DAVIDsTEA
Market Cap
US$24.8m
Last Updated
2020/09/26 06:16 UTC
Data Sources
Company Financials
Executive Summary
DAVIDsTEA Inc. operates as a retailer of specialty tea in Canada and the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
Mediocre balance sheet and slightly overvalued.
Share Price & News
How has DAVIDsTEA's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: DTEA has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
3.8%
DTEA
-1.7%
US Specialty Retail
-2.4%
US Market
1 Year Return
-50.4%
DTEA
19.6%
US Specialty Retail
12.0%
US Market
Return vs Industry: DTEA underperformed the US Specialty Retail industry which returned 19.6% over the past year.
Return vs Market: DTEA underperformed the US Market which returned 12% over the past year.
Shareholder returns
| DTEA | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.8% | -1.7% | -2.4% |
| 30 Day | 0.9% | -5.1% | -6.5% |
| 90 Day | -6.1% | 17.8% | 8.4% |
| 1 Year | -50.4%-50.4% | 21.0%19.6% | 14.5%12.0% |
| 3 Year | -77.7%-77.7% | 67.8%60.2% | 34.8%25.8% |
| 5 Year | -94.4%-94.4% | 57.4%45.2% | 82.1%61.6% |
Price Volatility Vs. Market
How volatile is DAVIDsTEA's share price compared to the market and industry in the last 5 years?
Simply Wall St News
9 months ago | Simply Wall St
Did Changing Sentiment Drive DAVIDsTEA's (NASDAQ:DTEA) Share Price Down A Painful 76%?10 months ago | Simply Wall St
What Kind Of Shareholders Own DAVIDsTEA Inc. (NASDAQ:DTEA)?1 year ago | Simply Wall St
Before You Buy DAVIDsTEA Inc. (NASDAQ:DTEA), Consider Its VolatilityValuation
Is DAVIDsTEA undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DTEA ($0.95) is trading below our estimate of fair value ($39.15)
Significantly Below Fair Value: DTEA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DTEA is unprofitable, so we can't compare its PE Ratio to the US Specialty Retail industry average.
PE vs Market: DTEA is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate DTEA's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: DTEA has negative assets, so we can't compare its PB Ratio to the US Specialty Retail industry average.
Next Steps
Future Growth
How is DAVIDsTEA forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
26.3%
Forecasted Retail 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 DAVIDsTEA 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
- Take a look at our analysis of DTEA’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- Explore growth companies in the Retail industry.
Past Performance
How has DAVIDsTEA performed over the past 5 years?
15.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DTEA is currently unprofitable.
Growing Profit Margin: DTEA is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: DTEA is unprofitable, but has reduced losses over the past 5 years at a rate of 15.6% per year.
Accelerating Growth: Unable to compare DTEA's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: DTEA is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (-4.8%).
Return on Equity
High ROE: DTEA's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Next Steps
Financial Health
How is DAVIDsTEA's financial position?
Financial Position Analysis
Short Term Liabilities: DTEA has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: DTEA has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: DTEA is debt free.
Reducing Debt: DTEA's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
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: Whilst unprofitable DTEA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: DTEA is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 28.9% per year.
Next Steps
Dividend
What is DAVIDsTEA current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate DTEA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate DTEA'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 DTEA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if DTEA'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 DTEA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.1yrs
Average management tenure
CEO
Herschel Segal (89 yo)
2.25yrs
Tenure
CA$809,652
Compensation
Mr. Herschel H. Segal has been Executive Chairman and Interim Chief Executive Officer of DAVIDsTEA Inc. since June 14, 2018. Mr. Segal serves as the President at 125387 Canada, Inc. Mr. Segal is a Co-Found ...
CEO Compensation Analysis
Compensation vs Market: Herschel's total compensation ($USD603.75K) is about average for companies of similar size in the US market ($USD606.53K).
Compensation vs Earnings: Herschel's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 2.25yrs | CA$809.65k | 46.02% CA$ 11.4m | |
| COO, CFO & Corporate Secretary | 1.75yrs | CA$544.14k | 0% CA$ 0 | |
| Chief Brand Officer | 2.08yrs | CA$322.00k | 0% CA$ 0 | |
| Director of Legal Affairs | no data | no data | no data | |
| Vice President of Human Resources | 2.08yrs | no data | no data |
2.1yrs
Average Tenure
55yo
Average Age
Experienced Management: DTEA's management team is considered experienced (2.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 2.25yrs | CA$809.65k | 46.02% CA$ 11.4m | |
| Independent Director | 2.08yrs | CA$77.08k | 0.017% CA$ 4.3k | |
| Independent Lead Director | 2yrs | CA$121.08k | no data | |
| Director | 2.25yrs | CA$72.08k | 0.053% CA$ 13.1k | |
| Independent Director | 2.25yrs | CA$88.58k | no data |
2.3yrs
Average Tenure
66yo
Average Age
Experienced Board: DTEA's board of directors are not considered experienced ( 2.3 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
DAVIDsTEA Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: DAVIDsTEA Inc.
- Ticker: DTEA
- Exchange: NasdaqGM
- Founded: 2008
- Industry: Specialty Stores
- Sector: Retail
- Market Cap: US$24.848m
- Shares outstanding: 26.21m
- Website: https://www.davidstea.com
Number of Employees
Location
- DAVIDsTEA Inc.
- 5430 Ferrier
- Mount Royal
- Quebec
- H4P 1M2
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DTEA | NasdaqGM (Nasdaq Global Market) | Yes | Common Shares | US | USD | Jun 2015 |
| DAT | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jun 2015 |
Biography
DAVIDsTEA Inc. operates as a retailer of specialty tea in Canada and the United States. The company offers loose-leaf teas, pre-packaged teas, tea sachets, and tea-related gifts; tea accessories, including ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/09/26 06:16 |
| End of Day Share Price | 2020/09/25 00:00 |
| Earnings | 2020/08/01 |
| Annual Earnings | 2020/02/01 |
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.