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Goodfood Market Corp (TSE:FOOD)
TSX:FOOD
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Goodfood Market Corp
(TSX:FOOD)
43Neutral
Goodfood Market Corp (FOOD) vs. S&P 500 (SPY)
Market Cap
C$16.69M
Dividend YieldN/A
Average Volume (3M)99.52K
Price to Earnings (P/E)―
Beta (1Y)0.57
Revenue Growth-9.16%
EPS Growth53.81%
CountryCA
Employees570
SectorConsumer Cyclical
Sector Strength55
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)-0.04
Shares Outstanding79,459,420
10 Day Avg. Volume186,779
30 Day Avg. Volume99,516
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.16
Price to Cash Flow (P/CF)14.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$0.55Price Target Upside161.90% Upside
Rating ConsensusHold
Number of Analyst Covering2
Goodfood Market Corp Business Overview & Revenue Model
Company DescriptionGoodfood Market Corp (FOOD) is a Canadian online grocery, meal kit, and meal solutions company. The company operates primarily within the e-commerce and food industry sectors, offering a variety of meal kits, ready-to-eat meals, and groceries directly to consumers through its online platform. Goodfood aims to deliver fresh, high-quality ingredients and innovative recipes that help customers simplify meal preparation and enjoy home-cooked meals.
How the Company Makes MoneyGoodfood Market Corp generates revenue through its subscription-based meal kit delivery service, where customers can choose from a range of meal plans that cater to different dietary preferences and family sizes. The company charges customers a recurring fee for these meal kits, which include pre-portioned ingredients and recipes delivered to their doorsteps. Additionally, Goodfood earns income from its online grocery service, where it offers a wide selection of fresh produce, pantry staples, and specialty items. The company also explores partnerships and collaborations with food brands and suppliers to enhance its product offerings and expand its customer base, which can further contribute to its revenue streams.
Goodfood Market Corp Financial Statement Overview
Summary
Goodfood Market Corp faces significant financial challenges with declining revenues and profitability issues. The balance sheet highlights high leverage and negative equity, posing risks to financial stability. Positive cash flow operations are a bright spot, yet the company must address its capital structure to ensure sustainable growth.Income Statement
The company reports a declining revenue trend with a negative net profit margin. Gross profit margin stands at 40.1% for TTM, indicating decent control over direct costs. However, the persistent negative net income highlights profitability challenges. EBIT and EBITDA margins are relatively low, reflecting operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet shows a concerning negative equity position and a high debt-to-equity ratio due to substantial liabilities compared to equity. The company has managed to reduce total assets, but this hasn't translated into improved equity or financial stability.30
Negative
Cash Flow
Cash flow analysis reveals positive operating and free cash flow, which is a positive sign despite negative net income. The operating cash flow to net income ratio is favorable, indicating good cash conversion. However, the company needs to address its capital structure to manage financing cash flows better.55
Neutral
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 147.04M | 152.84M | 168.56M | 268.59M | 379.23M | 285.37M | Gross Profit |
| 59.04M | 62.98M | 65.38M | 68.06M | 116.09M | 86.42M | EBIT |
| 2.34M | 2.08M | -10.86M | -65.20M | -29.12M | -1.79M | EBITDA |
| 9.41M | 10.74M | 1.15M | -98.39M | -18.30M | 2.49M | Net Income Common Stockholders |
| -3.15M | -3.43M | -16.46M | -121.76M | -31.79M | -4.14M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 23.71M | 24.01M | 24.93M | 36.88M | 125.53M | 104.40M | Total Assets |
| 54.60M | 52.31M | 57.81M | 129.85M | 255.26M | 163.05M | Total Debt |
| 57.17M | 59.87M | 59.15M | 108.42M | 100.08M | 59.22M | Net Debt |
| 33.46M | 35.86M | 34.23M | 71.54M | -25.45M | -45.18M | Total Liabilities |
| 78.33M | 78.39M | 81.25M | 141.03M | 157.39M | 105.49M | Stockholders Equity |
| -23.73M | -26.08M | -23.44M | -11.18M | 97.88M | 57.56M |
| Cash Flow | Free Cash Flow | ||||
| 5.02M | 6.87M | -11.09M | -97.42M | -35.11M | -1.65M | Operating Cash Flow |
| 5.85M | 7.49M | -9.35M | -58.98M | -16.36M | 8.55M | Investing Cash Flow |
| -1.10M | 773.00K | 1.96M | -37.67M | -18.01M | -9.42M | Financing Cash Flow |
| -8.34M | -9.18M | -4.57M | 8.00M | 55.50M | 60.12M |
Goodfood Market Corp Technical Analysis
Negative
0.21
Price Trends
0.36
Negative
0.40
Negative
0.34
Negative
Market Momentum
-0.03
Positive
23.59
Positive
21.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FOOD, the sentiment is Negative. The current price of 0.21 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.36, and below the 200-day MA of 0.34, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 23.59 is Positive, neither overbought nor oversold. The STOCH value of 21.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:FOOD.
Goodfood Market Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | C$22.42B | 23.67 | 13.78% | 1.35% | 1.59% | -1.98% | |
78 Outperform | $62.95B | 29.67 | 19.33% | 0.99% | 2.49% | 7.16% | |
78 Outperform | C$11.46B | 17.40 | 12.64% | 1.60% | 1.05% | -6.94% | |
77 Outperform | C$69.23B | 19.44 | 18.66% | 1.01% | 11.62% | -8.08% | |
69 Neutral | C$2.49B | 19.03 | 18.50% | 3.03% | 3.28% | 1.42% | |
59 Neutral | $12.18B | 11.09 | -1.08% | 3.77% | 1.26% | -19.82% | |
43 Neutral | C$16.69M | ― | 11.42% | ― | -9.16% | 53.81% |
* Consumer Cyclical Sector Average
Performance Comparison
TSE:FOOD
Goodfood Market Corp
0.20
-0.08
-28.57%
TSE:L
Loblaw Companies
205.14
57.33
38.79%
TSE:MRU
Metro Inc.
100.42
30.52
43.66%
TSE:EMP.A
Empire Co Cl A NV
48.99
17.48
55.47%
TSE:NWC
North West
52.51
14.52
38.22%
TSE:ATD
Alimentation Couche-Tard Inc
70.16
-4.56
-6.10%
Goodfood Market Corp Earnings Call Summary
Earnings Call Date: Jan 21, 2025 | % Change Since: -56.25% | Next Earnings Date: Apr 9, 2025
Earnings Call Sentiment Neutral
The earnings call portrays a balanced outlook with consistent profitability and strategic growth initiatives such as the Genuine Tea acquisition and Bitcoin investment. However, it also highlights challenges such as declining sales and macroeconomic pressures.Highlights
Eighth Consecutive Quarter of Positive Adjusted EBITDA
Goodfood Market Corp. reported an adjusted EBITDA of $1.6 million for Q1 2025, marking the eighth consecutive quarter of positive results, with a margin of 4.7% and an improvement of 110 basis points year-over-year.
Consistent Cash Flow Generation
The company generated an adjusted free cash flow of $1.9 million, marking the fifth quarter in the past eight with positive cash flow, maintaining a net leverage ratio around 2.5 turns.
Genuine Tea Acquisition
Goodfood closed the acquisition of Genuine Tea, which has shown a growth rate of nearly 30% year-over-year and January sales up by 40%. Genuine Tea's EBITDA margins remain in the mid-double digits.
Bitcoin Treasury Investment Strategy
A new Bitcoin treasury investment strategy was announced to create shareholder value and hedge against inflation, leveraging Bitcoin as digital capital.
Strong Average Order Value
The average order value reached a record high and was 7% higher than the same time last year, contributing to stable net sales per active customer.
Lowlights
Decline in Net Sales and Active Customers
Net sales for Q1 2025 were $34.7 million, a decline of 14% year-over-year, with active customers decreasing from 124,000 to 106,000 compared to Q1 2024.
Macroeconomic Challenges
The macroeconomic environment remains challenging, with consumer spending softness impacting net sales and active customer base.
Potential Impact of Tariffs and Currency Fluctuations
The Canadian dollar's weakness and potential tariffs on U.S. imports could impact costs, although the company plans to mitigate these through strategic sourcing and pricing adjustments.
Company Guidance
During the Goodfood Q1 2025 earnings call, several key financial metrics and strategic initiatives were highlighted. Goodfood achieved its eighth consecutive quarter of positive adjusted EBITDA, which stood at $1.6 million with a margin of 4.7%, reflecting a 110 basis point improvement year-over-year. Despite a year-over-year net sales decline of 14% to $34.7 million, attributed to softer consumer spending, the company maintained a stable net sales per active customer of $327. The active customer base decreased from 124,000 to 106,000 year-over-year but showed improvement compared to the previous quarter's 101,000. The company reported a gross margin of 39.6% and an adjusted free cash flow of $1.9 million. Goodfood also announced its acquisition of Genuine Tea and a strategic Bitcoin treasury investment to hedge against inflation and enhance shareholder value. The company held $21.3 million in cash and cash equivalents at the quarter's end, positioning itself strongly despite a challenging macroeconomic environment.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.