Company Overview
Borealis Foods Inc. operates as a food technology company dedicated to the production and provision of nutritious food products for consumers. The company specializes in the manufacturing of ramen noodles, offering its products under specific brand names including Chef Woo, Chef Ramsay, Ramen Express, and Woodles. This enterprise is headquartered in Oakville, Canada, and employs a workforce of 147 individuals to support its operational activities. The company reports a trailing twelve-month revenue of $27.90M, which, when combined with its market cap data, indicates a specific valuation scale relative to its peer group in the Canadian market.
Financial Health
Borealis Foods Inc. reported a trailing twelve-month revenue of $27.90M, yet it simultaneously recorded a net income of $-18,334,202, creating a significant gap that reveals a highly leveraged cost structure where expenses substantially outweigh total sales. The company's EBITDA stands at $-10,949,636, further highlighting the operational pressures facing the business in its current fiscal period. Free cash flow for the trailing twelve months was $-503,419, indicating that the company is currently burning cash rather than generating liquidity from its operations. This negative cash flow suggests limited financial flexibility and a reliance on external capital sources or cash reserves to fund day-to-day operations. The gross margin is 16.4%, which indicates a moderate ability to cover the direct costs of producing its food products, but the operating margin of -27.1% and profit margin of -65.7% demonstrate that overhead costs and other expenses are consuming the majority of the revenue generated. On the balance sheet, the company holds $128,869 in cash against total debt of $53.76M, resulting in a debt-to-equity ratio that cannot be calculated due to negative equity, though the sheer volume of debt relative to cash reserves points to a highly leveraged position. The current ratio is 0.15, which signifies that the company possesses only 15 cents in current assets for every dollar of current liabilities, indicating a severe lack of short-term liquidity and potential solvency risks. Furthermore, the return on assets is -13.6% and the return on equity is N/A, metrics that reveal management is currently destroying shareholder value rather than generating returns on the capital deployed.
Valuation Assessment
The trailing P/E ratio is N/A and the forward P/E is N/A, implying that earnings per share are currently negative and do not provide a traditional multiple basis for valuation. The price-to-book ratio is -0.11, which indicates that the market is valuing the company at a fraction of its book value, a scenario often associated with distressed assets or companies with significant liabilities exceeding their equity. The price-to-sales ratio is N/A and the EV/EBITDA is N/A, suggesting that standard multiple-based valuation methods are not applicable given the company's loss-making status. The 52-week high is $0.07 and the 52-week low is $0.07, meaning the current trading price sits exactly at both the high and low of the range, indicating a lack of price movement or volatility over the past year. The beta is 0.18, which suggests that the stock price exhibits significantly lower volatility relative to the broader market, moving much less in response to general market fluctuations.
Growth & Income
Revenue growth year-over-year is -7.6%, while earnings growth year-over-year is N/A, indicating that the company is shrinking in terms of top-line revenue without any positive earnings trajectory to offset the decline. Since the company does not pay a dividend, with a dividend yield of N/A and a payout ratio of N/A, it reinvests its earnings—or lack thereof—into operations rather than distributing cash to shareholders. The overall growth and income profile is characterized by negative revenue momentum, negative earnings, and an absence of dividend income, presenting a challenging outlook for capital appreciation.