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): 1.35
• 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$0.16 ▲(16.43% 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

High Revenue Growth

Sustained TTM revenue growth of +311% signals meaningful commercial traction and market uptake of the company's offerings. Over a 2–6 month horizon this supports scaling advantages, stronger bargaining power with suppliers, and a clearer path to fixed-cost absorption as volumes increase.

Positive Cash Generation

Transition to positive operating and free cash flow provides tangible financial flexibility versus prior years. Durable free cash flow allows internal funding of growth initiatives, lowers near-term dilution need, and improves resilience to funding shocks if the company sustains cash generation.

Moderate Leverage

A debt-to-equity near 0.71 and relatively small absolute debt leave capacity to invest or absorb shocks without excessive interest burden. Structurally this gives management room to pursue strategic initiatives or weather cyclical pressures without immediate refinancing stress.

Negative Factors

Weak Profitability

Persistently low gross margin (~14%) and negative operating/net margins (~-16%) indicate limited ability to convert revenue into sustainable profits. Long‑term value creation will require structural margin improvement via pricing power, cost base reduction, or higher‑margin product mix.

Equity Compression & Earnings Volatility

Sharp equity compression and swings between a small profit in FY2024 and losses in FY2025/TTM signal unstable economics and capital erosion. This undermines long‑term investor returns and raises the risk of dilutive capital raises or constrained strategic options if volatility persists.

Cash Flow Sustainability Risk

Recent positive cash flow follows several years of negative operating cash flow and coincides with net losses, suggesting improvements may be cyclical or working‑capital driven. If cash conversion reverts, the company could face liquidity pressure and renewed dependency 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: TTM revenue growth is very strong (+311%) and TTM operating/free cash flow turned positive, but profitability remains weak with negative operating and net margins and equity compression driven by losses. Results also appear volatile year-to-year (profitable in FY2024, back to losses in FY2025/TTM).

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	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 0.15, below the 50-day MA of 0.14, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.81 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 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	-16.49	-99.55%	―	-26.71%	-988.89%
PCLO	44 Neutral	C$12.31M	-2.23	―	―	15.64%	58.47%
LOBE	44 Neutral	C$13.47M	-2.38	―	―	-100.00%	-8.70%
RVV	40 Underperform	C$4.19M	-0.39	-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.