Stryve Foods (SNAX) AI Stock Analysis

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Stryve Foods

(OTC:SNAX)

30Underperform

Stryve Foods' overall stock score reflects significant financial challenges, including negative cash flows and high leverage, which weigh heavily on the company's stability and growth prospects. Despite improvements in operational efficiency and strategic partnerships, ongoing financial constraints and bearish technical indicators contribute to a low overall score. The company needs to address its financial health to improve investor confidence and capitalize on growth opportunities.

Stryve Foods (SNAX) vs. S&P 500 (SPY)

Market Cap

$1.87M

Dividend YieldN/A

Average Volume (3M)6.40K

Price to Earnings (P/E)―

Beta (1Y)1.49

Revenue Growth-4.29%

EPS Growth85.31%

CountryUS

Employees86

SectorConsumer Defensive

Sector Strength85

IndustryPackaged Foods

Share Statistics

EPS (TTM)N/A

Shares Outstanding4,046,802

10 Day Avg. Volume6,158

30 Day Avg. Volume6,400

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap17.48

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit13.45

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$4.00

Price Target Upside830.23% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Stryve Foods Business Overview & Revenue Model

Company DescriptionStryve Foods, Inc. (NASDAQ: SNAX) is a leading company in the healthy snack food industry, primarily focusing on producing and distributing air-dried meat snacks. The company's core products include a range of high-protein, low-sugar, and preservative-free snacks such as biltong and carne seca, which are marketed as healthier alternatives to traditional beef jerky. Stryve Foods aims to cater to health-conscious consumers seeking nutritious and convenient snack options.

How the Company Makes MoneyStryve Foods generates revenue through the sale of its packaged meat snacks across various distribution channels, including retail stores, e-commerce platforms, and direct-to-consumer sales via their own website. Key revenue streams include partnerships with major retailers and grocery chains where their products are stocked, as well as online sales through platforms like Amazon. The company's earnings are influenced by factors such as consumer demand for healthy snacks, brand recognition, and their ability to expand product offerings and distribution networks. Additionally, Stryve Foods may engage in strategic partnerships and marketing initiatives to boost sales and increase market reach.

Stryve Foods Financial Statement Overview

Summary

Stryve Foods faces significant financial challenges, with unprofitable operations, high leverage, and negative cash flows. The company's financial health is strained, reflecting potential risks in sustainability and growth. Urgent corrective actions are needed to stabilize the financial position and improve profitability.

Income Statement

Very Negative

The company shows a concerning trend in its income statement with consistently negative net income and declining gross profit margins. Revenue growth is inconsistent, with a recent decline in revenue compared to two years ago. The negative EBIT and EBITDA margins indicate ongoing operational challenges and unprofitability.

Balance Sheet

Very Negative

The balance sheet reveals a negative stockholders' equity, suggesting financial instability. The debt-to-equity ratio is not calculable due to negative equity, indicating high leverage and risk. The equity ratio is also negative, pointing to potential solvency issues.

Cash Flow

Negative

Cash flow analysis shows negative operating and free cash flows, reflecting ongoing cash burn. The free cash flow to net income ratio is negative, indicating inefficiency in cash management. There is no significant improvement in free cash flow growth.

Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
17.71M	29.95M	30.08M	17.00M	10.77M
	Gross Profit
2.43M	-711.00K	10.27M	5.90M	-2.54M
	EBIT
-15.42M	-32.17M	-31.28M	-14.26M	-386.68K
	EBITDA
-12.79M	-30.14M	-27.31M	-12.95M	2.85M
	Net Income Common Stockholders
-19.04M	-33.14M	-31.99M	-20.88M	-295.98K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
369.11K	623.00K	2.22M	591.63K	352.52K
	Total Assets
32.71M	39.56M	36.78M	26.24M	110.51M
	Total Debt
23.97M	18.27M	15.33M	30.02M	20.72M
	Net Debt
23.60M	17.65M	13.12M	29.43M	20.37M
	Total Liabilities
31.12M	23.12M	20.33M	35.57M	5.72K
	Stockholders Equity
1.59M	16.44M	16.44M	-9.34M	110.50M
Cash Flow		Free Cash Flow
-7.53M	-32.41M	-39.68M	-16.83M	-1.72M
	Operating Cash Flow
-7.43M	-28.65M	-38.24M	-15.79M	-399.10K
	Investing Cash Flow
-88.71K	-3.63M	-1.37M	-2.50M	-108.00M
	Financing Cash Flow
7.26M	30.69M	41.23M	18.82M	108.75M

Stryve Foods Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.43

Price Trends

50DMA

0.48

Negative

100DMA

0.58

Negative

200DMA

0.94

Negative

Market Momentum

MACD

-0.02

Negative

RSI

41.71

Neutral

STOCH

58.23

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNAX, the sentiment is Negative. The current price of 0.43 is below the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.48, and below the 200-day MA of 0.94, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 41.71 is Neutral, neither overbought nor oversold. The STOCH value of 58.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNAX.

Stryve Foods Risk Analysis

Stryve Foods disclosed 52 risk factors in its most recent earnings report. Stryve Foods 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

Stryve Foods Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LANC	72 Outperform	$4.45B	26.23	17.73%	2.29%	0.69%	27.48%
SENEA	71 Outperform	$618.22M	16.20	6.35%	―	4.01%	22.46%
JJSF	65 Neutral	$2.26B	33.87	8.20%	2.70%	0.49%	-12.32%
Sector *	64 Neutral	$8.85B	14.84	5.05%	174.27%	3.54%	3.75%
THS	57 Neutral	$1.11B	170.63	0.43%	―	-3.37%	-65.26%
SNAX	30 Underperform	$1.87M	―	0.24%	―	-4.29%	85.31%

* Consumer Defensive Sector Average

Performance Comparison

SNAX

Stryve Foods

0.43

-1.25

-74.40%

JJSF

J & J Snack Foods

115.74

-44.48

-27.76%

LANC

Lancaster Colony

165.41

-28.25

-14.59%

SENEA

Seneca Foods

88.92

29.09

48.62%

THS

TreeHouse Foods

21.99

-12.65

-36.52%

Stryve Foods Earnings Call Summary

Earnings Call Date:Apr 07, 2025

(Q3-2024)

% Change Since: 2.38%|

Next Earnings Date:May 20, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong revenue growth and operational improvements, including a significant increase in gross margin and reduced operating expenses. However, supply constraints due to working capital issues and the need for additional capital pose challenges. Overall, the company is making positive strides, but financial constraints need addressing to capitalize on growth opportunities.

Q3-2024 Updates

Positive Updates

Significant Revenue Growth

Net sales increased by 36.4% year-over-year to $5.7 million, driven by increased retail velocity and strategic pricing initiatives.

Improved Gross Margin

Gross margin improved from 13.3% to 21.7%, reflecting enhanced operational efficiencies and strategic management of pricing.

Operational Efficiency Gains

Operating expenses reduced by 15.9% compared to Q3 2023, demonstrating improved cost management and operational efficiencies.

Partnership with Dot Foods

New partnership with Dot Foods will leverage their distribution network to streamline supply chain and improve service levels.

Strong Consumer Demand

Significant increase in sell-through velocity at retail, indicating strong consumer engagement and brand loyalty.

Strategic Capital Raise

$2.9 million equity raise closed, providing necessary funds to build inventory and support current demand.

Negative Updates

Supply Constraints

Demand for products outpaced supply due to working capital constraints, indicating potential missed sales opportunities.

Need for Additional Capital

Company will require additional capital to support growth and new retail placements expected in Q1 2025.

Adjusted EBITDA Loss

Adjusted EBITDA loss of $1.7 million, although improved from the previous year, still indicates ongoing financial challenges.

Company Guidance

During the third quarter of 2024, Stryve Foods reported a substantial 36.4% year-over-year increase in net sales, reaching $5.7 million, primarily driven by increased sell-through velocity at retail. Despite this growth, the company faced challenges in meeting demand due to working capital constraints, not capacity issues, which they are addressing with a recent $2.9 million equity raise. Gross margin improved significantly from 13.3% to 21.7% year-over-year, reflecting enhanced product mix, operational efficiencies, and strategic pricing. Operating expenses decreased by 15.9% compared to the previous year, contributing to a 31.5% improvement in adjusted EBITDA loss, which stood at $1.7 million for the quarter. The company remains focused on expanding retail distribution, optimizing operational efficiencies, and managing costs to drive long-term profitability. Although no specific guidance was provided for the remainder of the year, the strategic distribution wins anticipated for early 2025 are expected to support continued growth.

Stryve Foods Corporate Events

Business Operations and Strategy

Stryve Foods Expands Distribution with Dot Foods Partnership

Positive

Oct 28, 2024

Stryve Foods has announced a strategic partnership with Dot Foods to enhance its distribution network, aiming for increased operational efficiency and broader market reach. This collaboration is expected to boost Stryve’s presence in the U.S., aligning with a new nationwide distribution deal with a leading retailer. Both moves are set to expand the availability of Stryve’s healthy, high-protein snacks across thousands of locations, catering to the rising consumer demand for convenient, low-sugar options.

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.