Good Flour Corp (GFCO) AI Stock Analysis

• Market Cap: C$11.36M
• Dividend Yield: N/A
• Average Volume (3M): 8.71K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.96
• Revenue Growth: 27.66%
• EPS Growth: 63.69%
• Country: CA
• Employees: N/A
• Sector: Consumer Defensive
• Sector Strength: 94
• Industry: Packaged Foods
• EPS (TTM): -0.02
• Shares Outstanding: 87,422,970
• 10 Day Avg. Volume: 12,372
• 30 Day Avg. Volume: 8,715
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 8.43
• Price to Cash Flow (P/CF): -19.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Good Flour Corp's overall score is low due to severe financial challenges, including negative profitability, high leverage, and liquidity issues. While corporate events suggest potential for market expansion, the technical indicators show weak momentum, and the valuation is unattractive.

Good Flour Corp Business Overview & Revenue Model

Company Description

Good Flour Corp (GFCO) is a company focused on providing high-quality, gluten-free flour and baking products. Operating within the food manufacturing sector, GFCO aims to cater to health-conscious consumers and those with dietary restrictions by offering a range of gluten-free flour blends, baking mixes, and prepared baking goods. Their products are designed to deliver the taste and texture of traditional wheat-based products without the gluten, making them suitable for people with celiac disease or gluten intolerance.

How the Company Makes Money

Good Flour Corp makes money primarily through the sale of its gluten-free flour and baking products to both retail and commercial customers. The company distributes its products through various channels, including direct sales to consumers via their online store, partnerships with grocery retailers, health food stores, and foodservice providers. Additionally, GFCO may engage in strategic partnerships with other food manufacturers or brands to develop co-branded products or extend their market reach. Revenue is generated through these sales channels, supported by marketing efforts aimed at increasing brand awareness and consumer demand for gluten-free products.

Good Flour Corp Financial Statement Overview

Summary

Good Flour Corp faces significant financial challenges across all dimensions. The income statement indicates weak profitability with negative growth, the balance sheet shows high leverage and insolvency risks, and the cash flow statement highlights liquidity issues. Immediate strategic changes are necessary to address these financial difficulties.

Income Statement

Good Flour Corp has consistently reported negative gross profit and net income, indicating major challenges in profitability. The TTM (Trailing-Twelve-Months) shows a gross loss and significant net loss, with no revenue growth. Negative EBIT and EBITDA margins further suggest operational inefficiencies.

Balance Sheet

The company's balance sheet reveals a concerning financial structure, with negative stockholders' equity and a high debt-to-equity ratio indicating heavy reliance on debt financing. The negative equity ratio suggests insolvency risk. These factors point towards financial instability.

Cash Flow

The cash flow statement shows negative free cash flow and operating cash flow, highlighting liquidity issues. The inability to generate positive cash flow from operations is concerning. Financing cash flows appear to be the primary source of liquidity, which is unsustainable long-term.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Dec 2019
Income Statement		Total Revenue
1.46M	1.32M	1.19M	481.41K	905.40K	29.63K
	Gross Profit
-227.66K	-581.11K	-858.77K	-131.23K	5.95K	29.63K
	EBIT
-699.44K	-2.00M	-5.41M	-2.29M	-2.31M	-3.26M
	EBITDA
-1.53M	-1.78M	-5.77M	-5.24M	-2.42M	-3.02M
	Net Income Common Stockholders
-1.85M	-2.07M	-6.11M	-5.55M	-2.80M	-5.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
97.94K	52.88K	187.19K	1.34M	35.63K	661.12K
	Total Assets
960.62K	1.07M	1.17M	2.76M	662.10K	2.02M
	Total Debt
1.37M	794.90K	513.19K	852.95K	551.45K	412.70K
	Net Debt
1.27M	774.52K	326.00K	-490.73K	515.83K	-248.42K
	Total Liabilities
3.63M	2.69M	1.86M	1.83M	1.99M	1.69M
	Stockholders Equity
-2.67M	-1.62M	-699.85K	927.95K	-1.33M	337.75K
Cash Flow		Free Cash Flow
-889.31K	-1.27M	-4.15M	-3.93M	-873.41K	-2.95M
	Operating Cash Flow
-889.31K	-1.27M	-3.84M	-3.13M	-873.41K	-2.84M
	Investing Cash Flow
0.00	0.00	-306.77K	-661.28K	-81.50K	-117.47K
	Financing Cash Flow
926.57K	1.11M	2.99M	4.38M	261.95K	2.73M

Good Flour Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.13
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GFCO, the sentiment is Negative. The current price of 0.13 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.14, and above the 200-day MA of 0.12, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GFCO.

Good Flour Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WELL	77 Outperform	C$1.04B	13.98	9.25%	―	36.56%	―
Sector *	63 Neutral	$20.53B	14.04	-16.01%	3.27%	1.30%	4.55%
OGI	52 Neutral	C$166.66M	―	-18.27%	―	7.33%	84.41%
ACB	47 Neutral	$313.39M	25.51	4.78%	―	16.39%	-98.10%
GFCO	25 Underperform	C$11.36M	―	82.98%	―	27.66%	63.69%

Good Flour Corp Corporate Events

Good Flour Corp. Expands Loan Agreement to Bolster Operations

The Good Flour Corp. has amended its loan agreement with a lender to increase its borrowing capacity to $1,250,000. The funds from this non-revolving loan, which bears a 10% interest rate and matures on July 31, 2025, will be used for general corporate and working capital purposes. Additionally, the company will issue up to 1,785,700 share purchase warrants to the lender, which can be converted into common shares at a set price until March 2029. This financial move is expected to support the company’s operational needs and potentially enhance its market position.

Spark’s Take on TSE:GFCO Stock

According to Spark, TipRanks’ AI Analyst, TSE:GFCO is a Underperform.

The stock’s low score is primarily driven by severe financial challenges, including negative profitability, high leverage, and liquidity issues. While recent corporate partnerships could improve market positioning, the technical indicators show weak momentum, and the valuation lacks appeal due to negative earnings and no dividend yield.

To see Spark’s full report on TSE:GFCO stock, click here.

Good Flour Corp. Expands Vegan Cheese Reach with Panago Pizza Partnership

The Good Flour Corp. announced that its vegan cheese product, PureMelt Cheeeze™, will be rolled out nationwide in Panago Pizza locations across Canada by May 2025. This marks the first major food service partnership for the product, highlighting the company’s strategic move to broaden its market presence and enhance its industry positioning by engaging with other food service providers.

Good Flour Corp. Expands Reach with New Distribution Deal and Loan Amendment

The Good Flour Corp. has announced a distribution partnership with Gordon Food Service for its vegan cheese product, PureMelt Cheeeze™, which is now available as an open listed item. This partnership will enhance the company’s distribution reach, allowing it to access a broad range of food service customers. PureMelt Cheeeze™ is crafted to be allergen-free and mimics the taste and texture of traditional cheese, making it a versatile and health-conscious choice. Additionally, the company has amended its loan agreement to increase its borrowing capacity, which will be used for general corporate and working capital purposes.