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Organto Foods Inc (TSE:OGO)
:OGO

Organto Foods (OGO) AI Stock Analysis

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Organto Foods

(OGO)

Rating:58Neutral
Price Target:
C$0.50
▲(66.67%Upside)
Organto Foods' overall score reflects its financial struggles but is buoyed by positive corporate events and restructuring efforts. Technical indicators show a slightly positive trend, while valuation metrics suggest potential undervaluation. The absence of earnings call data limits insights into future guidance.

Organto Foods (OGO) vs. iShares MSCI Canada ETF (EWC)

Organto Foods Business Overview & Revenue Model

Company DescriptionOrganto 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 MoneyOrganto 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 facing significant financial challenges. Negative margins across the income statement, a balance sheet with negative equity, and negative cash flows indicate operational and liquidity issues, necessitating strategic improvements for enhanced financial health.
Income Statement
40
Negative
Organto Foods shows a challenging financial performance with negative margins. The gross profit margin has turned negative, indicating cost pressures. The net profit margin is also negative, reflecting consistent losses. The revenue growth rate is volatile with fluctuations, showcasing instability in revenue generation. EBIT and EBITDA margins remain negative, highlighting operational inefficiencies.
Balance Sheet
25
Negative
The balance sheet reflects financial strain with a negative stockholders' equity, signifying more liabilities than assets. The debt-to-equity ratio is undefined due to negative equity, indicating high financial leverage. The ROE is negative due to net losses, and the equity ratio is negative, suggesting financial instability and high risk.
Cash Flow
35
Negative
Cash flow analysis reveals negative operating cash flow, indicating cash consumption in operations. Free cash flow is negative, showing insufficient cash generation to cover capital expenditures. The operating cash flow to net income ratio and free cash flow to net income ratio are not meaningful as both cash flows and net income are negative, underscoring cash flow challenges.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
20.70M27.68M22.12M19.52M11.45M
Gross Profit
-985.08K2.46M1.26M1.99M1.07M
EBIT
-2.35M-5.81M-7.27M-4.85M-2.53M
EBITDA
-1.85M-9.19M-9.25M-5.32M-6.55M
Net Income Common Stockholders
-4.54M-13.43M-10.83M-6.34M-7.05M
Balance SheetCash, Cash Equivalents and Short-Term Investments
357.60K195.04K5.86M11.87M4.13M
Total Assets
6.03M6.92M11.37M20.96M6.77M
Total Debt
12.52M12.21M8.98M8.44M4.15M
Net Debt
12.16M12.02M3.21M-3.43M20.80K
Total Liabilities
19.95M22.45M14.53M14.27M7.01M
Stockholders Equity
-13.91M-15.54M-3.16M6.69M-237.91K
Cash FlowFree Cash Flow
-3.00M-3.91M-5.84M-5.92M-1.99M
Operating Cash Flow
-3.00M-3.89M-5.72M-5.92M-1.99M
Investing Cash Flow
-40.18K-318.38K-928.58K-357.41K0.00
Financing Cash Flow
3.20M-1.39M-312.04K13.99M6.22M

Organto Foods Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.30
Price Trends
50DMA
0.26
Positive
100DMA
0.17
Positive
200DMA
0.11
Positive
Market Momentum
MACD
<0.01
Positive
RSI
48.59
Neutral
STOCH
6.35
Positive
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 below the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.26, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.59 is Neutral, neither overbought nor oversold. The STOCH value of 6.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:OGO.

Organto Foods Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$8.88B15.014.67%6.15%3.61%-2.60%
TSOGO
58
Neutral
C$32.47M7.5457.30%10.57%
TSZOG
30
Underperform
C$671.06K0.64-229.06%
$7.64M
C$5.98M
27
Underperform
C$4.24M
-97.30%39.70%
C$5.87M
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:OGO
Organto Foods
0.30
0.22
275.00%
TSE:ZOG
Zoglo's Incredible Food Corp.
0.04
-0.07
-63.64%
NPRFF
Nepra Foods
0.07
-0.07
-50.00%
TSE:VEJI.X
Vejii Holdings Ltd.
0.50
0.48
2400.00%
TSE:PNGA
Pangea Natural Food, Inc.
0.33
0.15
83.33%
TSE:PTFY
Plantify Foods Inc
0.52
-1.48
-74.00%

Organto Foods Corporate Events

Business Operations and StrategyFinancial Disclosures
Organto Foods Reports Record Q1 2025 Financial Results
Positive
May 28, 2025

Organto Foods Inc. announced record-breaking financial results for the first quarter of 2025, with sales reaching $13.6 million, a 193.5% increase from the previous year. The company achieved its first positive EBITDA quarter, attributed to strategic restructuring and cost reduction efforts. This performance highlights Organto’s momentum towards sustained growth and profitability, as well as its commitment to creating lasting value for stakeholders.

Private Placements and FinancingBusiness Operations and Strategy
Organto Foods Secures Debentureholder Approval for Debt Settlement
Positive
May 1, 2025

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.

Business Operations and StrategyFinancial Disclosures
Organto Foods Reports Strong Fiscal 2024 Results Amid Restructuring
Positive
Apr 28, 2025

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.

Business Operations and Strategy
Organto Foods Strengthens Investor Relations with New Agreements and Stock Options
Positive
Apr 17, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Organto Foods Completes Financing and Debt Restructuring
Positive
Apr 16, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Organto Foods Expands Private Placement Financing to $5.5 Million
Neutral
Apr 1, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Organto Foods Restructures Debt and Launches C$5M Private Placement
Neutral
Mar 20, 2025

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.

Delistings and Listing ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Organto Foods Restructures Operations and Focuses on Debt Reduction
Negative
Mar 14, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.