Avant Brands (AVNT) AI Stock Analysis

• Market Cap: $9.07M
• Dividend Yield: N/A
• Average Volume (3M): 12.84K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.22
• Revenue Growth: 31.94%
• EPS Growth: -45.55%
• Country: CA
• Employees: 180
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.38
• Shares Outstanding: 11,199,602
• 10 Day Avg. Volume: 5,188
• 30 Day Avg. Volume: 12,839
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.63
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 36.70
• Enterprise Value/Ebitda: -1.30
• 1Y Price Target: $1.00
• Price Target Upside: 23.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: C$1.00 ▲(23.46% Upside)

Avant Brands' overall stock score is primarily influenced by its financial performance and technical analysis. The company shows strong revenue growth but faces significant profitability challenges. Technical indicators provide a slightly positive outlook, but the negative P/E ratio and lack of dividend yield weigh heavily on the valuation.

Avant Brands Business Overview & Revenue Model

Company Description

Avant Brands Inc. cultivates, produces, and markets premium cannabis products in Canada. The company offers medical and recreational cannabis products under the BLK MKT, Tenzo, GreenTec, cognoscente, Treehugger, and Pristine brands. It distributes cannabis through medical and recreational sales channels, as well as an e-commerce website. The company was formerly known as GTEC Holdings Ltd. and changed its name to Avant Brands Inc. in July 2021. Avant Brands Inc. was incorporated in 2017 and is headquartered in Kelowna, Canada.

How the Company Makes Money

Avant Brands generates revenue through multiple streams, primarily from the sale of cannabis products to both wholesale and retail markets. The company operates licensed cultivation facilities that produce a variety of cannabis products, which are then distributed to provincial retailers and dispensaries across Canada. In addition to direct sales, Avant Brands may also engage in strategic partnerships with other cannabis companies for co-branding initiatives or distribution agreements, further expanding its market reach. The company focuses on premium product offerings that command higher price points, thereby enhancing its profit margins. Additionally, Avant Brands may benefit from ancillary revenue sources such as branded merchandise or collaborations with other brands, which can contribute to overall earnings.

Avant Brands Financial Statement Overview

Summary

Avant Brands shows strong revenue growth but struggles with profitability, as indicated by negative net profit and EBIT margins. 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	36.54M	35.80M	26.34M	20.15M	9.50M	7.91M
Gross Profit	650.00K	-1.68M	12.43M	3.91M	1.90M	6.15M
EBITDA	-18.34M	-19.45M	4.84M	-1.89M	-9.65M	-5.07M
Net Income	-21.09M	-22.55M	-5.07M	-7.54M	-11.23M	-10.17M
Balance Sheet
Total Assets	52.34M	59.47M	82.55M	67.03M	50.57M	40.80M
Cash, Cash Equivalents and Short-Term Investments	1.16M	1.74M	794.00K	6.78M	14.49M	625.00K
Total Debt	15.99M	17.01M	18.70M	3.01M	623.00K	7.50M
Total Liabilities	23.57M	26.62M	33.22M	18.79M	2.70M	12.38M
Stockholders Equity	28.77M	32.85M	49.33M	43.92M	47.87M	28.42M
Cash Flow
Free Cash Flow	613.00K	401.00K	1.85M	-4.90M	-6.22M	-1.12M
Operating Cash Flow	685.00K	507.00K	5.41M	-3.46M	-5.62M	-357.00K
Investing Cash Flow	-53.00K	-78.00K	-7.03M	-3.10M	-1.65M	-1.38M
Financing Cash Flow	-838.00K	539.00K	-4.38M	-993.00K	20.96M	393.00K

Avant Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.81 is below the 20-day moving average (MA) of 0.84, above the 50-day MA of 0.77, and below the 200-day MA of 0.88, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 49.64 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Positive, 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
DHB	56 Neutral	5.94M	-38.78	0.00%	―	4.04%	80.24%
CLC	54 Neutral	11.16M	4.33	0.40%	―	22.41%	0.00%
AVNT	54 Neutral	$9.07M	―	-55.81%	―	31.94%	-45.55%
IMCC	39 Underperform	9.97M	-3.50	-201.89%	―	2.17%	88.34%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.