and toddler nutrition products. The company markets its products directly to consumers via its online platform and also through various retail partnerships with health-focused stores and supermarkets. Key revenue streams include direct sales from their e-commerce website, revenue from retail distribution, and potential collaborations with healthcare providers and pediatricians promoting plant-based nutrition. Additionally, the growing trend towards plant-based diets among parents offers significant opportunities for expansion and increased sales, as well as potential strategic partnerships with health and wellness brands that align with their mission.
Else Nutrition Holdings Earnings Call Summary
Earnings Call Date:Sep 16, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 27, 2026
Earnings Call Sentiment Neutral
Else Nutrition has shown significant progress in reducing costs and improving operational efficiency, with promising advancements in regulatory pathways and international growth. However, challenges such as revenue decline, negative gross margin, and inventory constraints have impacted performance.Q2-2025 Updates
Positive Updates
Expansion of Kids Ready-to-Drink Products
Else Nutrition's kids ready-to-drink products expanded to approximately 1,000 Walmart stores, showing significant market penetration and consumer interest.
Successful Cost Reductions
Operating expenses were reduced by almost 60% year-over-year, with wages falling by 50% and consulting fees by 90%.
Operating Loss Improvement
The operating loss improved by 55% to $1.4 million from $3.1 million in Q2 2024.
Regulatory Progress
Encouraging developments in U.S. legislation and recommendations from the National Academies provide confidence for a regulatory pathway for Else's plant-based infant formula.
International Growth
Toddler Signature products continue to perform well in Europe, with growing interest from distributors in key global markets.
Negative Updates
Revenue Decline
Total revenues for Q2 2025 were $1.5 million compared to $2.6 million in Q2 2024, mainly due to inventory constraints.
Negative Gross Margin
Gross profit for the quarter was a loss of $55,000, leading to a negative gross margin of minus 3.7%.
Out-of-Stock Situations
Inventory constraints led to more than $300,000 in lost sales, primarily in cereal products.
Challenges in the Canadian Market
Out-of-stock conditions in Canada, tied to cash priorities, reduced revenue from this region.
Net Loss
Net loss for the quarter was $1.4 million, although this was an improvement from $2.5 million in Q2 2024.
Company Guidance
During Else Nutrition's 2025 Second Quarter Conference Call, CEO Hamutal Yitzhak outlined several key metrics and strategic initiatives demonstrating the company's progress. The quarter saw total revenues of $1.5 million, a decrease from $2.6 million in Q2 2024, primarily due to inventory constraints and seasonal sales fluctuations. Gross profit faced a loss of $55,000, translating to a negative gross margin of -3.7%, affected by additional revenue reductions of CAD 270,000. Despite these challenges, operating expenses were significantly reduced by 60% year-over-year to $1.3 million, leading to a narrowed operating loss of $1.4 million, an improvement of 55% from the previous year. Else is targeting cash flow positivity by late 2026 or early 2027, focusing on supply chain optimization, regulatory advancements, and strategic partnerships to enhance growth and profitability.Else Nutrition Holdings Financial Statement Overview
Summary
Financial fundamentals are highly pressured: TTM revenue declined materially, gross profit is negative (negative gross margin), and operating/net losses remain deep. The balance sheet deteriorated to negative shareholders’ equity, increasing financing risk, while operating cash flow and free cash flow are still negative (ongoing cash burn), despite being less unfavorable than 2024.Income Statement
TTM (Trailing-Twelve-Months) revenue declined materially (about -191% vs. the prior period), and profitability remains very weak. Gross profit is negative in TTM (negative gross margin), indicating the company is selling product below cost (or carrying heavy write-downs/discounting), though this is an improvement from 2024’s even more negative gross margin. Operating losses remain large with deeply negative operating and net margins, and the company has not demonstrated a sustained path to profitability across the years provided.18
Very Negative
Balance Sheet
Debt levels are low in absolute terms in TTM, but the balance sheet quality deteriorated meaningfully: shareholders’ equity is negative in TTM (vs. positive in prior annual periods), which is a key financial risk and can constrain financing flexibility. With negative equity, leverage metrics become distorted, but the core takeaway is weakened capital position despite relatively modest debt.28
Negative
Cash Flow
Cash generation is the biggest pressure point. TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both negative, and free cash flow dropped sharply versus the prior period (large negative growth rate). While cash burn improved versus 2024 (less negative operating cash flow), the business is still consuming cash rather than funding itself internally, which raises ongoing funding/dilution risk.15
Very Negative
| Breakdown | TTM | Mar 2025 | Dec 2023 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.67M | 7.97M | 9.36M | 8.53M | 4.69M | 1.48M |
| Gross Profit | -2.16M | -5.64M | -85.00K | 1.31M | 743.00K | 498.00K |
| EBITDA | -9.41M | -14.78M | -15.17M | -17.12M | -1.23M | -23.91M |
| Net Income | -9.96M | -15.18M | -15.61M | -17.61M | -1.62M | -24.10M |
Balance Sheet | ||||||
| Total Assets | 4.39M | 7.56M | 16.07M | 26.16M | 32.92M | 29.32M |
| Cash, Cash Equivalents and Short-Term Investments | 72.00K | 103.00K | 4.92M | 15.38M | 24.28M | 24.71M |
| Total Debt | 924.00K | 874.00K | 5.53M | 3.37M | 941.00K | 228.00K |
| Total Liabilities | 5.76M | 5.80M | 9.35M | 10.57M | 6.15M | 18.11M |
| Stockholders Equity | -1.37M | 1.75M | 6.72M | 15.60M | 26.77M | 11.21M |
Cash Flow | ||||||
| Free Cash Flow | -1.55M | -9.12M | -18.31M | -21.07M | -16.05M | -9.82M |
| Operating Cash Flow | -1.55M | -9.06M | -18.31M | -20.91M | -15.76M | -9.59M |
| Investing Cash Flow | 624.00K | 2.71M | -1.13M | 170.00K | 1.14M | -3.93M |
| Financing Cash Flow | 1.50M | 3.73M | 7.44M | 11.69M | 16.85M | 32.45M |
Else Nutrition Holdings Technical Analysis
Negative
0.12
Price Trends
0.09
Negative
0.12
Negative
0.15
Negative
Market Momentum
>-0.01
Positive
40.36
Neutral
14.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BABY, the sentiment is Negative. The current price of 0.12 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.09, and below the 200-day MA of 0.15, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.36 is Neutral, neither overbought nor oversold. The STOCH value of 14.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BABY.
Else Nutrition Holdings Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | C$1.40B | 22.55 | 12.97% | 2.67% | 11.25% | 58.21% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
48 Neutral | C$12.50M | 33.38 | ― | ― | 69.12% | 43.02% | |
48 Neutral | C$10.27M | -2.15 | -241.90% | ― | -49.04% | 15.66% | |
47 Neutral | C$22.97M | -1.45 | -1208.82% | ― | 190.07% | -2.88% | |
45 Neutral | C$217.07M | -174.75 | -92.94% | ― | 212.16% | -46.40% | |
44 Neutral | C$2.24M | -3.11 | 5435.74% | ― | -25.08% | 65.57% |
* Consumer Defensive Sector Average
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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.