cbdMD (YCBD) AI Stock Analysis

• Market Cap: $6.33M
• Dividend Yield: N/A
• Average Volume (3M): 106.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: -7.80%
• EPS Growth: 90.17%
• Country: US
• Employees: 42
• Sector: Healthcare
• Sector Strength: 48
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.21
• Shares Outstanding: 8,912,959
• 10 Day Avg. Volume: 150,891
• 30 Day Avg. Volume: 106,537
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 0.43
• Enterprise Value/Ebitda: -25.18
• 1Y Price Target: $1.50
• Price Target Upside: 114.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 44 Neutral
• Price Target: $1.00 ▲(42.86% Upside)

The overall score reflects significant financial challenges, including negative profitability and high leverage, which are the most impactful factors. While there are some positive developments in capital restructuring and cost reduction, the ongoing financial instability and valuation concerns weigh heavily on the stock's outlook.

Positive Factors

Financial Flexibility

The successful conversion of Series A preferred stock into common equity is seen as a significant milestone, enhancing financial flexibility by eliminating all accrued and future dividend obligations.

Marketing and Product Momentum

The company has improved marketing execution, a cleaner capital structure, and growing momentum across its diversified product portfolio, positioning it to return to sales growth and maintain its listing status.

Product Expansion

Herbal Oasis, YCBD's hemp-derived THC beverage brand, recently expanded distribution into Tennessee and Minnesota, with product availability in these markets expected in September.

Negative Factors

Financial Estimates and Stock Target

Due to lower estimates and significant dilution related to the company's automatic preferred-to-common equity conversion, the price target is reduced to $3.00 from $16.00.

Growth Limitations

We expect regulatory headwinds to persist, limiting growth through 2026.

Retail Demand and Regulatory Challenges

F3Q25 results missed expectations, reflecting ongoing softness in retail demand for CBD products, further pressured by state-level regulatory changes and proposals that have heightened uncertainty across the broader cannabinoid retail market and weighed on wholesale performance.

cbdMD Business Overview & Revenue Model

Company Description

cbdMD, Inc. produces and distributes various cannabidiol (CBD) products. The company owns and operates consumer hemp-based CBD brands, such as cbdMD, Paw CBD, and cbdMD Botanicals. Its cbdMD brand products include CDB tinctures, gummies, topicals, capsules, bath bombs, bath salts, and sleep aids. It also offers veterinarian-formulated products, including tinctures, chews, and topicals under the Paw CBD brand name. The company distributes its products through its e-commerce Website, third-party e-commerce sites, wholesalers, and various brick and mortar retailers in the United States. It has a research partnership with the University of Mississippi to identify novel cannabinoids. The company was formerly known as Level Brands, Inc. and changed its name to cbdMD, Inc. in May 2019. cbdMD, Inc. was incorporated in 2015 and is headquartered in Charlotte, North Carolina.

How the Company Makes Money

cbdMD generates revenue primarily through the sale of its CBD products across various categories such as oils, capsules, gummies, topicals, and pet products. The company operates a direct-to-consumer model through its e-commerce platform, allowing it to reach customers nationwide. Additionally, cbdMD has established partnerships with various retailers, providing its products in brick-and-mortar locations, which contributes to revenue growth. The company also leverages subscription services, encouraging repeat purchases and customer loyalty. Furthermore, cbdMD's investment in marketing, including influencer partnerships and educational content, helps drive brand awareness and sales, enhancing its overall earnings.

cbdMD Financial Statement Overview

Summary

cbdMD faces significant financial challenges with negative net income, high leverage, and negative cash flows. The company reports consistent losses and declining revenues, indicating a need for strategic reorientation to improve profitability and financial stability.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.03M	19.48M	24.16M	35.40M	44.48M	41.88M
Gross Profit	11.64M	12.00M	14.98M	22.34M	29.99M	26.37M
EBITDA	-200.98K	-1.49M	-20.01M	-15.48M	-22.01M	-16.86M
Net Income	-2.51M	-3.70M	-22.94M	-74.09M	-23.39M	12.60M
Balance Sheet
Total Assets	9.90M	10.58M	16.20M	40.79M	124.88M	110.84M
Cash, Cash Equivalents and Short-Term Investments	1.06M	2.45M	1.80M	7.72M	27.44M	15.10M
Total Debt	962.74K	1.27M	3.68M	4.87M	6.07M	8.68M
Total Liabilities	3.78M	8.62M	7.16M	9.37M	21.74M	31.66M
Stockholders Equity	6.11M	1.96M	9.03M	31.42M	103.14M	79.18M
Cash Flow
Free Cash Flow	-687.97M	-642.81K	-4.60M	-15.66M	-16.44M	-11.98M
Operating Cash Flow	-507.96M	-352.79K	-4.30M	-14.97M	-14.09M	-10.66M
Investing Cash Flow	-291.37K	-290.01K	702.45K	-688.68K	-2.55M	-1.57M
Financing Cash Flow	1.00	1.30M	-1.32M	-4.04M	28.23M	22.37M

cbdMD Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.70
• 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 YCBD, the sentiment is Negative. The current price of 0.7 is below the 20-day moving average (MA) of 0.80, below the 50-day MA of 0.86, and below the 200-day MA of 2.28, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 38.76 is Neutral, neither overbought nor oversold. The STOCH value of 32.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YCBD.

cbdMD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TAK	71 Outperform	$47.25B	49.51	1.99%	4.05%	1.36%	-1.81%
SNDL	61 Neutral	$635.78M	―	-8.30%	―	0.70%	15.62%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
TLRY	50 Neutral	$1.60B	―	-88.27%	―	4.10%	-594.06%
YCBD	44 Neutral	$6.33M	―	-33.13%	―	-7.80%	90.17%
FLGC	41 Neutral	$12.86M	―	-230.73%	―	-24.10%	38.17%
SHPH	32 Underperform	$3.65M	―	-551.04%	―	―	31.53%

cbdMD Corporate Events

cbdMD Issues Restricted Stock Units to Directors

On May 16, 2025, cbdMD, Inc.’s board of directors issued 1,572 restricted stock units to each independent and non-management employee director as compensation for their services starting April 11, 2025. These units will vest quarterly through March 31, 2026, under the company’s equity compensation plans. Additionally, the board approved annual cash retainers and additional fees for various committee roles, reflecting a structured compensation approach for its directors.