Sow Good Inc. (SOWG) AI Stock Analysis
SOWG AI stock analysis summary
AI ResearchSow Good Inc. is an Irving, Texas-based distributor of freeze-dried candy and snack products under the Sow Good brand name. Although annual revenue expanded from $313,316 in FY2020 to $32.0M in FY2024, recent quarterly revenue fell 88.1% year-over-year for the period ended June 30, 2026. The company faces tight balance sheet conditions, holding $8,492 in cash against $997,572 in total debt and negative equity of -$5.3M.
- Market cap
- $41.4M
- Revenue (TTM)
- -$1.9M
- P/E
- — fwd 9.0x
- 1Y return
- -80.7% S&P 500 16.8%
- Avg. target
- $8.00 288.3% vs last close
Bull case
- Between FY2020 and FY2024, revenue expanded from $313,316 to $32.0M, supported by a 5-year CAGR of 132.9%.
- Gross margin showed consistent annual improvement, rising from -1.2% in FY2020 to 40.6% in FY2024.
- Analysts maintain a mean price target of $8.00, indicating 288.3% upside compared to the last close of $2.06.
Bear case
- As of June 30, 2026, the company held only $8,492 in cash and short-term investments against $997,572 in total debt and negative equity of -$5.3M.
- The balance sheet is strained with a current ratio of 0.07, and free cash flow deteriorated to -$12.7M in FY2024.
- Over the past year, the stock fell 80.7% while the S&P 500 gained 16.8%, and quarterly revenue fell 88.1% year-over-year in the quarter ended June 30, 2026.
What Sow Good does
Sow Good Inc. operates as a distributor of freeze-dried candy and snack products. Based in Irving, Texas, the company markets its offerings through a distribution partner under the Sow Good brand name. Founded in 2010, the company was formerly known as Black Ridge Oil & Gas, Inc. before changing its name to Sow Good Inc. in January 2021. The enterprise operates with 8 employees in the confectioners industry within the consumer defensive sector.
Growth and profitability
Revenue grew significantly from $313,316 in FY2020 to $32.0M in FY2024, achieving a 5-year compound annual growth rate of 132.9% from FY2019 to FY2024. During this timeframe, gross margin expanded from -1.2% in FY2020 to 40.6% in FY2024. However, the company remained unprofitable, recording net income of -$3.7M and an operating margin of -4.9% in FY2024. For the latest trailing twelve months ended June 30, 2026, Sow Good reported revenue of -$1.9M and diluted EPS of -$0.10. In the latest quarter ended June 30, 2026, quarterly revenue fell 88.1% year-over-year, while the trailing twelve-month operating margin stood at 502.3%.
Balance sheet and cash flow
As of June 30, 2026, Sow Good held cash and short-term investments of $8,492 against total debt of $997,572, resulting in net debt of $989,080. Total assets stood at $420,767, alongside a current ratio of 0.07. The company operates with negative equity, showing shareholders' equity of -$5.3M. Free cash flow was negative in every reported fiscal year, including -$12.7M in FY2024 and -$7.1M in FY2023. In FY2025, capital expenditures totaled $3, while the share count increased by 6958.6% over five years.
Valuation and performance
Sow Good carries a market capitalization of $41.4M and an enterprise value of $50.9M. The stock trades at a forward P/E of 9.0x, below the median of 14.3x for its US-listed Consumer Defensive peers. Its price-to-sales multiple of 0.6x is comparable to the peer median of 0.7x, while its EV-to-EBITDA of 16.7x exceeds the peer median of 11.7x. Over the past year, SOWG shares fell 80.7%, underperforming the 16.8% return of the S&P 500 (SPY). Over five years, the stock dropped 96.1% compared to an 83.0% gain for the S&P 500.
What analysts expect
Wall Street analysts track Sow Good with a mean price target of $8.00, representing a potential increase of 288.3% above its last close of $2.06. Consensus projections for the next fiscal year forecast revenue of $0 and EPS of $0.00. Over the last four quarters, the company beat EPS estimates 1 time. The company's next earnings report is scheduled for November 13, 2026.
Key risks and what to watch
- Liquidity is severely constrained with cash and short-term investments of just $8,492 and total debt of $997,572 as of June 30, 2026.
- Dilution has been elevated, with the company's share count increasing by 6958.6% over a five-year period.
- Persistent annual net losses have created a deficit in balance sheet equity, which stood at -$5.3M on June 30, 2026.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SOWG AI stock analysis
This page is an AI-written research summary of Sow Good Inc. (SOWG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SOWG income statement, SOWG balance sheet, SOWG key metrics, SOWG analyst forecast, SOWG chart. See the SOWG stock overview for the latest quote and news.
SOWG AI stock analysis FAQ
What does Sow Good Inc. do?
Sow Good Inc. distributes freeze-dried candy and snack products under the Sow Good brand name, utilizing a distribution partner to market its products.
What is Sow Good's cash position and debt level?
As of June 30, 2026, Sow Good held $8,492 in cash and short-term investments alongside total debt of $997,572, resulting in net debt of $989,080.
Does Sow Good pay a dividend?
No, Sow Good does not currently pay a dividend.
What are Wall Street analysts forecasting for SOWG?
Analysts maintain a mean price target of $8.00 for SOWG, with next fiscal year consensus projections modeling $0 in revenue and $0.00 in EPS.
When is Sow Good's next earnings date?
Sow Good is scheduled to report its next financial results on November 13, 2026.