Goodfood Market Corp (FOOD) AI Stock Analysis

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TSE:FOOD Dividends

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Goodfood Market Corp

(TSX:FOOD)

44Neutral

Goodfood Market Corp's stock score is primarily impacted by its financial difficulties, with declining revenues and profitability, and a high leverage balance sheet. Despite operational strengths noted in the earnings call, such as positive EBITDA and product innovation, the significant drop in sales and customer base, alongside a weak technical outlook, contribute to a low overall score.

Goodfood Market Corp (FOOD) vs. S&P 500 (SPY)

Market Cap

C$18.66M

Dividend YieldN/A

Average Volume (3M)108.71K

Price to Earnings (P/E)―

Beta (1Y)1.19

Revenue Growth-13.66%

EPS Growth-25.60%

CountryCA

Employees570

SectorConsumer Cyclical

Sector Strength63

IndustryPersonal Products & Services

Share Statistics

EPS (TTM)-0.02

Shares Outstanding98,190,610

10 Day Avg. Volume241,361

30 Day Avg. Volume108,714

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$0.25

Price Target Upside66.67% Upside

Rating ConsensusHold

Number of Analyst Covering2

Goodfood Market Corp Business Overview & Revenue Model

Company DescriptionGoodfood Market Corp (FOOD) is a leading Canadian online grocery, home meal, and meal kit delivery service. The company operates in the food retail and meal kit sector, offering a variety of fresh ingredients, ready-to-cook meal kits, and grocery items directly to consumers through its e-commerce platform. Goodfood aims to revolutionize how people shop for groceries and prepare meals by providing convenient and high-quality food solutions.

How the Company Makes MoneyGoodfood Market Corp generates revenue primarily through the sale of its meal kits and grocery products. Customers subscribe to weekly meal kit plans or purchase grocery items a la carte through the company's website. Revenue streams include subscription fees for meal plans, direct sales of grocery items, and one-time purchases of specialty products. The company leverages its online platform to reach a broad customer base, offering personalized meal options and flexible delivery schedules. Goodfood's partnerships with local farmers and suppliers help ensure a steady supply of fresh ingredients, contributing to customer satisfaction and repeat business. Additionally, the company's focus on convenience and quality service helps maintain a loyal customer base, driving consistent revenue growth.

Goodfood Market Corp Financial Statement Overview

Summary

Goodfood Market Corp is facing financial difficulties with declining revenues and profitability, and a weakened balance sheet with high leverage and negative equity. Although there is some resilience in generating positive free cash flow, the overall financial health suggests challenges in achieving sustainable growth and stability.

Income Statement

Neutral

The company has faced declining revenues over recent periods, particularly noticeable with a significant drop from 2021 to 2025. Gross profit margins have also decreased, reflecting challenges in maintaining profitability. The TTM (Trailing-Twelve-Months) figures show negative EBIT and net income, highlighting operational challenges and inefficiencies.

Balance Sheet

Negative

The balance sheet shows high leverage, with negative stockholders' equity indicating a concerning financial position. The debt-to-equity ratio is not meaningful due to negative equity, and the company's asset base has shrunk significantly. This suggests potential solvency risks and unstable financial health.

Cash Flow

Neutral

Cash flow analysis reveals some strengths, such as positive free cash flow in the TTM despite operational losses. However, the operating cash flow has decreased compared to previous years, and free cash flow has shown volatility, indicating inconsistent cash generation capabilities.

Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
152.84M	168.56M	268.59M	379.23M	285.37M
	Gross Profit
62.98M	65.38M	68.06M	116.09M	86.42M
	EBIT
2.08M	-10.86M	-65.20M	-29.12M	-1.79M
	EBITDA
10.74M	1.15M	-98.39M	-18.30M	2.49M
	Net Income Common Stockholders
-3.43M	-16.46M	-121.76M	-31.79M	-4.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.01M	24.93M	36.88M	125.53M	104.40M
	Total Assets
52.31M	57.81M	129.85M	255.26M	163.05M
	Total Debt
59.87M	59.15M	108.42M	100.08M	59.22M
	Net Debt
35.86M	34.23M	71.54M	-25.45M	-45.18M
	Total Liabilities
78.39M	81.25M	141.03M	157.39M	105.49M
	Stockholders Equity
-26.08M	-23.44M	-11.18M	97.88M	57.56M
Cash Flow		Free Cash Flow
6.87M	-11.09M	-97.42M	-35.11M	-1.65M
	Operating Cash Flow
7.49M	-9.35M	-58.98M	-16.36M	8.55M
	Investing Cash Flow
773.00K	1.96M	-37.67M	-18.01M	-9.42M
	Financing Cash Flow
-9.18M	-4.57M	8.00M	55.50M	60.12M

Goodfood Market Corp Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.15

Price Trends

50DMA

0.27

Negative

100DMA

0.35

Negative

200DMA

0.33

Negative

Market Momentum

MACD

-0.03

Negative

RSI

24.70

Positive

STOCH

5.13

Positive

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 0.15 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.27, and below the 200-day MA of 0.33, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 24.70 is Positive, neither overbought nor oversold. The STOCH value of 5.13 is Positive, 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWC	80 Outperform	C$2.51B	18.23	18.85%	2.86%	4.23%	6.08%
EMP.A	79 Outperform	C$11.93B	18.16	12.64%	1.53%	1.05%	-6.94%
L	78 Outperform	$66.93B	31.69	19.33%	0.91%	2.49%	7.16%
MRU	77 Outperform	C$23.07B	23.54	14.26%	1.29%	2.31%	4.45%
ATD	76 Outperform	C$66.06B	18.55	18.66%	1.03%	11.62%	-8.08%
Sector *	61 Neutral	$6.55B	11.72	3.07%	4.01%	2.66%	-21.27%
FOOD	44 Neutral	C$18.66M	―	11.42%	―	-13.66%	-25.60%

* Consumer Cyclical Sector Average

Performance Comparison

TSE:FOOD

Goodfood Market Corp

0.15

-0.15

-50.00%

TSE:L

Loblaw Companies

223.85

71.68

47.11%

TSE:MRU

Metro Inc.

105.13

33.98

47.76%

TSE:EMP.A

Empire Co Cl A NV

51.14

19.36

60.92%

TSE:NWC

North West

55.58

18.33

49.21%

TSE:ATD

Alimentation Couche-Tard Inc

69.68

-4.58

-6.17%

Goodfood Market Corp Earnings Call Summary

Earnings Call Date:Apr 22, 2025

(Q2-2025)

% Change Since: -28.57%|

Next Earnings Date:Jul 09, 2025

Earnings Call Sentiment Neutral

The earnings call highlights Goodfood's continued positive adjusted EBITDA, strong gross margin, and successful product launches, especially the Heat & Eat line and the performance of Genuine Tea. However, the company faces challenges with a significant decline in net sales and active customers, impacting overall cash flow. While the strategic initiatives and certifications are positive, the sales decline poses a concern.

Q2-2025 Updates

Positive Updates

Sustained Positive Adjusted EBITDA

Goodfood achieved positive adjusted EBITDA for the ninth consecutive quarter, with a 4.5% margin, showcasing the durability of their business model despite economic challenges.

Strong Gross Margin

The company maintained a robust gross margin of 43%, supported by cost efficiencies and process optimization.

Record Net Sales Per Active Customer

Net sales per active customer reached a record $363, up from $327 in Q1.

Successful Launch of Heat & Eat Line

The new Heat & Eat line received strong early reviews, with nearly 1,000 meals sold weekly in Quebec, showing strong adoption and satisfaction.

B Corp Certification

Goodfood achieved B Corp certification, recognizing their commitment to ethical business practices and environmental stewardship.

Genuine Tea's Strong Performance

Genuine Tea, acquired in November, saw top line growth of 30% to 40% year-over-year, with EBITDA margins in the teens.

Negative Updates

Decline in Net Sales

Net sales for the quarter totaled $30.5 million, a 23% decline year-over-year, mainly due to a decrease in active customers and macroeconomic headwinds.

Decrease in Active Customers

Active customers decreased to 84,000 from 106,000 in the previous quarter, attributed to lower seasonal order rates and economic uncertainty.

Negative Adjusted Free Cash Flow

Adjusted free cash flow was negative $1.5 million, compared to positive $0.3 million in the prior period, driven by lower net income and timing differences in SG&A payables.

Company Guidance

During the Goodfood Q2 Fiscal 2025 earnings call, the company reported a positive adjusted EBITDA for the ninth consecutive quarter, achieving $1 million with a 4.5% margin. Despite a 23% year-over-year decline in net sales to $30.5 million, the company maintained a strong gross margin of 43%, driven by cost efficiencies and process optimization. Active customers decreased to 84,000, contributing to lower sales, but net sales per active customer increased to $363 from $327 in Q1. Goodfood achieved B Corp certification, underscoring its commitment to ethical practices and environmental sustainability. The company launched a new Heat & Eat product line, contributing to larger basket sizes. Cash flow from operations was negative $1.2 million, with a solid liquidity position of $19 million. The company continues to focus on enhancing customer experience and strategic growth, including the successful integration of its Genuine Tea acquisition, which showed a year-over-year top-line growth of 30-40% while maintaining strong EBITDA margins.

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.