One-glance verdict
Within fair range
$2.15 our estimate vs market $2.52
17% above our estimate
Fundamentals snapshot
GURU Organic Energy Corp.
GUROF · PNK · Consumer Defensive · Beverages - Non-Alcoholic
Current price
$2.52
52-week range
$1.01 - $4.86
Market cap
$75.90M
Balance sheet
Healthy
-57.36x Concerning
Net cash $17.85M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 14.9% last year.
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -2.7% last year — the company lost money on shareholders' equity.
What this company does
GURU Organic Energy Corp.
GURU Organic Energy is a beverage company that creates and sells plant-based energy drinks in Canada and the United States. It makes money by selling its drinks through a wide variety of channels, including convenience stores, big grocery chains, pharmacies, and online stores. This matters because having a diverse supply chain (the entire network for making a product and getting it to the customer) helps GURU reach more health-conscious consumers and compete with larger, more established brands.
How the company got here
Founded in Montreal, Canada, in 1999, GURU was a pioneer in creating the world's first natural, plant-based energy drink. [4, 5, 7] The company focused on using organic ingredients from the very beginning, setting itself apart from traditional energy drink brands. [11] In 2020, it became a publicly traded company, allowing anyone to buy a small piece of the company, known as a stock. [2, 15] A key recent change was shifting its Canadian sales strategy to a direct distribution model (selling directly to stores rather than using a middleman), which has helped improve its gross margin (the profit made on each can before office and marketing costs). [2, 6, 12]
What it actually does
GURU makes and sells canned energy drinks that are certified organic and made from plant-based ingredients like green tea for a source of natural caffeine. [3, 11] A major selling point is that the drinks are free of artificial sweeteners like sucralose and aspartame, appealing to health-conscious consumers. [6, 14, 17] If you were in a store, you might see their products under names like GURU Original, GURU Lite, and newer, more fruit-forward lines like the Zero Sugar sorbet and punch flavors. [1, 16, 17]
Selling Organic Energy Drinks
The company operates as a single business focused on one main activity: generating revenue (the money earned from sales) by selling its organic energy drinks. [9] Its customers are typically people looking for a healthier alternative to conventional energy drinks. [3, 13] GURU sells its products through a wide distribution network (the system for getting products to customers), including convenience stores, gas stations, grocery chains, and wholesale clubs. [1, 4] It also sells directly to people through e-commerce (selling goods online) platforms like its own website and Amazon. [1, 6]
What management is betting on now
The company's main strategy is to win over health-focused consumers by launching innovative new flavors, especially within its Zero Sugar product line. [2, 13, 17] A major priority is expanding its presence in the United States, which is the largest energy drink market in the world and a key area for future growth. [6, 7] Management is also focused on increasing its points of sale (the number of stores and online locations where products are sold) across both Canada and the U.S. to make the drinks more widely available. [4, 8] The goal of this strategy is to build brand awareness and drive long-term, profitable growth. [7, 8]
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $2.15 vs current price $2.52
Our most-likely fair value is $2.15 a share — about 14.9% away from today's price of $2.52, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $17.9M - more cash than debt. Interest coverage -57.4x.
Net debt
$-17.85M
Interest coverage
-57.36x
GURU Organic Energy Corp.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
GUROF
BASELINE
GURU Organic Energy Corp.
Total debt $465.21K Interest coverage -57.36x This is the baseline the peer rows are being compared against.
Total debt $674.85M Interest coverage 9.57x This peer still has a real interest-payment cushion, while GUROF does not.
Total debt $58.77M Interest coverage 21.71x This peer still has a real interest-payment cushion, while GUROF does not.
What you should know
The case for and against GUROF
2 Rewards
1 Risk
Rewards
-
Revenue grew 14.9% last year.
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -2.7% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
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P/B
3.63x
P/S
1.95x
EV/EBITDA
-63.39x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
63.3%
Operating margin
3.4%
Net margin
-2.1%
ROE
-2.7%
ROA
-2.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
4.43x
Quick ratio
3.68x
Total debt
$465.21K
Total cash
$18.32M
Growth
How the business has been compounding
Revenue TTM
$27.89M
Revenue 5Y CAGR
6.1%
EPS TTM
-0.02
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$2.36M
Free CF TTM
$2.30M
FCF margin
8.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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