cbdMD (YCBD) AI Stock Analysis

• Market Cap: $7.75M
• Dividend Yield: N/A
• Average Volume (3M): 94.99K
• Price to Earnings (P/E): ―
• Beta (1Y): <0.01
• Revenue Growth: -9.22%
• EPS Growth: 89.90%
• Country: US
• Employees: 42
• Sector: Healthcare
• Sector Strength: 49
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -1.90
• Shares Outstanding: 8,908,406
• 10 Day Avg. Volume: 63,236
• 30 Day Avg. Volume: 94,991
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.86
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 0.95
• Enterprise Value/Ebitda: -2.58
• 1Y Price Target: $3.00
• Price Target Upside: 244.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 40 Underperform
• Price Target: $1.00 ▲(14.94%Upside)

The overall stock score of 40 reflects significant financial struggles and bearish technical indicators. Although there are strategic improvements, persistent financial and operational challenges weigh heavily on the stock's outlook.

Positive Factors

Capital Structure

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.

Product Expansion

The early commercial traction of YCBD's Herbal Oasis line of THC-infused social tonics is encouraging, with initial sales recorded and expanded distribution into four states.

Revenue Growth

CbdMD's sequential revenue growth and lower-than-expected operating expenses in F1Q25 reflect the success of its refined marketing and expense management initiatives.

Negative Factors

Financial Performance

F2Q25 results fell short of expectations due to marketing inefficiencies and inventory shortages, creating temporary commercial bottlenecks.

Price Target Adjustment

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.

Regulatory Compliance

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 around direct-to-consumer sales via its e-commerce platform, as well as through wholesale and retail partnerships. Key revenue streams include the sale of consumable CBD products such as tinctures and edibles, as well as topical products. cbdMD also benefits from its brand recognition and marketing efforts, which help drive consumer interest and sales. Significant factors contributing to its earnings include strategic partnerships with athletes and influencers who promote the brand, as well as expanding its product line to meet consumer demands.

cbdMD Financial Statement Overview

Summary

cbdMD faces significant financial challenges with negative net income, high leverage, and negative cash flows. Consistent losses and declining revenues indicate a need for strategic improvement in profitability and cash flow management.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	19.59M	19.48M	24.16M	35.40M	44.48M	41.88M
Gross Profit	12.22M	12.00M	14.98M	22.34M	29.99M	26.37M
EBITDA	1.41M	-1.49M	-20.01M	-15.48M	-22.01M	-16.86M
Net Income	-1.16M	-3.70M	-22.94M	-74.09M	-23.39M	12.60M
Balance Sheet
Total Assets	0.00	10.58M	16.20M	40.79M	124.88M	110.84M
Cash, Cash Equivalents and Short-Term Investments	0.00	2.45M	1.80M	7.72M	27.44M	15.10M
Total Debt	744.96M	1.27M	3.68M	4.87M	6.07M	8.68M
Total Liabilities	400.14M	8.62M	7.16M	9.37M	21.74M	31.66M
Stockholders Equity	665.80M	1.96M	9.03M	31.42M	103.14M	79.18M
Cash Flow
Free Cash Flow	-686.97M	-642.81K	-4.60M	-15.66M	-16.44M	-11.98M
Operating Cash Flow	-506.97M	-352.79K	-4.30M	-14.97M	-14.09M	-10.66M
Investing Cash Flow	-180.00M	-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: 0.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 0.87 is below the 20-day moving average (MA) of 0.90, below the 50-day MA of 1.17, and below the 200-day MA of 2.93, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 38.79 is Neutral, neither overbought nor oversold. The STOCH value of 46.97 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	$47.85B	66.77	1.50%	4.26%	1.92%	6.40%
Sector *	60 Neutral	HK$15.46B	5.45	-7.43%	6.25%	11.72%	-20.69%
SNDL	52 Neutral	$313.93M	―	-9.20%	―	-3.02%	26.00%
TLRY	44 Neutral	$403.85M	―	-31.06%	―	11.22%	-108.58%
FLGC	42 Neutral	$15.01M	―	-336.65%	―	-28.78%	86.97%
YCBD	40 Underperform	$7.75M	―	-8.46%	―	-9.22%	89.90%
SHPH	32 Underperform	$3.70M	―	-346.19%	―	―	-7.18%

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.

The most recent analyst rating on (YCBD) stock is a Buy with a $2.00 price target. To see the full list of analyst forecasts on cbdMD stock, see the YCBD Stock Forecast page.

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.