Company Overview
LQR House Inc. operates within the Consumer Defensive sector, specifically targeting the Beverages - Wineries & Distilleries industry, where it provides digital marketing and brand development services for the alcoholic beverage business in the United States. The company engages in the development of limited batch spirit brands and markets internal and external brands through its CWS Platform to serve individual clients. As a micro-cap entity, LQR House Inc. holds a market capitalization of $21.15M, reports annual revenue of $2.10M, and employs a staff of 4 individuals. These valuation and operational figures indicate that the company functions as a very small-scale operation with limited revenue generation relative to its valuation, suggesting a high reliance on specific niche market activities rather than broad commercial dominance.
Financial Health
The company reported a revenue of $2.10M for the trailing twelve months, yet recorded a net income of $-36,175,056, while EBITDA figures are unavailable. This massive disparity between positive revenue and significant negative net income reveals a highly strained cost structure where expenses far exceed earnings, resulting in a profit margin of 0.0% and an operating margin of -1134.8%. The firm generated free cash flow of $-2,786,507, indicating that current operations are consuming cash reserves rather than generating liquidity. Despite the negative operating performance, the company maintains a cash balance of $10.04M, which currently exceeds any reported debt, though the debt-to-equity ratio is listed as N/A. The balance sheet presents a complex picture where significant cash holdings coexist with severe profitability issues, requiring careful monitoring of cash burn rates. Liquidity is supported by a current ratio of 1.41, suggesting the company possesses sufficient current assets to cover its short-term liabilities without immediate distress. Furthermore, the return on equity stands at -198.4% and the return on assets is -52.0%, metrics that reveal management is currently destroying value for shareholders and failing to generate returns on the capital base deployed.
Valuation Assessment
Valuation metrics for LQR House Inc. present mixed signals, as the P/E Ratio (TTM) and Forward P/E are both N/A due to the company's lack of consistent profitability. The absence of a trailing P/E and forward P/E implies that traditional earnings-based valuation models cannot be applied, leaving investors to rely on alternative metrics to gauge the asset's worth. The price-to-book ratio is recorded at 0.51, indicating that the market values the company at significantly less than the replacement cost of its assets, which often suggests a distressed or undervalued state depending on asset quality. Additionally, the price-to-sales ratio stands at 10.06, while the EV/EBITDA is N/A, suggesting that the market places a premium on sales volume despite the lack of earnings, or conversely, that the high sales multiple reflects the speculative nature of a non-profitable entity. The stock trades between a 52-week high of $14.66 and a 52-week low of $0.53; without a specific current price provided in the source data, the position relative to this range cannot be precisely calculated, but the wide range demonstrates extreme historical volatility. The beta value is 4.29, which indicates that the stock's price volatility is more than four times that of the broader market, exposing investors to substantial risk if the market declines.
Growth & Income
LQR House Inc. experienced a revenue growth of -46.0% year-over-year, while earnings growth is N/A due to the absence of prior period profitability for comparison. The contraction in revenue suggests a shrinking business model or loss of market share, while the inability to calculate earnings growth reinforces the severity of the financial losses. Since the company is not a dividend payer, there is no dividend yield or payout ratio to evaluate for sustainability, and the payout ratio is explicitly 0.0%. Consequently, the firm does not distribute cash to shareholders and instead retains all earnings, although in this case, the retention results in further depletion of cash reserves. The overall growth and income profile is characterized by significant revenue decline, negative profitability across all margins, and a high-risk volatility profile driven by a beta of 4.29.