cbdMD (YCBD) AI Stock Analysis

• Market Cap: $801.64K
• Dividend Yield: N/A
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.04
• Revenue Growth: -18.02%
• EPS Growth: 78.28%
• Country: US
• Employees: 42
• Sector: Healthcare
• Sector Strength: 54
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -1.76
• Shares Outstanding: 6,262,833
• 10 Day Avg. Volume: 806,030
• 30 Day Avg. Volume: 1,074,048
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 0.06
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.00
• Price Target Upside: 132.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

cbdMD's overall stock score reflects substantial financial struggles, including negative income, high debt, and liquidity issues. The technical analysis indicates bearish momentum. Despite positive developments noted in the earnings call, such as achieving profitability and debt-free status, these are overshadowed by broader financial challenges and valuation concerns, leading to a low overall score.

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 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 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 is experiencing significant financial challenges across all aspects of its financial statements. The company reports consistent losses, a high debt-to-equity ratio, and negative cash flows, indicating severe liquidity issues and the need for a strategic turnaround.

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
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
19.48M	24.16M	35.40M	44.48M	41.88M
	Gross Profit
12.00M	14.98M	22.34M	29.99M	26.37M
	EBIT
-3.32M	-9.27M	35.81M	-19.62M	-17.58M
	EBITDA
-1.49M	-7.47M	-15.48M	-22.01M	-16.86M
	Net Income Common Stockholders
-3.70M	-22.94M	-74.09M	-23.39M	12.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.45M	1.80M	7.72M	27.44M	15.10M
	Total Assets
10.58M	16.20M	40.79M	124.88M	110.84M
	Total Debt
1.27M	3.68M	4.87M	6.07M	8.68M
	Net Debt
-1.18M	1.89M	-1.85M	-20.34M	-6.14M
	Total Liabilities
8.62M	7.16M	9.37M	21.74M	31.66M
	Stockholders Equity
1.96M	9.03M	31.42M	103.14M	79.18M
Cash Flow		Free Cash Flow
-642.81K	-4.60M	-15.66M	-16.44M	-11.98M
	Operating Cash Flow
-352.79K	-4.30M	-14.97M	-14.09M	-10.66M
	Investing Cash Flow
-290.01K	702.45K	-688.68K	-2.55M	-1.57M
	Financing Cash Flow
1.30M	-1.32M	-4.04M	28.23M	22.37M

cbdMD Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.86
• 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 YCBD, the sentiment is Negative. The current price of 0.86 is below the 20-day moving average (MA) of 1.71, below the 50-day MA of 2.10, and below the 200-day MA of 3.50, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 25.24 is Positive, neither overbought nor oversold. The STOCH value of 7.39 is Positive, 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	$48.96B	35.57	2.87%	3.89%	1.92%	6.40%
Sector *	52 Neutral	$5.21B	3.55	-41.91%	2.83%	15.12%	0.42%
SNDL	52 Neutral	$337.06M	―	-9.20%	―	-3.02%	26.00%
TLRY	44 Neutral	$424.87M	―	-31.06%	―	11.22%	-108.58%
FLGC	43 Neutral	$11.08M	―	-291.50%	―	-22.58%	82.94%
SHPH	32 Underperform	$1.71M	―	-383.84%	―	―	-7.18%
YCBD	28 Underperform	$801.64K	―	-60.98%	―	-18.02%	78.28%

cbdMD Corporate Events

cbdMD Executes Stock Conversion and Reverse Split

On May 6, 2025, cbdMD executed significant changes to its stock structure. The company converted its 8% Series A Cumulative Convertible Preferred Stock into 65,000,000 shares of Common Stock, following shareholder approval on April 10, 2025. This conversion ceased dividend accruals and trading of the Preferred Stock on the NYSE American. Additionally, cbdMD implemented a one-for-8 reverse stock split of its Common Stock, effective immediately after the conversion, which also received shareholder approval. This split adjusted the CUSIP number and affected all shareholders uniformly, ensuring no fractional shares were issued.

Spark’s Take on YCBD Stock

According to Spark, TipRanks’ AI Analyst, YCBD is a Neutral.

cbdMD’s overall score reflects significant financial performance challenges with high leverage and negative cash flows. Despite a positive earnings call indicating a financial turnaround and achieving profitability, technical indicators suggest a bearish trend. Valuation remains a concern with negative P/E and no dividend. The company’s need to stabilize cash flows and manage liabilities is critical for future improvement.

To see Spark’s full report on YCBD stock, click here.