NasdaqGM:DTEA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-8.0%

DTEA

3.9%

US Specialty Retail

1.8%

US Market


1 Year Return

-38.3%

DTEA

7.1%

US Specialty Retail

7.3%

US Market

Return vs Industry: DTEA underperformed the US Specialty Retail industry which returned 7.1% over the past year.

Return vs Market: DTEA underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

DTEAIndustryMarket
7 Day-8.0%3.9%1.8%
30 Day-16.6%3.0%-0.7%
90 Day8.7%4.7%0.06%
1 Year-38.3%-38.3%8.9%7.1%9.7%7.3%
3 Year-86.7%-86.7%43.0%35.7%46.3%36.9%
5 Yearn/a57.7%43.8%64.5%46.5%

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?

0.95x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate DTEA's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate DTEA's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: DTEA is unprofitable, so we can't compare its PE Ratio to the 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

Low 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 PB Ratio (1x) compared to the US Specialty Retail industry average (1.3x).


Next Steps

Future Growth

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

11.7%

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?

19.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DTEA is unprofitable, but has reduced losses over the past 5 years at a rate of 19.8% 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 (8.3%).


Return on Equity

High ROE: DTEA has a negative Return on Equity (-57.76%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: DTEA is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: DTEA is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is DAVIDsTEA's financial position?


Financial Position Analysis

Short Term Liabilities: DTEA's short term assets (CA$75.4M) exceeds its short term liabilities (CA$36.0M)

Long Term Liabilities: DTEA's short term assets (75.4M) do not cover its long term liabilities (78.2M)


Debt to Equity History and Analysis

Debt Level: DTEA is debt free.

Reducing Debt: DTEA currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

Inventory Level: DTEA has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if DTEA's debt is covered by short term assets.


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 7.8% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of DAVIDsTEA's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Herschel Segal (88yo)

0yrs

Tenure

CA$597,266

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 ($USD454.81K) is about average for companies of similar size in the US market ($USD491.38K).

Compensation vs Earnings: Herschel's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.2yrs

Average Tenure

54yo

Average Age

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


Board Age and Tenure

1.3yrs

Average Tenure

65yo

Average Age

Experienced Board: DTEA's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Herschel Segal (88yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: CA$597.27k
  • Frank Zitella (54yo)

    CFO, COO & Corporate Secretary

    • Tenure: 0.8yrs
    • Compensation: CA$258.88k
  • Sarah Segal (34yo)

    Chief Brand Officer

    • Tenure: 0yrs
    • Compensation: CA$305.32k
  • Nathalie Rolland

    Director of Legal Affairs

    • Tenure: 0yrs
  • Nathalie Binda

    Vice President of Marketing

    • Tenure: 1.2yrs
  • Alana Lapierre

    Vice President of Human Resources

    • Tenure: 1.2yrs

Board Members

  • Susan Burkman (65yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: CA$59.91k
  • Pat De Marco (58yo)

    Lead Director

    • Tenure: 1.1yrs
    • Compensation: CA$99.16k
  • Herschel Segal (88yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: CA$597.27k
  • Emilia Di Raddo (61yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: CA$91.76k
  • Peter Robinson (66yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: CA$86.17k
  • Ben Gisz (42yo)

    • Tenure: 1.3yrs
  • Max Fischer (68yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: CA$87.76k

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$41.964m
  • Shares outstanding: 26.06m
  • 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 approximately 135 loose-leaf teas, pre-packaged teas, tea sachets and tea-related gifts, and acces ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 01:08
End of Day Share Price2019/10/17 00:00
Earnings2019/08/03
Annual Earnings2019/02/02


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.