CordovaCann (CDVA) AI Stock Analysis

• Market Cap: C$1.10M
• Dividend Yield: N/A
• Average Volume (3M): 44.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.73
• Revenue Growth: 1.60%
• EPS Growth: -213.10%
• Country: CA
• Employees: 6
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 109,803,460
• 10 Day Avg. Volume: 14,141
• 30 Day Avg. Volume: 44,872
• PEG Ratio: -0.03
• Price to Book (P/B): -1.04
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 5.37
• 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: 42 Neutral
• Price Target: C$0.04 ▲(115.00% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is held down primarily by weak financial performance—especially negative equity and ongoing losses alongside a sharp TTM revenue decline. Technicals also remain bearish with negative MACD and the stock below longer-term moving averages, despite deeply oversold readings. Valuation provides limited support due to negative earnings and no dividend.

Positive Factors

Cash Generation

Recent positive trailing-twelve-month operating and free cash flow (~$1.1M each) shows the business is generating internal liquidity after prior negative cash flow. That durable cash generation can fund near-term operations, reduce immediate refinancing need, and give management time to execute a strategic turnaround over the next several months.

Operational Improvement

Improving gross margins and materially narrowed losses versus FY2023 indicate the company has started to extract operational efficiencies and better cost control. These structural improvements suggest a pathway to sustained margin recovery if trends continue, supporting longer-term profitability potential over a 2–6 month horizon.

Diversified Revenue Streams

CordovaCann sells across cultivation, processing, wholesale, retail and may pursue licensing, giving multiple durable revenue channels. That diversity reduces dependence on any single market segment, supports cross-channel growth, and helps stabilize revenue as regulations and consumer preferences evolve over the medium term.

Negative Factors

Negative Equity / Stressed Balance Sheet

Negative shareholders' equity signals accumulated losses and a highly stressed balance sheet, which materially limits financial flexibility. This increases refinancing and solvency risk, constrains capital allocation, and can impede investment or operational scaling, creating a persistent structural constraint over coming months.

Material Revenue Decline

A roughly 25% TTM revenue decline is a significant structural headwind that reduces operating leverage and makes fixed costs harder to cover. Sustained revenue erosion undermines margin recovery, weakens cash flow scalability, and heightens execution risk absent clear demand or distribution improvements in the near term.

Very Small Operational Scale

An employee count of six suggests extremely limited internal operational scale for cultivation, manufacturing and distribution. This raises reliance on third parties, increases execution and compliance risk, and constrains the company's ability to expand operations or rapidly address market opportunities over the medium term.

CordovaCann Business Overview & Revenue Model

Company Description

CordovaCann Corp. engages in identifying, funding, developing, and managing operations in the cannabis value chain business. As of February 14, 2022, it operated 14 stores under the Star Buds Cannabis Co. brand in Ontario, Manitoba, Alberta, and British Columbia, Canada, as well as Oregon and Washington, the United States. The company was formerly known as LiveReel Media Corporation and changed its name to CordovaCann Corp. in January 2018. CordovaCann Corp. is headquartered in Toronto, Canada.

How the Company Makes Money

CordovaCann generates revenue through multiple key streams, primarily from the sale of its cannabis products, which include both wholesale and retail offerings. The company cultivates its own cannabis and processes it into various forms, allowing for direct sales to consumers and partnerships with dispensaries and retailers. Additionally, CordovaCann may benefit from licensing agreements and collaborations with other companies in the cannabis space, enhancing its market reach and product offerings. The company's focus on quality and compliance also positions it to capitalize on the expanding legal cannabis market, contributing to its earnings through increased consumer demand.

CordovaCann Financial Statement Overview

Summary

Fundamentals remain fragile: TTM revenue declined materially (~-25%) and profitability is still weak (negative net margin and negative EBITDA). The key risk is a highly stressed balance sheet with negative equity, which limits financial flexibility and increases solvency/refinancing risk. Offsetting this somewhat, TTM operating cash flow and free cash flow are positive (~$1.1M), indicating some stabilization versus prior years.

Income Statement

TTM (Trailing-Twelve-Months) revenue fell materially (about -25%), and profitability remains weak with negative net margin (about -20%). Gross margin improved versus FY2025, but operating performance is still challenged (EBITDA remains negative in TTM). Losses have narrowed substantially from FY2023 levels, showing some operational progress, but the business has not yet demonstrated consistent earnings power.

Balance Sheet

The balance sheet is highly stressed: stockholders’ equity is negative in the most recent periods (TTM and FY2025), which signals accumulated losses and limited financial flexibility. Debt is meaningful relative to the asset base, and negative equity makes leverage metrics difficult and increases refinancing and solvency risk. While total assets are still sizable, the negative equity position is a key weakness.

Cash Flow

Cash generation is a relative bright spot recently: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are positive (roughly $1.1M each), improving from negative operating cash flow in FY2023/FY2022. However, free cash flow growth is volatile and recently down, and cash flow remains small relative to the scale of losses and debt, indicating the turnaround is not yet fully self-funding.

Breakdown	Sep 2025	Sep 2024	Sep 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	14.25M	13.80M	13.59M	10.32M	166.77K
Gross Profit	1.55M	4.08M	3.86M	3.49M	60.03K
EBITDA	-817.35K	493.74K	-4.68M	-2.69M	-4.00M
Net Income	-2.69M	-1.49M	-6.88M	-5.15M	-4.59M
Balance Sheet
Total Assets	6.41M	9.55M	10.26M	17.27M	14.69M
Cash, Cash Equivalents and Short-Term Investments	598.20K	552.47K	248.42K	1.06M	647.74K
Total Debt	5.00M	6.21M	6.38M	5.91M	5.61M
Total Liabilities	11.61M	12.15M	11.29M	9.96M	8.42M
Stockholders Equity	-5.81M	-3.30M	-1.72M	6.49M	5.62M
Cash Flow
Free Cash Flow	1.12M	1.49M	-1.21M	-962.15K	-1.18M
Operating Cash Flow	1.14M	1.49M	-452.73K	-221.16K	-1.04M
Investing Cash Flow	1.55M	52.96K	-708.88K	-872.05K	-145.59K
Financing Cash Flow	-2.51M	-1.10M	-134.36K	1.57M	1.72M

CordovaCann 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%
BBM	49 Neutral	C$7.43M	-4.05	-150.44%	―	55.74%	-27.59%
CDVA	42 Neutral	C$1.10M	-1.71	―	―	1.60%	-213.10%
CVGR	41 Neutral	C$1.37M	-3.17	―	―	―	64.22%