MustGrow Biologics (MGRO) AI Stock Analysis

• Market Cap: $56.80M
• Dividend Yield: N/A
• Average Volume (3M): 8.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: -91.55%
• EPS Growth: -495.60%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Agricultural Inputs
• EPS (TTM): -0.09
• Shares Outstanding: 51,640,610
• 10 Day Avg. Volume: 3,648
• 30 Day Avg. Volume: 8,157
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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: Hold
• Number of Analyst Covering: 1

MustGrow Biologics' overall stock score of 57 reflects significant revenue growth and strategic market expansions, countered by ongoing financial challenges and valuation concerns. The company's strong gross margins and low leverage are positives, but the persistent net losses and negative cash flow remain crucial risks.

MustGrow Biologics Business Overview & Revenue Model

Company Description

MustGrow Biologics Corp., an agricultural biotech company, focuses om development and commercialization of natural biopesticide, biofumigants, and bioherbicides derived from mustard seed. It provides preplant soil biofumigation, a technology to treat soil-borne diseases and pests for various crops, including fruit, vegetables, and other crops. The company is also developing bioherbicide to treat unwanted plant growth for use in organic agriculture, home, and garden markets, as well as agriculture markets; and postharvest food preservation, an application in sprout, disease, and pathogen treatment for storage and food preservation markets. In addition, it focuses on providing CannaPM, an active ingredient to treat fungal soil diseases, as well as foliar diseases. The company was formerly known as Duport Capital Ltd. and changed its name to MustGrow Biologics Corp. in March 2018. MustGrow Biologics Corp. was incorporated in 2014 and is headquartered in Saskatoon, Canada.

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 in a growth phase, with impressive revenue expansion but struggling with profitability and cash flow generation. The company's strong gross margins and low leverage are positive indicators, yet persistent net losses and negative cash flow highlight financial challenges that need addressing to ensure long-term viability.

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
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
4.71M	6.48K	12.87K	0.00	0.00
	Gross Profit
4.33M	6.48K	12.87K	0.00	0.00
	EBIT
-210.93K	-5.56M	-3.01M	-3.37M	-1.47M
	EBITDA
-676.94K	-5.56M	-3.01M	-3.26M	-1.47M
	Net Income Common Stockholders
-676.94K	-5.54M	-3.12M	-3.36M	-1.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.82M	7.02M	9.62M	3.31M	4.03M
	Total Assets
6.94M	7.13M	9.70M	3.37M	4.09M
	Total Debt
759.33K	759.33K	749.27K	902.24K	755.83K
	Net Debt
-6.06M	-6.26M	-8.87M	-2.41M	-3.27M
	Total Liabilities
1.35M	1.90M	1.25M	1.05M	1.06M
	Stockholders Equity
5.58M	5.24M	8.46M	2.32M	3.03M
Cash Flow		Free Cash Flow
-294.76K	-3.26M	-2.41M	-2.58M	-1.35M
	Operating Cash Flow
-294.76K	-3.26M	-2.41M	-2.58M	-1.35M
	Investing Cash Flow
0.00	0.00	0.00	0.00	0.00
	Financing Cash Flow
95.75K	653.75K	8.72M	1.86M	4.87M

MustGrow Biologics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.10
• 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 Neutral. The current price of 1.1 is above the 20-day moving average (MA) of 1.06, below the 50-day MA of 1.12, and below the 200-day MA of 1.26, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.24 is Neutral, neither overbought nor oversold. The STOCH value of 60.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:MGRO.

MustGrow Biologics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGRO	57 Neutral	$56.80M	―	-124.27%	―	-91.55%	-495.60%
Sector *	49 Neutral	$1.95B	-1.27	-21.38%	3.72%	0.83%	-29.30%

MustGrow Biologics Corporate Events

MustGrow Expands Canadian Portfolio with New Biological Solutions

MustGrow Biologics Corp. has expanded its Canadian product portfolio by introducing three new biological solutions aimed at enhancing crop health and yield potential. The new products, EZ-Gro Max, EZ-Gro Cyto, and Rootella mycorrhizal inoculants, are designed to support sustainable farming by improving plant growth, environmental resilience, and nutrient absorption. This strategic addition is expected to strengthen MustGrow’s position in the biological agriculture market, offering Canadian farmers advanced tools to maximize productivity and sustainability.

MustGrow Expands Canadian Reach with New Distribution Agreement

MustGrow Biologics has signed a five-year exclusive distribution agreement with Adjuvants Plus Inc. to distribute Adjuvants’ biological product line across Canada, marking a significant step in promoting sustainable agricultural solutions. This partnership enhances MustGrow’s product portfolio with Adjuvants’ patented microbial technology and aims to support sustainable crop management, particularly in major Canadian crops, reinforcing its position as a leader in biological agriculture.