DECIBEL CANNABIS CO INC (DB.CA) Stock Fundamental Analysis
TSX-V:DB - TSX Venture Exchange - CA2434371001 - Common Stock - Currency: CAD
Taking everything into account, DB scores 3 out of 10 in our fundamental rating. DB was compared to 35 industry peers in the Pharmaceuticals industry. Both the profitability and financial health of DB have multiple concerns. DB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DB has reported negative net income.
In the past year DB had a positive cash flow from operations.
DB had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: DB reported negative operating cash flow in multiple years.
1.2 Ratios
DB's Return On Assets of -3.88% is fine compared to the rest of the industry. DB outperforms 62.16% of its industry peers.
Looking at the Return On Equity, with a value of -11.72%, DB is in the better half of the industry, outperforming 62.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.88% | ||
| ROE | -11.72% | ||
| ROIC | N/A |
ROA(3y)-1.01%
ROA(5y)-4.16%
ROE(3y)-3.28%
ROE(5y)-10.75%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of DB (29.28%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DB has declined.
The Profit Margin and Operating Margin are not available for DB so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 29.28% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-13.72%
GM growth 5YN/A
2. Health
2.1 Basic Checks
DB does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, DB has more shares outstanding
The number of shares outstanding for DB has been increased compared to 5 years ago.
The debt/assets ratio for DB has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.80, we must say that DB is in the distress zone and has some risk of bankruptcy.
DB's Altman-Z score of 0.80 is fine compared to the rest of the industry. DB outperforms 75.68% of its industry peers.
DB has a debt to FCF ratio of 10.04. This is a negative value and a sign of low solvency as DB would need 10.04 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 10.04, DB is doing good in the industry, outperforming 67.57% of the companies in the same industry.
A Debt/Equity ratio of 0.82 indicates that DB is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.82, DB is not doing good in the industry: 75.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 10.04 | ||
| Altman-Z | 0.8 |
ROIC/WACCN/A
WACC8.03%
2.3 Liquidity
A Current Ratio of 1.29 indicates that DB should not have too much problems paying its short term obligations.
With a Current ratio value of 1.29, DB is not doing good in the industry: 64.86% of the companies in the same industry are doing better.
DB has a Quick Ratio of 1.29. This is a bad value and indicates that DB is not financially healthy enough and could expect problems in meeting its short term obligations.
DB has a worse Quick ratio (0.41) than 78.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
DB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.22%, which is quite impressive.
DB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.72%.
The Revenue has been growing by 57.06% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)60.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-244.44%
Revenue 1Y (TTM)-16.72%
Revenue growth 3Y57.06%
Revenue growth 5YN/A
Sales Q2Q%-20.14%
3.2 Future
DB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 62.74% yearly.
The Revenue is expected to grow by 7.16% on average over the next years.
EPS Next Y-77.8%
EPS Next 2Y33.34%
EPS Next 3Y25.99%
EPS Next 5Y62.74%
Revenue Next Year-21.83%
Revenue Next 2Y2.64%
Revenue Next 3Y6.91%
Revenue Next 5Y7.16%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
DB is valuated cheaply with a Price/Forward Earnings ratio of 2.76.
DB's Price/Forward Earnings ratio is rather cheap when compared to the industry. DB is cheaper than 97.30% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, DB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.76 |
4.2 Price Multiples
83.78% of the companies in the same industry are more expensive than DB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.63 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as DB's earnings are expected to grow with 25.99% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y33.34%
EPS Next 3Y25.99%
5. Dividend
5.1 Amount
No dividends for DB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:DB (3/7/2025, 7:00:00 PM)
0.075
0 (0%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners5.31%
Ins Owner ChangeN/A
Market Cap43.26M
Analysts82.22
Price Target0.29 (286.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-2.24%
Min Revenue beat(2)-4.91%
Max Revenue beat(2)0.44%
Revenue beat(4)1
Avg Revenue beat(4)-7.62%
Min Revenue beat(4)-13.93%
Max Revenue beat(4)0.44%
Revenue beat(8)4
Avg Revenue beat(8)3.17%
Revenue beat(12)4
Avg Revenue beat(12)-0.39%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.76 | ||
| P/S | 0.46 | ||
| P/FCF | 9.63 | ||
| P/OCF | 7.63 | ||
| P/B | 1.02 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | N/A |
EPS(TTM)0
EYN/A
EPS(NY)0.03
Fwd EY36.27%
FCF(TTM)0.01
FCFY10.39%
OCF(TTM)0.01
OCFY13.1%
SpS0.16
BVpS0.07
TBVpS0.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.88% | ||
| ROE | -11.72% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 29.28% | ||
| FCFM | 4.73% |
ROA(3y)-1.01%
ROA(5y)-4.16%
ROE(3y)-3.28%
ROE(5y)-10.75%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-13.72%
GM growth 5YN/A
F-Score3
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 10.04 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 27.74% | ||
| Cap/Sales | 1.24% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 0.8 |
F-Score3
WACC8.03%
ROIC/WACCN/A
Cap/Depr(3y)86.77%
Cap/Depr(5y)168.22%
Cap/Sales(3y)4.29%
Cap/Sales(5y)9.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)60.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-244.44%
EPS Next Y-77.8%
EPS Next 2Y33.34%
EPS Next 3Y25.99%
EPS Next 5Y62.74%
Revenue 1Y (TTM)-16.72%
Revenue growth 3Y57.06%
Revenue growth 5YN/A
Sales Q2Q%-20.14%
Revenue Next Year-21.83%
Revenue Next 2Y2.64%
Revenue Next 3Y6.91%
Revenue Next 5Y7.16%
EBIT growth 1Y-534.54%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year191.76%
EBIT Next 3Y63.03%
EBIT Next 5Y47.99%
FCF growth 1Y376.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y74.27%
OCF growth 3YN/A
OCF growth 5YN/A