Company Overview
Above Food Ingredients Inc. operates as a regenerative ingredient company that produces vertically integrated supply chain products across a global network including Canada, the United States, Mexico, China, France, Turkey, and international markets. The firm functions within the Consumer Defensive sector, specifically targeting the Packaged Foods industry, where it aims to provide essential components for food manufacturing while adhering to regenerative agricultural principles. The company's current market capitalization stands at $39.17M, supported by an annual revenue of $294.84M, while the specific employee count is not disclosed in available records. These valuation and revenue figures indicate that Above Food Ingredients Inc. represents a micro-cap entity with a significant revenue footprint relative to its small market valuation, suggesting a potential disconnect between its top-line operations and current investor pricing.
Financial Health
The company reported a revenue of $294.84M over the trailing twelve months, yet this revenue generated a net income of $-61,292,864, revealing a substantial cost structure where expenses significantly exceeded earnings before interest and taxes. The reported EBITDA for the period was $-40,343,004, further highlighting the operational pressures facing the business despite the high volume of sales. Free cash flow data is not available for this period, which limits the immediate assessment of the company's financial flexibility regarding capital expenditures and debt servicing capabilities. The gross margin stands at -2.8%, the operating margin is -23.3%, and the profit margin is -23.4%, indicating that the company is currently losing money on every dollar of sales and every dollar of operating activity. In terms of balance sheet leverage, the company holds $664,430 in cash against $133.84M in debt, resulting in a debt-to-equity ratio that is not explicitly calculated in the provided data. The current ratio is 0.23, which indicates that the company's current assets are significantly lower than its current liabilities, pointing to potential short-term liquidity challenges. Additionally, the return on equity and return on assets are not available, preventing a direct assessment of management's effectiveness in generating returns from shareholder capital or total assets.
Valuation Assessment
The trailing twelve-month P/E ratio and forward P/E ratio are both unavailable due to the lack of positive earnings, which means traditional earnings-based valuation multiples cannot be applied to the stock. The price-to-book ratio is -1.79, a metric that indicates the market is pricing the company at a discount to its book value, often seen in distressed or turnaround situations where book value may not reflect the true going concern value. Alternative valuation metrics such as the price-to-sales ratio of 0.13 and the EV/EBITDA of -3.84 suggest that the stock is priced at a very low multiple of its revenue, reflecting the market's skepticism regarding future profitability. The stock has a 52-week high of $6.56 and a 52-week low of $0.32, meaning the current price sits near the bottom of this established trading range and is trading significantly below the 52-week high. The beta is 0.01, which implies that the stock's price volatility is virtually uncorrelated with the broader market movements, presenting a unique risk profile distinct from standard equity instruments.
Growth & Income
The revenue growth year-over-year is -45.0%, while earnings growth year-over-year is not available due to the negative earnings position. The absence of positive earnings growth makes it impossible to determine if earnings are growing faster or slower than revenue, but the negative revenue trend indicates a contraction in the business's top line. The company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, which confirms that the firm reinvests its limited cash flow or retains earnings rather than distributing income to shareholders. This non-dividend profile, combined with negative revenue growth, suggests an overall growth and income profile characterized by a lack of current yield and a contraction in sales volume.