Decibel Cannabis Co., Inc. (DB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Cipher Pharmaceuticals, Inc.

Cronos Group, Inc.

Rubicon Organics, Inc.

Jamieson Wellness, Inc.

Decibel Cannabis Co., Inc.

Else Nutrition Holdings, Inc.

The Cannabist Company Holdings, Inc.

BioNxt Solutions, Inc.

Eastwood Bio-Medical Canada, Inc.

Grown Rogue International, Inc.

Filament Health Corp.

Why is Decibel Cannabis Co., Inc. ?

Negative results in Mar 25

OPERATING CASH FLOW(Y) Lowest at CAD 2.37 MM
RAW MATERIAL COST(Y) Grown by 28.3% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 1.51%

With ROE of -0.07%, it has a attractive valuation with a 1.20 Price to Book Value

Over the past year, while the stock has generated a return of 61.54%, its profits have risen by 99.7%

Market Beating Performance

The stock has generated a return of 61.54% in the last 1 year, much higher than market (S&P/TSX 60) returns of 18.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Decibel Cannabis Co., Inc. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Decibel Cannabis Co., Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Decibel Cannabis Co., Inc.

53.85%

0.75

82.19%

S&P/TSX 60

19.1%

1.23

15.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

48.22%

EBIT Growth (5y)

2.38%

EBIT to Interest (avg)

-4.22

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.56

Sales to Capital Employed (avg)

1.06

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

ROE (avg)

0.27%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.20

EV to EBIT

-9.31

EV to EBITDA

-18.39

EV to Capital Employed

1.13

EV to Sales

1.11

PEG Ratio

Dividend Yield

ROCE (Latest)

-12.18%

ROE (Latest)

-0.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

NET PROFIT(HY)

Higher at CAD 5.73 MM

ROCE(HY)

Highest at 20.64%

DEBT-EQUITY RATIO (HY)

Lowest at 67.69 %

DEBTORS TURNOVER RATIO(HY)

Highest at 8.48%

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 2.37 MM

RAW MATERIAL COST(Y)

Grown by 28.3% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.51%

OPERATING PROFIT(Q)

Lowest at CAD -3.06 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -14.42 %

PRE-TAX PROFIT(Q)

Lowest at CAD -5.89 MM

NET PROFIT(Q)

Lowest at CAD -5.89 MM

Here's what is working for Decibel Cannabis Co., Inc.

Debt-Equity Ratio

Lowest at 67.69 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 8.48%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at CAD 1.64 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Decibel Cannabis Co., Inc.

Pre-Tax Profit

At CAD -5.89 MM has Fallen at -56.3%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -5.89 MM has Fallen at -56.3%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Operating Cash Flow

Lowest at CAD 2.37 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Operating Profit

Lowest at CAD -3.06 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at -14.42 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CAD -5.89 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD -5.89 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Inventory Turnover Ratio

Lowest at 1.51%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 28.3% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales