CordovaCann (CDVA) AI Stock Analysis

• Market Cap: C$2.75M
• Dividend Yield: N/A
• Average Volume (3M): 44.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 4.75
• Revenue Growth: 1.60%
• EPS Growth: -213.10%
• Country: CA
• Employees: 6
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): >-0.01
• 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: 41 Neutral
• Price Target: C$0.02 ▲(20.00% Upside)
• Action: Upgraded Date: 03/05/26
• Date: Action: Upgraded 03/05/26

The score is held down primarily by weak financial performance—sharp revenue decline, ongoing losses, and a stressed balance sheet with negative equity—despite improved (but slowing) positive free cash flow. Technicals remain mixed with longer-term downtrend indications, and valuation is hard to justify with negative earnings and no dividend support.

Positive Factors

Improved cash generation

Sustained positive operating and free cash flow provides recurring internal funding to support operations, working capital and incremental investments in cultivation/processing. Over 2-6 months this reduces immediate external financing needs and gives management runway to stabilize operations.

Vertically integrated product platform

Owning cultivation, manufacturing and distribution plus a broad product mix (oils, edibles, topicals) helps capture value across the supply chain, diversify revenue channels and defend margins versus single-node competitors, supporting more resilient revenue streams over the medium term.

Operating results improving vs prior year

A tangible reduction in operating losses versus the prior year indicates management is executing cost controls or efficiency initiatives. If sustained, this trend strengthens the path to breakeven and implies better operational leverage as revenue stabilizes over the next several quarters.

Negative Factors

Negative shareholders' equity

A negative equity position materially weakens financial flexibility, increases refinancing and dilution risk, and limits access to traditional credit. Over a 2-6 month horizon this structural balance-sheet weakness constrains strategic options and raises funding vulnerability.

Sharp revenue decline

A >100% year-over-year revenue decline signals loss of scale, contracts or channel share; shrinking top line undermines fixed-cost absorption and makes margins harder to sustain. Without revenue stabilization, recovery of unit economics and profitability will be difficult in the medium term.

Ongoing losses and modest gross margins

Negative net margins combined with only modest gross margins indicate the business has not yet achieved durable pricing power or cost structure to be self-sustaining. Continued losses necessitate ongoing cash support or dilution, pressuring long-term viability if revenue does not recover.

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

Financials are weak overall: revenue is sharply negative (~-112% TTM) and profitability remains loss-making (net margin ~-19%, gross margin ~16.8%). The key offset is improved cash generation with positive TTM operating cash flow (~0.87M) and free cash flow (~0.86M), but the balance sheet is the biggest risk due to negative shareholders’ equity (~-6.0M).

Income Statement

TTM (Trailing-Twelve-Months) revenue is ~14.1M, but growth is sharply negative (about -112%), pointing to a meaningful slowdown/decline versus the prior period. Profitability remains weak: gross margin is modest (~16.8%) and the company is still loss-making with a net margin around -19%. A positive data point is that operating results appear less severe than earlier years (e.g., improved versus 2023’s very large losses), but the business has not demonstrated consistent earnings power yet.

Balance Sheet

The balance sheet is stressed by negative shareholders’ equity (TTM equity about -6.0M), which limits financial flexibility and increases refinancing/dilution risk. Total debt is ~5.2M against ~6.5M of assets, leaving little buffer if asset values weaken. While debt levels are not enormous in absolute terms, the negative equity position is a major weakness and is the primary driver of the low score.

Cash Flow

Cash generation has improved versus earlier years: TTM (Trailing-Twelve-Months) operating cash flow is positive (~0.87M) and free cash flow is also positive (~0.86M). However, free cash flow growth is meaningfully negative (about -17.8%), suggesting momentum has softened. Cash flow also does not strongly cover the earnings loss (cash flow to net income is near 1.0 mainly because net income is negative), so sustained positive cash flow will need to continue to offset weak profitability.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	14.05M	14.25M	13.80M	13.53M	10.32M	166.77K
Gross Profit	2.36M	1.55M	4.08M	3.73M	3.49M	60.03K
EBITDA	-1.13M	-817.35K	493.74K	-1.85M	-2.69M	-4.00M
Net Income	-2.69M	-2.69M	-1.49M	-3.96M	-5.15M	-4.59M
Balance Sheet
Total Assets	6.48M	6.41M	9.55M	16.75M	17.27M	14.69M
Cash, Cash Equivalents and Short-Term Investments	586.03K	598.20K	552.47K	714.83K	1.06M	647.74K
Total Debt	5.20M	5.00M	6.21M	6.08M	5.91M	5.61M
Total Liabilities	11.94M	11.61M	12.15M	10.16M	9.96M	8.42M
Stockholders Equity	-5.99M	-5.81M	-3.30M	5.86M	6.49M	5.62M
Cash Flow
Free Cash Flow	856.49K	1.12M	1.49M	-2.73M	-962.15K	-1.18M
Operating Cash Flow	873.17K	1.14M	1.49M	-2.07M	-221.16K	-1.04M
Investing Cash Flow	1.55M	1.55M	52.96K	2.07M	-872.05K	-145.59K
Financing Cash Flow	-2.51M	-2.51M	-1.10M	720.69K	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$9.90M	-9.82	-150.44%	―	55.74%	-27.59%
CDVA	41 Neutral	C$2.75M	-6.37	―	―	1.60%	-213.10%
CVGR	41 Neutral	C$1.83M	-1.55	―	―	―	64.22%