Announcement • Oct 02
MAV Beauty Brands Inc. acquired Sky Organics, LLC. MAV Beauty Brands Inc. acquired Sky Organics, LLC on October 1, 2024. The combined entity will operate under the MAV Beauty umbrella, maintaining headquarters in Toronto, Canada.
MAV Beauty Brands Inc. completed the acquisition of Sky Organics, LLC on October 1, 2024. Announcement • Nov 16
Nexus Capital Management LP entered into an asset purchase agreement to acquire Substantially all of the assets of MAV Beauty Brands Inc. Nexus Capital Management LP entered into an asset purchase agreement to acquire Substantially all of the assets of MAV Beauty Brands Inc. on November 14, 2023. MAV Beauty Brands has commenced voluntary proceedings under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”) in the Ontario Superior Court of Justice (Commercial List) (the “Court”). Nexus has agreed to acquire substantially all of the assets
of the Company and its subsidiaries (the “Transaction”) for a purchase price significantly less than the current principal amount of the outstanding debt ($121.7 million). During the CCAA proceedings, it is expected that MAV Beauty Brands’ operations will continue uninterrupted in the ordinary course of business. In connection with the CCAA proceedings, the Court approved the appointment of Alvarez & Marsal Canada Inc. as monitor of the Company and its subsidiaries (the “Monitor”). Management will remain responsible for the day-to-day operations of the Company and, during the CCAA proceedings, the board of directors of the Company will remain in place, with the Company under the general oversight of the Monitor. It is anticipated that the trading of the Company’s common shares on the Toronto Stock Exchange (the “TSX”) will be halted and the TSX will place the Company under delisting review. A sale approval hearing is currently expected to take place on November 24, 2023 with the anticipated closing of the transaction to occur by the end of 2023, subject to the satisfaction or waiver of customary closing conditions and court approval. New Risk • Oct 13
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Canadian stocks, typically moving 17% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (17% average weekly change). Negative equity (-US$20m). Earnings have declined by 68% per year over the past 5 years. Market cap is less than US$10m (CA$1.48m market cap, or US$1.08m). Announcement • Oct 01
MAV Beauty Brands Inc. Announces Board Changes MAV Beauty Brands Inc. announced that Scott Beattie has joined the Company's Board of Directors (the "Board") as an independent director, effective immediately. Mr. Beattie most recently served as non-executive Vice Chairman of the board of directors of Revlon Inc., and among several other board and executive experiences, previously served as Chairman and Chief Executive Officer of Elizabeth Arden, a global prestige beauty products company. Following Mr. Beattie's appointment, Jeffrey Barber and Kathy Mayor resigned from the Board. Reported Earnings • Aug 11
Second quarter 2023 earnings released: US$0.06 loss per share (vs US$0.007 profit in 2Q 2022) Second quarter 2023 results: US$0.06 loss per share (down from US$0.007 profit in 2Q 2022). Revenue: US$20.7m (down 19% from 2Q 2022). Net loss: US$2.22m (down US$2.48m from profit in 2Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 26 percentage points per year, which is a significant difference in performance. Announcement • Aug 09
MAV Beauty Brands Inc. to Report Q2, 2023 Results on Aug 09, 2023 MAV Beauty Brands Inc. announced that they will report Q2, 2023 results Pre-Market on Aug 09, 2023 Buying Opportunity • Jul 18
Now 24% undervalued after recent price drop Over the last 90 days, the stock is down 46%. The fair value is estimated to be CA$0.28, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 10% over the last 3 years. Meanwhile, the company became loss making. Announcement • May 25
MAV Beauty Brands Provides Board Update MAV Beauty Brands Inc. announced that Marc Anthony Venere has resigned from the Board of Directors, effective May 23, 2023. Mr. Venere is considering whether or not to participate in the Company's strategic review process and resigned from the Board of Directors to avoid any actual or perceived conflict in the event of his potential future participation in the strategic review process. There can be no assurances or guarantees that Mr. Venere will participate in the strategic review process or, if Mr. Venere does participate, the timing or terms of such participation. Given Mr. Venere's resignation, there are currently four director nominees proposed for election to the Board of Directors at the annual general meeting of shareholders of the Company to be held on June 13, 2023 (the "Meeting"), as further described in the Company's management information circular dated May 3, 2023 (the "Circular"). These remaining director nominees are Chris Elshaw, Jeffrey Barber, Stephen Smith and Kathy Mayor. The Company will not be replacing Mr. Venere with a new director nominee for election to the Board of Directors at the Meeting. Reported Earnings • May 12
First quarter 2023 earnings released: US$0.10 loss per share (vs US$0.017 loss in 1Q 2022) First quarter 2023 results: US$0.10 loss per share (further deteriorated from US$0.017 loss in 1Q 2022). Revenue: US$19.3m (down 8.9% from 1Q 2022). Net loss: US$3.87m (loss widened US$3.24m from 1Q 2022). Revenue is forecast to stay flat during the next 2 years compared to a 9.0% growth forecast for the Personal Products industry in North America. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 47 percentage points per year, which is a significant difference in performance. Reported Earnings • Apr 02
Full year 2022 earnings released: US$4.24 loss per share (vs US$2.66 loss in FY 2021) Full year 2022 results: US$4.24 loss per share (further deteriorated from US$2.66 loss in FY 2021). Revenue: US$90.7m (down 15% from FY 2021). Net loss: US$155.8m (loss widened 60% from FY 2021). Revenue is forecast to grow 3.9% p.a. on average during the next 2 years, compared to a 9.0% growth forecast for the Personal Products industry in North America. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 63 percentage points per year, which is a significant difference in performance. Buying Opportunity • Mar 16
Now 28% undervalued Over the last 90 days, the stock is up 84%. The fair value is estimated to be CA$0.97, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 5.5% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to decline by 0.6% in a year. Earnings is forecast to grow by 68% in the next year. Buying Opportunity • Mar 16
Now 28% undervalued Over the last 90 days, the stock is up 84%. The fair value is estimated to be CA$0.97, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 5.5% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to decline by 0.6% in a year. Earnings is forecast to grow by 68% in the next year. Buying Opportunity • Feb 24
Now 26% undervalued Over the last 90 days, the stock is up 64%. The fair value is estimated to be CA$0.97, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 5.5% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to decline by 0.6% in a year. Earnings is forecast to grow by 68% in the next year. Board Change • Nov 16
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 5 experienced directors. 1 highly experienced director. Independent Director Kathy Mayor was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 04
Third quarter 2022 earnings released: US$2.54 loss per share (vs US$2.81 loss in 3Q 2021) Third quarter 2022 results: US$2.54 loss per share (improved from US$2.81 loss in 3Q 2021). Revenue: US$22.0m (down 11% from 3Q 2021). Net loss: US$93.5m (loss narrowed 9.3% from 3Q 2021). Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Personal Products industry in Canada. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 53 percentage points per year, which is a significant difference in performance. Announcement • Nov 04
MAV Beauty Brands Inc. Announces Kathy Mayor Will Join Mav's Board as an Independent Director, Effective November 3, 2022 MAV Beauty Brands Inc. announced that highly experienced executive Kathy Mayor will join MAV's Board as an independent director, effective November 3, 2022. Ms. Mayor is currently the Chief Marketing Officer of Transformco, a leading integrated retailer focused on seamlessly connecting the digital and physical shopping experiences. Previously, she served as Chief Marketing Officer at BoxyCharm; Chief Marketing Officer and Chief Digital Officer at Carnival Cruise Lines; and Global SVP of Strategy, CRM and eCommerce for Las Vegas Sands Corp., among other senior positions with a focus in the retail and consumer sectors. Ms. Mayor serves on the Board of Directors of Phunware and Viking Cruises, and previously served on the Board of Directors of TinyBeans and on the Advisory Board of Pinterest and ABS-CBN Corporation. She holds a Master in Business Administration (MBA) from Harvard University and a Management Engineering degree from Ateneo de Manila University. Reported Earnings • Aug 12
Second quarter 2022 earnings released: EPS: US$0.01 (vs US$0.11 in 2Q 2021) Second quarter 2022 results: EPS: US$0.01 (down from US$0.11 in 2Q 2021). Revenue: US$25.4m (down 13% from 2Q 2021). Net income: US$264.0k (down 94% from 2Q 2021). Profit margin: 1.0% (down from 14% in 2Q 2021). Over the next year, revenue is forecast to grow 12%, compared to a 157% growth forecast for the industry in Canada. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 71 percentage points per year, which is a significant difference in performance. Reported Earnings • May 13
First quarter 2022 earnings released: US$0.017 loss per share (vs US$0.043 profit in 1Q 2021) First quarter 2022 results: US$0.017 loss per share (down from US$0.043 profit in 1Q 2021). Revenue: US$21.1m (down 26% from 1Q 2021). Net loss: US$632.0k (down 140% from profit in 1Q 2021). Over the next year, revenue is forecast to grow 8.1%, compared to a 108% growth forecast for the industry in Canada. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 56 percentage points per year, which is a significant difference in performance. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 1 highly experienced director. Independent Director Steve Smith was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • Dec 10
Independent Chairman of the Board recently bought CA$70k worth of stock On the 2nd of December, Chris Elshaw bought around 50k shares on-market at roughly CA$1.39 per share. In the last 3 months, there was an even bigger purchase from another insider worth CA$684k. This was Chris' only on-market trade for the last 12 months. Recent Insider Transactions • Nov 20
CEO & President recently bought CA$684k worth of stock On the 16th of November, Serge Jureidini bought around 500k shares on-market at roughly CA$1.37 per share. This was the largest purchase by an insider in the last 3 months. This was Serge's only on-market trade for the last 12 months. Reported Earnings • Nov 10
Third quarter 2021 earnings released: US$2.81 loss per share (vs US$0.097 profit in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and control over costs. Third quarter 2021 results: Revenue: US$24.7m (down 22% from 3Q 2020). Net loss: US$103.1m (down US$106.7m from profit in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has fallen by 51% per year, which means it is performing significantly worse than earnings. Reported Earnings • Nov 10
Third quarter 2021 earnings released: US$2.81 loss per share (vs US$0.097 profit in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and control over costs. Third quarter 2021 results: Revenue: US$24.7m (down 22% from 3Q 2020). Net loss: US$103.1m (down US$106.7m from profit in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has fallen by 51% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Nov 09
Investor sentiment deteriorated over the past week After last week's 17% share price decline to CA$1.83, the stock trades at a trailing P/E ratio of 5.8x. Average forward P/E is 16x in the Personal Products industry in Canada. Total loss to shareholders of 86% over the past three years. Reported Earnings • Aug 13
Second quarter 2021 earnings released: EPS US$0.11 (vs US$0.044 in 2Q 2020) The company reported a decent second quarter result with improved earnings and profit margins, although revenues were weaker. Second quarter 2021 results: Revenue: US$29.1m (down 1.8% from 2Q 2020). Net income: US$4.08m (up 154% from 2Q 2020). Profit margin: 14% (up from 5.4% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 104% per year but the company’s share price has fallen by 39% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 13
Investor sentiment deteriorated over the past week After last week's 28% share price decline to US$3.00, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 16x in the Personal Products industry in North America. Total loss to shareholders of 77% over the past three years. Valuation Update With 7 Day Price Move • Jul 13
Investor sentiment deteriorated over the past week After last week's 17% share price decline to US$3.97, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 17x in the Personal Products industry in North America. Total loss to shareholders of 70% over the past three years. Reported Earnings • May 12
First quarter 2021 earnings released: EPS US$0.043 (vs US$0.034 in 1Q 2020) The company reported a decent first quarter result with improved earnings and profit margins, although revenues were weaker. First quarter 2021 results: Revenue: US$28.6m (down 8.7% from 1Q 2020). Net income: US$1.58m (up 28% from 1Q 2020). Profit margin: 5.5% (up from 3.9% in 1Q 2020). Executive Departure • May 11
Chief Financial Officer has left the company On the 10th of May, Judy Adam's tenure as Chief Financial Officer ended after 2.1 years in the role. We don't have any record of a personal shareholding under Judy's name. Judy is the only executive to leave the company over the last 12 months. Reported Earnings • Apr 02
Full year 2020 earnings released: EPS US$0.18 (vs US$0.11 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: US$116.5m (up 7.4% from FY 2019). Net income: US$6.51m (up 60% from FY 2019). Profit margin: 5.6% (up from 3.8% in FY 2019). Valuation Update With 7 Day Price Move • Feb 23
Investor sentiment deteriorated over the past week After last week's 17% share price decline to US$5.90, the stock is trading at a trailing P/E ratio of 33.1x, down from the previous P/E ratio of 39.8x. This compares to an average P/E of 33x in the Personal Products industry in Canada. Total returns to shareholders over the past year are 37%. Major Estimate Revision • Feb 20
Analysts lower EPS estimates to US$0.16 The 2020 consensus revenue estimate was lowered from US$125.4m to US$119.2m. Earning per share (EPS) estimate was also lowered from US$0.26 to US$0.16 for the same period. Net income is expected to grow by 167% next year compared to 52% growth forecast for the Personal Products industry in Canada. The consensus price target was lowered from CA$4.86 to CA$4.77. Share price is down by 14% to CA$6.14 over the past week. Is New 90 Day High Low • Feb 09
New 90-day high: CA$7.25 The company is up 42% from its price of CA$5.11 on 10 November 2020. The Canadian market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Personal Products industry, which is up 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CA$15.13 per share. Valuation Update With 7 Day Price Move • Jan 21
Investor sentiment improved over the past week After last week's 17% share price gain to US$6.30, the stock is trading at a trailing P/E ratio of 35.2x, up from the previous P/E ratio of 30.2x. This compares to an average P/E of 36x in the Personal Products industry in Canada. Total returns to shareholders over the past year are 35%. Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improved over the past week After last week's 17% share price gain to US$5.85, the stock is trading at a trailing P/E ratio of 32.7x, up from the previous P/E ratio of 28x. This compares to an average P/E of 35x in the Personal Products industry in Canada. Total returns to shareholders over the past year are 15%. Is New 90 Day High Low • Jan 12
New 90-day high: CA$5.53 The company is up 47% from its price of CA$3.75 on 13 October 2020. The Canadian market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Personal Products industry, which is down 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CA$14.19 per share. Analyst Estimate Surprise Post Earnings • Nov 15
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 4.8%. Earnings per share (EPS) also surpassed analyst estimates by 25%. Over the next year, revenue is forecast to grow 6.7%, compared to a 13% growth forecast for the Personal Products industry in Canada. Reported Earnings • Nov 15
Third quarter 2020 earnings released: EPS US$0.097 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: US$31.7m (up 12% from 3Q 2019). Net income: US$3.56m (up 21% from 3Q 2019). Profit margin: 11% (up from 10% in 3Q 2019). The increase in margin was driven by higher revenue. Is New 90 Day High Low • Nov 07
New 90-day high: CA$4.70 The company is up 101% from its price of CA$2.34 on 07 August 2020. The Canadian market is flat over the last 90 days, indicating the company outperformed over that time. It also outperformed the Personal Products industry, which is up 20% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CA$11.06 per share. Valuation Update With 7 Day Price Move • Nov 07
Market bids up stock over the past week After last week's 21% share price gain to US$4.70, the stock is trading at a trailing P/E ratio of 28.9x, up from the previous P/E ratio of 23.8x. This compares to an average P/E of 29x in the Personal Products industry in Canada. Total return to shareholders over the past year is a loss of 6.6%. Is New 90 Day High Low • Oct 09
New 90-day high: CA$3.85 The company is up 74% from its price of CA$2.21 on 10 July 2020. The Canadian market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Personal Products industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CA$10.49 per share.