TSXV:DB

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Overvalued 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

DB

5.6%

CA Pharmaceuticals

-0.4%

CA Market


1 Year Return

n/a

DB

-18.6%

CA Pharmaceuticals

-4.0%

CA Market

Return vs Industry: Insufficient data to determine how DB performed against the Canadian Pharmaceuticals industry.

Return vs Market: Insufficient data to determine how DB performed against the Canadian Market.


Shareholder returns

DBIndustryMarket
7 Day0%5.6%-0.4%
30 Day6.7%23.0%2.3%
90 Day-11.1%10.6%1.7%
1 Yearn/a-18.6%-18.6%-0.5%-4.0%
3 Yearn/a-12.4%-13.1%6.5%-3.9%
5 Yearn/a175.6%174.3%35.4%14.6%

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?

0.78x

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 CA 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 good value based on its PB Ratio (0.8x) compared to the CA Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is Decibel Cannabis forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

57.2%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Decibel Cannabis has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Decibel Cannabis performed over the past 5 years?

-1,055.4%

Last years 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: Insufficient data to determine if DB's year-on-year earnings growth rate was positive over the past 5 years.

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 (30.9%).


Return on Equity

High ROE: DB has a negative Return on Equity (-35.3%), as it is currently unprofitable.


Next Steps

Financial Health

How is Decibel Cannabis's financial position?


Financial Position Analysis

Short Term Liabilities: DB's short term assets (CA$15.4M) exceed its short term liabilities (CA$12.1M).

Long Term Liabilities: DB's short term assets (CA$15.4M) do not cover its long term liabilities (CA$37.9M).


Debt to Equity History and Analysis

Debt Level: DB's debt to equity ratio (104.4%) 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 29.1% each year


Next Steps

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?

0.8yrs

Average management tenure


CEO

Benjamin Sze (37 yo)

0.83

Tenure

Mr. Benjamin Sze is the Chief Executive Officer and Director at Decibel Cannabis Company Inc. (formerly known as Westleaf Inc.). since December 18, 2019. He has acted as a Director of WGBC since November 2 ...


Leadership Team

NamePositionTenureCompensationOwnership
Shon Williams
Chief Development Officer of Westleaf International Inc.no dataCA$165.00kno data
Ben Kaanta
Chief Operating Officer of Westleaf International Inc.no dataCA$165.00kno data
Christian Monson
Chief Legal Officer & VP of Strategy of Westleaf International Inc.no dataCA$165.00kno data
Benjamin Sze
President0.83yrno data0.34%
CA$ 96.0k
Stuart Boucher
Interim Chief Financial Officer0.42yrno data0.12%
CA$ 34.5k
Gary Leong
Chief Compliance Officer0.83yrno data0.092%
CA$ 25.6k
Adam Coates
Executive Vice President of Commercial0.83yrno data0.050%
CA$ 13.9k

0.8yrs

Average Tenure

37yo

Average Age

Experienced Management: DB's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Benjamin Sze
President0.83yrno data0.34%
CA$ 96.0k
Cody Church
Chairmanno datano data0.66%
CA$ 185.3k
Michael Kelly
Director0.83yrno data0.14%
CA$ 38.1k
Delbert Wapass
Independent Director2.17yrsCA$17.50k0.068%
CA$ 18.8k
Paul Wilson
Director0.83yrno data0.34%
CA$ 95.2k

0.8yrs

Average Tenure

51yo

Average Age

Experienced Board: DB's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


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: DB only recently listed within the past 12 months.


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:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$27.879m
  • Shares outstanding: 348.49m
  • Website: https://www.decibelcc.com

Number of Employees


Location

  • Decibel Cannabis Company Inc.
  • 530 - 8th Avenue SW
  • Suite 710
  • Calgary
  • Alberta
  • T2P 3S8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DBTSXV (TSX Venture Exchange)YesCommon SharesCACADDec 2019
DBCC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2019

Biography

Decibel Cannabis Company Inc. engages the cultivation, processing, production, and retail sale of cannabis products in Canada. It offers cannabis flower under the Qwest and Qwest Reserve brands; and cannab ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 01:13
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.