Avant Brands (AVNT) AI Stock Analysis

• Market Cap: C$7.49M
• Dividend Yield: N/A
• Average Volume (3M): 5.32K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.20
• Revenue Growth: 31.94%
• EPS Growth: -45.55%
• Country: CA
• Employees: 180
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.38
• Shares Outstanding: 11,174,602
• 10 Day Avg. Volume: 4,816
• 30 Day Avg. Volume: 5,316
• PEG Ratio: -0.04
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.85
• 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: C$1.00
• Price Target Upside: 42.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: C$0.50 ▼(-28.57%Downside)

Avant Brands' overall stock score reflects significant financial challenges, including negative profit margins and operational inefficiencies. However, recent corporate events, such as strategic international expansions and a focus on high-margin products, provide a positive outlook for future growth and market presence. Technical indicators suggest a bearish trend, while valuation remains concerning due to ongoing losses.

Avant Brands Business Overview & Revenue Model

Company Description

Avant Brands (AVNT) is a leading Canadian cannabis company that specializes in the cultivation, production, and distribution of premium cannabis products. The company operates in the legal cannabis sector, focusing on high-quality, hand-crafted cannabis strains and products. With a commitment to innovation and excellence, Avant Brands offers a diverse range of products, including dried flower, pre-rolls, and cannabis extracts, catering to both medical and recreational markets.

How the Company Makes Money

Avant Brands makes money through the cultivation and sale of premium cannabis products. The company's revenue model is centered around its vertically integrated operations, which allow it to control the production process from seed to sale. Key revenue streams include wholesale distribution to licensed cannabis retailers and direct-to-consumer sales through its own branded products. Avant Brands also leverages strategic partnerships and licensing agreements to expand its market reach and enhance its product offerings. The company's focus on high-quality, craft cannabis products allows it to command premium pricing, contributing to its earnings.

Avant Brands Financial Statement Overview

Summary

Despite revenue growth, Avant Brands struggles with negative profit margins and operational inefficiencies. The balance sheet shows stability with equity covering liabilities, but negative equity trends and cash flow inconsistencies are concerning.

Income Statement

Avant Brands has experienced revenue growth from 2020 to the TTM period, but the company struggles with negative profit margins. The gross profit margin is negative, reflecting cost challenges. Net profit margin is also significantly negative due to high operating expenses relative to revenue. The EBITDA and EBIT margins are deeply negative as well, indicating operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio over time, with equity covering liabilities, indicating some stability. However, the negative trajectory in stockholders' equity and total assets highlights potential financial strain. Return on equity is negative due to ongoing net losses, raising concerns about future profitability.

Cash Flow

Avant Brands shows a fluctuating cash flow situation. The operating cash flow to net income ratio is positive, suggesting some conversion efficiency, but free cash flow remains limited and inconsistent. Free cash flow growth has been erratic, highlighting challenges in generating consistent cash from operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.80M	26.34M	20.15M	9.50M	7.91M
Gross Profit	-1.68M	12.43M	3.91M	1.90M	6.15M
EBITDA	-19.45M	4.84M	-1.89M	-9.65M	-5.07M
Net Income	-22.55M	-5.07M	-7.54M	-11.23M	-10.17M
Balance Sheet
Total Assets	59.47M	82.55M	67.03M	50.57M	40.80M
Cash, Cash Equivalents and Short-Term Investments	1.74M	794.00K	6.78M	14.49M	625.00K
Total Debt	17.01M	18.70M	3.01M	623.00K	7.50M
Total Liabilities	26.62M	33.22M	18.79M	2.70M	12.38M
Stockholders Equity	32.85M	49.33M	43.92M	47.87M	28.42M
Cash Flow
Free Cash Flow	401.00K	1.85M	-4.90M	-6.22M	-1.12M
Operating Cash Flow	507.00K	5.41M	-3.46M	-5.62M	-357.00K
Investing Cash Flow	-78.00K	-7.03M	-3.10M	-1.65M	-1.38M
Financing Cash Flow	539.00K	-4.38M	-993.00K	20.96M	393.00K

Avant Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AVNT, the sentiment is Negative. The current price of 0.7 is below the 20-day moving average (MA) of 0.75, below the 50-day MA of 0.77, and below the 200-day MA of 0.88, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 37.35 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AVNT.

Avant Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMCC	57 Neutral	$8.64M	―	-63.75%	―	9.34%	69.69%
DHB	56 Neutral	C$6.88M	181.82	-3.45%	―	4.04%	80.24%
AVNT	50 Neutral	C$7.49M	―	-55.81%	―	31.94%	-45.55%
CLC	50 Neutral	$9.92M	6.82	-22.29%	―	28.30%	86.67%
Sector *	46 Neutral	C$205.70M	-3.34	-23.14%	2.45%	20.79%	-0.36%

Avant Brands Corporate Events

Avant Brands Reports Strong Q2 2025 Financial Results with Continued Growth in International Markets

Avant Brands Inc. reported its financial results for Q2 2025, highlighting a 3% increase in both gross and net revenue compared to Q2 2024. The company achieved its sixth consecutive quarter of positive Adjusted EBITDA, driven by a significant 11% rise in export wholesale revenue and a 31% increase in domestic wholesale revenue. Avant’s strategic focus on high-margin products has led to a decline in recreational revenue, but this realignment is expected to enhance long-term profitability. The company’s strong international presence and operational discipline continue to solidify its position as a leading Canadian cannabis exporter.

Avant Brands Expands Global Reach with New Supply Agreements and Product Launches

Avant Brands Inc. has announced strategic international supply agreements to export up to 2,000 kilograms per year of GACP-certified, non-irradiated dried flower to the European medical cannabis market, enhancing its global market presence. Additionally, Avant is expanding its product offerings in Canada with over 30 new SKU listings in Ontario and B.C., introducing innovative packaging and products, and relaunching its medical division to better serve Canadian patients and veterans, marking a pivotal moment in its growth trajectory.

Avant Brands Inc. Announces Key Outcomes from 2025 Annual General Meeting

Avant Brands Inc. held its 2025 Annual General Meeting, where 16.19% of its common shares were represented. Key outcomes included the election of six directors, re-appointment of Ernst & Young LLP as auditors, and approval of amendments to the company’s deferred share unit and long-term incentive plans. Additionally, the repricing of certain warrants and convertible debentures was approved, reflecting strategic adjustments to enhance shareholder value and operational flexibility.