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cbdMD (YCBD)
:YCBD
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cbdMD
(NYSE MKT:YCBD)
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Rating:39Underperform
Price Target:
$0.50
▼(-66.22% Downside)
The overall stock score is heavily impacted by significant financial challenges, including negative income and cash flows, high leverage, and declining revenues. Technical analysis provides some mixed signals, but the long-term trend remains bearish. Valuation metrics further highlight the company's financial struggles, with a negative P/E ratio and no dividend yield.
Positive Factors
Direct-to-Consumer Model
The direct-to-consumer model enhances customer reach and margin control, providing a sustainable competitive advantage in distribution.
Branding and Customer Education
Strong branding and customer education efforts can lead to increased customer loyalty and market share in the growing CBD industry.
Product Diversification
Product diversification allows cbdMD to cater to various customer needs, reducing dependency on a single product line and enhancing resilience.
Negative Factors
High Leverage
High leverage can strain financial flexibility and increase vulnerability to economic downturns, impacting long-term stability.
Negative Cash Flows
Negative cash flows indicate liquidity challenges, limiting the company's ability to invest in growth and cover operational expenses sustainably.
Declining Revenues
Declining revenues suggest potential market challenges and reduced demand, impacting long-term growth prospects and profitability.
cbdMD (YCBD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.59M
Dividend YieldN/A
Average Volume (3M)7.29M
Price to Earnings (P/E)―
Beta (1Y)0.11
Revenue Growth-7.80%
EPS Growth90.17%
CountryUS
Employees42
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.21
Shares Outstanding8,912,959
10 Day Avg. Volume21,715,984
30 Day Avg. Volume7,291,287
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.44
Enterprise Value/Revenue0.27
Enterprise Value/Gross Profit0.43
Enterprise Value/Ebitda-25.18
Forecast
1Y Price Target
$1.25Price Target Upside-15.54% Downside
Rating ConsensusHold
Number of Analyst Covering2
cbdMD Business Overview & Revenue Model
Company DescriptioncbdMD, 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 MoneycbdMD 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 Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Dec 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted successful capital restructuring and cost reductions, along with growth in wholesale revenue and an award-winning product launch. However, challenges include a decrease in total net sales, flat e-commerce revenue, and a negative working capital position.Q2-2025 Updates
Positive Updates
Successful Capital Restructuring
The conversion of Series A preferred stock into common stock was successfully completed, eliminating $6.7 million in accrued dividends and simplifying the capital structure. This raised the pro forma non-GAAP adjusted book value from approximately $670,000 to over $7 million.
Wholesale Revenue Growth
Wholesale revenue increased by 22% in the second quarter of fiscal 2025 compared to the same period in 2024, reaching $1.1 million.
Cost Reductions
SG&A expenses for Q2 2025 were reduced to $3.5 million from $4.1 million in the prior year, primarily due to reductions in payroll, professional fees, and the elimination of the headquarters lease.
Improvement in Non-GAAP Adjusted EBITDA
The non-GAAP adjusted EBITDA loss improved to $197,000 for Q2 2025 compared to a $680,000 loss in Q2 2024.
Award-Winning Herbal Oasis Brand
Herbal Oasis, a hemp-derived THC seltzer brand, received awards at the 2025 High Spirits Award and expanded distribution in several states.
Negative Updates
Decrease in Total Net Sales
Total net sales decreased by 7.9% from Q1 to Q2 of fiscal 2025, with total sales of $4.7 million.
Flat E-commerce Revenue
E-commerce sales were flat year-over-year, generating $3.6 million in the second quarter of fiscal 2025.
Increase in Warehouse Rent and CAM Costs
Increased warehouse rent and one-time CAM costs impacted the financials, though gross profit remained healthy at 62%.
Negative Working Capital
The company reported a working capital deficit of approximately negative $3.7 million as of March 31, 2025.
Company Guidance
In the recent cbdMD, Inc. conference call discussing fiscal year 2025 second-quarter results, the company provided several key metrics and strategic updates. The company's revenue for the second quarter was $4.7 million, marking an 8.6% increase from the previous year's comparable quarter, although it represented a 7.9% decrease from the first quarter of fiscal 2025. The direct-to-consumer e-commerce sales accounted for $3.6 million, or 77% of total net sales, while wholesale business revenue was up by 22% year-over-year, reaching $1.1 million. The company's gross profit margin remained strong at 62%, despite increased warehouse rent and CAM costs. Operating losses were reduced to approximately $485,000 from $1.5 million in the previous year. The non-GAAP adjusted EBITDA loss was $197,000, a marked improvement from a $680,000 loss in the prior year. The company reported cash and cash equivalents of about $1.7 million, with a working capital deficit of $3.7 million. The strategic focus on restructuring has led to a significant improvement in the capital structure, with the conversion of Series A Preferred Stock into common stock, raising the book value to over $7 million and eliminating $4 million in annual dividends. The company also highlighted its growth initiatives, including the expansion of its Herbal Oasis THC seltzer brand and a commitment to profitability by year-end, alongside exploring strategic opportunities through potential mergers and acquisitions.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.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 | 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
Positive
1.48
Price Trends
0.82
Positive
0.87
Positive
1.88
Negative
Market Momentum
0.15
Negative
72.92
Negative
53.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YCBD, the sentiment is Positive. The current price of 1.48 is above the 20-day moving average (MA) of 0.88, above the 50-day MA of 0.82, and below the 200-day MA of 1.88, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 72.92 is Negative, neither overbought nor oversold. The STOCH value of 53.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $658.94M | ― | -8.30% | ― | 0.70% | 15.62% | |
56 Neutral | $45.34B | 47.80 | 1.99% | 4.13% | 1.36% | -1.81% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $1.75B | ― | -88.27% | ― | 4.10% | -594.06% | |
44 Neutral | $14.08M | ― | -230.73% | ― | -24.10% | 38.17% | |
39 Underperform | $11.59M | ― | -33.13% | ― | -7.80% | 90.17% | |
32 Underperform | $4.62M | ― | -551.04% | ― | ― | 31.53% |
* Healthcare Sector Average
YCBD
cbdMD
1.48
-2.20
-59.78%
TLRY
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1.71
0.06
3.64%
TAK
Takeda Pharmaceutical Company
14.46
0.46
3.29%
SNDL
SNDL
2.65
0.71
36.60%
FLGC
Flora Growth
18.07
-49.40
-73.22%
SHPH
Shuttle Pharmaceuticals Holdings, Inc.
4.20
-23.05
-84.59%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.