1933 Industries (TGIF) AI Stock Analysis

• Market Cap: C$4.96M
• Dividend Yield: N/A
• Average Volume (3M): 94.62K
• Price to Earnings (P/E): 13.6
• Beta (1Y): -5.53
• Revenue Growth: -2.30%
• EPS Growth: N/A
• Country: CA
• Employees: 85
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.00
• Shares Outstanding: 495,975,100
• 10 Day Avg. Volume: 87,184
• 30 Day Avg. Volume: 94,616
• PEG Ratio: 0.27
• Price to Book (P/B): -1.07
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 2.94
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: C$0.02 ▲(50.00% Upside)

The score is primarily constrained by elevated financial risk from negative equity and meaningful debt despite improving profitability and positive free cash flow. Technicals show a modest uptrend but with mixed momentum signals, while valuation is broadly neutral with a moderate P/E and no dividend yield support.

Positive Factors

Improving Cash Generation

Sustained positive operating and free cash flow signals the business can fund operations internally and modestly service liabilities. Over 2–6 months this improves financial optionality for capex, working capital, and gradual deleveraging without relying solely on external financing.

Profitability Turnaround

A demonstrated move from losses to positive net income indicates operational fixes and cost discipline are taking hold. If management sustains controls, even thin margins can support reinvestment and stable operations while the company seeks top-line stabilization and margin expansion.

Strong Nevada Market Presence

A recognized brand and leading position in Nevada give durable competitive advantages in a fragmented retail market. Consistent local rankings and repeated profitability in core markets support steady cash flow and provide a platform to scale products as regulatory changes expand U.S. opportunities.

Negative Factors

Negative Equity & High Leverage

Negative equity and material debt levels materially increase solvency risk and constrain strategic flexibility. Over the medium term this limits ability to raise secured financing, restricts investment, and makes the company vulnerable to refinancing or covenant pressures during industry or cash-flow stress.

Declining Revenue

A persistent top-line decline undermines margin recovery and makes recent profitability fragile. Without revenue stabilization or growth, fixed-cost leverage and market-share erosion could reverse gains, limiting long-term cash generation and the ability to invest in product or distribution expansion.

Debenture Maturity & Liquidity Risk

Reliance on converting unsecured debentures to equity to avoid cash repayment creates execution and dilution risk. If holders don't convert the company may face restructuring, which could impair creditors and shareholders and limit strategic continuity over the coming months.

1933 Industries Business Overview & Revenue Model

Company Description

1933 Industries Inc., a cannabis company, engages in the cultivation and production of cannabis products in the United States and Canada. The company produces, packages, and markets of cannabidiol (CBD)-infused products. It operates in the medical and recreational cannabis sectors. The company also offers CBD infused products, such as tinctures, vape pens and cartridges, lotions, pain creams, gummies, and capsules under the Canna Hemp and Canna Hemp X brands. In addition, it provides cannabis flowers and concentrates. The company offers CBD infused products through retail dispensaries, retail outlets, and e-commerce platform. 1933 Industries Inc. was formerly known as Friday Night Inc. and changed its name to 1933 Industries Inc. in September 2018. The company is headquartered in Vancouver, Canada.

How the Company Makes Money

1933 Industries generates revenue through a multi-faceted business model that includes the sale of cannabis products and branded goods. The company operates cultivation facilities to produce high-quality cannabis flower and uses this raw material to create a range of products, including concentrates, edibles, and topicals. It sells these products through both wholesale and retail channels, targeting dispensaries and end consumers. Additionally, 1933 Industries collaborates with other brands and engages in licensing agreements to expand its product offerings and market reach. These partnerships and the company's integrated supply chain contribute significantly to its earnings by ensuring product availability and brand presence in key markets.

1933 Industries Financial Statement Overview

Summary

1933 Industries faces challenges with declining revenues and consistent net losses. The income statement indicates issues with profitability, and the balance sheet reveals financial instability due to high debt levels and negative equity. Cash flow shows some operational strength, but not enough to offset overall financial concerns.

Income Statement

The company shows a declining trend in revenue and profitability metrics. The TTM Gross Profit Margin is around 10.8% and the Net Profit Margin is negative, indicating consistent losses. Revenue growth is negative, reflecting a decrease from the previous period. These factors highlight challenges in sustaining profitability and revenue growth.

Balance Sheet

The company has a high Debt-to-Equity ratio due to negative stockholders' equity, indicating financial instability. Return on Equity is not meaningful due to negative equity. The Equity Ratio is negative, underscoring the company's reliance on debt financing. Overall, the balance sheet reflects significant financial risk.

Cash Flow

Positive operating cash flow suggests some ability to generate cash, but the Free Cash Flow Growth is inconsistent, with a slight improvement in the latest period. The Operating Cash Flow to Net Income Ratio is positive, suggesting better cash generation relative to reported losses. However, cash flow sustainability remains a concern.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.45M	19.35M	18.27M	12.54M	11.98M
Gross Profit	5.16M	2.94M	-4.22M	2.69M	4.82M
EBITDA	1.01M	313.67K	-10.03M	-13.83M	-2.71M
Net Income	-217.04K	-1.14M	-13.36M	-18.07M	-6.29M
Balance Sheet
Total Assets	16.80M	16.87M	18.02M	29.01M	45.35M
Cash, Cash Equivalents and Short-Term Investments	545.98K	449.18K	1.09M	363.27K	4.41M
Total Debt	17.60M	16.78M	17.57M	17.68M	17.87M
Total Liabilities	21.40M	21.70M	23.28M	21.49M	20.12M
Stockholders Equity	-4.60M	-3.53M	-3.69M	8.52M	25.99M
Cash Flow
Free Cash Flow	1.67M	801.71K	-2.33M	-5.10M	-5.12M
Operating Cash Flow	1.84M	1.69M	-1.53M	-5.09M	-4.67M
Investing Cash Flow	-169.22K	-890.78K	2.33M	1.58K	-456.36K
Financing Cash Flow	-1.58M	-1.46M	-266.55K	1.53M	6.06M

1933 Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TGIF	50 Neutral	C$4.96M	13.64	―	―	-2.30%	―
PCLO	44 Neutral	C$15.39M	-2.93	―	―	15.64%	58.47%
DHB	43 Neutral	C$7.03M	-8.33	-17.81%	―	13.01%	-2445.45%
SE	43 Neutral	C$6.59M	-3.63	―	―	-100.00%	-192.62%
BBM	42 Neutral	C$4.95M	-2.70	-150.44%	―	55.74%	-27.59%

1933 Industries Corporate Events

1933 Industries Cuts Debt via Debenture Conversions but Warns on Liquidity Strain

1933 Industries has announced that holders converted $1.035 million of its unsecured 2024 convertible debentures into equity units by the December 22, 2025 deadline, leaving $1.563 million in debentures still outstanding. The conversions have reduced the company’s debt load and bolstered its balance sheet, but management warns that available cash remains tightly constrained and is needed to fund day-to-day operations, meaning the company lacks sufficient liquidity to repay the remaining debentures in cash without jeopardizing business continuity, underscoring ongoing financial pressures despite recently reported positive operating results and net income.

The most recent analyst rating on (TSE:TGIF) stock is a Hold with a C$0.01 price target. To see the full list of analyst forecasts on 1933 Industries stock, see the TSE:TGIF Stock Forecast page.

1933 Industries Extends Profit Streak as Cost Cuts and Debt Buyback Bolster Q1 2026 Results

1933 Industries reported its third consecutive profitable quarter, posting Q1 2026 net income of $139,219 and comprehensive income of $167,249 on revenue of $4.0 million, supported by a gross profit of $1.0 million and a 25% gross margin. The company sharply cut expenses to $0.8 million from $1.9 million a year earlier through cost-saving initiatives, repurchased and cancelled $475,000 in principal value of unsecured convertible debentures at a discount, and saw the expiry of a significant block of stock options and warrants, collectively improving its cost structure and balance sheet while maintaining its position as a top-five cannabis brand in Nevada amid a shifting U.S. regulatory landscape.

1933 Industries Urges Debenture Conversion as U.S. Cannabis Reforms Gather Pace

1933 Industries has issued an urgent reminder to holders of its unsecured 2024 convertible debentures that they must elect to convert on or before December 22, 2025, well ahead of the December 31 maturity date, as stipulated in the debenture agreement. The board has concluded the company cannot repay the debentures in cash without jeopardizing liquidity and business continuity, and is strongly advocating conversion into equity at $0.05 per unit (each unit comprising one common share and one warrant), arguing that this outcome best preserves value for debenture holders and shareholders and reduces the risk of creditor protection proceedings that could leave unsecured creditors with lower recoveries. The company frames the conversion as a key step in strengthening its balance sheet and supporting its operating and growth strategy at a time when the sector may be on the cusp of a more favorable regulatory environment. Management highlights a recent U.S. executive order to reclassify cannabis from Schedule I to Schedule III as a potentially transformative development that could ease tax burdens, improve banking access, and lower administrative costs for cannabis operators, and says it is reassessing its Canna Hemp assets with a view to reintroducing those products to market. 1933 Industries maintains that successful debenture conversion, combined with these regulatory tailwinds, would materially improve liquidity and position the company to capitalize on emerging opportunities in the evolving cannabis landscape.

1933 Industries Urges Debenture Holders to Convert as Maturity Approaches

1933 Industries has announced that its unsecured convertible debentures issued in 2024 will mature on December 31, 2025, urging holders to convert them into equity to strengthen liquidity and support operations. With substantial financial improvements and profitable performance in the past fiscal year, the company aims to reduce financial risk and align debenture holders with equity holders as part of its growth strategy.

1933 Industries Achieves Positive Income and Strong Market Position in Fiscal 2025

1933 Industries reported positive financial results for Fiscal 2025, achieving a net income before taxes of $0.03 million and a comprehensive income of $0.2 million, marking a significant improvement from the previous year’s losses. The company delivered $17.4 million in revenue and a record gross profit of $5.4 million, with a gross margin of 26%. Despite challenges such as market competition and pricing compression, 1933 Industries maintained strong sales and ranked among the top five cannabis brands in Nevada. The company attributes its success to operational improvements, disciplined financial controls, and a strong brand presence, positioning it well for future growth.