Grounded People Apparel, Inc. (SHOE.X) AI Stock Analysis

Grounded People Apparel, Inc.

(CNQX:SHOE.X)

Select Model

Rating:41Neutral

Price Target:CAD 0.12▼(-4.17% Downside)

Action:reiterated

Date:03/07/26

The score is driven primarily by very weak financial performance—minimal revenue, severe losses, persistent cash burn, and negative equity—indicating elevated funding and solvency risk. Technicals add a modestly negative tilt with bearish momentum and trading below major moving averages. Valuation provides little offset because the company is unprofitable (negative P/E) and offers no dividend yield.

Positive Factors

Low absolute debt burdenTotal debt is modest (~$120k in 2025), which limits interest expense and near-term creditor pressure relative to the company's size. Over the next 2–6 months this lowers immediate financing outflows and gives management more scope to restructure operations or seek equity without large debt maturities forcing urgent repayment.

Negative Factors

Sustained negative operating cash flowOperating cash flow around -$2.0M in 2025 shows persistent cash burn far exceeding revenue. This magnitude depletes liquidity quickly, forces repeated external financing, restricts reinvestment in operations and channels, and materially raises the probability of dilution or insolvency if cash generation isn't turned around within months.

Grounded People Apparel, Inc. (SHOE.X) vs. iShares MSCI Canada ETF (EWC)

Market Cap: CAD 3.30M
Dividend Yield: ―
Average Volume (3M): ―
Price to Earnings (P/E): -2.0
Beta (1Y): -34.39
Revenue Growth: -84.87%
EPS Growth: 67.19%
Country: Canada
Employees: 0
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Apparel - Footwear & Accessories

Grounded People Apparel, Inc. Business Overview & Revenue Model

Company Description

Grounded People Apparel Inc. designs, produces, and sells shoes in Canada. It offers high-top and low-cut canvas sneakers through stores and online. The company was formerly known as Grounded Clothing Inc. and changed its name to Grounded People Appa...

How the Company Makes Money

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Grounded People Apparel, Inc. Financial Statement Overview

Summary

Financials are extremely weak: revenue is very small and volatile, profitability is deeply negative with a sharp 2025 deterioration (including negative gross margin), cash flow remains meaningfully negative with ongoing cash burn, and the balance sheet has worsened to negative equity—raising solvency and dilution/financing risk despite modest absolute debt.

Income Statement

8Very Negative

Balance Sheet

18Very Negative

Cash Flow

6Very Negative

Grounded People Apparel, Inc. Technical Analysis

Technical Analysis SentimentPositive

Last Price0.12

Price Trends

50DMA0.12Positive

100DMA0.12Positive

200DMA0.12Positive

Market Momentum

MACD0.00Positive

RSI59.48Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SHOE.X, the sentiment is Positive. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.12, and above the 200-day MA of 0.12, indicating a neutral trend. The MACD of 0.00 indicates Positive momentum. The RSI at 59.48 is Neutral, neither overbought nor oversold. The STOCH value of is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SHOE.X.

Grounded People Apparel, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

TSE:SHOE.X against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:ATZ	76Outperform	CAD 17.61B	30.14	42.25%	―	40.28%	108.07%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TSE:GOOS	54Neutral	CAD 1.07B	18.98	10.37%	―	12.26%	20.96%
TSE:SHOE.X	41Neutral	CAD 3.30M	-2.01	1626.57%	―	-84.87%	67.19%

* Consumer Cyclical Sector Average

Performance Comparison

TSE:SHOE.X and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TSE:SHOE.X	Grounded People Apparel, Inc.	0.12	0.06	100.00%
TSE:GOOS	Canada Goose	11.20	-8.64	-43.55%
TSE:ATZ	Aritzia	155.50	55.19	55.02%
TSE:LULU	lululemon athletica inc. Shs Unsponsored Canadian Depoitary Receipt Hedged Reg S	4.61	-4.62	-50.05%
TSE:NKE	NIKE, Inc. Shs B -CAD hedged- Canadian Depositary Receipt Repr Shs B Reg S	6.89	-3.27	-32.17%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.

Date of analysis: Mar 07, 2026

Grounded People Apparel, Inc. AI Stock Analysis