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DTEA

DAVIDsTEANasdaqGM:DTEA Stock Report

Last Price

US$3.25

Market Cap

US$85.7m

7D

-10.7%

1Y

10.3%

Updated

19 Jan, 2022

Data

Company Financials
DTEA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends0/6

DTEA Stock Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for DAVIDsTEA
Historical stock prices
Current Share PriceUS$3.25
52 Week HighUS$7.45
52 Week LowUS$2.40
Beta3.31
1 Month Change-2.99%
3 Month Change-10.47%
1 Year Change10.33%
3 Year Change140.74%
5 Year Change-52.21%
Change since IPO-88.72%

Recent News & Updates

Oct 05

The New DAVIDsTEA: The Worst Is Behind Us And A New Era Begins

DTEA recently settled the lease liabilities, so the new DTEA emerged with a significant amount of remaining cash to develop its growth strategy. A few days ago, DTEA announced a significant deal with the Rexall pharmacies in Canada. I believe that Rexall’s “store-within-a-store” concept opens up a whole new world of opportunities and more Rexall-like deals will come in the next months. The secular tailwinds are unquestionable thanks to health-conscious wellness-oriented consumers (including Millennials & Generation Z) who increase their tea consumption, so the outlook for the tea industry is bright. The new DTEA at $2.70 per share is dirt cheap while generating profits and having a fortress balance sheet.

Shareholder Returns

DTEAUS Specialty RetailUS Market
7D-10.7%-6.0%-4.6%
1Y10.3%-2.6%7.7%

Return vs Industry: DTEA exceeded the US Specialty Retail industry which returned -0.8% over the past year.

Return vs Market: DTEA matched the US Market which returned 10.2% over the past year.

Price Volatility

Is DTEA's price volatile compared to industry and market?
DTEA volatility
DTEA Average Weekly Movement9.7%
Specialty Retail Industry Average Movement7.4%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: DTEA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: DTEA's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2008343Sarah Segalhttps://www.davidstea.com

DAVIDsTEA Inc. operates as a retailer of specialty tea 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 tea beverages. The company provides loose-leaf tea in white, green, oolong, black, pu’erh, mate, rooibos, and herbal tea categories.

DAVIDsTEA Fundamentals Summary

How do DAVIDsTEA's earnings and revenue compare to its market cap?
DTEA fundamental statistics
Market CapCA$107.16m
Earnings (TTM)CA$49.62m
Revenue (TTM)CA$104.38m

2.2x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DTEA income statement (TTM)
RevenueCA$104.38m
Cost of RevenueCA$61.36m
Gross ProfitCA$43.02m
Expenses-CA$6.59m
EarningsCA$49.62m

Last Reported Earnings

Oct 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.88
Gross Margin41.22%
Net Profit Margin47.53%
Debt/Equity Ratio0%

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?

2.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: DTEA is good value based on its PE Ratio (2.2x) compared to the US Specialty Retail industry average (8.4x).

PE vs Market: DTEA is good value based on its PE Ratio (2.2x) compared to the US market (17x).


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 PB Ratio (2.3x) compared to the US Specialty Retail industry average (2.7x).


Future Growth

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

14.0%

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?

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DTEA has a large one-off gain of CA$50.1M impacting its October 30 2021 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 3.3% 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 (151.5%).


Return on Equity

High ROE: DTEA's Return on Equity (106.1%) is considered outstanding.


Financial Health

How is DAVIDsTEA's financial position?


Financial Position Analysis

Short Term Liabilities: DTEA's short term assets (CA$62.6M) exceed its short term liabilities (CA$20.3M).

Long Term Liabilities: DTEA's short term assets (CA$62.6M) exceed its long term liabilities (CA$2.7M).


Debt to Equity History and Analysis

Debt Level: DTEA is debt free.

Reducing Debt: DTEA had no debt 5 years ago.

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 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?

3.1yrs

Average management tenure


CEO

Sarah Segal (36 yo)

1.08yrs

Tenure

CA$419,224

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 ($USD335.15K) is below average for companies of similar size in the US market ($USD579.29K).

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 (3.1 years average tenure).


Board Members

Experienced Board: DTEA's board of directors are considered experienced (3.4 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.


Top Shareholders

Company Information

DAVIDsTEA Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: DAVIDsTEA Inc.
  • Ticker: DTEA
  • Exchange: NasdaqGM
  • Founded: 2008
  • Industry: Specialty Stores
  • Sector: Retail
  • Implied Market Cap: US$85.670m
  • Shares outstanding: 26.36m
  • Website: https://www.davidstea.com

Number of Employees


Location

  • DAVIDsTEA Inc.
  • 5430 Ferrier
  • Mount Royal
  • Quebec
  • H4P 1M2
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:48
End of Day Share Price2022/01/19 00:00
Earnings2021/10/30
Annual Earnings2021/01/30


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.