Goodfood Market Corp (FOOD) AI Stock Analysis

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Goodfood Market Corp

(TSX:FOOD)

Rating:50Neutral

Price Target:

C$0.00

▼(-100.00% Downside)

Goodfood Market Corp's overall stock score reflects its financial difficulties and valuation challenges. However, the company's strategic initiatives and positive earnings call insights offer some optimism for future performance.

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

Market Cap

C$16.72M

Dividend YieldN/A

Average Volume (3M)139.62K

Price to Earnings (P/E)―

Beta (1Y)1.12

Revenue Growth-16.73%

EPS Growth-78.61%

CountryCA

Employees570

SectorConsumer Cyclical

Sector Strength64

IndustryPersonal Products & Services

Share Statistics

EPS (TTM)0.00

Shares Outstanding98,352,615

10 Day Avg. Volume86,534

30 Day Avg. Volume139,619

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 Upside66.67% Upside

Rating ConsensusHold

Number of Analyst Covering0

Goodfood Market Corp Business Overview & Revenue Model

Company DescriptionGoodfood Market Corp., an online grocery company, delivers fresh meals and grocery products in Canada. The company offers ready-to-eat products, which include bakery, dessert, meat and seafood, drinks, pantry, produce, snacks, dairy, frozen and kitchen essentials. It also offers Yumm, a value meal kit for cost-focused customers. As of August 31, 2021, it had approximately 298,000 active subscribers. Goodfood Market Corp. is based in Saint-Laurent, Canada.

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: -5.26%|

Next Earnings Date:Nov 12, 2025

Earnings Call Sentiment Neutral

Goodfood has shown resilience and strategic growth despite facing significant challenges in customer acquisition and sales decline due to macroeconomic conditions. The company's profitability, successful product innovations, and strategic acquisitions have driven positive financial performance and customer engagement. However, the decline in net sales and active customers indicates ongoing challenges in market expansion and consumer behavior.

Q3-2025 Updates

Positive Updates

Tenth Consecutive Quarter of Profitable Execution

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.

Successful Product Innovations

The introduction of Heat & Eat meals in Quebec and expanded customization features have led to record basket sizes and deeper customer engagement.

Acquisition of Genuine Tea

The acquisition of Genuine Tea is growing sales at over 30% annually while delivering consistent and healthy EBITDA, making it both growth accretive and margin supportive.

Positive Cash Flow and Strong Liquidity

Cash flow from operations turned positive at $0.6 million, and the company maintains a solid liquidity position with $17 million in cash and marketable securities.

Record Net Sales Per Active Customer

Net sales per active customer reached a record $404, supported by strong product offerings and customer engagement.

Negative Updates

Decline in Net Sales and Active Customers

Net sales decreased by $7.9 million year-over-year, and active customer base dropped from 105,000 last year to 76,000 this quarter.

Macroeconomic Headwinds Impacting Consumer Spending

The company faced macroeconomic challenges that reduced order rates and led to a deliberate reduction in incentive-led customer acquisition.

Challenges in Geographical Expansion

Regulatory approval is needed to expand the Heat & Eat offering beyond Quebec, impacting the scaling potential in other Canadian regions.

Company Guidance

During the Goodfood Q3 Fiscal 2025 earnings call, the company reported an adjusted EBITDA of nearly $3 million, representing 8.6% of net sales, contributing to a year-to-date adjusted EBITDA of approximately $6 million, or a 6% margin. Despite a year-over-year decline in net sales from $38.6 million to $30.7 million, the company has maintained profitability through disciplined cost controls and operational efficiency. The active customer base decreased to 76,000 from 105,000 the previous year, yet net sales per active customer reached a record $404. The company also reported a gross margin improvement to 44.3% and a positive cash flow from operations at $0.6 million. Goodfood's acquisition of Genuine Tea is noted as growth accretive, and the company added $1 million to its Bitcoin ETF reserves, enhancing balance sheet flexibility. Looking ahead, Goodfood plans to scale its Heat & Eat offerings and continue targeting acquisitions to build long-term shareholder 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

Negative

Last Price0.18

Price Trends

50DMA

0.16

Positive

100DMA

0.18

Negative

200DMA

0.29

Negative

Market Momentum

MACD

<0.01

Positive

RSI

48.09

Neutral

STOCH

7.35

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 0.18 is below the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.16, and below the 200-day MA of 0.29, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.09 is Neutral, neither overbought nor oversold. The STOCH value of 7.35 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
PZA	77 Outperform	C$525.32M	16.81	10.29%	5.89%	-1.02%	-1.76%
MTY	63 Neutral	C$874.10M	22.92	4.59%	3.18%	0.55%	-59.39%
Sector *	61 Neutral	$16.54B	10.12	-9.01%	3.34%	1.45%	-22.43%
IFA	60 Neutral	$28.94M	24.74	5.50%	―	21.12%	―
FOOD	50 Neutral	C$16.72M	―	11.42%	―	-16.73%	-78.61%

* Consumer Cyclical Sector Average

Performance Comparison

TSE:FOOD

Goodfood Market Corp

0.17

-0.12

-41.38%

TSE:PZA

Pizza Pizza Royalty

15.75

3.69

30.62%

TSE:MTY

MTY Food Group

38.26

-5.25

-12.07%

TSE:IFA

iFabric

0.94

-0.20

-17.54%

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: Jul 23, 2025