Good Shroom Co Inc (MUSH) AI Stock Analysis

• Market Cap: C$8.27M
• Dividend Yield: N/A
• Average Volume (3M): 19.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: -26.71%
• EPS Growth: -988.89%
• Country: CA
• Employees: N/A
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 51,674,683
• 10 Day Avg. Volume: 26,649
• 30 Day Avg. Volume: 19,637
• PEG Ratio: <0.01
• Price to Book (P/B): 16.94
• Price to Sales (P/S): 1.37
• P/FCF Ratio: 19.46
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: C$0.15 ▲(9.29% Upside)

The score is mainly supported by strong technical momentum (price above key moving averages with positive MACD). This is tempered by below-average financial quality driven by ongoing losses and compressed equity, and by weak valuation signals due to a negative P/E and no dividend yield data.

Positive Factors

Rapid revenue growth

A sustained +311% TTM revenue gain signals meaningful demand expansion and product traction. Over the next 2–6 months this growth can enable higher scale economies, improve per-unit absorption of fixed costs, and provide room to invest in distribution or R&D without relying solely on external financing.

Improved cash generation

Conversion to positive operating and free cash flow (~$0.4M) indicates the company can begin funding operations and small investments internally. If maintained, positive cash generation reduces dependence on dilutive capital raises and improves strategic flexibility over a multi-month horizon.

Moderate leverage

A moderate debt-to-equity (~0.71) and limited absolute debt provide financial flexibility to absorb short-term shocks or support measured strategic initiatives. This capital structure gives management runway to execute commercialization or operational improvements without excessive interest burdens.

Negative Factors

Weak and volatile profitability

Low gross margins (~14%) and negative operating/net margins (~-16%) reflect limited pricing power and cost absorption. Volatility (profitable in FY2024, back to losses in FY2025/TTM) suggests structural challenges scaling margins, making sustainable earnings generation uncertain over the medium term.

Equity erosion and negative returns

Sharp equity compression and deeply negative ROE indicate cumulative losses are eroding the balance sheet. This weakens the firm's ability to absorb future setbacks, raises the likelihood of dilution or asset write-downs, and constrains long-term funding options absent improved profitability.

Inconsistent cash conversion

Historical negative operating cash flow through FY2024, with a recent one-off turn positive, highlights inconsistency in cash conversion. If working-capital tailwinds reverse or sales mix shifts, cash generation may falter, threatening operational stability and forcing reliance on external financing.

Good Shroom Co Inc Business Overview & Revenue Model

Company Description

Mercanto Holdings Inc. engages in the development, manufacture, and sale of instant wellness beverages. It includes traditional cannabis, probiotics, and functional mushrooms. Its brands include Velada, Nordique Royale, and Teonan. The company was founded on August 11, 2011 and is headquartered in Kirkland, Canada.

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

Financials are mixed: revenue has scaled, leverage is low (no reported debt in 2025), and 2025 saw a notable shift to positive operating and free cash flow. However, profitability remains the key weakness—gross margin fell sharply (≈31% to ≈21%), margins turned negative again, and equity contracted materially, keeping overall financial quality below average.

Income Statement

Revenue has scaled meaningfully versus earlier years, but performance has been volatile: 2024 delivered a small profit, followed by a return to losses in 2025 (annual). Profitability remains the core issue—gross margin fell from ~31% (2024) to ~21% (2025), and operating and net margins turned negative again. Overall, the company shows demand traction, but inconsistent margins and recurring losses keep the income statement quality below average.

Balance Sheet

Leverage looks manageable and has improved materially over time, with 2025 showing no reported debt and prior years generally low debt relative to equity. However, equity has contracted sharply (from ~583k in 2024 to ~242k in 2025) alongside a weak return profile (negative return on equity in 2025). In short: balance sheet risk from debt is limited, but the shrinking equity cushion and ongoing losses are notable vulnerabilities.

Cash Flow

Cash generation improved significantly in 2025 (annual), with positive operating cash flow and positive free cash flow after several years of cash burn (notably negative in 2021–2024). That said, the cash flow profile is not yet proven as stable—2024 was meaningfully negative, and the 2025 positive outcome needs to be sustained given the return to net losses. Still, the step-change to positive free cash flow is a clear near-term strength.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.00M	3.89M	3.16M	1.22M	242.13K
Gross Profit	621.69K	1.23M	665.12K	228.64K	61.90K
EBITDA	-390.16K	66.24K	-427.19K	-1.56M	-3.56M
Net Income	-412.31K	40.60K	-452.14K	-1.63M	-3.85M
Balance Sheet
Total Assets	1.02M	1.48M	1.44M	1.64M	2.30M
Cash, Cash Equivalents and Short-Term Investments	394.97K	202.37K	378.42K	751.55K	1.69M
Total Debt	0.00	17.53K	74.06K	207.78K	258.46K
Total Liabilities	778.53K	899.77K	986.48K	881.55K	495.21K
Stockholders Equity	242.01K	583.10K	457.57K	762.81K	1.80M
Cash Flow
Free Cash Flow	210.60K	-148.04K	-355.13K	-777.78K	-1.73M
Operating Cash Flow	210.60K	-148.04K	-355.13K	-777.78K	-1.71M
Investing Cash Flow	0.00	0.00	70.00K	0.00	2.58M
Financing Cash Flow	-18.00K	-28.02K	-18.00K	-160.00K	247.13K

Good Shroom Co Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MUSH, the sentiment is Positive. The current price of 0.14 is below the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.12, and above the 200-day MA of 0.08, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 64.17 is Neutral, neither overbought nor oversold. The STOCH value of 106.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
MUSH	54 Neutral	C$8.27M	-15.46	-99.55%	―	-26.71%	-988.89%
LOBE	46 Neutral	C$17.52M	-2.70	―	―	-100.00%	-8.70%
PCLO	44 Neutral	C$15.39M	-2.93	―	―	15.64%	58.47%
RVV	39 Underperform	C$6.28M	-0.58	-664.21%	―	―	-80.42%

Good Shroom Co Inc Corporate Events

Mercanto Holdings Posts Higher Q1 Revenue as It Shifts Toward High-Growth Cannabis Categories

Mercanto Holdings Inc. reported first-quarter fiscal 2026 revenue of $900,013, up 9% year over year, and net revenue of $784,529 after excise taxes, while posting a net loss of $146,213 as gross margins were temporarily pressured by product mix. Management highlighted disciplined cost control, a cash balance of $310,237, no long-term debt and a tight share structure, alongside recent vape product launches and portfolio rebalancing into higher-growth formats. The company expects recent changes to Québec’s listing framework, which add more predictability and longer in-store listings for certain categories, combined with its expansion in vape products and continued cost discipline, to support better revenue diversification and operational momentum through calendar 2026.

Mercanto Holdings Inc. Navigates Quebec Market Restructuring with New Product Launches

Mercanto Holdings Inc. reported a challenging fiscal year 2025 due to a province-wide restructuring of cannabis product distribution in Quebec, which led to a decline in revenue and net income. Despite short-term setbacks, the company anticipates long-term benefits from the restructuring, such as improved operational stability and visibility, which are expected to support revenue recovery in fiscal year 2026. The company has launched six new products in Quebec and remains a diversified supplier in the province, benefiting from a stable provincial listing framework.

Mercanto Launches Vape Cartridges in Québec

Mercanto Holdings Inc. has launched its new line of vape cartridges in Québec, marking its entry into the province’s newly opened vape category. The company is offering three 1 gram vape cartridges, with one being an online exclusive, capturing approximately 8% of the province’s vape cartridge shelf space. This launch positions Mercanto competitively alongside established national brands, with potential market growth similar to other Canadian provinces. The company also introduces the M3B Plus battery to support the vape category, anticipating clearer sales insights by Q1 2026.