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GURU Organic Energy Corp (TSE:GURU)
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GURU Organic Energy Corp (GURU) AI Stock Analysis

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TSE:GURU

GURU Organic Energy Corp

(OTC:GURU)

Rating:56Neutral
Price Target:
C$2.00
▲(9.89%Upside)
GURU Organic Energy's overall score is driven primarily by its financial challenges, which weigh heavily on its valuation. Despite technical indicators showing bullish trends, profitability issues and negative P/E ratios are significant concerns. The company's strategic corporate actions provide a positive outlook for future growth and profitability.

GURU Organic Energy Corp (GURU) vs. iShares MSCI Canada ETF (EWC)

GURU Organic Energy Corp Business Overview & Revenue Model

Company DescriptionGURU Organic Energy Corp (GURU) is a Canadian company operating in the energy drink sector. It specializes in the production and marketing of organic energy drinks, known for being crafted with natural ingredients and free from synthetic chemicals. GURU's products are marketed as a healthier alternative to traditional energy drinks, appealing to health-conscious consumers seeking clean and sustainable energy sources.
How the Company Makes MoneyGURU Organic Energy Corp makes money primarily through the sale of its organic energy drinks. The company generates revenue by distributing its products through various retail channels including grocery stores, health food stores, and online platforms. Key revenue streams include direct sales to consumers and wholesale agreements with retailers. GURU capitalizes on the growing trend towards health and wellness, positioning its products as premium offerings in the energy drink market. The company may also engage in strategic partnerships and marketing initiatives to increase brand visibility and expand its customer base. However, specific details on partnerships or additional revenue factors are not available.

GURU Organic Energy Corp Earnings Call Summary

Earnings Call Date:Jun 11, 2025
(Q4-2024)
|
% Change Since: -5.70%|
Next Earnings Date:Sep 11, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in the U.S. market, successful product innovations, and improved financial metrics. However, challenges remain with declining Q4 revenue, flat sales in Canada, and the upcoming end of the PepsiCo distribution agreement. The company is optimistic about transitioning to a direct distribution model and continuing its growth trajectory.
Q4-2024 Updates
Positive Updates
Strong U.S. Market Performance
The U.S. market saw a 62% year-over-year growth and record-breaking online performance, particularly on Amazon.
Increase in Gross Profit and Margin
Gross profit increased by 8.4% to $16.7 million, with gross margin improving to 55.3%.
Successful Product Innovation
The launch of GURU Zero, a sugar-free line, was well-received, contributing to growth and expansion in key markets.
Leadership and Governance Strengthened
New independent board members and executive appointments were made to enhance marketing and sales strategies.
Reduced Net Loss
Net loss reduced by 21.3% to $9.4 million in fiscal 2024.
Strong Financial Position
Maintained a strong financial position with $25.5 million in cash and no debt.
Negative Updates
Revenue Decline in Q4
Revenue declined by 6.9% year-over-year in Q4, though offset by stable gross profit.
Flat Sales in Canada
Sales in Canada remained flat in dollar terms, facing increased competition and market share challenges.
End of PepsiCo Distribution Agreement
The distribution agreement with PepsiCo Canada will end in May 2025, requiring a transition back to a direct distribution model.
Company Guidance
During the Q4 2024 earnings call for GURU Organic Energy, the company provided robust guidance underscored by a strategic focus on sustainable growth and profitability. GURU reported a 3.3% increase in net revenue, reaching $30.2 million, and an 8.4% growth in gross profit to $16.7 million, alongside an improved gross margin of 55.3%. The U.S. market was a significant driver, boasting a 62% year-over-year growth. Cost management strategies led to a 21.3% reduction in net loss. Innovations such as the Zero Sugar line, which aligns with the growing demand for sugar-free energy drinks in the $23 billion North American market, played a pivotal role in the company's strategy. The leadership team was bolstered by new appointments, including Shingly Lee as VP of Marketing and Patrick Charbonneau as EVP of Sales, to drive growth and enhance market presence. Looking ahead to 2025, GURU plans to transition to a direct distribution model in Canada by May 22, 2025, optimize operational flexibility, and expand its market share, particularly through the Zero Sugar product line.

GURU Organic Energy Corp Financial Statement Overview

Summary
GURU Organic Energy Corp faces significant challenges with profitability and cash flow management, as reflected by negative EBIT, net income, and operating cash flow. While the balance sheet shows manageable debt and cash reserves, inconsistent revenue growth and operational losses are concerns requiring strategic initiatives for improvement.
Income Statement
45
Neutral
GURU Organic Energy Corp has struggled with profitability as indicated by consistent negative EBIT and net income. The TTM (Trailing-Twelve-Months) data shows a net profit margin of -25.9%, reflecting significant losses. Revenue shows volatility with a decline in 2025 after a peak in 2024, challenging growth consistency.
Balance Sheet
55
Neutral
The company maintains a relatively low debt-to-equity ratio, suggesting conservative leverage. However, the return on equity is negative due to ongoing net losses. Despite adequate cash reserves and a positive equity ratio, the declining equity trend is a concern for financial stability.
Cash Flow
50
Neutral
GURU's operating cash flow is consistently negative, indicating challenges in generating cash from operations. However, strong cash reserves and strategic investments provide some cushion. The cash flow pattern suggests a need for improved cash generation to support operations sustainably.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue30.24M29.29M29.08M30.19M22.10M
Gross Profit16.74M15.44M15.69M17.88M14.04M
EBITDA-8.35M-10.67M-16.52M-9.49M-1.56M
Net Income-9.41M-11.96M-17.56M-9.84M-2.16M
Balance Sheet
Total Assets39.14M48.65M65.35M85.01M41.79M
Cash, Cash Equivalents and Short-Term Investments25.51M33.83M46.29M66.95M30.42M
Total Debt1.16M1.58M1.99M1.91M471.94K
Total Liabilities8.20M8.82M10.26M12.46M8.23M
Stockholders Equity30.93M39.83M55.09M72.55M33.57M
Cash Flow
Free Cash Flow-9.39M-9.40M-20.09M-11.31M-143.37K
Operating Cash Flow-9.30M-9.32M-18.84M-10.16M-137.30K
Investing Cash Flow19.45M4.11M-21.65M-1.10M-6.06K
Financing Cash Flow-462.25K-4.48M-1.00M47.82M30.41M

GURU Organic Energy Corp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.82
Price Trends
50DMA
1.84
Positive
100DMA
1.80
Positive
200DMA
1.71
Positive
Market Momentum
MACD
<0.01
Negative
RSI
53.02
Neutral
STOCH
66.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GURU, the sentiment is Positive. The current price of 1.82 is above the 20-day moving average (MA) of 1.82, below the 50-day MA of 1.84, and above the 200-day MA of 1.71, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.02 is Neutral, neither overbought nor oversold. The STOCH value of 66.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GURU.

GURU Organic Energy Corp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
C$56.96M-23.57%-7.65%31.15%
53
Neutral
C$4.06M-72.49%-25.35%-657.14%
52
Neutral
C$2.95B-1.54-3.48%6.65%3.17%-49.19%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:GURU
GURU Organic Energy Corp
1.88
-0.07
-3.59%
TSE:MUSH
Good Shroom Co Inc
0.08
-0.03
-27.27%

GURU Organic Energy Corp Corporate Events

Stock BuybackBusiness Operations and Strategy
GURU Organic Energy Renews Share Repurchase Program to Enhance Shareholder Value
Positive
Jul 22, 2025

GURU Organic Energy Corp. has announced the renewal of its normal course issuer bid (NCIB), allowing the company to repurchase up to 5% of its outstanding shares over the next year. This strategic move is part of GURU’s efforts to enhance shareholder value, as the company believes its shares may be undervalued in the market. The repurchase plan is aligned with GURU’s broader strategy to grow market share and ensure sustainable long-term growth, while also providing flexibility in managing its capital and liquidity positions.

The most recent analyst rating on (TSE:GURU) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on GURU Organic Energy Corp stock, see the TSE:GURU Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
GURU Organic Energy Corp Achieves Record Margins with Strategic Distribution Shift
Positive
Jun 12, 2025

GURU Organic Energy Corp has completed a strategic shift in its Canadian distribution, achieving record margins and setting a clear path to profitability by Q2 2025. The company reported a significant improvement in net loss, expanded gross margins, and strong US sales growth, driven by innovation and consumer demand for its Zero line. The transition to a direct distribution model in Canada is expected to enhance brand control and execution quality, positioning GURU for sustainable growth and increased market reach.

The most recent analyst rating on (TSE:GURU) stock is a Buy with a C$2.75 price target. To see the full list of analyst forecasts on GURU Organic Energy Corp stock, see the TSE:GURU Stock Forecast page.

Financial Disclosures
GURU Organic Energy to Announce Q2 2025 Financial Results
Neutral
May 29, 2025

GURU Organic Energy Corp., Canada’s leading organic energy drink brand, announced it will release its second-quarter financial results for 2025 on June 12, before markets open. The company will host a conference call on the same day to discuss the results, with a Q&A session for financial analysts. This announcement is part of GURU’s ongoing efforts to maintain transparency with stakeholders and could impact its market positioning by providing insights into its financial health and operational strategies.

The most recent analyst rating on (TSE:GURU) stock is a Buy with a C$2.75 price target. To see the full list of analyst forecasts on GURU Organic Energy Corp stock, see the TSE:GURU Stock Forecast page.

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 22, 2025