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): 1.32
• 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)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held back primarily by weak profitability and pressured equity despite strong revenue growth and improved (but potentially volatile) cash flow. Technicals provide meaningful support due to a clear uptrend and positive momentum, while valuation remains constrained by negative earnings and no dividend.

Positive Factors

Revenue Growth

Sustained TTM revenue growth of +311% signals meaningful market traction and expanding customer adoption. Strong top-line expansion provides a base to spread fixed costs and supports investment in distribution or R&D, improving prospects for durable operating leverage as scale increases.

Improved Cash Generation

Conversion to positive operating and free cash flow provides tangible runway to fund operations and reinvest without immediate capital raises. Durable positive cash generation, if maintained, reduces reliance on external financing and supports incremental investment to stabilize margins and capex needs.

Moderate Leverage

A moderate debt-to-equity ratio (~0.71) and limited absolute debt leave room for financial flexibility. With manageable leverage, the company can service obligations while using cash flow to invest in growth or delever, reducing long-term solvency risk compared with highly leveraged peers.

Negative Factors

Weak Profitability

Low gross margins (~14%) and persistently negative operating/net margins (~-16%) indicate limited pricing power or high unit costs, constraining the company's ability to convert revenue into sustainable profits. Without structural margin improvement, revenue growth may not translate into durable shareholder returns.

Compressed Equity

Sharply compressed equity and deeply negative returns on equity show cumulative losses eroding the balance sheet. This weakens capitalization, limits strategic optionality, raises potential need for recapitalization, and increases vulnerability to adverse shocks over the medium term.

Earnings Volatility

Reversion from a small profit in FY2024 to losses in FY2025 and TTM demonstrates unstable profitability and execution risk. Persistent volatility complicates forecasting, undermines confidence in achieving sustained margins, and raises the chance that temporary tailwinds could reverse.

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

Despite very strong TTM revenue growth (+311%) and improved cash generation (positive operating and free cash flow), profitability remains weak with low gross margin (~14%) and negative operating/net margins (~-16%). Equity has compressed and performance has been volatile year-to-year, keeping overall financial quality below average.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up strongly (+311%), but profitability remains weak: gross margin is low (~14%) and operating and net margins are still negative (~-16%). The business showed it can be profitable in FY2024 (small positive net margin ~1%), but it reverted back to losses in FY2025 and TTM, suggesting an uneven earnings profile and limited cost absorption at the current scale.

Balance Sheet

Leverage is moderate in TTM with debt-to-equity around 0.71, but equity has compressed sharply versus prior years (FY2024 equity was materially higher), reflecting ongoing losses. Total debt is not large in absolute terms, yet returns on equity are deeply negative in TTM, highlighting that the balance sheet is being pressured by profitability rather than excessive borrowing.

Cash Flow

Cash generation improved meaningfully: TTM operating cash flow is positive (~$0.4M) and free cash flow is also positive and surged versus the prior period (very high growth rate off a smaller base). However, cash conversion is not consistently strong historically (operating cash flow was negative in FY2022–FY2024), and current positive cash flow is occurring alongside net losses, which raises sustainability risk if working-capital tailwinds reverse.

Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 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: Positive
• 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 Positive. The current price of 0.14 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.15, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.26 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, 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	-7.07	-99.55%	―	-26.71%	-988.89%
RVV	44 Neutral	C$8.37M	-4.56	899.59%	―	―	-80.42%
PCLO	44 Neutral	C$8.46M	5.19	―	―	15.64%	58.47%
LOBE	42 Neutral	C$17.52M	-2.55	―	―	-100.00%	-8.70%

Good Shroom Co Inc Corporate Events

Mercanto’s Quebec Vape Launch Drives Revenue Surge and Return to Profit

Mercanto Holdings Inc. reported that its late-quarter entry into Quebec’s new vape cartridge category, with three cartridge SKUs and a branded battery, has rapidly become a key growth engine. The launch, which coincided with the December holiday period and a staggered provincial rollout, initially produced volatile sales due to uneven replenishment cycles and temporary stock-outs across the market.

As supply chains and ordering patterns have stabilized, the company says weekly demand has normalized at levels above its initial expectations, suggesting strong consumer acceptance and brand fit. Based on preliminary, unaudited guidance, Mercanto expects Q2 2026 revenue of $2.05 million to $2.2 million, more than doubling year over year, alongside a swing to positive net profit and EBITDA, positioning its vape portfolio as a potentially pivotal driver of future growth and portfolio diversification.

The most recent analyst rating on (TSE:MUSH) stock is a Hold with a C$0.16 price target. To see the full list of analyst forecasts on Good Shroom Co Inc stock, see the TSE:MUSH Stock Forecast page.

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.