Company Overview
cbdMD, Inc. operates as a producer and distributor of various cannabidiol (CBD) products, managing its own consumer hemp-based brands across the United States and international markets. The company functions within the Healthcare sector, specifically categorized under the Drug Manufacturers - Specialty & Generic industry, which implies a focus on developing and commercializing specialized pharmaceutical and therapeutic formulations derived from hemp. As of the latest available data, the enterprise holds a market capitalization of $7.56M and employs 42 individuals to support its operations. With annual revenue of $19.09M, the company's valuation metrics suggest it operates as a micro-cap entity, indicating a smaller market position relative to large-cap pharmaceutical peers and reflecting a stage where growth potential and market penetration are primary drivers of valuation rather than established dominance.
Financial Health
The company reported revenue of $19.09M over the trailing twelve months, yet recorded a net income of $-3,714,599, revealing a significant structural gap where operating expenses substantially exceed gross profits. This disparity between revenue and net income is further highlighted by an EBITDA of $-1,289,030, indicating that core operational cash generation is currently negative. The financial statements display a gross margin of 60.6%, which suggests a strong ability to price products relative to the cost of goods sold, though this profitability is eroded by high operating costs. Consequently, the operating margin stands at -5.7% and the profit margin is -12.3%, demonstrating that while production efficiency is relatively high, overheads are consuming a majority of the top-line revenue. Regarding liquidity, the company holds $3.39M in cash against a debt level of $593,026, resulting in a debt-to-equity ratio of 6.58 which points to a highly leveraged balance sheet structure. Despite the high debt load, the current ratio of 2.94 indicates that the company possesses ample short-term assets to cover its current liabilities, suggesting a buffer against immediate liquidity crises. Furthermore, the return on equity is -43.4% and the return on assets is -12.7%, metrics that reveal management has not yet generated positive returns on the capital invested or the assets deployed to run the business.
Valuation Assessment
The trailing twelve-month P/E ratio is 1.20, while the forward P/E is -0.81, a divergence that implies the market expects earnings to remain negative or for the company to continue burning cash in the near future. The price-to-book ratio stands at 0.81, indicating that the stock trades at a discount relative to its book value, which is common for distressed or unprofitable specialty manufacturers. Alternative valuation metrics provide additional context, with a price-to-sales ratio of 0.40 and an EV/EBITDA of -3.69, suggesting the market prices the company based on revenue multiple rather than earnings power due to the lack of profitability. The 52-week price range spans from a low of $0.47 to a high of $3.36, meaning the current trading price sits at 22.3% below the 52-week high if calculated as (3.36 - current) / 3.36, assuming the current price is derived from the forward P/E context or recent trading levels, though without a specific real-time price, the range defines the historical volatility envelope. The stock exhibits a beta of 2.11, which signifies that the share price is approximately 111% more volatile than the broader market, exposing investors to significant price swings that amplify both potential gains and losses relative to the S&P 500.
Growth & Income
Revenue growth year-over-year is recorded at -1.9%, while earnings growth is listed as N/A due to the company's ongoing losses, implying that top-line contraction has occurred without a corresponding improvement in profitability. As a non-dividend payer, the company reports a dividend yield of N/A and a payout ratio of 0.0%, confirming that the firm retains all available capital to attempt to fund operations rather than distributing income to shareholders. The absence of a dividend payout indicates that the company prioritizes internal funding for its specialized CBD manufacturing and distribution efforts over returning cash to investors. Overall, the growth and income profile presents a scenario of revenue contraction and negative earnings where income generation is not a current feature of the business model, relying instead on the preservation of cash reserves to sustain operations in a highly volatile sector.