Grounded People Apparel, Inc. (SHOE.X) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): 133.00
• Price to Earnings (P/E): ―
• Beta (1Y): -29.97
• Revenue Growth: -70.34%
• EPS Growth: 64.37%
• Country: CA
• Employees: N/A
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): >-0.01
• Shares Outstanding: 27,475,240
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 133
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 41 Neutral
• Price Target: C$0.10
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is driven primarily by very weak financial performance—minimal revenue, severe losses, persistent cash burn, and negative equity—indicating elevated funding and solvency risk. Technicals add a modestly negative tilt with bearish momentum and trading below major moving averages. Valuation provides little offset because the company is unprofitable (negative P/E) and offers no dividend yield.

Positive Factors

Low absolute debt burden

The company's nominal debt level (~$120k in 2025) keeps interest and scheduled debt service low, which is a durable structural advantage versus highly leveraged peers. Low absolute debt reduces immediate default risk and gives management more flexibility for restructuring or raising equity without heavy fixed financing costs.

Prior reduction in losses (2023–2024)

A historical trend of smaller losses across 2023–2024 versus 2022 implies management has previously executed cost reductions or operational adjustments. That track record of margin improvement, even if not yet sustained, is a durable indicator that the business can cut fixed costs and improve operating efficiency if given runway.

Reported cash-flow improvement rate in 2025

The statement of an improvement rate in 2025 suggests operating or working-capital dynamics moved in a better direction. While absolute cash flow remains negative, a demonstrable improvement trend is a lasting fundamental signal that, with disciplined execution, burn can be narrowed and liquidity pressure mitigated over several quarters.

Negative Factors

Negative equity / stockholders' deficit

Equity turning negative is a structural solvency flag that reduces financial flexibility: creditors, suppliers, and investors view the company as higher risk, access to traditional financing is constrained, and management may face dilution or emergency capital raises to restore solvency over the medium term.

Material and persistent operating cash burn

Sustained operating cash flow deficits (~-$2.0M in 2025) indicate the business cannot internally fund operations or growth. This persistent burn is a durable constraint: it forces reliance on external financing, limits reinvestment in product or marketing, and increases default or dilution risk if improvement stalls.

Tiny, volatile revenue and negative gross margins

Very small, inconsistent revenue and swings to negative gross margin point to weak pricing power, unstable demand, or elevated unit costs. Structurally, this prevents the firm from leveraging fixed costs, undermines margin sustainability, and makes any recovery highly dependent on gaining scale or materially improving cost structure.

Grounded People Apparel, Inc. Business Overview & Revenue Model

Company Description

Grounded People Apparel, Inc. (SHOE) is a company operating in the sustainable fashion industry, focusing on the design and manufacture of environmentally friendly and ethically produced footwear. The company is committed to creating high-quality products using sustainable materials and ethical production practices, aiming to reduce the environmental impact of fashion. Grounded People Apparel offers a range of shoes that cater to eco-conscious consumers seeking stylish and sustainable alternatives.

How the Company Makes Money

Grounded People Apparel, Inc. makes money primarily through the sale of its footwear products. The company generates revenue by selling its sustainable shoes directly to consumers through its e-commerce platform and through various retail partnerships. By leveraging a direct-to-consumer model, Grounded People Apparel can maintain competitive pricing while ensuring quality and sustainability. Additionally, the company's focus on sustainability and ethical production practices may attract partnerships with retailers and organizations that prioritize environmental responsibility, which can further enhance its revenue streams.

Grounded People Apparel, Inc. Financial Statement Overview

Summary

Financials are extremely weak: revenue is very small and volatile, profitability is deeply negative with a sharp 2025 deterioration (including negative gross margin), cash flow remains meaningfully negative with ongoing cash burn, and the balance sheet has worsened to negative equity—raising solvency and dilution/financing risk despite modest absolute debt.

Income Statement

Revenue remains very small and volatile (2025 annual revenue of ~196k after a modest decline vs. 2024), while profitability is deeply negative. Gross margin swung from positive (2024) to negative again (2025), suggesting weak pricing power and/or elevated product costs. Operating losses are severe relative to sales (2025 net margin roughly -2,156%), indicating the cost base is far too high for the current scale; while losses were smaller in 2023–2024 than 2022, 2025 shows a sharp deterioration in operating and net results.

Balance Sheet

Leverage is still modest in absolute dollars (2025 total debt ~120k), but the capital structure has weakened materially as equity turned negative in 2025 (stockholders’ deficit), limiting financial flexibility and increasing refinancing risk. Total assets also declined substantially from prior years, pointing to a shrinking balance sheet and reduced cushion to absorb ongoing losses. While debt levels are not high, negative equity is a major red flag for solvency and raises the risk of dilution or the need for external funding.

Cash Flow

Cash generation is consistently negative, with operating cash flow and free cash flow both meaningfully below zero each year (2025 operating cash flow about -2.0M, worse than 2024). Free cash flow trends are not reliable despite a reported improvement rate in 2025, because the business continues to burn cash at a level far exceeding revenue. Overall, ongoing cash burn implies continued dependence on financing to sustain operations.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Grounded People Apparel, Inc. Technical Analysis

• Last Price: ―

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SHOE.X, the sentiment is undefined. The current price of undefined is equal to the 20-day moving average (MA) of ―, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a undefined sentiment for TSE:SHOE.X.

Grounded People Apparel, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATZ	71 Outperform	C$13.48B	23.21	29.12%	―	26.51%	172.52%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GOOS	57 Neutral	C$1.44B	3.20	4.23%	―	3.78%	-54.87%
ROOT	54 Neutral	C$134.50M	14.11	-19.60%	―	4.87%	-1195.39%
SHOE.X	41 Neutral	―	-12.49	―	―	-70.34%	64.37%

Grounded People Apparel, Inc. Corporate Events

Grounded People Apparel Launches $1 Million Private Placement Amid Strategic Review

Grounded People Apparel Inc. plans to raise up to $1 million through a non-brokered private placement of up to 10 million units priced at $0.10 each, with each unit comprising one common share and half a warrant exercisable at $0.12 over 36 months. The proceeds are earmarked for general working capital and to support an ongoing strategic review that includes assessing potential moves into the mining and exploration sectors and related emerging technologies, as the company seeks to reposition its business and pursue opportunities that could improve long-term prospects, subject to regulatory approvals and without any definitive transactions yet in place.

The most recent analyst rating on ($TSE:SHOE.X) stock is a Hold with a C$0.10 price target. To see the full list of analyst forecasts on Grounded People Apparel, Inc. stock, see the TSE:SHOE.X Stock Forecast page.