Avant Brands (AVNT) AI Stock Analysis

• Market Cap: C$11.52M
• Dividend Yield: N/A
• Average Volume (3M): 12.51K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.34
• Revenue Growth: 26.36%
• EPS Growth: -8.21%
• Country: CA
• Employees: 180
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.17
• Shares Outstanding: 11,407,935
• 10 Day Avg. Volume: 12,972
• 30 Day Avg. Volume: 12,505
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 13.47
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: C$1.00 ▼(-0.99% Downside)

Avant Brands' stock score is primarily influenced by its financial performance challenges, including negative profitability and operational inefficiencies. While technical analysis shows positive momentum, valuation concerns due to negative earnings and lack of dividends weigh heavily on the overall score.

Positive Factors

Debt Repayment

The repayment of significant debt obligations strengthens Avant Brands' balance sheet, reducing financial risk and improving financial stability.

Cash Flow Improvement

Substantial improvement in free cash flow indicates effective cash management, enhancing the company's ability to fund operations and growth initiatives.

Revenue Growth

Consistent revenue growth, albeit modest, suggests a stable demand for Avant Brands' products, supporting long-term business sustainability.

Negative Factors

Profitability Challenges

Persistent negative profitability highlights operational inefficiencies, posing a risk to long-term financial health and shareholder returns.

Negative Return on Equity

A negative ROE indicates poor returns for shareholders, suggesting inefficiencies in utilizing equity capital to generate profits.

Operational Inefficiencies

Negative EBIT and EBITDA margins reflect operational inefficiencies, which can hinder the company's ability to achieve sustainable profitability.

Avant Brands Business Overview & Revenue Model

Company Description

Avant Brands Inc. is a Canadian cannabis company focused on premium cannabis products and brands. The company operates primarily in the cultivation, production, and sale of cannabis and cannabis-derived products, catering to both recreational and medical markets. Avant Brands emphasizes innovation and quality, positioning itself within the competitive landscape of the cannabis industry with a diverse range of offerings, including dried flower, pre-rolls, and infused products.

How the Company Makes Money

Avant Brands generates revenue through the sale of its cannabis products to both consumers and distributors. The company has established strategic partnerships with retailers and wholesalers in the cannabis sector, which allows for broader market access and increased sales volumes. Key revenue streams include direct-to-consumer sales through licensed dispensaries, e-commerce platforms, and wholesale transactions with other cannabis retailers. Additionally, Avant Brands may benefit from branding and product collaborations, which can enhance its market presence and drive revenue growth.

Avant Brands Financial Statement Overview

Summary

Avant Brands shows robust revenue growth but struggles with profitability and return on equity. The balance sheet is stable with manageable leverage, and cash flow metrics are improving, particularly in free cash flow.

Income Statement

Avant Brands shows a mixed performance in its income statement. The company has experienced significant revenue growth, with a 58.4% increase in the TTM period. However, profitability remains a challenge, as evidenced by negative net profit and EBIT margins. The gross profit margin is also low, indicating potential issues with cost management or pricing strategy.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio is reasonable at 0.56, suggesting manageable leverage. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio is not explicitly calculated but appears stable given the total assets and equity figures.

Cash Flow

Cash flow analysis shows improvement, with a notable 90.97% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is low, suggesting limited cash generation relative to net income. However, the free cash flow to net income ratio is strong, indicating efficient cash conversion despite profitability challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.49M	35.80M	26.34M	20.15M	9.50M	7.91M
Gross Profit	-1.79M	-1.68M	12.43M	3.91M	1.90M	6.15M
EBITDA	-15.68M	-19.45M	4.53M	-1.89M	-9.65M	-5.27M
Net Income	-20.02M	-22.55M	-5.07M	-7.54M	-11.23M	-10.17M
Balance Sheet
Total Assets	49.41M	59.47M	82.55M	67.03M	50.57M	40.80M
Cash, Cash Equivalents and Short-Term Investments	995.00K	1.74M	794.00K	6.78M	14.49M	625.00K
Total Debt	15.12M	17.01M	18.70M	3.01M	623.00K	7.50M
Total Liabilities	22.39M	26.62M	33.22M	18.79M	2.70M	12.38M
Stockholders Equity	27.02M	32.85M	49.33M	43.92M	47.87M	28.42M
Cash Flow
Free Cash Flow	2.34M	401.00K	1.85M	-4.90M	-6.22M	-1.12M
Operating Cash Flow	2.43M	507.00K	5.41M	-3.46M	-5.62M	-357.00K
Investing Cash Flow	156.00K	-78.00K	-7.03M	-3.10M	-1.65M	-1.38M
Financing Cash Flow	-4.74M	539.00K	-4.38M	-993.00K	20.96M	393.00K

Avant Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AVNT, the sentiment is Positive. The current price of 1.01 is above the 20-day moving average (MA) of 0.85, above the 50-day MA of 0.74, and above the 200-day MA of 0.83, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 67.13 is Neutral, neither overbought nor oversold. The STOCH value of 86.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AVNT.

Avant Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DHB	56 Neutral	C$6.88M	-9.11	-17.81%	―	13.01%	-2445.45%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AVNT	51 Neutral	C$11.52M	-0.51	-53.71%	―	26.36%	-8.21%
IMCC	45 Neutral	$9.23M	-1.93	-93.87%	―	-0.74%	81.49%
CLC	45 Neutral	C$9.92M	-5.26	-4.55%	―	16.22%	-285.37%
CDVA	41 Neutral	C$3.84M	-1.33	―	―	1.60%	-213.10%

Avant Brands Corporate Events

Avant Brands Achieves Eighth Consecutive Quarter of Positive EBITDA in Q3 2025

Avant Brands reported its financial results for Q3 2025, highlighting a continued positive trajectory with its eighth consecutive quarter of positive adjusted EBITDA. The company saw a 13% increase in gross revenue and an 11% rise in net revenue, driven by strong demand for premium cannabis both domestically and internationally. Despite a decline in export wholesale revenue due to a strategic shift by a major customer, domestic wholesale revenue surged by 307%. Avant’s strategic focus on high-margin SKUs and cost management has bolstered its financial performance, with net cash flows from operating activities increasing by 111% year-to-date.

Avant Brands Celebrated as One of Canada’s Top Growing Companies for Third Year

Avant Brands Inc. has been recognized as one of Canada’s Top Growing Companies by The Globe and Mail for the third consecutive year, ranking 138th with a three-year revenue growth of 263%. This achievement underscores the company’s strong brand presence and dedication to creating long-term value for customers and shareholders, as it aims to leverage this momentum to accelerate global expansion and solidify its position as a premium leader in key markets.