Freshlocal Solutions (TSX:LOCL) - Share price, News & Analysis

LOCL fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	3/6
Past Performance	0/6
Financial Health	0/6
Dividends	0/6

LOCL Stock Overview

Freshlocal Solutions Inc. provides end-to-end grocery e-commerce solutions.

Rewards

Earnings are forecast to grow 81.95% per year

Risk Analysis

Has less than 1 year of cash runway

Highly volatile share price over the past 3 months

Does not have a meaningful market cap (CA$7M)

Negative shareholders equity

Freshlocal Solutions Competitors

Metro

TSX:MRU

CA$16.1b

Ocado Group

LSE:OCDO

UK£5.6b

Vegano Foods

CNSX:VAGN

CA$4.8m

Vejii Holdings

CNSX:VEJI

CA$2.0m

Price History & Performance

Summary of all time highs, changes and price drops for Freshlocal Solutions
Historical stock prices
Current Share Price	CA$0.17
52 Week High	CA$4.19
52 Week Low	CA$0.17
Beta	0
1 Month Change	-53.52%
3 Month Change	-71.55%
1 Year Change	-95.97%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-97.30%

Shareholder Returns

	LOCL	CA Consumer Retailing	CA Market
7D	-45.9%	-3.6%	0.8%
1Y	-96.0%	27.1%	4.9%

Return vs Industry: LOCL underperformed the Canadian Consumer Retailing industry which returned 27.1% over the past year.

Return vs Market: LOCL underperformed the Canadian Market which returned 4.8% over the past year.

Price Volatility

Is LOCL's price volatile compared to industry and market?
LOCL volatility
LOCL Average Weekly Movement	23.3%
Consumer Retailing Industry Average Movement	4.7%
Market Average Movement	9.9%
10% most volatile stocks in CA Market	16.9%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: LOCL is more volatile than 90% of Canadian stocks over the past 3 months, typically moving +/- 23% a week.

Volatility Over Time: LOCL's weekly volatility has increased from 16% to 23% over the past year.

About the Company

Founded	Employees	CEO	Website
1997	950	Simon Cairns	https://ir.freshlocalsolutions.com

Freshlocal Solutions Inc. provides end-to-end grocery e-commerce solutions. The company operates Food-X Technologies, an end-to-end SaaS-based eGrocery Management Solution, which is designed to meet the needs of large and small grocery retailers. It also engages in the eGrocery business that delivers fresh, local, and organic produce and groceries.

Freshlocal Solutions Fundamentals Summary

How do Freshlocal Solutions's earnings and revenue compare to its market cap?
LOCL fundamental statistics
Market Cap	CA$7.25m
Earnings (TTM)	-CA$31.46m
Revenue (TTM)	CA$129.87m

0.1x

P/S Ratio

-0.2x

P/E Ratio

Is LOCL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LOCL income statement (TTM)
Revenue	CA$129.87m
Cost of Revenue	CA$82.27m
Gross Profit	CA$47.60m
Other Expenses	CA$79.07m
Earnings	-CA$31.46m

Last Reported Earnings

Jan 01, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.72
Gross Margin	36.65%
Net Profit Margin	-24.23%
Debt/Equity Ratio	-346.7%

How did LOCL perform over the long term?

See historical performance and comparison

Valuation

Is Freshlocal Solutions undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

In this section, we usually try to help investors determine whether Freshlocal Solutions is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Freshlocal Solutions has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.

Future Growth

How is Freshlocal Solutions forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

81.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LOCL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: LOCL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LOCL's is expected to become profitable in the next 3 years.

Revenue vs Market: Insufficient data to determine if LOCL's revenue is forecast to grow faster than the Canadian market.

High Growth Revenue: Insufficient data to determine if LOCL's revenue is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if LOCL's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Freshlocal Solutions performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-30.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LOCL is currently unprofitable.

Growing Profit Margin: LOCL is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: LOCL is unprofitable, and losses have increased over the past 5 years at a rate of 30.1% per year.

Accelerating Growth: Unable to compare LOCL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LOCL is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (10.7%).

Return on Equity

High ROE: LOCL's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.

Financial Health

How is Freshlocal Solutions's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: LOCL has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: LOCL has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.

Debt to Equity History and Analysis

Debt Level: LOCL has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: LOCL's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: LOCL has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: LOCL has less than a year of cash runway if free cash flow continues to reduce at historical rates of 4.6% each year

Dividend

What is Freshlocal Solutions's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate LOCL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LOCL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LOCL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LOCL's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as LOCL has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.3yrs

Average management tenure

CEO

Simon Cairns (50 yo)

0.42

Tenure

CA$115,380

Compensation

Mr. Simon Cairns serves as Chief Executive Officer of Freshlocal Solutions Inc. since December 14, 2021 and its Director since March 30, 2022. He serves as President at Food-X Technologies Inc. since Sep...

CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD89.87K) is below average for companies of similar size in the Canadian market ($USD168.24K).

Compensation vs Earnings: Insufficient data to compare Simon's compensation with company performance.

Leadership Team

Experienced Management: LOCL's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: LOCL's board of directors are not considered experienced ( 0.4 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/01/01
Annual Earnings	2021/10/02