Adastra Labs Holdings Ltd. (XTRX) AI Stock Analysis

• Market Cap: C$1.18M
• Dividend Yield: N/A
• Average Volume (3M): 323.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: -15.50%
• EPS Growth: -309.59%
• Country: CA
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 5,597,050
• 10 Day Avg. Volume: 51
• 30 Day Avg. Volume: 323
• PEG Ratio: >-0.01
• Price to Book (P/B): 8.69
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 30.71
• 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: 39 Underperform
• Price Target: C$0.00 ▼(-100.00% Downside)

Adastra Labs Holdings Ltd. is facing significant financial challenges, with declining revenue, persistent losses, and high leverage. Technical indicators suggest bearish momentum, and the valuation is unattractive due to a negative P/E ratio and no dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Product Diversification

The company's focus on diverse cannabis products, including extracts and oils, positions it to meet varied consumer needs, enhancing market resilience.

Revenue Model

A multi-channel revenue model, including direct sales and partnerships, supports stable income streams and market adaptability.

Market Competitiveness

Developing unique formulations enhances competitiveness, allowing the company to capture emerging market trends and consumer demands.

Negative Factors

Declining Revenue

Consistent revenue decline indicates challenges in market demand or competitive positioning, potentially impacting long-term growth.

High Leverage

High leverage and negative equity pose risks to financial stability, limiting the company's ability to invest in growth and innovation.

Cash Flow Challenges

Inefficient cash generation can strain operations and limit financial flexibility, affecting the company's ability to sustain operations.

Adastra Labs Holdings Ltd. Business Overview & Revenue Model

Company Description

Adastra Labs Holdings Ltd. (XTRX) is a Canadian company focused on the research, development, and production of cannabis-related products and services. Operating primarily in the cannabis sector, Adastra Labs engages in the extraction and formulation of cannabis-derived products, offering a range of solutions tailored for both recreational and medical markets. The company's portfolio includes high-quality cannabis extracts, oils, and other innovative products designed to meet the diverse needs of consumers.

How the Company Makes Money

Adastra Labs generates revenue through multiple streams, primarily from the sale of its cannabis extracts and formulated products to both wholesale and retail customers. The company engages in direct sales to licensed cannabis retailers, as well as distribution partnerships with various channels in the cannabis industry. Additionally, Adastra Labs may benefit from contractual agreements for white-label products, where they produce goods for other brands. The company's revenue model is further supported by its ability to develop unique product formulations that cater to evolving consumer preferences, thus enhancing its market competitiveness. Key partnerships with other industry players and compliance with regulatory standards also play a significant role in sustaining and growing its earnings.

Adastra Labs Holdings Ltd. Financial Statement Overview

Summary

Adastra Labs Holdings Ltd. faces significant financial challenges across all verticals. The income statement shows declining revenue and persistent losses, while the balance sheet reflects high leverage and negative equity. Cash flow issues further compound the company's financial difficulties, indicating a need for strategic improvements to stabilize and enhance financial performance.

Income Statement

Adastra Labs Holdings Ltd. has experienced a decline in revenue growth, with a negative growth rate of -17.09% in the TTM period. The company has struggled with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin remains positive at 35.73%, but overall, the income statement reflects challenges in achieving profitability and growth.

Balance Sheet

The balance sheet shows a concerning financial position with a negative stockholders' equity, leading to a high and negative debt-to-equity ratio of -11.50. The return on equity is also negative, indicating losses relative to equity. These factors highlight significant financial instability and leverage risks.

Cash Flow

The cash flow statement reveals a negative operating cash flow, but a positive free cash flow. However, the free cash flow growth rate is negative, and the operating cash flow to net income ratio is low, indicating challenges in converting income into cash flow. The free cash flow to net income ratio is also negative, suggesting inefficiencies in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.22M	24.84M	22.22M	13.30M	5.63M	2.50M
Gross Profit	6.87M	8.31M	7.57M	6.11M	1.94M	785.58K
EBITDA	-12.54M	-11.21M	-1.41M	-2.62M	-1.39M	-7.07M
Net Income	-13.77M	-13.24M	-3.54M	-4.28M	-2.75M	-8.07M
Balance Sheet
Total Assets	16.18M	19.34M	32.34M	31.80M	28.76M	13.74M
Cash, Cash Equivalents and Short-Term Investments	435.66K	1.30M	1.38M	1.01M	744.54K	1.15M
Total Debt	3.62M	3.62M	3.64M	3.95M	3.59M	2.50M
Total Liabilities	16.50M	17.89M	17.66M	13.57M	6.38M	3.65M
Stockholders Equity	-315.01K	1.45M	14.69M	18.23M	22.37M	10.09M
Cash Flow
Free Cash Flow	80.75K	410.06K	1.18M	694.07K	-1.64M	-4.63M
Operating Cash Flow	-96.07K	826.23K	1.86M	1.32M	-1.05M	-2.83M
Investing Cash Flow	-589.84K	-416.18K	-681.05K	-1.03M	-262.81K	-1.79M
Financing Cash Flow	-154.27K	-492.29K	-815.12K	-22.55K	915.98K	3.40M

Adastra Labs Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:XTRX, the sentiment is Negative. The current price of 0.21 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.24, and below the 200-day MA of 0.28, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 28.79 is Positive, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:XTRX.

Adastra Labs Holdings Ltd. 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%
XTRX	39 Underperform	C$1.18M	―	-209.59%	―	-15.50%	-309.59%
CVGR	20 Underperform	$3.20M	-5.04	―	―	―	77.83%

Adastra Labs Holdings Ltd. Corporate Events

Adastra Holdings Completes Subsidiary Sale to Streamline Operations

Adastra Holdings Ltd. has completed the sale of its subsidiaries, Adastra Labs Holdings (2019) Ltd., 1178562 B.C. Ltd., and Adastra Brands Inc., to 1538634 B.C. Ltd. for a total of $4,000,000. This strategic move, which includes leaseback and intellectual property licensing agreements, is aimed at strengthening the company’s balance sheet, reducing debt, and streamlining operations while allowing Adastra to continue operating from its current facility and retain the use of its established brands and trademarks.

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

Adastra Holdings to Sell Subsidiaries in Strategic Move

Adastra Holdings Ltd. has announced agreements to sell its subsidiaries, Adastra Labs Holdings (2019) Ltd., 1178562 B.C. Ltd., and Adastra Brands Inc., for a total consideration of $4 million. This move is part of the company’s strategy to strengthen its balance sheet, reduce debt, and streamline operations. The sale includes a leaseback agreement and an intellectual property licensing deal, allowing Adastra to continue operating from its existing facility and retain the use of its established brands. These transactions are expected to be completed soon, subject to customary closing conditions.

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