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Sow Good (SOWG)
NASDAQ:SOWG
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Sow Good
(NASDAQ:SOWG)
54Neutral
Sow Good (SOWG) vs. S&P 500 (SPY)
Market Cap
$28.89M
Dividend YieldN/A
Average Volume (3M)37.14K
Price to Earnings (P/E)11.0
Beta (1Y)1.91
Revenue Growth508.45%
EPS GrowthN/A
CountryUS
Employees225
SectorConsumer Defensive
Sector Strength71
IndustryConsumer Products - Foods
Share Statistics
EPS (TTM)0.26
Shares Outstanding10,245,388
10 Day Avg. Volume23,168
30 Day Avg. Volume37,143
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.73
Price to Cash Flow (P/CF)-1.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.00Price Target Upside43.88% Upside
Rating ConsensusHold
Number of Analyst Covering0
Sow Good Business Overview & Revenue Model
Company DescriptionBlack Ridge Oil & Gas, Inc. is an oil and natural gas exploration company. It engages in the acquisition and development of crude oil and natural gas properties, primarily in the Bakken and Three Forks trends in North Dakota and Montana. The company was founded on April 9, 2010 and is headquartered in Minneapolis, MN.
How the Company Makes MoneySow Good generates revenue primarily through the sale of its freeze-dried snacks and related health food products. The company leverages a direct-to-consumer sales model, online retail platforms, and partnerships with grocery retailers to reach a wide customer base. Revenue streams are bolstered by strategic collaborations with health-focused brands and distributors, enhancing market presence and accessibility. By capitalizing on trends towards healthier eating and sustainable food production, Sow Good aims to expand its market share and drive profitability.
Sow Good Financial Statement Overview
Summary
Sow Good exhibits strong revenue growth and improved profitability, with significant operational efficiency gains. However, the company faces cash flow challenges and moderate leverage, which could impact future stability.Income Statement
Sow Good has shown significant revenue growth from $160,709 in 2023 to $40,130,968 in 2024 TTM, indicating strong sales momentum. Gross profit margin has improved with a TTM rate of 43.93%, reflecting better cost management. However, net profit margin at only 4.47% reveals continued pressure on profitability, though a shift from previous losses. The EBIT and EBITDA margins of 10.90% and 14.82% respectively suggest improved operational efficiency, yet they are still moderate compared to industry leaders.65
Positive
Balance Sheet
The company's balance sheet shows a debt-to-equity ratio of 0.65, which is reasonable yet indicative of some leverage. Stockholders' equity has increased significantly, enhancing the equity ratio to 56.91%, which is a positive sign of financial stability. Return on equity stands at 5.46%, showing modest returns to shareholders. The company's increased asset base provides room for growth, but high total liabilities pose a potential risk if not managed carefully.60
Neutral
Cash Flow
Sow Good's cash flow statements reveal challenges, with negative operating cash flow of -$7,331,761 and a negative free cash flow of -$11,415,681 in the TTM period, highlighting liquidity issues. The operating cash flow to net income ratio is negative, indicating poor conversion of income to cash. Although financing activities have provided some cash influx, reliance on external funding could become unsustainable.45
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 40.13M | 16.07M | 428.13K | 88.44K | 0.00 | 466.60K | Gross Profit |
| 17.63M | 4.88M | 119.84K | 7.13K | -1.93M | 465.72K | EBIT |
| 4.38M | -1.22M | -5.69M | -5.58M | -3.01M | -1.20M | EBITDA |
| 5.95M | -761.34K | -10.30M | -6.82M | -3.00M | -21.65M | Net Income Common Stockholders |
| 1.79M | -3.06M | -17.29M | -6.88M | -5.71M | 29.55M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.50M | 2.41M | 276.46K | 3.35M | 2.19M | 108.76K | Total Assets |
| 142.87M | 21.49M | 8.90M | 14.10M | 12.34M | 7.15M | Total Debt |
| 0.00 | 11.84M | 5.25M | 2.93M | 1.70M | 0.00 | Net Debt |
| -1.50M | 9.43M | 4.97M | -420.27K | -210.07K | -108.76K | Total Liabilities |
| 659.35K | 14.21M | 6.09M | 3.28M | 2.29M | 1.45M | Stockholders Equity |
| 1.47M | 7.28M | 2.81M | 10.82M | 10.06M | 5.70M |
| Cash Flow | Free Cash Flow | ||||
| -11.42M | -7.11M | -7.83M | -6.62M | -2.80M | -9.72M | Operating Cash Flow |
| -7.33M | -4.85M | -5.15M | -5.55M | -1.74M | -9.71M | Investing Cash Flow |
| -5.41M | -2.27M | -2.62M | -653.05K | 3.28M | 6.88M | Financing Cash Flow |
| 17.90M | 9.25M | 4.70M | 7.64M | 262.93K | 1.43M |
Sow Good Technical Analysis
Neutral
2.78
Price Trends
2.69
Positive
3.95
Negative
9.97
Negative
Market Momentum
-0.02
Negative
57.15
Neutral
84.14
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOWG, the sentiment is Neutral. The current price of 2.78 is above the 20-day moving average (MA) of 2.49, above the 50-day MA of 2.69, and below the 200-day MA of 9.97, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 57.15 is Neutral, neither overbought nor oversold. The STOCH value of 84.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SOWG.
Sow Good Risk Analysis
Sow Good disclosed 43 risk factors in its most recent earnings report. Sow Good reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sow Good Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $348.91M | 38.16 | 13.64% | ― | 16.67% | -20.96% | |
72 Outperform | $13.59B | 37.50 | 30.81% | ― | 12.90% | 50.20% | |
62 Neutral | $20.57B | 13.88 | -9.95% | 7.35% | 1.49% | 7.33% | |
54 Neutral | $28.89M | 11.01 | 10.05% | ― | 508.45% | ― | |
39 Underperform | $51.26M | ― | 31.02% | ― | -11.65% | -174.54% | |
29 Underperform | $268.74M | ― | 44.21% | ― | -4.93% | 53.78% |
* Consumer Defensive Sector Average
Performance Comparison
SOWG
Sow Good
2.78
-4.72
-62.93%
LWAY
Lifeway Foods
22.61
9.03
66.49%
WW
WW International
0.58
-1.58
-73.15%
SFM
Sprouts Farmers
140.82
78.53
126.07%
BYND
Beyond Meat
3.49
-4.70
-57.39%
Sow Good Earnings Call Summary
Earnings Call Date: Nov 14, 2024 | % Change Since: -71.66% | Next Earnings Date: Mar 21, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with notable revenue growth year-over-year and a strong cash position, but significant short-term challenges such as revenue decline, operational losses, and the impact of melted products on sales. The company remains optimistic about long-term growth and strategic initiatives despite these setbacks.Highlights
Substantial Year-over-Year Revenue Growth
Achieved $30.6 million in revenue for the first nine months of 2024, a significant increase from $6.5 million in the same period last year, demonstrating strong growth and market acceptance of innovative products.
Expansion and Strategic Growth
Received the seventh freeze dryer and chew candy making machine at Rock Quarry, with additional equipment arriving soon to support increased production capacity and new product introductions.
Strong Cash Position
Ended Q3 2024 with $6.9 million in cash and equivalents, up from $2.4 million at the end of 2023, bolstered by a $12.8 million public offering.
Lowlights
Revenue and Gross Margin Decline
Q3 2024 revenue was $3.6 million, down from $5 million in the prior year period, with gross margin decreasing to 16% from 27%, primarily due to halted shipments and increased cost of goods sold.
Operational Challenges and Losses
Operating expenses increased to $3.8 million in Q3 2024 from $0.3 million in Q3 2023, leading to a net loss of $3.4 million compared to net income of $0.3 million in the prior year period.
Impact of Melted Products
The decision to pause shipments due to extreme heat resulted in melted products on shelves, affecting sales velocity and contributing to lower revenue with expected lingering effects for 1-2 months.
Increased Inventory Levels
Q3 2024 inventory levels rose to $19.4 million, a $9.1 million sequential increase, primarily due to halted shipments, with plans to reduce inventory over time.
Company Guidance
During Sow Good's Q3 2024 earnings call, the company reported a significant year-over-year revenue increase for the first nine months, reaching $30.6 million compared to $6.5 million in the previous year. However, the third quarter revenue declined to $3.6 million from $5 million in Q3 2023, primarily due to a strategic pause in shipments to maintain product quality during extreme heat. This decision impacted sales velocity as some melted products reached retail shelves. Gross profit for the quarter was $0.6 million with a gross margin of 16%, down from 27% the prior year. Operating expenses rose to $3.8 million, with a net loss of $3.4 million or $0.33 per diluted share, compared to a net income of $0.3 million or $0.04 per share in Q3 2023. Adjusted EBITDA stood at negative $1.9 million. The company ended the quarter with $6.9 million in cash and a $19.4 million inventory, a $9.1 million increase from the previous quarter, as they plan to leverage this inventory to support long-term strategic initiatives.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.