DAVIDsTEA (NasdaqGM:DTEA) - Share price, News & Analysis

DTEA fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	3/6
Financial Health	6/6
Dividends	0/6

DTEA Stock Overview

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

Rewards

Price-To-Earnings ratio (0.8x) is below the US market (14.9x)

Became profitable this year

Risk Analysis

Large one-off items impacting financial results

Does not have a meaningful market cap ($50M)

DAVIDsTEA Competitors

Price History & Performance

Summary of all time highs, changes and price drops for DAVIDsTEA
Historical stock prices
Current Share Price	US$1.89
52 Week High	US$5.88
52 Week Low	US$1.75
Beta	3.06
1 Month Change	-24.30%
3 Month Change	-35.00%
1 Year Change	-46.14%
3 Year Change	61.11%
5 Year Change	-69.35%
Change since IPO	-93.46%

Shareholder Returns

	DTEA	US Specialty Retail	US Market
7D	-5.3%	-0.6%	1.0%
1Y	-46.1%	-27.4%	-15.1%

Return vs Industry: DTEA underperformed the US Specialty Retail industry which returned -29.4% over the past year.

Return vs Market: DTEA underperformed the US Market which returned -13.2% over the past year.

Price Volatility

Is DTEA's price volatile compared to industry and market?
DTEA volatility
DTEA Average Weekly Movement	6.7%
Specialty Retail Industry Average Movement	8.7%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: DTEA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: DTEA's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2008	343	Sarah Segal	https://www.davidstea.com

DAVIDsTEA Inc. operates as a specialty tea retailer in Canada and the United States. It offers loose-leaf teas, pre-packaged teas, tea sachets, and tea-related gifts; tea accessories, including tea mugs, travel mugs, teacup sets, teapots, tea makers, kettles, infusers, filters, frothers, tins, and spoons; and food and beverages. As of April 29, 2022, it operated through 18 company-owned stores.

DAVIDsTEA Fundamentals Summary

How do DAVIDsTEA's earnings and revenue compare to its market cap?
DTEA fundamental statistics
Market Cap	CA$63.92m
Earnings (TTM)	CA$78.13m
Revenue (TTM)	CA$104.07m

0.8x

P/E Ratio

0.6x

P/S Ratio

Is DTEA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DTEA income statement (TTM)
Revenue	CA$104.07m
Cost of Revenue	CA$60.87m
Gross Profit	CA$43.20m
Other Expenses	-CA$34.92m
Earnings	CA$78.13m

Last Reported Earnings

Jan 29, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.96
Gross Margin	41.51%
Net Profit Margin	75.07%
Debt/Equity Ratio	0%

How did DTEA perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

0.82x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate DTEA's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate DTEA's fair value for valuation analysis.

Price To Earnings Ratio

PE vs Industry: DTEA is good value based on its Price-To-Earnings Ratio (0.8x) compared to the US Specialty Retail industry average (6x).

PE vs Market: DTEA is good value based on its Price-To-Earnings Ratio (0.8x) compared to the US market (14.9x).

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 is good value based on its Price-To-Book Ratio (1.3x) compared to the US Specialty Retail industry average (1.7x).

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.8%

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.

Past Performance

How has DAVIDsTEA performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

22.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DTEA has a large one-off gain of CA$81.2M impacting its January 29 2022 financial results.

Growing Profit Margin: DTEA became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: DTEA has become profitable over the past 5 years, growing earnings by 22% per year.

Accelerating Growth: DTEA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: DTEA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (70.8%).

Return on Equity

High ROE: DTEA's Return on Equity (161.7%) is considered outstanding.

Financial Health

How is DAVIDsTEA's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: DTEA's short term assets (CA$63.5M) exceed its short term liabilities (CA$20.1M).

Long Term Liabilities: DTEA's short term assets (CA$63.5M) exceed its long term liabilities (CA$10.2M).

Debt to Equity History and Analysis

Debt Level: DTEA is debt free.

Reducing Debt: DTEA has not had any debt for past 5 years.

Debt Coverage: DTEA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DTEA has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is DAVIDsTEA current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as DTEA has not reported any payouts.

Discover strong dividend paying companies

Management

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

2.4yrs

Average management tenure

CEO

Sarah Segal (36 yo)

1.42yrs

Tenure

CA$1,351,353

Compensation

Ms. Sarah Segal has been Chief Brand Officer at DAVIDsTEA Inc since August 21, 2018 and serves as its Chief Executive Officer since December 16, 2020. Ms. Segal has been Director at DAVIDsTEA Inc. since Ju...

CEO Compensation Analysis

Compensation vs Market: Sarah's total compensation ($USD1.05M) is above average for companies of similar size in the US market ($USD772.05K).

Compensation vs Earnings: Sarah's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: DTEA's management team is considered experienced (2.4 years average tenure).

Board Members

Experienced Board: DTEA's board of directors are considered experienced (3.8 years average tenure).

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.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/01/29
Annual Earnings	2022/01/29