Good Shroom Co Inc (MUSH) AI Stock Analysis

• Market Cap: C$2.79M
• Dividend Yield: N/A
• Average Volume (3M): 14.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -25.35%
• EPS Growth: -657.14%
• Country: CA
• Employees: N/A
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): >-0.01
• Shares Outstanding: 50,774,685
• 10 Day Avg. Volume: 21,420
• 30 Day Avg. Volume: 14,933
• PEG Ratio: 0.26
• Price to Book (P/B): 18.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -24.22
• 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

• Rating: 53 Neutral
• Price Target: ―

The overall stock score for Good Shroom Co Inc is 53. The company's financial performance is currently weak, with operational inefficiencies and liquidity concerns being the primary challenges. However, technical analysis shows some short-term momentum, and the recent corporate events regarding product expansion are positive for future growth potential. The valuation remains unattractive due to negative earnings. Overall, while there are opportunities for improvement, significant risks remain.

Good Shroom Co Inc Business Overview & Revenue Model

Company Description

Good Shroom Co Inc (MUSH) is a company operating within the health and wellness sector, primarily focusing on the development, production, and distribution of mushroom-based products. The company's core offerings include functional beverages, supplements, and other consumer goods infused with adaptogenic mushrooms, which are known for their potential health benefits. Good Shroom Co aims to leverage the growing demand for natural and organic wellness products by providing innovative and high-quality solutions to health-conscious consumers.

How the Company Makes Money

Good Shroom Co Inc generates revenue through the sale of its mushroom-based products, which are distributed via various retail channels, including online platforms and physical stores. The company capitalizes on the increasing consumer interest in functional foods and beverages, targeting both individual consumers and wholesale clients. Additionally, strategic partnerships with retailers and distributors enhance its market reach and visibility. The company's earnings are further supported through collaborations with health and wellness influencers, who help to promote brand awareness and drive sales growth.

Good Shroom Co Inc Financial Statement Overview

Summary

Good Shroom Co Inc shows financial instability with ongoing profitability challenges, despite some improvements in gross profit margins. The balance sheet reflects a low leverage position but declining equity ratios. Cash flow generation is weak, raising concerns about liquidity and financial sustainability. The company needs to focus on improving operational efficiency and cash flow management to enhance its financial health.

Income Statement

The income statement shows mixed results. The TTM gross profit margin is approximately 26.4%, which is an improvement from previous periods. However, the TTM net profit margin is negative, indicating ongoing challenges in profitability. Revenue growth is volatile, with a significant decline of 18.3% in the most recent period. The negative EBIT and EBITDA margins further highlight the company's struggles with operational efficiency.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio is low at 0.02, indicating minimal reliance on debt financing. However, the equity ratio is decreasing, currently at 35.1%, suggesting a trend of increasing liabilities relative to assets. Return on equity remains negative due to ongoing net losses, which is a concern for shareholder value.

Cash Flow

The cash flow statement indicates weak cash generation. The free cash flow remains negative, and there's a significant decline in operating cash flow compared to previous periods. The operating cash flow to net income ratio is negative, reflecting inefficiencies in converting income to cash. The company is not generating sufficient cash flow to cover its expenses, which poses a liquidity risk.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
3.18M	3.89M	3.16M	1.22M	242.13K	196.92K
	Gross Profit
839.49K	1.23M	665.12K	228.64K	61.90K	147.77K
	EBIT
-266.35K	42.07K	-449.74K	-1.61M	-3.48M	-152.14K
	EBITDA
-242.79K	66.24K	-427.19K	-1.56M	-3.56M	-152.14K
	Net Income Common Stockholders
-267.41K	40.60K	-452.14K	-1.63M	-3.85M	-170.21K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
160.83K	202.37K	378.42K	751.55K	1.69M	139.59K
	Total Assets
1.24M	1.48M	1.44M	1.64M	2.30M	139.59K
	Total Debt
8.89K	17.53K	74.06K	207.78K	258.46K	714.00K
	Net Debt
-151.93K	-184.84K	-304.36K	-473.78K	-1.36M	574.41K
	Total Liabilities
803.75K	899.77K	986.48K	881.55K	495.21K	26.01K
	Stockholders Equity
435.62K	583.10K	457.57K	762.81K	1.80M	113.57K
Cash Flow		Free Cash Flow
-165.03K	-148.04K	-355.13K	-777.78K	-1.73M	-149.03K
	Operating Cash Flow
-165.03K	-148.04K	-355.13K	-777.78K	-1.71M	-148.01K
	Investing Cash Flow
0.00	0.00	70.00K	0.00	2.58M	―
	Financing Cash Flow
-28.02K	-28.02K	-18.00K	-160.00K	247.13K	195.47K

Good Shroom Co Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.06
• 50DMA: Positive
• 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:MUSH, the sentiment is Neutral. The current price of 0.06 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.05, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 61.82 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:MUSH.

Good Shroom Co Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$8.81B	14.92	4.67%	6.17%	3.60%	-2.89%
MUSH	53 Neutral	C$2.79M	―	-51.00%	―	-25.35%	-657.14%
MEAT	41 Neutral	C$802.60K	―	49.10%	―	-6.24%	81.75%
CULT	33 Underperform	C$1.87M	―	-185.93%	―	―	48.34%

Good Shroom Co Inc Corporate Events

Mercanto Secures Key Position in Quebec’s Emerging Vape Market

Mercanto Holdings Inc. has secured one of only two approved battery listings by Quebec’s cannabis board for the launch of the province’s new vape category. This strategic achievement positions Mercanto advantageously in the high-growth Canadian cannabis vape market, expected to reach CAD 950 million by 2030. The company’s M3B+ battery, manufactured by CCELL, will be available in all authorized cannabis retail stores in Quebec, with sales commencing in November 2025. This move is anticipated to significantly impact Mercanto’s market presence, as the vape segment is projected to account for 11% of Quebec’s cannabis sales in its first year, offering substantial revenue potential.

Mercanto Holdings Inc. Reports Q2 2025 Results Amid Strategic Expansion Efforts

Mercanto Holdings Inc. reported a decline in revenue and net profit for Q2 2025, largely due to a product rationalization process in Quebec, its core market. Despite these challenges, the company remains optimistic about future growth, driven by a national expansion strategy and new product launches. Mercanto is set to enter the Quebec vape market and has already introduced THC pouches in several provinces. The company is also focused on improving gross margins through higher-margin products and strategic reworking of inventory.

The Good Shroom Co Inc. Rebrands to Mercanto Holdings Inc.

The Good Shroom Co Inc. has announced a name change to Mercanto Holdings Inc., effective February 10, 2025, with the company’s trading symbols remaining unchanged. This rebranding does not affect the company’s capitalization, and existing shareholders need not take any action. Additionally, the company clarified its recent grant of stock options to its directors and officers, ensuring transparency in accordance with TSX Venture Exchange policies.