cbdMD, Inc. (NYSE: YCBD)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001644903
Market Cap 1.72 Mn
P/B 0.19
P/E -0.46
P/S 0.09
ROIC (Qtr) -26.84
Div Yield % 0.00
Rev 1y % (Qtr) -1.89
Total Debt (Qtr) 593,026.00
Debt/Equity (Qtr) 0.07
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About

cbdMD, Inc., a company with the ticker symbol YCBD, operates in the booming cannabidiol (CBD) industry. CBD is a non-psychoactive compound derived from hemp that has been gaining popularity for its potential health benefits. The company's mission is to enhance its customers' overall quality of life by providing high-quality and effective CBD products while promoting education, awareness, and accessibility. cbdMD's primary business activities involve producing and distributing a range of CBD products under three different brands - cbdMD, Paw CBD,...

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Investment thesis

Bull case

  • Healthy cash reserves of 3.39M provide 5.71x coverage of short-term debt 593026, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 9.85M provides 16.61x coverage of total debt 593026, indicating robust asset backing and low credit risk.
  • Operating cash flow of (1.95M) provides exceptional 85x coverage of interest expenses (22904), showing strong debt service capability.
  • Tangible assets of 9.85M provide exceptional 20.16x coverage of deferred revenue 488626, showing strong service capability backing.
  • Free cash flow of (2.13M) provides exceptional 93.06x coverage of interest expense (22904), showing strong debt service ability.

Bear case

  • Operating cash flow of (1.95M) provides insufficient coverage of deferred revenue obligations of 488626, which is -3.98x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (1.95M) shows concerning coverage of stock compensation expenses of 19026, with a -102.33 ratio indicating potential earnings quality issues.
  • Free cash flow of (2.13M) provides weak coverage of capital expenditures of 184587, with a -11.55 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (2.36M) show weak coverage of depreciation charges of 1.87M, with a -1.26 ratio indicating high capital intensity and potential reinvestment needs.
  • Cash position of 3.39M provides only -147.92x coverage of interest expenses of (22904), indicating potential refinancing risks in a rising rate environment.

Contract with Customer, Sales Channel Breakdown of Revenue (2025)

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 59.62 Bn 29.27 7.67 9.24 Bn
2 TAK Takeda Pharmaceutical Co Ltd 57.33 Bn 79.02 2.00 36.56 Bn
3 HLN Haleon plc 51.85 Bn 33.06 3.83 -
4 TEVA Teva Pharmaceutical Industries Ltd 39.45 Bn 27.98 2.29 17.09 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.54 Bn 16.94 6.89 0.00 Bn
6 RGC Regencell Bioscience Holdings Ltd 16.16 Bn -4,510.00 0.00 -
7 ELAN Elanco Animal Health Inc 12.79 Bn 355.14 2.78 4.32 Bn
8 NBIX Neurocrine Biosciences Inc 12.71 Bn 26.56 4.44 0.42 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.02 38.12
EV to Cash from Ops. EV/CFO -0.12 -121.97
EV to Debt EV to Debt 0.41 403.43
EV to EBIT EV/EBIT -0.10 -55.05
EV to EBITDA EV/EBITDA -0.49 -57.64
EV to Free Cash Flow [EV/FCF] EV/FCF -0.11 -65.56
EV to Market Cap EV to Market Cap 0.14 -4.24
EV to Revenue EV/Rev 0.01 -1,205.44
Price to Book Value [P/B] P/B 0.19 43.48
Price to Earnings [P/E] P/E -0.46 -46.00
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -2.70 0.36
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.52
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.04
Interest Coverage Int. cover (Qtr) 103.13 -46.13
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -8.73 -154.90
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 71.96 86,151.29
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.89
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 11.18 31.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 34.81 9.88
EBIT Growth (1y) % EBIT 1y % (Qtr) 11.18 91.77
EBT Growth (1y) % EBT 1y % (Qtr) 13.00 90.13
EPS Growth (1y) % EPS 1y % (Qtr) 91.34 -12.06
FCF Growth (1y) % FCF 1y % (Qtr) -190.14 -224.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -2.28 26.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.62 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.22 2.12
Current Ratio Curr Ratio (Qtr) 2.94 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.07 -1.15
Interest Cover Ratio Int Coverage (Qtr) 103.13 -46.13
Times Interest Earned Times Interest Earned (Qtr) 103.13 -46.13
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -2.60 -59,714.97
EBIT Margin % EBIT Margin % (Qtr) -12.37 -60,539.44
EBT Margin % EBT Margin % (Qtr) -12.25 -64,118.78
Gross Margin % Gross Margin % (Qtr) 60.60 8,658.69
Net Profit Margin % Net Margin % (Qtr) -19.50 -64,120.53