Decibel Cannabis Company (DB) AI Stock Analysis

• Market Cap: C$54.81M
• Dividend Yield: N/A
• Average Volume (3M): 258.21K
• Price to Earnings (P/E): 3.8
• Beta (1Y): 0.55
• 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: 150.00% 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$0.10 ▲(2.00% 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 Trend

Sustained revenue growth (TTM +8.76%) indicates recovering demand and expanding sales traction. Over 2-6 months this supports scale benefits, broader retailer acceptance and brand momentum, enabling reinvestment in product development and distribution to cement market position.

Healthy Gross Margin

A near-40% gross margin reflects pricing power from premium products and efficient cultivation. This margin buffer supports covering SG&A and absorbing input cost fluctuations, giving the company structural resilience and the ability to invest in R&D and branding over the medium term.

Improved Leverage and Strong ROE

Lower leverage alongside a 15.31% ROE signals improving capital efficiency and prudent balance sheet management. This combination increases financial flexibility for capex or strategic initiatives, reducing refinancing risk and supporting sustainable growth over coming quarters.

Negative Factors

Weak Cash Generation

Declining free cash flow and a low operating-cash-to-net-income ratio point to weaker cash conversion and potential liquidity strain. Over the medium term this can limit capacity to fund working capital, marketing or capex without external financing, increasing operational risk.

Profitability Pressure / Negative EBIT

A falling net margin and negative EBIT indicate core operating profitability issues, suggesting cost structure or pricing pressure. Persisting negative operating earnings constrain retained earnings and force harder choices on investment, cost cuts, or capital raising in coming months.

Exposure to Regulated, Competitive Market

Dependence on the regulated Canadian cannabis market and wholesale retail channels exposes the company to regulatory shifts, intense competition and margin compression. These structural constraints can limit pricing power and national scale advantages over the medium term.

Decibel Cannabis Company Business Overview & Revenue Model

Company Description

Decibel Cannabis Company Inc. engages in the cultivation, processing, production, and retail sale of cannabis products in Canada. It offers cannabis flower, cannabis pre-rolls, and cannabis biomass to licensed producers in Canada. The company is also involved in the extraction, processing, and manufacturing of various cannabis derivative products, including vape cartridges, cannabis infused products, and cannabis extracts. It offers its products under the Qwest, Qwest Reserve, Blendcraft by Qwest, and General Admission brands. Decibel Cannabis Company Inc. is headquartered in Calgary, Canada.

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 is experiencing revenue growth and improved leverage, but faces challenges in profitability and cash flow generation. The company shows potential for growth with a need to enhance operational efficiency and cash management to ensure long-term financial health.

Income Statement

Decibel Cannabis Company shows a positive revenue growth rate of 8.76% in the TTM, indicating a recovery from previous declines. The gross profit margin is healthy at 39.47%, although slightly down from the previous year. However, the net profit margin has decreased to 8.95% from 10.23% in the prior year, and EBIT margin is negative, reflecting operational challenges. Overall, the company demonstrates growth potential but faces profitability pressures.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.71, indicating better leverage management compared to previous years. Return on equity is strong at 15.31%, showing effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced capital structure. Overall, the balance sheet reflects financial stability with room for improvement in reducing debt further.

Cash Flow

Free cash flow has declined by 8.93% in the TTM, and the operating cash flow to net income ratio is low at 8.30%, indicating potential liquidity issues. The free cash flow to net income ratio is 65.66%, showing some ability to convert income into cash. The cash flow statement suggests challenges in cash generation, which could impact future operations if not addressed.

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: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.10, below the 50-day MA of 0.11, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.89 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: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$54.81M	3.78	21.77%	―	15.11%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CWEB	51 Neutral	C$103.62M	-3.40	-109.83%	―	-4.23%	37.33%
GWAY	49 Neutral	C$21.16M	-28.07	-7.43%	―	19.66%	84.34%
LABS	45 Neutral	C$29.45M	-3.63	-19.10%	―	18.06%	34.58%
PLTH	42 Neutral	C$71.58M	-0.60	-83.55%	―	2.19%	-91.41%
LEEF	39 Underperform	C$43.85M	-0.81	―	―	―	―

Decibel Cannabis Company Corporate Events

Decibel Cannabis Announces Shareholder Meeting Results and Strategic Plans

Decibel Cannabis Company Inc. announced the results of its annual and special meeting of shareholders, where all proposed matters were approved. Key decisions included electing four directors, appointing auditors, reapproving the stock option plan, and authorizing a potential share consolidation. The company emphasized its commitment to innovation and quality as it aims to expand its global footprint, although it currently has no plans to proceed with the share consolidation.

The most recent analyst rating on (TSE:DB) stock is a Hold with a C$0.12 price target. To see the full list of analyst forecasts on Decibel Cannabis Company stock, see the TSE:DB Stock Forecast page.

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.

The most recent analyst rating on (TSE:DB) stock is a Buy with a C$0.25 price target. To see the full list of analyst forecasts on Decibel Cannabis Company stock, see the TSE:DB Stock Forecast page.

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.

The most recent analyst rating on (TSE:DB) stock is a Buy with a C$0.25 price target. To see the full list of analyst forecasts on Decibel Cannabis Company stock, see the TSE:DB Stock Forecast page.