Organto Foods (OGO) AI Stock Analysis

• Market Cap: C$2.16M
• Dividend Yield: N/A
• Average Volume (3M): 18.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: -16.50%
• EPS Growth: 34.47%
• Country: CA
• Employees: 40
• Sector: Consumer Defensive
• Sector Strength: 79
• Industry: Retailers - Staples
• EPS (TTM): -0.22
• Shares Outstanding: 34,318,382
• 10 Day Avg. Volume: 55,820
• 30 Day Avg. Volume: 18,607
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): N/A
• 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 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.

Organto Foods Business Overview & Revenue Model

Company Description

Organto Foods Inc. (OGO) is a dynamic and innovative company operating in the health and wellness food sector. It specializes in the sourcing, processing, packaging, and distribution of organic and sustainably grown produce. The company is committed to providing fresh, high-quality fruits and vegetables to consumers across various markets, promoting healthy eating and sustainable agricultural practices.

How the Company Makes Money

Organto Foods generates revenue primarily through the sale of organic and fresh produce to retailers, wholesalers, and food service providers. The company sources its products from a network of global suppliers, ensuring a diverse and consistent supply of high-quality produce. Organto capitalizes on the growing demand for organic and sustainable food by offering a range of fruits and vegetables that meet stringent quality and certification standards. The company also benefits from strategic partnerships with distributors and retailers, which help to expand its market reach and enhance its brand presence. Additionally, Organto focuses on building efficient supply chain operations and leveraging technology to optimize its logistics and distribution processes, thereby reducing costs and improving margins.

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
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
22.49M	27.68M	22.12M	19.52M	11.45M	3.71M
	Gross Profit
511.72K	2.46M	1.26M	1.99M	1.07M	220.42K
	EBIT
-3.44M	-5.81M	-7.27M	-4.85M	-2.53M	-2.29M
	EBITDA
-3.59M	-9.19M	-9.25M	-5.32M	-6.55M	-2.36M
	Net Income Common Stockholders
-7.85M	-13.43M	-10.83M	-6.34M	-7.05M	10.41K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
189.02K	195.04K	5.86M	11.87M	4.13M	54.56K
	Total Assets
3.34M	6.92M	11.37M	20.96M	6.77M	2.73M
	Total Debt
1.20M	12.21M	8.98M	8.44M	4.15M	1.77M
	Net Debt
1.01M	12.02M	3.21M	-3.43M	20.80K	1.72M
	Total Liabilities
4.04M	22.45M	14.53M	14.27M	7.01M	4.54M
	Stockholders Equity
-698.83K	-15.54M	-3.16M	6.69M	-237.91K	-1.81M
Cash Flow		Free Cash Flow
-1.54M	-3.91M	-5.84M	-5.92M	-1.99M	-1.88M
	Operating Cash Flow
-1.54M	-3.89M	-5.72M	-5.92M	-1.99M	-1.88M
	Investing Cash Flow
-37.50K	-318.38K	-928.58K	-357.41K	0.00	319.56K
	Financing Cash Flow
2.08M	-1.39M	-312.04K	13.99M	6.22M	1.43M

Organto Foods Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 0.06 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 41.48 is Neutral, 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
NTR	70 Outperform	$36.10B	39.49	2.72%	4.25%	-13.24%	-65.53%
Sector *	63 Neutral	$20.77B	13.59	-10.67%	7.41%	1.48%	9.07%
OGI	47 Neutral	$179.23M	―	-18.27%	―	7.33%	84.41%
OGO	36 Underperform	C$2.16M	―	57.30%	―	-16.50%	34.47%
WEED	32 Underperform	$290.12M	―	-84.50%	―	-16.27%	76.17%

Organto Foods Corporate Events

Organto Foods Trading Order Revoked, Shares to Resume

Organto Foods Inc. has announced the revocation of a Cease Trade Order by the British Columbia Securities Commission, allowing the resumption of trading its securities in Canada. The order was initially issued due to the company’s failure to file necessary financial documents, which have since been submitted. Organto is now working to reinstate trading of its shares on the TSX Venture Exchange.

Organto Foods Announces Board Member Resignation

Organto Foods Inc. has announced the resignation of Jeremy Kendall from its Board of Directors, citing personal reasons. This change leaves the board with six members, maintaining a majority of independent directors. Organto continues to focus on providing organic and non-GMO fruits and vegetables globally, aligning with sustainable practices.

Organto Foods Reports Strong Growth in Q3 2024

Organto Foods has reported a successful third quarter for 2024, highlighting a 47% increase in sales and a 63% rise in gross profit compared to the previous year. The company attributes these positive results to operational restructuring efforts aimed at streamlining costs and improving marketing strategies. Organto remains focused on further growth and financial flexibility, anticipating continued improvements in future quarters.

Organto Foods Reports Improved Financial Results

Organto Foods Inc. has released its fiscal 2024 second-quarter financial results, showing significant improvements as the company restructures its operations and balance sheet for future growth. The firm is focusing on streamlining its product portfolio and reducing operating costs to achieve profitability and long-term stability. Organto is also taking steps to lift its current Cease Trade Order and aims to meet upcoming financial filing deadlines.