cbdMD, Inc. (NYSE: YCBD)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001644903
Market Cap 5.42 Mn
P/B 0.75
P/E -1.24
P/S 0.28
ROIC (Qtr) -28.69
Div Yield % 0.00
Rev 1y % (Qtr) 3.61
Total Debt (Qtr) 778,240.00
Debt/Equity (Qtr) 0.11

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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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 2.26M provide 2.91x coverage of short-term debt 778240, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (1.45M) provides exceptional 42.33x coverage of interest expenses (34308), showing strong debt service capability.
  • Strong tangible asset base of 8.30M provides 10.66x coverage of total debt 778240, indicating robust asset backing and low credit risk.
  • Tangible assets of 8.30M provide exceptional 16.38x coverage of deferred revenue 506289, showing strong service capability backing.
  • Operating cash flow of (1.45M) fully covers other non-current liabilities (506289) by 2.87x, showing strong long-term stability.

Bear case

  • Operating cash flow of (1.45M) provides insufficient coverage of deferred revenue obligations of 506289, which is -2.87x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (1.45M) shows concerning coverage of stock compensation expenses of 100778, with a -14.41 ratio indicating potential earnings quality issues.
  • Free cash flow of (1.64M) provides weak coverage of capital expenditures of 184172, with a -8.89 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (2.08M) show weak coverage of depreciation charges of 1.80M, with a -1.16 ratio indicating high capital intensity and potential reinvestment needs.
  • Cash position of 2.26M provides only -65.91x coverage of interest expenses of (34308), indicating potential refinancing risks in a rising rate environment.

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. 56.15 Bn 21.18 5.98 7.27 Bn
2 TAK Takeda Pharmaceutical Co Ltd 48.92 Bn 221.13 1.66 36.24 Bn
3 HLN Haleon plc 46.13 Bn 25.59 3.29 -
4 TEVA Teva Pharmaceutical Industries Ltd 35.27 Bn 49.54 2.10 17.07 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.76 Bn 17.11 6.95 0.00 Bn
6 VTRS Viatris Inc 14.87 Bn -4.03 1.05 14.44 Bn
7 NBIX Neurocrine Biosciences Inc 14.08 Bn 32.91 5.25 0.43 Bn
8 ELAN Elanco Animal Health Inc 11.64 Bn 323.29 2.54 4.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.51 24.98
EV to Cash from Ops. EV/CFO -3.66 -85.40
EV to Debt EV to Debt 6.84 265.88
EV to EBIT EV/EBIT -2.56 -32.65
EV to EBITDA EV/EBITDA -14.52 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF -3.25 -32.62
EV to Market Cap EV to Market Cap 0.98 -10.98
EV to Revenue EV/Rev 0.28 -700.14
Price to Book Value [P/B] P/B 0.75 27.22
Price to Earnings [P/E] P/E -1.24 -122.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -1.87 0.34
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.81
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.08
Interest Coverage Int. cover (Qtr) 60.49 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 3.08 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -7.80 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 43.46 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 75.47 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 43.46 37.66
EBT Growth (1y) % EBT 1y % (Qtr) 44.84 108.18
EPS Growth (1y) % EPS 1y % (Qtr) 92.37 52.88
FCF Growth (1y) % FCF 1y % (Qtr) -201.50 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.23 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.84 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.71 2.10
Current Ratio Curr Ratio (Qtr) 2.05 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.11 -1.11
Interest Cover Ratio Int Coverage (Qtr) 60.49 -38.10
Times Interest Earned Times Interest Earned (Qtr) 60.49 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1.50 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) -10.81 -63,260.88
EBT Margin % EBT Margin % (Qtr) -10.63 -66,726.96
Gross Margin % Gross Margin % (Qtr) 62.40 8,332.72
Net Profit Margin % Net Margin % (Qtr) -22.80 -66,728.37