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cbdMD (YCBD)
:YCBD
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cbdMD
(NYSE MKT:YCBD)
37Underperform
Positive Factors
Market Expansion
The launch of Herbal Oasis Social Tonics provides access to the rapidly growing cannabis beverage market.
Revenue Growth
Sequential revenue growth and lower-than-expected operating expenses reflect the success of refined marketing and expense management initiatives.
Negative Factors
Capital Structure Concerns
Concerns remain with capital structure, leading to quarterly increases in accrued dividend liabilities and non-compliance with NYSE American’s minimum shareholder’s equity continued listing standard.
Noncompliance
Management received a notification of noncompliance with the NYSE's minimum shareholder's equity requirement.
cbdMD (YCBD) vs. S&P 500 (SPY)
Market Cap
$1.65M
Dividend YieldN/A
Average Volume (3M)891.12K
Price to Earnings (P/E)―
Beta (1Y)0.07
Revenue Growth-18.02%
EPS Growth78.28%
CountryUS
Employees42
SectorHealthcare
Sector Strength69
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-2.01
Shares Outstanding6,262,833
10 Day Avg. Volume316,821
30 Day Avg. Volume891,122
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.09
Price to Cash Flow (P/CF)-7.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.00Price Target Upside669.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
cbdMD Business Overview & Revenue Model
Company DescriptioncbdMD (YCBD) is a leading company in the wellness industry, specializing in the production and distribution of premium CBD (cannabidiol) products. The company offers a wide range of items, including CBD tinctures, gummies, capsules, topicals, and bath products, aiming to enhance overall health and well-being. cbdMD is committed to quality and transparency, utilizing U.S.-grown hemp and third-party lab testing to ensure the purity and potency of its products.
How the Company Makes MoneycbdMD makes money primarily through the sale of its CBD-based products. The company's revenue model is centered on direct-to-consumer sales through its e-commerce platform, offering customers a convenient way to purchase their products online. Additionally, cbdMD engages in wholesale distribution, partnering with various retail outlets, including health and wellness stores, to reach a broader market. The company's revenue is further bolstered by strategic partnerships and collaborations that enhance brand visibility and expand distribution channels. Key factors contributing to its earnings include a strong brand reputation, high-quality product offerings, and a growing consumer interest in CBD for wellness purposes.
cbdMD Financial Statement Overview
Summary
cbdMD faces significant financial challenges with negative net income and EBIT, high leverage, and negative cash flows. Revenues have been declining, and the balance sheet shows high debt-to-equity ratios. Severe liquidity issues are evident with negative operating and free cash flows.Income Statement
The income statement reveals significant challenges with negative net income and EBIT over time, signaling ongoing profitability issues. The TTM (Trailing-Twelve-Months) data shows a negative EBIT margin, indicating the company is not generating operating profits. Revenues have been declining, with the latest TTM figure substantially lower than prior periods, reflecting negative growth trends and potential market challenges.21
Negative
Balance Sheet
The balance sheet shows a concerningly high debt-to-equity ratio in recent periods, indicating high leverage and potential financial risk. Stockholders' equity has decreased significantly, impacting the equity ratio adversely. Despite a substantial increase in total debt, the company has maintained some equity, though the financial stability remains questionable with high liabilities relative to equity.36
Negative
Cash Flow
Cash flow analysis highlights severe issues with negative operating and free cash flows, indicating the company is not generating sufficient cash to cover its operations and capital expenditures. The TTM data shows a substantial negative free cash flow, suggesting liquidity challenges. The operating cash flow to net income ratio is unfavorable, reinforcing concerns about cash management and sustainability.15
Very Negative
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.13B | 19.48M | 24.16M | 35.40M | 44.48M | 41.88M | Gross Profit |
| 3.41B | 12.00M | 14.98M | 22.34M | 29.99M | 26.37M | EBIT |
| -88.52M | -3.32M | -9.27M | 35.81M | -19.62M | -17.58M | EBITDA |
| -87.13M | -1.49M | -7.47M | -15.48M | -22.01M | -16.86M | Net Income Common Stockholders |
| -3.69M | -3.70M | -22.94M | -74.09M | -23.39M | 12.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.97M | 2.45M | 1.80M | 7.72M | 27.44M | 15.10M | Total Assets |
| 11.54M | 10.58M | 16.20M | 40.79M | 124.88M | 110.84M | Total Debt |
| 1.63M | 1.27M | 3.68M | 4.87M | 6.07M | 8.68M | Net Debt |
| -344.85K | -1.18M | 1.89M | -1.85M | -20.34M | -6.14M | Total Liabilities |
| 9.76M | 8.62M | 7.16M | 9.37M | 21.74M | 31.66M | Stockholders Equity |
| 1.78M | 1.96M | 9.03M | 31.42M | 103.14M | 79.18M |
| Cash Flow | Free Cash Flow | ||||
| -834.63K | -642.81K | -4.60M | -15.66M | -16.44M | -11.98M | Operating Cash Flow |
| -564.86K | -352.79K | -4.30M | -14.97M | -14.09M | -10.66M | Investing Cash Flow |
| -164.49M | -290.01K | 702.45K | -688.68K | -2.55M | -1.57M | Financing Cash Flow |
| 1.30M | 1.30M | -1.32M | -4.04M | 28.23M | 22.37M |
cbdMD Technical Analysis
Neutral
0.26
Price Trends
0.31
Negative
0.40
Negative
0.46
Negative
Market Momentum
-0.02
Negative
48.50
Neutral
86.52
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YCBD, the sentiment is Neutral. The current price of 0.26 is above the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.31, and below the 200-day MA of 0.46, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.50 is Neutral, neither overbought nor oversold. The STOCH value of 86.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for YCBD.
cbdMD Risk Analysis
cbdMD disclosed 37 risk factors in its most recent earnings report. cbdMD reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
cbdMD Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $47.16B | 34.76 | 2.87% | 3.90% | 1.92% | 6.40% | |
60 Neutral | $383.38M | ― | -8.00% | ― | -2.89% | 47.06% | |
51 Neutral | $5.32B | 3.41 | -40.36% | 2.89% | 17.93% | 2.52% | |
44 Neutral | $491.57M | ― | -31.06% | ― | 11.22% | -108.58% | |
42 Neutral | $11.27M | ― | -291.50% | ― | -22.58% | 82.94% | |
37 Underperform | $1.65M | ― | -60.98% | ― | -18.02% | 78.28% | |
32 Underperform | $1.94M | ― | -383.84% | ― | ― | -7.18% |
* Healthcare Sector Average
Performance Comparison
YCBD
cbdMD
0.26
-0.64
-71.11%
TLRY
Tilray
0.49
-1.28
-72.32%
TAK
Takeda Pharmaceutical Company
15.03
2.38
18.81%
SNDL
SNDL
1.49
-0.52
-25.87%
FLGC
Flora Growth
0.58
-0.70
-54.69%
SHPH
Shuttle Pharmaceuticals Holdings, Inc.
0.31
-2.83
-90.13%
cbdMD Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -54.39% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with significant financial improvements, including achieving profitability and debt-free status. While e-commerce revenue declined, the company showed strong growth in wholesale sales and has promising developments with its Oasis line. The reduction in SG&A expenses and successful cost management highlight a strong focus on financial discipline.Highlights
Positive Net Income and EBITDA
cbdMD achieved positive net income of $15,000 and a positive non-GAAP adjusted EBITDA of $214,000 for the first time in company history, marking a significant turnaround from previous losses.
Revenue Growth
Total net sales for the first quarter of fiscal 2025 were $5.1 million, a 12% increase from the fourth quarter and the prior year comparative quarter.
Wholesale Business Increase
The wholesale business saw a 22% increase in net sales, reaching $1.1 million compared to $950,000 in the previous year.
Cost Reduction Achievements
SG&A expenses decreased to $3.4 million from $4.6 million in the prior year, highlighting successful cost-saving initiatives.
Oasis Social Tonic Line Progress
The Oasis social tonic line has been well received and is in final contract negotiations with multiple distributors, signaling a potential for significant growth.
Debt-Free Status
The remaining balances of the company's convertible notes were converted to common stock, resulting in a debt-free status.
Lowlights
E-commerce Revenue Decrease
E-commerce direct-to-consumer sales were $3.9 million, a 10% year-over-year decrease, with e-commerce representing a smaller percentage of total net sales compared to the previous year.
Working Capital Challenges
Working capital was approximately negative $2.8 million as of December 31, 2024, compared to a deficit of $2.2 million on September 30, 2024.
Company Guidance
During the fiscal first quarter of 2025 earnings call, cbdMD reported a notable financial performance, achieving a positive net income for the first time and a non-GAAP adjusted EBITDA profit of $214,000, as compared to a loss of $698,000 in the same quarter of fiscal 2024. Total net sales increased by 12% year-over-year, reaching $5.1 million, with a gross profit margin holding at 66%. The company significantly reduced SG&A expenses from $4.6 million to $3.4 million, reflecting disciplined cost management. The quarter also saw a 22% rise in wholesale sales, while e-commerce sales constituted 77% of total net sales despite a 10% year-over-year decrease. Additionally, cbdMD has resolved its convertible notes, converting them to common stock and becoming debt-free, excluding ordinary business liabilities. The company also highlighted the successful launch of its Oasis social tonic line and is negotiating with multiple distributors to expand its market presence.cbdMD Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
cbdMD Expands Board with CEO T. Ronan Kennedy
Positive
Dec 23, 2024
cbdMD, Inc. announced the appointment of T. Ronan Kennedy, its current CEO and CFO, to the Board of Directors, expanding it to five members. Under Kennedy’s leadership, the company has stabilized, optimized its cost structure, and improved operational fundamentals, positioning itself for long-term success. His appointment is expected to enhance the company’s strategic capabilities and shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.