Decibel Cannabis Company (DB) AI Stock Analysis

• Market Cap: C$60.57M
• Dividend Yield: N/A
• Average Volume (3M): 258.21K
• Price to Earnings (P/E): 4.2
• Beta (1Y): 0.46
• Revenue Growth: 15.11%
• EPS Growth: N/A
• Country: CA
• Employees: 171
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): >-0.01
• Shares Outstanding: 576,900,000
• 10 Day Avg. Volume: 297,792
• 30 Day Avg. Volume: 258,209
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 9.28
• 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$0.25
• Price Target Upside: 147.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: C$0.12 ▲(23.00% Upside)

The overall stock score of 64 reflects a company with growth potential but facing operational and liquidity challenges. The financial performance is moderate, with revenue growth and improved leverage, but profitability and cash flow issues need addressing. Technical analysis indicates a bearish trend, though valuation suggests the stock is undervalued, offering potential for capital gains.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates strong demand for its products and effective market penetration, supporting long-term business expansion.

Product Innovation

Focus on innovation and quality in product offerings positions Decibel to capture market share and meet evolving consumer preferences, driving sustainable growth.

Leverage Management

Improved leverage management enhances financial stability and reduces risk, providing a solid foundation for future investment and growth opportunities.

Negative Factors

Profitability Challenges

Decreasing profit margins highlight operational inefficiencies that could hinder long-term profitability if not addressed, impacting overall financial health.

Cash Flow Issues

Declining free cash flow indicates potential liquidity issues, which may constrain the company's ability to invest in growth initiatives and manage obligations.

Operational Challenges

Negative EBIT margin suggests inefficiencies in operations, which could affect the company's ability to sustain profitability and compete effectively in the market.

Decibel Cannabis Company Business Overview & Revenue Model

Company Description

Decibel Cannabis Company (DB) is a Canadian cannabis company focused on the production and sale of high-quality cannabis products. Operating within the legal cannabis sector, Decibel specializes in premium dried flower, pre-rolls, and cannabis extracts, catering to both recreational and medicinal markets. The company emphasizes innovation and quality, utilizing advanced cultivation techniques and proprietary genetics to deliver a diverse range of products that meet consumer needs.

How the Company Makes Money

Decibel Cannabis Company generates revenue through several key streams, primarily from the sale of its cannabis products to licensed retailers and directly to consumers. The company profits from its premium product offerings, which include dried flower, pre-rolls, and extracts, allowing it to capitalize on higher price points associated with quality. Additionally, Decibel engages in wholesale distribution, partnering with various retailers across Canada to broaden its market reach. The company may also explore strategic partnerships and collaborations that enhance its supply chain and distribution capabilities, further contributing to its revenue growth. As the legal cannabis market expands, Decibel's focus on product innovation and brand development positions it to benefit from increasing consumer demand.

Decibel Cannabis Company Financial Statement Overview

Summary

Decibel Cannabis Company demonstrates solid revenue growth and improved return on equity, indicating effective management and growth potential. However, declining profit margins and low operating cash flow conversion pose challenges. The balance sheet remains stable with a manageable debt level, supporting future growth opportunities.

Income Statement

The company shows a strong revenue growth rate of 8.28% in the TTM period, indicating a positive trajectory. Gross profit margin is healthy at 39.04%, though slightly lower than the previous year. Net profit margin decreased to 8.05% from 10.23%, reflecting some pressure on profitability. EBIT and EBITDA margins have also declined, suggesting increased operational costs or pricing pressures.

Balance Sheet

The debt-to-equity ratio is stable at 0.75, indicating a balanced leverage position. Return on equity improved to 15.46%, showing effective use of equity to generate profits. The equity ratio is not provided, but the overall balance sheet reflects moderate financial stability with manageable debt levels.

Cash Flow

Free cash flow growth is impressive at 93.45%, indicating strong cash generation capabilities. However, the operating cash flow to net income ratio is low at 0.08, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio is robust at 0.75, highlighting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	109.31M	92.54M	106.22M	79.33M	52.45M	29.93M
Gross Profit	39.86M	37.58M	38.77M	26.43M	28.17M	11.78M
EBITDA	20.72M	21.53M	3.25M	2.26M	9.45M	-3.82M
Net Income	8.18M	9.46M	-1.77M	-4.46M	1.74M	-9.21M
Balance Sheet
Total Assets	146.43M	151.86M	142.99M	140.88M	125.93M	88.73M
Cash, Cash Equivalents and Short-Term Investments	6.08M	7.00M	3.48M	2.97M	1.92M	3.82M
Total Debt	45.77M	48.32M	48.52M	48.39M	49.90M	43.19M
Total Liabilities	82.85M	87.14M	96.79M	93.67M	75.19M	55.30M
Stockholders Equity	63.58M	64.72M	46.20M	47.21M	50.73M	33.43M
Cash Flow
Free Cash Flow	2.45M	3.21M	4.92M	4.44M	-20.39M	-8.54M
Operating Cash Flow	3.96M	3.98M	7.08M	8.26M	-17.15M	-4.24M
Investing Cash Flow	696.00K	1.19M	-2.13M	-3.76M	-3.23M	-6.17M
Financing Cash Flow	-1.59M	-1.65M	-4.43M	-3.45M	18.47M	2.58M

Decibel Cannabis Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DB, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.12, and above the 200-day MA of 0.10, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.91 is Neutral, neither overbought nor oversold. The STOCH value of 34.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DB.

Decibel Cannabis Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DB	64 Neutral	C$60.57M	4.18	21.77%	―	15.11%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LABS	45 Neutral	$29.45M	-3.63	-19.10%	―	18.06%	34.58%
AVCN	45 Neutral	C$27.10M	-14.02	-77.67%	―	2.41%	74.61%
IAN	44 Neutral	C$34.09M	20.00	―	―	-6.05%	―
AYR.A	40 Neutral	C$18.10M	-0.04	―	―	0.63%	-31.86%
INNO	40 Neutral	C$33.74M	-7.50	-71.80%	―	-3.94%	-17.62%

Decibel Cannabis Company Corporate Events

Decibel Cannabis Reports Strong Q3 2025 Results Amid Regulatory Challenges

Decibel Cannabis Company reported a 37% year-over-year increase in net revenue for the third quarter of 2025, driven by international sales and modest growth in Canadian recreational sales. The company’s gross margin decreased due to higher costs associated with international sales, but Adjusted EBITDA saw a 40% increase. Decibel is revising its 2025 guidance due to regulatory changes in Germany affecting cannabis imports, which may delay product launches and commercial contracts.

Decibel Cannabis to Release Q3 2025 Financial Results on November 19

Decibel Cannabis Company Inc. announced it will release its third quarter 2025 financial results on November 19, 2025, with a live conference call scheduled for the same day. This announcement highlights Decibel’s continued focus on transparency and engagement with stakeholders, reinforcing its position as a market leader in premium cannabis products.