MustGrow Biologics (MGRO) AI Stock Analysis

• Market Cap: C$36.49M
• Dividend Yield: N/A
• Average Volume (3M): 27.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: 51.04%
• EPS Growth: -2521.74%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): -0.04
• Shares Outstanding: 58,854,360
• 10 Day Avg. Volume: 43,344
• 30 Day Avg. Volume: 27,516
• PEG Ratio: -0.02
• Price to Book (P/B): 27.35
• Price to Sales (P/S): 149.08
• P/FCF Ratio: -16.58
• 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: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: C$0.60 ▲(7.32% Upside)

The score is primarily held down by weak financial performance: large ongoing losses, sharp margin compression, and deeply negative operating/free cash flow despite revenue growth. Technical indicators are broadly neutral and do not materially offset the fundamental risk, while valuation is constrained by negative earnings and no dividend support.

Positive Factors

Strong recent revenue growth

Sustained TTM revenue growth indicates product traction and market acceptance of MustGrow's offerings, supporting scalable top-line progress. Over months, consistent revenue expansion can validate go-to-market execution and justify continued investment in commercialization and R&D.

Modest leverage on balance sheet

Low debt relative to equity reduces near-term refinancing pressure and gives management optionality to fund operations or capex via equity or modest borrowing. This structural flexibility supports execution through development cycles and potential commercialization phases.

Distinct bio-based core technology

A proprietary mustard-seed derived platform positions MustGrow within the growing biological crop-input niche. Durable product differentiation vs conventional chemistries can enable competitive edge, regulatory acceptance pathways, and long-term market share if efficacy and scalability are proven.

Negative Factors

Deep negative operating and free cash flow

Persistent negative operating and free cash flows create a structural cash-burn problem that forces reliance on external financing. Over several months this raises dilution and refinancing risk, limits reinvestment capacity, and can constrain commercialization and scaling plans.

Compressed gross margins and heavy losses

Sharply compressed margins and sustained operating losses indicate weak unit economics and limited current profitability levers. Without durable margin recovery, the business faces a prolonged path to breakeven, making long-term viability dependent on structural cost or pricing improvements.

Limited disclosure and guidance

Absence of guidance and public earnings detail reduces investor visibility into targets and execution plans. Over a multi-month horizon this hampers external monitoring of progress, complicates capital planning, and raises governance and execution transparency risks for long-term stakeholders.

MustGrow Biologics Business Overview & Revenue Model

Company Description

MustGrow Biologics (MGRO) is an agricultural biotech company focused on developing and commercializing organic biopesticides, bioherbicides, and biofertilizers. The company operates within the sustainable agriculture sector, aiming to provide natural and effective solutions for pest management and soil health enhancement, leveraging mustard plant-derived technologies to combat diseases, pests, and weeds in crops.

How the Company Makes Money

MustGrow Biologics generates revenue primarily through the commercialization and licensing of its proprietary biopesticide and bioherbicide technologies. The company collaborates with agricultural firms and farmers to implement its solutions, earning revenue from product sales and usage agreements. MustGrow also engages in partnerships with other agribusiness companies to co-develop and distribute products, enhancing its market reach and revenue potential. Additionally, the company may secure research and development funding from governmental and non-governmental entities interested in sustainable agricultural innovations.

MustGrow Biologics Financial Statement Overview

Summary

MustGrow Biologics is experiencing substantial revenue growth and boasts strong gross margins and low leverage. However, the persistent net losses and negative cash flow highlight ongoing financial challenges that need addressing for long-term sustainability.

Income Statement

MustGrow Biologics has shown significant revenue growth in the TTM period compared to previous years, driven by a substantial increase from 2023 to 2024. The gross profit margin is remarkably high at approximately 98.76% for the TTM, reflecting strong operational efficiency. However, the company is still facing challenges with profitability, as indicated by negative net income and EBITDA, suggesting that while revenue is growing, profitability remains elusive.

Balance Sheet

The balance sheet reveals a strong equity position with a significant equity ratio of 78.15% in the TTM, indicating financial stability. The debt-to-equity ratio is low at 0.15, suggesting conservative leverage. However, a decline in stockholders' equity over the years and ongoing net losses pose potential risks to financial sustainability.

Cash Flow

The cash flow analysis indicates ongoing negative free cash flow, which raises concerns about the company's ability to generate cash from operations. The operating cash flow to net income ratio is negative, reflecting challenges in converting income into cash. However, the company has managed to maintain cash reserves, likely from financing activities, providing some liquidity cushion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.54M	398.02K	4.71M	6.48K	12.87K	0.00
Gross Profit	1.33M	300.75K	4.33M	6.48K	12.87K	0.00
EBITDA	-6.26M	-5.11M	-676.94K	-5.56M	-3.01M	-3.26M
Net Income	-6.37M	-4.89M	-676.94K	-5.57M	-3.06M	-3.36M
Balance Sheet
Total Assets	6.06M	5.42M	6.94M	7.13M	9.70M	3.37M
Cash, Cash Equivalents and Short-Term Investments	3.28M	3.00M	6.82M	7.02M	9.62M	3.31M
Total Debt	583.73K	517.99K	759.33K	759.33K	749.27K	902.24K
Total Liabilities	3.15M	3.25M	1.35M	1.90M	1.25M	1.05M
Stockholders Equity	2.91M	2.17M	5.58M	5.24M	8.46M	2.32M
Cash Flow
Free Cash Flow	-4.79M	-3.58M	-294.76K	-3.26M	-2.41M	-2.58M
Operating Cash Flow	-4.77M	-3.58M	-294.76K	-3.26M	-2.41M	-2.58M
Investing Cash Flow	-21.63K	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	4.48M	-241.34K	95.75K	653.75K	8.72M	1.86M

MustGrow Biologics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MGRO, the sentiment is Negative. The current price of 0.56 is below the 20-day moving average (MA) of 0.62, below the 50-day MA of 0.63, and below the 200-day MA of 0.80, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.01 is Neutral, neither overbought nor oversold. The STOCH value of 43.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MGRO.

MustGrow Biologics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KRN	51 Neutral	C$12.26M	-12.04	-21.94%	―	―	39.56%
NPK	50 Neutral	C$69.52M	-6.25	-37.27%	―	-36.30%	10.13%
MGRO	44 Neutral	C$36.49M	-5.14	-198.96%	―	51.04%	-2521.74%
ERTH	39 Underperform	C$20.86M	-2.70	-60.25%	―	-19.17%	-3607.69%

MustGrow Biologics Corporate Events

MustGrow Seeks Up to $2 Million in LIFE Financing to Scale Organic Agri-Input Inventory

MustGrow Biologics has launched a non-brokered listed issuer financing exemption (LIFE) private placement of up to 4 million units at $0.50 per unit, aiming to raise as much as $2 million, with each unit comprising one common share and a five-year warrant exercisable at $0.70. The company plans to use the proceeds to ramp up inventory production of its TerraSante mustard-derived organic biofertility product, build inventory for agricultural products sold via its NexusBioAg distribution platform, and fund working capital, with the offering subject to TSX Venture Exchange approval and compliant insider participation rules under MI 61-101, signalling a push to scale commercialization and strengthen its position in the sustainable agri-inputs market.

The most recent analyst rating on (TSE:MGRO) stock is a Hold with a C$0.60 price target. To see the full list of analyst forecasts on MustGrow Biologics stock, see the TSE:MGRO Stock Forecast page.

MustGrow Shifts to Commercial Phase as TerraSante Demand Surges and Capacity Expands

MustGrow Biologics’ CEO reports that 2025 marked a shift from product development to commercialization, led by accelerating demand for its mustard-derived TerraSante biofertility product in the U.S. and initial sales through NexusBioAg in Canada. TerraSante has shown strong on-farm performance, including materially higher potato yields and quality with attractive return on investment, prompting the company to ramp up manufacturing capacity via Asian contract producers and plan dedicated, continuous production lines expected to enhance margins. Management also notes growing global interest from sales and distribution groups seeking to register TerraSante as a biofertility or biostimulant in other countries, positioning 2026 as a year of potentially significant sales growth and margin expansion, while the company advances TerraMG biopesticide registration efforts in Canada and the U.S. to build a broader biological crop input portfolio.

MustGrow Biologics Achieves Breakthrough in Potato Yield with TerraSanteTM

MustGrow Biologics has reported significant success with its TerraSanteTM biofertility product in large-scale potato field trials in Washington State and Idaho. The trials demonstrated a notable increase in potato yield, size, and quality, resulting in an estimated US$5,000 increase in value per acre at a cost of only US$180 per acre for TerraSanteTM. The product also showed substantial benefits to soil health when used alongside existing grower programs, aligning with MustGrow’s focus on improving soil and ecological health through its mustard-derived technologies.

MustGrow Biologics Achieves Record Q3-2025 Financial Results

MustGrow Biologics Corp. reported record Q3-2025 financial results, with sales revenue reaching $0.8 million, marking a significant improvement from no revenue in the same quarter of the previous year. The company’s gross profit margin increased to 22.9%, driven by higher margin product sales through its NexusBioAg division. MustGrow is optimistic about stronger sales in Q4 and Q1-2026 as farmers prepare for the upcoming growing season, and it continues to focus on revenue growth through its Canadian and U.S. business operations.