Organto Foods (OGO) AI Stock Analysis

• Market Cap: C$10.30M
• Dividend Yield: N/A
• Average Volume (3M): 127.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• Revenue Growth: -17.90%
• EPS Growth: 99.06%
• Country: CA
• Employees: 40
• Sector: Consumer Defensive
• Sector Strength: 85
• Industry: Food Distribution
• EPS (TTM): >-0.01
• Shares Outstanding: 34,318,382
• 10 Day Avg. Volume: 78,904
• 30 Day Avg. Volume: 126,995
• 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: N/A
• Number of Analyst Covering: 0

Organto Foods faces significant financial difficulties, with negative margins, high leverage, and liquidity issues. While recent corporate actions show efforts to restructure debt and gain shareholder support, their impact is currently limited. The technical analysis suggests some upward momentum, but caution is warranted due to overbought indicators. Valuation remains a concern due to the company's unprofitability. Overall, the stock presents a high-risk profile, requiring substantial improvements for a more favorable outlook.

Organto Foods Business Overview & Revenue Model

Company Description

Organto Foods Inc. engages in the sourcing, processing, packaging, distribution, and marketing of organic and value-added fruit and vegetable products. Its products include vegetable and fruit products comprising asparagus, avocado, blueberries, fine beans, ginger, herbs, mangetout, mango, limes, passion fruit, raspberries, sugar snaps and other products, as well as convenience and to-go, vegetables mix, and meal kit under the I AM Organic and Fresh Organic Choice brands. The company operates in the Netherlands, Belgium, the United Kingdom, Germany, France, Spain, Russia, Sweden, Norway, and Denmark. Organto Foods Inc. is headquartered in Vancouver, Canada.

How the Company Makes Money

Organto Foods generates revenue primarily through the sale of its organic fruits and vegetables. The company sources produce from a network of global growers and employs a vertically integrated business model that includes the processing, packaging, and distribution of its products. Organto sells its products to a variety of customers, including retailers, wholesalers, and food service providers. Significant partnerships with growers, logistics companies, and retail chains enhance its supply chain efficiency and market reach, contributing to its earnings. Additionally, Organto may engage in strategic collaborations and acquisitions to expand its product offerings and geographic presence, further driving revenue growth.

Organto Foods Financial Statement Overview

Summary

Organto Foods is experiencing significant financial challenges. The income statement reflects declining revenues and negative profitability, the balance sheet shows high leverage with negative equity, and the cash flow statement indicates issues in generating operational cash flow, despite minor improvements.

Income Statement

Organto Foods has demonstrated a volatile revenue trajectory, with recent declines in total revenue from $27.68 million to $22.49 million in the TTM. The gross profit margin has significantly narrowed to 2.28% in the TTM, down from 8.89% in 2023, indicating struggles in maintaining cost efficiency. The persistent negative net profit margin of -34.89% in the TTM reflects ongoing profitability challenges. Additionally, both EBIT and EBITDA margins remain deeply negative, suggesting operational inefficiencies.

Balance Sheet

The company’s balance sheet indicates financial distress, with a high debt-to-equity ratio due to negative stockholders' equity of -$13.70 million in the TTM. This reflects a precarious financial position and high leverage risk. The equity ratio is negative, indicating liabilities exceed assets. Additionally, the deteriorating equity position from -$15.54 million in 2023 to -$13.70 million in the TTM highlights ongoing financial instability.

Cash Flow

Organto Foods reported negative operating and free cash flows in the TTM at -$1.54 million, indicating difficulties in generating cash from operations. The operating cash flow to net income ratio suggests inefficiency in converting income into cash flow. However, there has been a minor improvement in free cash flow compared to the previous year, although it remains negative.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
27.68M	22.12M	19.52M	11.45M	3.71M
	Gross Profit
2.46M	1.26M	1.99M	1.07M	220.42K
	EBIT
-5.81M	-7.27M	-4.85M	-2.53M	-2.29M
	EBITDA
-9.19M	-9.25M	-5.32M	-6.55M	-2.36M
	Net Income Common Stockholders
-13.43M	-10.83M	-6.34M	-7.05M	10.41K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
195.04K	5.86M	11.87M	4.13M	54.56K
	Total Assets
6.92M	11.37M	20.96M	6.77M	2.73M
	Total Debt
12.21M	8.98M	8.44M	4.15M	1.77M
	Net Debt
12.02M	3.21M	-3.43M	20.80K	1.72M
	Total Liabilities
22.45M	14.53M	14.27M	7.01M	4.54M
	Stockholders Equity
-15.54M	-3.16M	6.69M	-237.91K	-1.81M
Cash Flow		Free Cash Flow
-3.91M	-5.84M	-5.92M	-1.99M	-1.88M
	Operating Cash Flow
-3.89M	-5.72M	-5.92M	-1.99M	-1.88M
	Investing Cash Flow
-318.38K	-928.58K	-357.41K	0.00	319.56K
	Financing Cash Flow
-1.39M	-312.04K	13.99M	6.22M	1.43M

Organto Foods Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OGO, the sentiment is Positive. The current price of 0.3 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.16, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 84.04 is Negative, neither overbought nor oversold. The STOCH value of 81.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:OGO.

Organto Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$8.85B	14.84	5.05%	174.27%	3.54%	3.75%
OGO	40 Underperform	C$10.30M	―	57.30%	―	-17.90%	99.06%
ZOG	30 Underperform	C$745.62K	0.79	-1242.61%	―	―	―
PNGA	27 Underperform	C$5.10M	―		―	-97.30%	39.70%

Organto Foods Corporate Events

Organto Foods Secures Debentureholder Approval for Debt Settlement

Organto Foods Inc. announced that its debentureholders have approved the settlement terms for its 5-year, 8% convertible unsecured subordinated debentures. The resolution allows for the conversion of $8,050,000 worth of debentures into 40,250,000 common shares, effectively reducing the company’s debt and increasing equity. This move is part of Organto’s ongoing efforts to improve its financial structure and enhance its market position. The approval by debentureholders representing 68.89% of the outstanding principal amount eliminates the need for a formal meeting, although the settlement still requires approval from the TSX Venture Exchange.

Spark’s Take on TSE:OGO Stock

According to Spark, TipRanks’ AI Analyst, TSE:OGO is a Underperform.

Organto Foods faces considerable financial instability, with declining revenues and negative equity. Technical analysis does not suggest any positive momentum, and valuation reflects the company’s unprofitability. These factors heavily impact the overall score, indicating a precarious financial position.

To see Spark’s full report on TSE:OGO stock, click here.

Organto Foods Reports Strong Fiscal 2024 Results Amid Restructuring

Organto Foods Inc. reported its fiscal 2024 financial results, highlighting a significant restructuring and realignment that has positioned the company for sustained growth and profitability. The company achieved a 48% increase in sales to $20.7 million, driven by onboarding new business and expanding sales with existing customers. Despite a net loss from continuing operations of $3.3 million, Organto reduced its net loss including discontinued operations to $2.0 million, down from $13.4 million in 2023, aided by gains from the sale of subsidiaries and improved operating earnings. The company remains focused on positive cash flow and is optimistic about its future prospects.

Spark’s Take on TSE:OGO Stock

According to Spark, TipRanks’ AI Analyst, TSE:OGO is a Underperform.

Organto Foods faces considerable financial instability, with declining revenues and negative equity. Technical analysis does not suggest any positive momentum, and valuation reflects the company’s unprofitability. These factors heavily impact the overall score, indicating a precarious financial position.

To see Spark’s full report on TSE:OGO stock, click here.

Organto Foods Strengthens Investor Relations with New Agreements and Stock Options

Organto Foods Inc. has announced new investor relations agreements and the issuance of stock options to its directors, officers, and employees. The company has engaged 12538938 Canada Inc. for strategic communication services and Atrium Research Corporation for issuer-paid research to enhance its investment case to potential investors. These initiatives aim to strengthen Organto’s market presence and investor engagement, potentially impacting its operational strategies and stakeholder relations.

Spark’s Take on TSE:OGO Stock

According to Spark, TipRanks’ AI Analyst, TSE:OGO is a Underperform.

Organto Foods faces considerable financial instability, with declining revenues and negative equity. Technical analysis does not suggest any positive momentum, and valuation reflects the company’s unprofitability. These factors heavily impact the overall score, indicating a precarious financial position.

To see Spark’s full report on TSE:OGO stock, click here.

Organto Foods Completes Financing and Debt Restructuring

Organto Foods Inc. has successfully closed a private placement, raising C$5,309,991 through the issuance of common shares, and has settled outstanding debts amounting to C$2,243,300 via a shares-for-debt arrangement. Additionally, the company has amended the terms of its convertible notes, reducing the conversion and acceleration prices, and extending the maturity dates, which could enhance its financial flexibility and improve its market positioning.

Spark’s Take on TSE:OGO Stock

According to Spark, TipRanks’ AI Analyst, TSE:OGO is a Underperform.

Organto Foods faces considerable financial instability, with declining revenues and negative equity. Technical analysis does not suggest any positive momentum, and valuation reflects the company’s unprofitability. These factors heavily impact the overall score, indicating a precarious financial position.

To see Spark’s full report on TSE:OGO stock, click here.

Organto Foods Expands Private Placement Financing to $5.5 Million

Organto Foods Inc. has announced an increase in its non-brokered private placement financing from C$5,000,000 to up to C$5,500,000. The company plans to issue up to 55,000,000 common shares at $0.10 per share, with the proceeds aimed at repaying short-term loans and funding general working capital. This move is part of Organto’s broader debt restructuring efforts, which will result in approximately 155,000,000 shares outstanding. Additionally, Organto has granted stock options and restricted share units to certain officers and directors, aligning with its strategic growth and operational plans. The private placement is subject to regulatory approvals and will involve a minimum hold period for the securities issued.

Organto Foods Restructures Debt and Launches C$5M Private Placement

Organto Foods Inc. has announced plans to restructure its outstanding debt and raise equity capital through a private placement of up to C$5 million. This strategic move involves settling promissory notes and amending the terms of convertible notes to improve financial flexibility. The restructuring aims to enhance the company’s capital structure, potentially impacting its market position by reducing debt obligations and increasing the number of outstanding shares, which could influence shareholder value and investment attractiveness.

Organto Foods Restructures Operations and Focuses on Debt Reduction

Organto Foods Inc. has announced an update on its strategic plans following the revocation of a cease trade order and the resumption of trading on the TSX Venture Exchange. The company has restructured its operations, streamlined its product portfolio, and shifted its marketing strategy to improve processes and reduce costs. Organto is focusing on reducing debt and ensuring sufficient working capital to fund its operations. The company is currently in default on certain debts and is negotiating with creditors to restructure terms, including a significant offer from Antares Capital Management Ltd. to acquire outstanding debentures.

Organto Foods Reports Strong Shareholder Support at Annual Meeting

Organto Foods Inc. announced the results of its annual general meeting, where 30.1% of eligible shares were voted, with all matters receiving over 99% support. The meeting saw the election of five directors, four of whom are independent, and the approval of the company’s auditor and share plans, indicating strong shareholder confidence and strategic continuity.

Organto Foods Explores Debenture Restructuring After Antares Acquisition

Organto Foods Inc. announced that Antares Capital Management Ltd. has acquired over 67% of its outstanding convertible debentures, prompting an offer to all debenture holders to sell on similar terms. The company is engaging with Antares to potentially restructure the debenture terms, aiming to align with stakeholder interests and enhance financial flexibility.

Organto Foods to Resume Trading on TSX Venture Exchange

Organto Foods Inc. has announced that its common shares will resume trading on the TSX Venture Exchange as of March 12, 2025. This marks a significant step for the company, which has worked diligently to update its financial and related filings, aiming to recapitalize and strengthen its market position. The resumption of trading is expected to enhance liquidity and support Organto’s ongoing business momentum, benefiting shareholders and stakeholders.