Rubicon Organics (ROMJ) AI Stock Analysis

• Market Cap: $33.25M
• Dividend Yield: N/A
• Average Volume (3M): 65.53K
• Price to Earnings (P/E): 183.3
• Beta (1Y): -0.68
• 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: 0.93
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 1.33
• Enterprise Value/Ebitda: 4.25
• 1Y Price Target: $1.14
• Price Target Upside: 124.25% 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$0.48 ▼(-5.49% 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

Strong revenue growth indicates robust demand for Rubicon's products, enhancing market position and supporting long-term business expansion.

Gross Margin Improvement

Improved gross margins reflect better cost management and operational efficiency, contributing to sustainable profitability over time.

Strategic Expansion

Expanding production capacity through strategic acquisitions supports future growth and strengthens Rubicon's competitive position in the market.

Negative Factors

Cash Flow Challenges

Persistent cash flow issues can limit the company's ability to invest in growth and manage financial obligations, impacting long-term stability.

Licensing Delays

Delays in obtaining necessary licenses can hinder operational expansion and revenue growth, affecting the company's strategic plans.

Inventory Management

High inventory levels can strain cash flow and require effective management to prevent potential financial bottlenecks and inefficiencies.

Rubicon Organics Business Overview & Revenue Model

Company Description

Rubicon Organics Inc. produces and sells organic cannabis for the recreational and medical-use markets in Canada. The company processes and sells organic cannabis under its wholly owned and other licensed brands. Rubicon Organics Inc. was incorporated in 2015 and is headquartered in Vancouver, Canada.

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 positive revenue growth but struggles with profitability, as indicated by negative net profit margins and challenges in cash flow management. The balance sheet is stable with moderate leverage, but negative return on equity is a concern.

Income Statement

Rubicon Organics has shown a positive revenue growth rate of 5.52% in the TTM, indicating a recovery trend. However, the net profit margin remains negative at -1.90%, reflecting ongoing profitability challenges. The gross profit margin has decreased from previous years, suggesting pressure on cost management. Despite improvements in EBIT and EBITDA margins, they remain low, indicating limited operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.26, indicating moderate leverage and a stable financial structure. However, the return on equity is negative, highlighting challenges in generating returns for shareholders. The equity ratio is not explicitly calculated, but the balance sheet shows a stable equity base relative to total assets.

Cash Flow

Rubicon Organics faces significant challenges in cash flow management, with a negative free cash flow growth rate of -359% in the TTM. The operating cash flow to net income ratio is positive, suggesting some ability to generate cash from operations, but the free cash flow to net income ratio indicates ongoing cash flow difficulties.

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: Positive
• Last Price: 0.51
• 50DMA: Positive
• 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:ROMJ, the sentiment is Positive. The current price of 0.51 is above the 20-day moving average (MA) of 0.46, above the 50-day MA of 0.50, and above the 200-day MA of 0.50, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.95 is Neutral, neither overbought nor oversold. The STOCH value of 73.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ROMJ.

Rubicon Organics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DB	64 Neutral	$77.85M	5.19	21.77%	―	15.11%	―
ROMJ	55 Neutral	$33.25M	183.33	7.78%	―	28.55%	―
CXXI	54 Neutral	$82.83M	―	-9.90%	―	23.29%	33.65%
VEXT	52 Neutral	$59.44M	―	-21.73%	―	43.56%	-349.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AVCN	45 Neutral	$28.86M	-18.28	-77.67%	―	2.41%	74.61%
GWAY	44 Neutral	C$19.83M	―	-7.43%	―	19.66%	84.34%

Rubicon Organics Corporate Events

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.

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.

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.

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.

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.

Rubicon Organics to Release Q3 2025 Financial Results and Expand Production Capacity

Rubicon Organics announced it will release its Q3 2025 financial results on November 12, 2025, followed by a conference call on November 13, 2025. The company is expanding its production capacity by over 40% with the acquisition of the Cascadia facility, supporting its growth in the premium cannabis segment. Rubicon’s focus on quality and innovation has driven consistent revenue growth and positive Adjusted EBITDA, solidifying its position as a leader in the market.

Rubicon Organics Reports Strong ESG Performance and Revenue Growth

Rubicon Organics has released its fifth annual Environmental, Social, and Governance (ESG) Report, highlighting significant achievements in sustainable cannabis production. The report reveals a 410% increase in net revenue since 2020, with minimal increases in energy and water usage, showcasing the company’s commitment to resource efficiency. Employee engagement and pride are high, reflecting a strong corporate culture. The report underscores Rubicon’s leadership in ESG within the cannabis sector, aiming to be the most trusted house of premium cannabis brands.

Rubicon Organics Expands Capacity with New Health Canada License

Rubicon Organics has received a Health Canada cultivation license for its Cascadia facility in Hope, BC, which will increase its production capacity by 40% and support revenue and EBITDA growth. This expansion will enable the company to meet demand for its premium products in Canada and explore international market opportunities. The company also renamed its facilities to reflect its West Coast culture and expanded focus. The new capacity is expected to drive growth in both domestic and export markets, reinforcing Rubicon’s position as a leader in the premium cannabis industry.

Rubicon Organics to Showcase at Key Investor Events and Engages Research Firm

Rubicon Organics announced its participation in two investor events, Small Cap Discoveries in Vancouver and the Planet MicroCap Showcase in Toronto, to present its achievements and future plans. The company has also engaged Atrium Research Corporation for research services, indicating a strategic move to enhance its market presence and investor relations. These developments are expected to strengthen Rubicon’s positioning in the premium cannabis segment and support its growth trajectory.