Decibel Cannabis Company (DB) AI Stock Analysis

• Market Cap: $72.09M
• Dividend Yield: N/A
• Average Volume (3M): 372.99K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.49
• Revenue Growth: -0.53%
• EPS Growth: N/A
• Country: CA
• Employees: 171
• Sector: Healthcare
• Sector Strength: 51
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.00
• Shares Outstanding: 576,700,000
• 10 Day Avg. Volume: 207,256
• 30 Day Avg. Volume: 372,990
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 2.04
• Enterprise Value/Ebitda: 3.83
• 1Y Price Target: $0.25
• Price Target Upside: 91.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: C$0.00 ▼(-100.00% Downside)

The overall stock score of 76 reflects strong technical momentum and attractive valuation, with a solid financial performance underpinning future growth potential. The stock's undervaluation, as indicated by the low P/E ratio, is a significant positive factor. However, challenges in profitability and cash flow conversion slightly temper the outlook.

Positive Factors

Earnings

Solid margins and cost containment produced EBITDA above the forecast.

Financial Performance

Decibel reported very strong financial results representing significant growth over last year, in part due to the AgMedica acquisition.

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 sale of cannabis products in both the recreational and medicinal markets. The company’s key revenue streams include wholesale distribution of its products to retailers, direct-to-consumer sales through its own retail locations, and online sales via e-commerce platforms. Additionally, Decibel has established partnerships with various distributors and retailers, enhancing its market reach and product availability. The company also benefits from economies of scale as it expands its cultivation and production capacities, allowing it to reduce costs and improve profit margins.

Decibel Cannabis Company Financial Statement Overview

Summary

Decibel Cannabis Company showcases a mixed financial performance with growth challenges in revenue and profitability. While the balance sheet shows potential with asset growth, high leverage poses a risk. Cash flow stability remains a concern, though there are signs of operational improvements. Overall, the financial health is moderate with areas needing attention for sustainable growth.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	100.50M	92.54M	106.22M	79.33M	52.45M	29.93M
Gross Profit	39.67M	37.58M	38.77M	26.43M	28.17M	11.78M
EBITDA	21.14M	21.53M	3.25M	2.26M	9.45M	-3.82M
Net Income	8.99M	9.46M	-1.77M	-4.46M	1.74M	-9.21M
Balance Sheet
Total Assets	149.43M	151.86M	142.99M	140.88M	125.93M	88.73M
Cash, Cash Equivalents and Short-Term Investments	5.35M	7.00M	3.48M	2.97M	1.92M	3.82M
Total Debt	45.92M	48.32M	48.52M	48.39M	49.90M	43.19M
Total Liabilities	84.65M	87.14M	96.79M	93.67M	75.19M	55.30M
Stockholders Equity	64.78M	64.72M	46.20M	47.21M	50.73M	33.43M
Cash Flow
Free Cash Flow	2.69M	3.21M	4.92M	4.44M	-20.39M	-8.54M
Operating Cash Flow	4.09M	3.98M	7.08M	8.26M	-17.15M	-4.24M
Investing Cash Flow	800.00K	1.19M	-2.13M	-3.76M	-3.23M	-6.17M
Financing Cash Flow	-1.95M	-1.65M	-4.43M	-3.45M	18.47M	2.58M

Decibel Cannabis Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 0.13 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.10, and above the 200-day MA of 0.08, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 62.15 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 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	76 Outperform	$72.09M	4.81	22.76%	―	-0.53%	―
Sector *	51 Neutral	$7.93B	-0.32	-43.43%	2.21%	22.30%	-1.88%
ITHUF	―	$48.63M	25.00		―	―	―
AYRWF	―	$13.06M	―	-74.75%	―	―	―
MEDIF	―	$22.86M	―	-19.58%	―	―	―
AVCNF	―	$23.04M	―	-109.32%	―	―	―
INNPD	―	$42.37M	―	-34.90%	―	―	―

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.