NasdaqGM:DTEA

Stock Analysis Report

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Executive Summary

DAVIDsTEA Inc. operates as a retailer of specialty tea in Canada and the United States. More Details


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

DTEAIndustryMarket
7 Day3.8%-1.7%-2.4%
30 Day0.9%-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

Valuation

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

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

NamePositionTenureCompensationOwnership
Herschel Segal
Co-Founder2.25yrsCA$809.65k46.02%
CA$ 11.4m
Frank Zitella
COO, CFO & Corporate Secretary1.75yrsCA$544.14k0%
CA$ 0
Sarah Segal
Chief Brand Officer2.08yrsCA$322.00k0%
CA$ 0
Nathalie Rolland
Director of Legal Affairsno datano datano data
Alana Lapierre
Vice President of Human Resources2.08yrsno datano data

2.1yrs

Average Tenure

55yo

Average Age

Experienced Management: DTEA's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Herschel Segal
Co-Founder2.25yrsCA$809.65k46.02%
CA$ 11.4m
Susan Burkman
Independent Director2.08yrsCA$77.08k0.017%
CA$ 4.3k
Pat De Marco
Independent Lead Director2yrsCA$121.08kno data
Emilia Di Raddo
Director2.25yrsCA$72.08k0.053%
CA$ 13.1k
Peter Robinson
Independent Director2.25yrsCA$88.58kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DTEANasdaqGM (Nasdaq Global Market)YesCommon SharesUSUSDJun 2015
DATDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/26 06:16
End of Day Share Price2020/09/25 00:00
Earnings2020/08/01
Annual Earnings2020/02/01


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.