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Grounded People Apparel, Inc. (TSE:SHOE)
:SHOE
Canadian Market

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

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Grounded People Apparel, Inc.

(SHOE)

Rating:44Neutral
Price Target:
Grounded People Apparel, Inc. is currently facing several financial challenges, with strong revenue growth overshadowed by substantial operational losses and negative cash flows. The stock exhibits bearish technical indicators, suggesting ongoing downside risk. Valuation metrics further highlight its unattractiveness due to negative earnings and lack of dividends. The company's reliance on equity and lack of debt provide some financial cushion, but significant improvements are needed in liquidity and profitability to enhance its stock attractiveness.

Grounded People Apparel, Inc. (SHOE) vs. iShares MSCI Canada ETF (EWC)

Grounded People Apparel, Inc. Business Overview & Revenue Model

Company DescriptionGrounded 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 MoneyGrounded 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
Grounded People Apparel, Inc. faces significant financial hurdles. While revenue has grown substantially, extensive losses and negative cash flows present ongoing challenges. The balance sheet is leveraged solely through equity, which provides a cushion but requires careful management to address liquidity and profitability concerns.
Income Statement
35
Negative
The company exhibits weak profitability with negative net income and EBIT margins over the periods, indicating significant operational losses. Despite a dramatic revenue increase in the TTM period, growth is overshadowed by substantial losses, revealing challenges in achieving profitable scalability.
Balance Sheet
60
Neutral
The company maintains a strong equity position with no debt, reflected in a favorable debt-to-equity ratio. However, the declining equity base and shrinking total assets indicate potential financial strain. The equity ratio remains strong, yet capital efficiency needs improvement.
Cash Flow
45
Neutral
The cash flow statements show consistent negative free cash flow, highlighting challenges in generating cash from operations. A high reliance on financing activities to sustain operations is evident, posing long-term sustainability risks without improved cash flow generation.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue210.54K59.35K121.25K17.58K0.00
Gross Profit56.65K20.71K-356.20K12.24K0.00
EBITDA-4.06M-2.31M-2.10M-874.24K-60.19K
Net Income-4.05M-2.31M-2.10M-874.24K-60.19K
Balance Sheet
Total Assets814.74K665.83K2.15M276.13K199.19K
Cash, Cash Equivalents and Short-Term Investments506.20K222.97K1.15M21.42K192.77K
Total Debt0.000.000.000.000.00
Total Liabilities466.56K552.93K227.36K77.56K15.88K
Stockholders Equity348.19K112.91K1.92M198.57K183.31K
Cash Flow
Free Cash Flow-1.81M-1.43M-2.62M-681.85K-50.73K
Operating Cash Flow-1.81M-1.43M-2.62M-681.85K-50.73K
Investing Cash Flow0.000.000.000.000.00
Financing Cash Flow2.30M501.60K3.75M510.50K243.50K

Grounded People Apparel, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.11
Price Trends
50DMA
0.21
Negative
100DMA
0.29
Negative
200DMA
0.51
Negative
Market Momentum
MACD
-0.03
Positive
RSI
2.95
Positive
STOCH
<0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SHOE, the sentiment is Negative. The current price of 0.11 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.21, and below the 200-day MA of 0.51, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 2.95 is Positive, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SHOE.

Grounded People Apparel, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSATZ
83
Outperform
$6.60B37.6921.90%17.40%158.89%
67
Neutral
$1.52B15.9919.34%4.64%41.68%
61
Neutral
C$5.16B10.9218.94%4.26%5.08%6.52%
58
Neutral
C$21.89M-8.32%63.93%61.35%
TSDYA
48
Neutral
C$66.56M-1898.77%408.78%-20.74%
44
Neutral
-1531.66%-41.35%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SHOE
Grounded People Apparel, Inc.
0.11
-0.69
-86.25%
TSE:ATZ
Aritzia
70.55
32.62
86.00%
TSE:GOOS
Canada Goose Holdings
15.23
-2.29
-13.07%
TSE:DYA
dynaCERT
0.14
-0.09
-39.13%
TSE:NEXE
NEXE Innovations
0.22
-0.06
-22.81%

Grounded People Apparel, Inc. Corporate Events

Grounded People Apparel Unveils ‘Oyum Snap’ Customization System
Jan 6, 2025

Grounded People Apparel Inc. has announced the development of its ‘Oyum Snap’ system, a new technology that allows customers to customize their shoes with interchangeable elements. This innovation aims to reshape the shoe market by allowing users to snap on personalized designs, colors, and messages, enhancing the longevity and versatility of footwear. The company is seeking trademark registration and patent protection for this technology, underscoring its commitment to safeguarding its intellectual property and pushing the boundaries of modern footwear.

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.Date of analysis: Feb 11, 2025