Rubicon Organics (ROMJ) AI Stock Analysis

• Market Cap: C$30.23M
• Dividend Yield: N/A
• Average Volume (3M): 65.53K
• Price to Earnings (P/E): 9.8
• Beta (1Y): -0.28
• Revenue Growth: 28.55%
• EPS Growth: N/A
• Country: CA
• Employees: 208
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.04
• Shares Outstanding: 67,175,770
• 10 Day Avg. Volume: 72,944
• 30 Day Avg. Volume: 65,526
• PEG Ratio: -0.29
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 14.90
• 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$1.15
• Price Target Upside: 144.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: C$0.46 ▼(-1.91% Downside)

Rubicon Organics' stock score is primarily influenced by its financial performance, which shows improvement in revenue growth and gross profit margin but is hindered by low profitability and cash flow issues. Technical analysis indicates a lack of strong momentum, while valuation suggests the stock is reasonably priced. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth Trend

Sustained revenue growth indicates expanding product demand and improved distribution execution in the regulated Canadian cannabis market. Over 2-6 months this trend supports scale benefits, better absorption of fixed costs and provides runway to invest in brand and product quality.

Improved Gross Margin / Cost Management

A materially higher gross margin reflects durable improvements in cultivation efficiency and input cost control. Persistent margin expansion strengthens long-term earnings power, enabling reinvestment in premium organic positioning and providing a buffer against pricing and regulatory headwinds.

Reduced Leverage and Stable Capital Structure

Lower leverage reduces interest burden and financial risk in a capital-intensive industry. A more balanced capital structure increases resilience to revenue volatility, enhances flexibility to fund growth or sustain operations during cycles, and limits refinancing pressure over months.

Negative Factors

Very Low Net Profit Margin

Extremely thin net margins limit the firm's ability to retain earnings and build capital internally. Over time this constrains investment in growth initiatives, weakens the balance sheet, and makes the company more dependent on external financing to fund expansion or withstand sector headwinds.

Negative Free Cash Flow / Cash Conversion Issues

Persistent negative free cash flow despite positive accounting income indicates poor cash conversion and working-capital strain. Over months this limits capacity to self-fund capex and marketing, increases reliance on external capital, and raises vulnerability if credit conditions tighten.

Low Return on Equity

A very low ROE signals inefficiency in deploying shareholder capital to generate profits. Structurally, this can depress long-term investor confidence, restrict access to favorable financing, and suggests the business needs productivity or strategy shifts to improve capital efficiency.

Rubicon Organics Business Overview & Revenue Model

Company Description

Rubicon Organics Inc. (ROMJ) is a Canadian cannabis company focused on the cultivation, production, and distribution of premium organic cannabis products. Operating in the legal cannabis sector, Rubicon Organics is dedicated to sustainable farming practices and offers a range of products including dried flower, pre-rolls, and cannabis oils. The company aims to create high-quality, environmentally friendly cannabis that appeals to health-conscious consumers and connoisseurs alike.

How the Company Makes Money

Rubicon Organics generates revenue primarily through the sale of its cannabis products to both wholesale and retail markets in Canada. The company has established relationships with various provincial distributors and retailers, which allows it to reach a broad customer base. Key revenue streams include direct sales of its organic cannabis flower and derivatives, as well as potential licensing agreements and partnerships with other brands in the cannabis sector. Additionally, Rubicon Organics focuses on maintaining high product quality and brand loyalty, which can lead to repeat purchases and increased market share in the evolving cannabis industry.

Rubicon Organics Financial Statement Overview

Summary

Rubicon Organics shows a positive trend in revenue growth and improved gross profit margin, indicating better cost management. However, low net profit margins and cash flow challenges remain concerns. The balance sheet reflects reduced leverage and stable equity, but returns on equity are limited.

Income Statement

Rubicon Organics has shown a positive trend in revenue growth, with a TTM revenue growth rate of 3.87% and a significant improvement from previous years. Gross profit margin has improved to 34.72% in the TTM, indicating better cost management. However, net profit margin remains low at 0.43%, suggesting limited profitability. The EBIT and EBITDA margins have improved but are still relatively low, indicating room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has decreased to 0.22 in the TTM, reflecting a stronger equity position and reduced financial leverage. Return on equity is low at 0.61%, indicating limited returns for shareholders. The equity ratio is stable, suggesting a balanced capital structure. Overall, the balance sheet shows improved stability but with potential for better returns.

Cash Flow

Rubicon Organics has faced challenges with cash flow, as indicated by negative free cash flow in the TTM. The free cash flow to net income ratio is negative, highlighting cash flow issues despite positive net income. The operating cash flow to net income ratio is low, suggesting inefficiencies in converting income to cash. While there is some growth in free cash flow, the overall cash flow position remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.19M	48.70M	40.12M	35.52M	22.61M	9.39M
Gross Profit	23.28M	15.42M	13.14M	13.81M	1.51M	-663.96K
EBITDA	7.29M	1.86M	1.95M	217.00K	-10.87M	-10.37M
Net Income	3.23M	-2.56M	-1.82M	-3.86M	-14.52M	-14.98M
Balance Sheet
Total Assets	65.58M	56.61M	54.89M	56.11M	54.84M	51.07M
Cash, Cash Equivalents and Short-Term Investments	6.69M	9.86M	10.91M	8.29M	11.58M	12.14M
Total Debt	9.32M	9.89M	10.40M	10.22M	9.82M	13.99M
Total Liabilities	19.46M	19.21M	17.00M	17.77M	15.94M	22.23M
Stockholders Equity	46.13M	37.40M	37.89M	38.33M	38.90M	28.84M
Cash Flow
Free Cash Flow	-4.38M	1.85M	2.32M	-2.50M	-15.94M	-20.30M
Operating Cash Flow	2.53M	3.40M	5.05M	1.95M	-10.44M	-14.31M
Investing Cash Flow	-6.90M	-1.55M	-2.73M	-4.45M	-5.50M	3.08M
Financing Cash Flow	1.48M	-1.77M	-804.01K	-838.56K	15.30M	21.26M

Rubicon Organics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ROMJ, the sentiment is Negative. The current price of 0.47 is below the 20-day moving average (MA) of 0.48, below the 50-day MA of 0.47, and below the 200-day MA of 0.50, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.62 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ROMJ.

Rubicon Organics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROMJ	55 Neutral	C$30.23M	9.76	7.78%	―	28.55%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OILS	49 Neutral	C$7.57M	-50.00	11.57%	―	-1.14%	―
AVCN	46 Neutral	C$24.18M	-12.50	-77.67%	―	2.41%	74.61%
INNO	46 Neutral	C$42.60M	-9.47	-71.80%	―	-3.94%	-17.62%
LABS	45 Neutral	C$27.35M	-3.37	-19.10%	―	18.06%	34.58%
PCLO	44 Neutral	C$13.85M	-2.51	―	―	15.64%	58.47%

Rubicon Organics Corporate Events

Rubicon Organics Grants Over 2 Million Equity Awards to Staff Under Incentive Plan

Rubicon Organics has awarded 1,002,773 restricted share units and 1,002,773 performance share units to selected executives and employees under its Omnibus Equity Incentive Plan, with RSUs vesting over one to three years and PSUs vesting after three years subject to performance targets. The equity awards, which may be settled in shares or cash at the board’s discretion, are designed to align management and staff incentives with long-term performance and shareholder value as the company scales its production capacity and strengthens its position in the premium cannabis market.

The most recent analyst rating on (TSE:ROMJ) stock is a Buy with a C$1.00 price target. To see the full list of analyst forecasts on Rubicon Organics stock, see the TSE:ROMJ Stock Forecast page.

Rubicon Organics Secures Credit Agreements to Boost Production

Rubicon Organics has finalized its credit agreements with Community Savings Credit Union, securing $3 million from a capital loan and access to a $1 million line of credit. These funds will be used to support margin-enhancing projects at its Pacifica and Cascadia facilities, strengthening its position in the premium cannabis market and supporting future growth.

The most recent analyst rating on (TSE:ROMJ) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Rubicon Organics stock, see the TSE:ROMJ Stock Forecast page.

Rubicon Organics Triumphs at 2025 KIND Awards with Multiple Wins

Rubicon Organics celebrated significant achievements at the 2025 KIND Awards, securing top honors in seven categories, including Craft Brand of the Year and Flower of the Year. These accolades underscore the company’s leadership in premium cannabis and its commitment to quality and innovation. The recognition from Canadian Budtenders highlights Rubicon’s consistent excellence and positions it as a trusted house of premium cannabis brands. The company’s strategic expansion with the Cascadia facility is set to meet growing demand and support future growth in domestic and international markets.

The most recent analyst rating on (TSE:ROMJ) stock is a Buy with a C$1.30 price target. To see the full list of analyst forecasts on Rubicon Organics stock, see the TSE:ROMJ Stock Forecast page.

Rubicon Organics Reports Strong Q3 2025 Results and Expansion Plans

Rubicon Organics reported a 16% increase in Q3 2025 net revenue to $15.6 million and a 25% increase in year-to-date revenue, reflecting strong growth in the premium cannabis market. The company obtained a Health Canada license for its Cascadia Facility, which is expected to enhance production capacity by over 40% and drive future growth in domestic and international markets. Despite anticipating some one-time costs in early 2026, Rubicon is focused on long-term value creation and has secured additional capital to support its expansion.

The most recent analyst rating on (TSE:ROMJ) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Rubicon Organics stock, see the TSE:ROMJ Stock Forecast page.

Rubicon Organics Appoints Glen Ibbott as CFO to Drive Growth

Rubicon Organics has appointed Glen Ibbott as its Chief Financial Officer and Corporate Secretary. Ibbott, a seasoned financial executive with extensive experience in the cannabis industry, previously served as CFO at Aurora Cannabis. His appointment is expected to strengthen Rubicon’s strategic positioning and support its growth and innovation efforts in the premium cannabis market.

The most recent analyst rating on (TSE:ROMJ) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Rubicon Organics stock, see the TSE:ROMJ Stock Forecast page.

Rubicon Organics Secures $4 Million Financing for Strategic Growth

Rubicon Organics has secured $4 million in financing through credit agreements with Community Savings Credit Union to support its strategic growth initiatives. The funding will be used for margin accretive projects at its Pacifica and Cascadia Facilities, enhancing the company’s operational capabilities and maintaining a strong balance sheet, which is crucial for its continued expansion in both domestic and international markets.

The most recent analyst rating on (TSE:ROMJ) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Rubicon Organics stock, see the TSE:ROMJ Stock Forecast page.