Decibel Cannabis Company (DB) AI Stock Analysis

• Market Cap: $40.37M
• Dividend Yield: N/A
• Average Volume (3M): 362.40K
• Price to Earnings (P/E): 3.0
• Beta (1Y): 0.16
• Revenue Growth: -15.44%
• EPS Growth: N/A
• Country: CA
• Employees: 171
• Sector: Healthcare
• Sector Strength: 59
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.00
• Shares Outstanding: 576,700,000
• 10 Day Avg. Volume: 553,570
• 30 Day Avg. Volume: 362,397
• PEG Ratio: 0.03
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.82
• 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: $0.23
• Price Target Upside: 231.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

The overall stock score of 69 reflects the company's undervalued position and positive corporate developments, including international expansion and strategic acquisitions. Financial performance is mixed with high leverage risks, but technical indicators show a neutral to slightly bullish outlook.

Positive Factors

Financial Performance

Adjusted gross margins were higher than expected, leading to EBITDA that exceeded forecasts.

Revenue Growth

Strong revenue growth is expected in the upcoming quarter, driven by both international sales and domestic improvements.

Negative Factors

Seasonality Impact

A sequential decline in Q1/25 is forecasted due to typical seasonality and prior to the jump in exports in Q2/25.

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 primarily through the cultivation, production, and sale of cannabis products. The company's key revenue streams include wholesale distribution to retailers, direct sales to consumers through its online platform, and potentially, partnerships or licensing agreements with other cannabis brands or companies. Decibel's earnings are significantly influenced by its ability to maintain product quality, expand its distribution network, and adhere to regulatory compliance within the cannabis industry.

Decibel Cannabis Company Financial Statement Overview

Summary

Decibel Cannabis Company has a mixed financial performance with volatile revenue growth and recent profitability. While the balance sheet shows asset growth, high leverage remains a risk. Cash flow stability is a concern, though there are some operational improvements.

Income Statement

The revenue growth has been volatile, with recent declines from 2023 to 2024 after previous growth. Gross Profit Margin was positive, but the company experienced a significant net income loss in 2023, turning profitable in 2024. Margins such as EBIT and EBITDA show mixed signals with EBITDA turning positive recently, indicating some operational improvements.

Balance Sheet

The company's debt-to-equity ratio is fairly high, indicating leverage risk. However, the equity ratio has been stable. Return on Equity (ROE) turned positive in 2024, showing improved profitability. The balance sheet shows consistent growth in total assets over the years.

Cash Flow

Operating cash flows have fluctuated, with recent declines in 2024. Free cash flow has been positive, though its growth rate has been inconsistent. The company maintains a positive operating cash flow to net income ratio, showing operational viability despite low net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
92.54M	106.22M	79.33M	52.45M	29.93M
	Gross Profit
37.58M	38.77M	26.43M	28.17M	11.78M
	EBIT
2.00M	985.00K	-714.00K	5.97M	-5.60M
	EBITDA
21.53M	3.25M	2.26M	9.45M	-3.82M
	Net Income Common Stockholders
9.46M	-1.77M	-4.46M	1.74M	-9.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.00M	3.48M	2.97M	1.92M	3.82M
	Total Assets
151.86M	142.99M	140.88M	125.93M	88.73M
	Total Debt
48.32M	48.52M	48.39M	49.90M	43.19M
	Net Debt
41.33M	45.03M	45.43M	47.98M	39.37M
	Total Liabilities
87.14M	96.79M	93.67M	75.19M	55.30M
	Stockholders Equity
64.72M	46.20M	47.21M	50.73M	33.43M
Cash Flow		Free Cash Flow
3.21M	4.92M	4.44M	-20.39M	-8.54M
	Operating Cash Flow
3.98M	7.08M	8.26M	-17.15M	-4.24M
	Investing Cash Flow
1.19M	-2.13M	-3.76M	-3.23M	-6.17M
	Financing Cash Flow
-1.65M	-4.43M	-3.45M	18.47M	2.58M

Decibel Cannabis Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 0.07 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and above the 200-day MA of 0.07, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.74 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	69 Neutral	$40.37M	2.98	20.78%	―	-15.44%	―
Sector *	54 Neutral	$5.38B	3.27	-45.10%	3.30%	16.81%	0.02%
ITHUF		$24.79M	6.25		―	―	―
AYRWF		$13.32M	―	-74.75%	―	―	―
MEDIF		$25.97M	―	-16.22%	―	―	―
AVCNF		$19.76M	―	-203.40%	―	―	―
INNPF		$36.57M	―	-14.77%	―	―	―

Decibel Cannabis Company Corporate Events

Decibel Cannabis Company Reports First Quarter Financial Results with Strong International Sales Growth

Decibel Cannabis Company reported its first-quarter financial results, highlighting a 1.4% increase in net revenue to $21.2 million, driven by the acquisition of AgMedica Bioscience. Despite a decrease in Canadian recreational sales due to increased competition, the company saw a significant rise in international sales by 527%, attributed to AgMedica’s contributions. Decibel has been focusing on strengthening its balance sheet by reducing payables and debt, while also launching new products to regain market share. The company anticipates further growth in international volumes as new export contracts become operational.

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 Company Reports Strong Year-End Results and Positive Outlook for 2025

Decibel Cannabis Company reported strong financial results for the end of 2024, highlighting significant contributions from its recent acquisition of AgMedica Bioscience Inc. The company anticipates continued growth in 2025, with expectations of increased international sales and improved financial metrics such as net revenue and adjusted EBITDA. Despite a projected softer first quarter due to shipment timings, Decibel is poised for a substantial ramp-up in global sales by the second quarter, reinforcing its strategic focus on international expansion and financial resilience.