Goodfood Market Corp (FOOD) AI Stock Analysis

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Goodfood Market Corp

(TSX:FOOD)

Rating:46Neutral

Price Target:

C$0.00

▼(-100.00% Downside)

The overall stock score is primarily impacted by significant financial challenges, including negative equity and cash flow issues. While the company shows some operational efficiencies and strategic growth initiatives, the financial health remains a concern. Technical indicators suggest some positive momentum, but valuation metrics are weak due to unprofitability.

Goodfood Market Corp (FOOD) vs. iShares MSCI Canada ETF (EWC)

Market Cap

C$19.18M

Dividend YieldN/A

Average Volume (3M)207.65K

Price to Earnings (P/E)―

Beta (1Y)1.14

Revenue Growth-16.73%

EPS Growth-78.61%

CountryCA

Employees570

SectorConsumer Cyclical

Sector Strength80

IndustryPersonal Products & Services

Share Statistics

EPS (TTM)0.00

Shares Outstanding98,352,615

10 Day Avg. Volume300,384

30 Day Avg. Volume207,650

Financial Highlights & Ratios

PEG Ratio0.08

Price to Book (P/B)-0.83

Price to Sales (P/S)0.14

P/FCF Ratio3.14

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$0.30

Price Target Upside50.00% Upside

Rating ConsensusHold

Number of Analyst Covering1

Goodfood Market Corp Business Overview & Revenue Model

Company DescriptionGoodfood Market Corp (FOOD) is a Canadian subscription meal kit service that provides consumers with fresh ingredients and easy-to-follow recipes, enabling them to prepare home-cooked meals. Operating primarily in the food and beverage sector, Goodfood aims to simplify meal preparation and enhance culinary experiences for its customers. The company offers a variety of meal plans tailored to different dietary preferences and lifestyles, including vegetarian, family-friendly, and quick-prep options.

How the Company Makes MoneyGoodfood Market Corp generates revenue primarily through its subscription-based model. Customers subscribe to meal plans, selecting from a range of curated meal kits that are delivered directly to their homes. Revenue is derived from the subscription fees paid by customers, which can vary based on the number of servings and frequency of deliveries chosen. Additionally, Goodfood may earn income from add-on products such as premium meal options or complementary grocery items. The company's partnerships with suppliers and logistics providers help streamline operations and reduce costs, contributing to its profitability. Seasonal promotions and limited-time offers can also drive sales and increase customer retention.

Goodfood Market Corp Earnings Call Summary

Earnings Call Date:Jul 22, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Nov 12, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted Goodfood's consistent profitability and strategic growth initiatives despite macroeconomic challenges. While the company showcased strong financial discipline and innovative product offerings, there were notable declines in net sales and active customers. Overall, the performance indicates resilience and strategic focus on quality customer acquisition and profitability.

Q3-2025 Updates

Positive Updates

Tenth Consecutive Profitable Quarter

Goodfood achieved its tenth consecutive quarter of profitable execution with an adjusted EBITDA of nearly $3 million in Q3, representing 8.6% of net sales.

Record Basket Sizes and Customer Engagement

The quarter saw record basket sizes, with net sales per active customer reaching a record $404, reflecting strong product offerings and customer engagement.

Successful Growth of Genuine Tea

The acquisition of Genuine Tea has been growth accretive and margin supportive, with sales growing at over 30% annually.

Positive Cash Flow and Liquidity

Cash flow from operations turned positive at $0.6 million, and liquidity remains solid with $17 million in cash and marketable securities.

Negative Updates

Decline in Net Sales

Net sales for the third quarter were $30.7 million, down $7.9 million year-over-year, primarily due to a lower active customer base.

Decrease in Active Customers

The active customer base declined from 105,000 last year to 76,000 this quarter, impacted by macroeconomic caution and a reduction in incentive-led customer acquisition.

Company Guidance

During the Goodfood Q3 Fiscal 2025 earnings call, several key metrics and strategic initiatives were highlighted. The company achieved its tenth consecutive quarter of profitable execution, with adjusted EBITDA reaching $3 million, representing 8.6% of net sales, and a year-to-date adjusted EBITDA of approximately $6 million, or a 6% margin. Despite a year-over-year decline in net sales to $30.7 million, driven by a reduction in the active customer base from 105,000 to 76,000, the net sales per active customer reached a record $404. The gross margin improved to 44.3%, supported by disciplined cost control. In addition, the acquisition of Genuine Tea contributed positively, with sales growing over 30% annually. The company also added $1 million to its Bitcoin ETF treasury reserves, enhancing balance sheet flexibility. Looking forward, Goodfood plans to scale its Heat & Eat offering, which has reached a $1 million annualized revenue run rate in Quebec, and continues to explore targeted acquisitions and geographic expansion to further drive long-term per share value.

Goodfood Market Corp Financial Statement Overview

Summary

Goodfood Market Corp faces financial difficulties with declining revenues, high leverage, and negative equity. However, positive free cash flow shows some resilience, though overall financial health remains weak.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	129.91M	152.84M	168.56M	268.59M	379.23M	285.37M
Gross Profit	53.30M	62.98M	65.38M	68.06M	116.09M	86.42M
EBITDA	6.25M	10.74M	892.00K	-98.39M	-18.30M	2.49M
Net Income	-7.18M	-3.43M	-16.46M	-121.76M	-31.79M	-5.34M
Balance Sheet
Total Assets	45.19M	52.31M	57.81M	129.85M	255.26M	163.05M
Cash, Cash Equivalents and Short-Term Investments	16.86M	24.01M	24.93M	36.88M	125.53M	104.40M
Total Debt	52.17M	59.87M	59.15M	108.42M	100.08M	59.22M
Total Liabilities	68.44M	78.39M	81.25M	141.03M	157.39M	105.49M
Stockholders Equity	-23.25M	-26.08M	-23.44M	-11.18M	97.88M	57.56M
Cash Flow
Free Cash Flow	-743.00K	6.87M	-11.09M	-97.42M	-35.11M	-1.65M
Operating Cash Flow	703.00K	7.49M	-9.35M	-58.98M	-16.36M	8.55M
Investing Cash Flow	-4.34M	773.00K	1.96M	-37.67M	-18.01M	-9.42M
Financing Cash Flow	-8.89M	-9.18M	-4.57M	8.00M	55.50M	60.12M

Goodfood Market Corp Technical Analysis

Technical Analysis Sentiment

Positive

Last Price0.20

Price Trends

50DMA

0.17

Positive

100DMA

0.17

Positive

200DMA

0.28

Negative

Market Momentum

MACD

<0.01

Negative

RSI

57.84

Neutral

STOCH

33.33

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FOOD, the sentiment is Positive. The current price of 0.2 is above the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.17, and below the 200-day MA of 0.28, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.84 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
FOOD	46 Neutral	C$19.18M	―	11.42%	―	-16.73%	-78.61%
DTEAF	―	$20.29M	―	-4.42%	―	―	―
PZRIF	―	$394.02M	17.62	10.14%	5.60%	―	―
IFA	64 Neutral	C$33.33M	35.41	4.36%	―	18.44%	―
AEG	―	C$29.00M	―	6.84%	―	―	―
MTYFF	―	$643.19M	23.90	4.59%	3.23%	―	―

* Consumer Cyclical Sector Average

Performance Comparison

TSE:FOOD

Goodfood Market Corp

0.20

-0.08

-28.57%

DTEAF

DAVIDsTEA

0.74

0.63

572.73%

PZRIF

Pizza Pizza Royalty

11.89

2.96

33.15%

TSE:IFA

iFabric

1.08

-0.06

-5.26%

TSE:AEG

Aegis Brands

0.34

-0.06

-15.00%

MTYFF

MTY Food Group

28.07

-2.91

-9.39%

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.Date of analysis: Aug 21, 2025