Kaival Brands Innovations Group (KAVL) AI Stock Analysis

• Market Cap: $324.62K
• Dividend Yield: N/A
• Average Volume (3M): 94.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -88.85%
• EPS Growth: 68.28%
• Country: US
• Employees: 3
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): -0.43
• Shares Outstanding: 11,593,402
• 10 Day Avg. Volume: 70,735
• 30 Day Avg. Volume: 94,972
• PEG Ratio: <0.01
• Price to Book (P/B): 0.10
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -2.14
• Enterprise Value/Market Cap: 15.63
• Enterprise Value/Revenue: 4.68
• Enterprise Value/Gross Profit: 5.45
• Enterprise Value/Ebitda: -0.69
• 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: 31 Underperform
• Price Target: ―

Kaival Brands Innovations Group has a low overall score of 31 due to significant financial and operational challenges. The company is grappling with declining revenues, persistent losses, and liquidity issues, as indicated by the income statement and cash flow scores. Technical analysis further supports a negative outlook, with the stock trading below key moving averages and showing oversold conditions. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield, reflecting the underlying struggles in generating positive earnings. These factors collectively suggest a cautious stance for potential investors.

Positive Factors

Strong Equity Ratio

A strong equity ratio indicates that the company is well-capitalized, providing a solid foundation for potential future growth and stability.

Strategic Partnerships

Strategic partnerships enhance market reach and competitive edge, potentially leading to increased revenue opportunities and market share.

Innovative Product Focus

By focusing on innovation, KAVL positions itself to capture consumer interest and adapt to regulatory changes, supporting long-term growth.

Negative Factors

Declining Revenue

Declining revenue suggests challenges in market demand or competitive positioning, which could impact long-term profitability and growth.

Negative Cash Flow

Negative cash flow highlights liquidity issues, which can strain operations and limit the company's ability to invest in growth opportunities.

Persistent Losses

Persistent losses indicate operational inefficiencies and financial strain, challenging the company's ability to achieve profitability and sustain operations.

Kaival Brands Innovations Group Business Overview & Revenue Model

Company Description

Kaival Brands Innovations Group, Inc. distributes electronic nicotine delivery systems (ENDS Products) and related components in the Unites States. The company offers Bidi Stick, a disposable and tamper-resistant ENDS Product in various flavor options; and Bidi Pouch, a tobacco-free nicotine formulation, which contains natural fibers and a chew-base filler in different flavors. It sells its products to non-retail customers through website bidivapor.com. The company was formerly known as Quick Start Holdings, Inc. and changed its name to Kaival Brands Innovations Group, Inc. in July 2019. The company is based in Grant-Valkaria, Florida. Kaival Brands Innovations Group, Inc. is a subsidiary of Kaival Holdings, LLC.

How the Company Makes Money

Kaival Brands Innovations Group generates revenue through the sale and distribution of its flagship product lines, particularly focusing on nicotine delivery systems. The company's primary revenue streams include wholesale distribution agreements with large retail chains and specialty stores, providing its products to a broad consumer base. Additionally, KAVL benefits from strategic partnerships and exclusive distribution rights with product manufacturers, enhancing its market reach and competitive edge. Licensing agreements and potential royalties from product innovations may also contribute to its income, although the company's core earnings are predominantly from the direct sales of its marketed products.

Kaival Brands Innovations Group Financial Statement Overview

Summary

Kaival Brands Innovations Group faces significant financial challenges across all verticals. The company is struggling with declining revenues and persistent losses, which are reflected in weak income statement metrics. While the balance sheet shows strong equity, the lack of leverage and diminishing asset base raise concerns about future growth potential. The company's cash flow situation is precarious, relying heavily on external financing to support operations, highlighting the urgent need for improved cash generation and operational efficiency.

Income Statement

Kaival Brands Innovations Group's income statement reflects significant challenges, with a consistent decline in revenue and profitability. The TTM data shows a sharp drop in total revenue to $3.7 million from $5.9 million in the previous year, indicating a negative revenue growth trend. The company also reports negative EBIT, EBITDA, and net profit margins, reflecting ongoing operational losses and financial strain.

Balance Sheet

The balance sheet reveals a mixed financial position. The company's equity ratio is strong at approximately 89.8%, demonstrating good asset backing by equity. However, the debt-to-equity ratio is low at roughly 0.065, indicating limited leverage, which could restrict growth opportunities. Despite a healthy stockholders' equity, the overall financial stability is compromised by declining total assets and cash reserves.

Cash Flow

The cash flow statement highlights critical issues, with negative free cash flow and operating cash flow indicating liquidity problems. The TTM free cash flow is negative at $-1.8 million, a deterioration from the previous period. The company has been relying on financing activities to support operations, which is unsustainable in the long term without improved cash generation from core activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.08M	6.89M	13.09M	12.76M	58.78M	64.31M
Gross Profit	930.96K	2.60M	2.58M	1.24M	11.93M	10.06M
EBITDA	-7.30M	-5.16M	-10.34M	-14.26M	0.00	5.36M
Net Income	-8.11M	-6.70M	-11.13M	-14.37M	-9.03M	3.85M
Balance Sheet
Total Assets	11.50M	16.00M	19.39M	12.44M	30.19M	8.92M
Cash, Cash Equivalents and Short-Term Investments	1.27M	3.90M	533.66K	3.69M	7.76M	7.42M
Total Debt	767.45K	1.07M	1.85M	1.22M	59.20K	70.91K
Total Liabilities	1.42M	2.19M	5.83M	2.64M	13.87M	4.50M
Stockholders Equity	10.09M	13.82M	13.56M	9.80M	16.32M	4.42M
Cash Flow
Free Cash Flow	-2.81M	-672.63K	-2.98M	-5.71M	-9.31M	7.60M
Operating Cash Flow	-2.81M	-672.63K	-2.97M	-5.71M	-9.31M	7.60M
Investing Cash Flow	0.00	0.00	-315.77K	0.00	0.00	0.00
Financing Cash Flow	-441.85K	4.04M	136.79K	1.57M	9.72M	-179.92K

Kaival Brands Innovations Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KAVL, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.31, and below the 200-day MA of 0.52, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 18.71 is Positive, neither overbought nor oversold. The STOCH value of 33.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KAVL.

Kaival Brands Innovations Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UVV	70 Neutral	$1.35B	12.41	7.72%	6.15%	3.01%	-7.14%
TPB	69 Neutral	$2.10B	39.07	22.54%	0.28%	6.71%	8.16%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ISPR	46 Neutral	$144.37M	-4.28	-254.99%	―	-20.13%	-88.66%
XXII	43 Neutral	$6.07M	>-0.01	-133.50%	―	-34.81%	99.30%
GNLN	43 Neutral	$2.36M	―	-240.32%	―	-78.46%	83.71%
KAVL	31 Underperform	$324.62K	-0.03	-68.63%	―	-88.85%	68.28%

Kaival Brands Innovations Group Corporate Events

Kaival Brands Holds 2025 Annual Stockholders Meeting

On October 31, 2025, Kaival Brands Innovations Group, Inc. held its virtual 2025 Annual Stockholders Meeting where a quorum was present with 65.35% of voting shares represented. The meeting resulted in the election of five directors to the board and the ratification of MaloneBailey, LLP as the independent registered public accounting firm for the fiscal year ending October 31, 2025.