Target Group (CBDY) AI Stock Analysis

• Market Cap: $859.52K
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: -24.89%
• EPS Growth: -150.00%
• Country: US
• Employees: 41
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.00
• Shares Outstanding: 617,026,000
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: -0.03
• Price to Book (P/B): -0.13
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 0.41
• Enterprise Value/Market Cap: 1.84
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 0.55
• Enterprise Value/Ebitda: 1.12
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: ―
• Action: N/A Date: 03/29/25
• Date: Action: N/A 03/29/25

CBDY's overall score reflects a company in recovery mode with strong revenue growth and improved cash flow in 2024. However, the modest net profit margin and historical financial instability weigh on its financial performance score. Furthermore, the relatively high P/E ratio points to potential overvaluation, impacting the overall valuation score. With no technical analysis data available, the overall assessment heavily relies on financial performance and valuation.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business prospects.

Cash Flow Improvement

Improved cash flow enhances liquidity and operational efficiency, providing a solid foundation for future investments and stability.

Gross Profit Margin

A strong gross profit margin reflects effective cost management, supporting sustainable profitability and competitive advantage.

Negative Factors

Net Profit Margin

A modest net profit margin indicates challenges in translating revenue growth into substantial profits, impacting long-term financial health.

Historical Financial Instability

Past financial instability may pose risks to sustained performance, requiring careful management to ensure long-term stability.

Revenue Decline

A significant revenue decline suggests challenges in maintaining growth momentum, potentially affecting future market position and profitability.

Target Group Business Overview & Revenue Model

Company Description

Target Group Inc. cultivates, processes, and distributes curated cannabis products for the adult-use medical and recreational cannabis market in Canada. Its products include cannabis flower and extract pods for vaporizer use, cannabis pre-rolls, k-cup infused coffee and tea pods, infused cannabis beverages and edibles, infused topical products, and CBD wellness products. The company also offers Wisp, a single-use pre-measured pod and vaporizer system for consumers involved in vaporizing natural herbs, including cannabis. It has a collaboration agreement with cGreen, Inc for manufacturing and distributing the patent-pending THC antidote True Focus in the United States, Europe, and the Caribbean; and distribution, collaboration, and licensing agreement with Serious Seeds B.V. The company was formerly known as Chess Supersite Corporation and changed its name to Target Group Inc. in July 2018. The company was incorporated in 2013 and is based in Hamilton, Canada.

How the Company Makes Money

Target Group (CBDY) generates revenue through the sale of its CBD-based products across various distribution channels, including online platforms, retail partnerships, and direct-to-consumer sales. The company capitalizes on the growing demand for natural health and wellness solutions by offering a diverse product lineup that caters to different consumer preferences. Strategic partnerships with retailers and distributors play a crucial role in expanding its market reach and driving sales. Additionally, the company may engage in licensing agreements or product collaborations to enhance its product offerings and brand visibility, thereby contributing to its revenue streams.

Target Group Financial Statement Overview

Summary

CBDY has shown a significant improvement in its financial position in 2024 with revenue growth and positive cash flow, indicating effective turnaround strategies. However, the modest net profit margin and historical financial instability, particularly in equity, suggest a need for sustained performance to ensure long-term stability.

Income Statement

The company has shown remarkable improvement in revenue from 2023 to 2024, growing significantly which is a positive sign. Gross profit margin is strong at around 56.5% for 2024, indicating efficient control over production costs. However, net profit margin remains modest at approximately 2.4%, showing limited bottom-line profitability improvement. EBIT and EBITDA margins are robust, pointing to effective operational management despite previous years of losses.

Balance Sheet

The balance sheet shows improvement with a positive stockholders' equity in 2024, recovering from negative equity in previous years. The debt-to-equity ratio appears favorable due to the regained equity position, but historical data shows high volatility. Equity ratio is strong at 78%, suggesting low leverage which is positive but indicates past financial instability.

Cash Flow

Cash flow analysis reveals a significant turnaround with positive operating cash flow and free cash flow in 2024, indicating improved liquidity and operational efficiency. The free cash flow to net income ratio is high, showcasing strong cash generation relative to earnings. Historical trends of negative cash flows pose caution for future stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.00M	6.59M	3.72M	0.00	0.00	30.00K
Gross Profit	2.86M	3.73M	1.66M	-885.00K	-972.00K	5.00K
EBITDA	1.41M	2.23M	1.95M	-453.00K	-359.00K	-6.24M
Net Income	-591.20K	160.50K	-324.00K	-4.52M	-471.00K	-7.07M
Balance Sheet
Total Assets	6.20M	7.57M	8.84M	7.57M	13.06M	13.04M
Cash, Cash Equivalents and Short-Term Investments	337.49K	1.87M	736.32K	223.84K	113.08K	172.60K
Total Debt	1.06M	10.98M	1.35M	1.43M	1.63M	1.71M
Total Liabilities	13.63M	14.08M	15.81M	14.13M	15.22M	16.56M
Stockholders Equity	-7.43M	-6.51M	-6.97M	-6.56M	-2.15M	-3.52M
Cash Flow
Free Cash Flow	138.07K	2.09M	-611.70K	-1.02M	100.12K	-1.48M
Operating Cash Flow	144.80K	2.16M	-589.61K	-1.01M	100.12K	-1.43M
Investing Cash Flow	18.26K	-178.98K	416.93K	1.02M	-1.41M	-976.36K
Financing Cash Flow	-1.06M	-730.23K	666.90K	122.67K	1.25M	2.57M

Target Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CBDY	51 Neutral	$859.52K	―	2.51%	―	-24.89%	-150.00%
DRMA	47 Neutral	$4.29M	-0.06	-203.36%	―	―	90.53%
PRFX	44 Neutral	$2.26M	―	―	―	―	―