TSXV:DB

Stock Analysis Report

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Market Cap

CA$108.4m

Last Updated

2021/07/29 02:01 UTC

Data Sources

Company Financials +

Executive Summary

Decibel Cannabis Company Inc. engages in the cultivation, processing, production, and retail sale of cannabis products in Canada. More Details


Snowflake Analysis

High growth potential with worrying balance sheet.


Similar Companies

Share Price & News

How has Decibel Cannabis's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DB is more volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: DB's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of Canadian stocks.


Market Performance


7 Day Return

1.6%

DB

-5.6%

CA Pharmaceuticals

1.2%

CA Market


1 Year Return

264.7%

DB

32.0%

CA Pharmaceuticals

27.8%

CA Market

Return vs Industry: DB exceeded the Canadian Pharmaceuticals industry which returned 32% over the past year.

Return vs Market: DB exceeded the Canadian Market which returned 27.8% over the past year.


Shareholder returns

DBIndustryMarket
7 Day1.6%-5.6%1.2%
30 Day-6.1%-14.6%-1.5%
90 Day82.4%-17.6%2.1%
1 Year264.7%264.7%32.0%32.0%31.7%27.8%
3 Yearn/a-41.2%-41.9%29.5%17.0%
5 Yearn/a210.6%208.5%51.9%29.6%

Long-Term Price Volatility Vs. Market

How volatile is Decibel Cannabis's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Decibel Cannabis undervalued compared to its fair value and its price relative to the market?

2.97x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate DB's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate DB's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: DB is unprofitable, so we can't compare its PE Ratio to the Canadian Pharmaceuticals industry average.

PE vs Market: DB is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DB is overvalued based on its PB Ratio (3x) compared to the CA Pharmaceuticals industry average (2.8x).


Future Growth

How is Decibel Cannabis forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

120.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: DB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DB's is expected to become profitable in the next 3 years.

Revenue vs Market: DB's revenue (37.9% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: DB's revenue (37.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DB's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Decibel Cannabis performed over the past 5 years?

-54.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DB is currently unprofitable.

Growing Profit Margin: DB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DB is unprofitable, and losses have increased over the past 5 years at a rate of 54.8% per year.

Accelerating Growth: Unable to compare DB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DB is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (12.1%).


Return on Equity

High ROE: DB has a negative Return on Equity (-8.86%), as it is currently unprofitable.


Financial Health

How is Decibel Cannabis's financial position?


Financial Position Analysis

Short Term Liabilities: DB's short term assets (CA$26.2M) exceed its short term liabilities (CA$18.1M).

Long Term Liabilities: DB's short term assets (CA$26.2M) do not cover its long term liabilities (CA$40.9M).


Debt to Equity History and Analysis

Debt Level: DB's debt to equity ratio (110.5%) is considered high.

Reducing Debt: Insufficient data to determine if DB's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DB has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: DB has less than a year of cash runway if free cash flow continues to reduce at historical rates of 28.9% each year


Dividend

What is Decibel Cannabis's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DB's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

Paul Wilson (62 yo)

0.083

Tenure

CA$137,000

Compensation

Mr. Paul Wilson is the Director at Decibel Cannabis Company Inc. (formerly known as Westleaf Inc.). since December 18, 2019 and serves as its Chief executive officer since June 23, 2021. Mr. Wilson was the...


Leadership Team

Experienced Management: DB's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Decibel Cannabis Company Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Decibel Cannabis Company Inc.
  • Ticker: DB
  • Exchange: TSXV
  • Founded: NaN
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$108.407m
  • Shares outstanding: 349.70m
  • Website: https://www.decibelcc.com

Number of Employees


Location

  • Decibel Cannabis Company Inc.
  • 140 - 4th Avenue SW
  • Suite 1440
  • Calgary
  • Alberta
  • T2P 3N3
  • Canada

Listings


Biography

Decibel Cannabis Company Inc. engages in the cultivation, processing, production, and retail sale of cannabis products in Canada. It offers cannabis flower, cannabis pre-rolls, and cannabis biomass to lice...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/29 02:01
End of Day Share Price2021/07/28 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.