DAVIDSTEA INC (DTEA.CA) Stock Fundamental Analysis

Canada - TSX Venture Exchange - TSX-V:DTEA - CA2386611024 - Common Stock

0.79 CAD

-0.02 (-2.47%)

Last: 1/26/2026, 7:00:00 PM

Fundamental Rating

We assign a fundamental rating of 1 out of 10 to DTEA. DTEA was compared to 19 industry peers in the Specialty Retail industry. DTEA has a bad profitability rating. Also its financial health evaluation is rather negative. DTEA does not seem to be growing, but still is valued expensively.

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1. Profitability

1.1 Basic Checks

DTEA had positive earnings in the past year.
In the past year DTEA had a positive cash flow from operations.
In the past 5 years DTEA reported 4 times negative net income.
The reported operating cash flow has been mixed in the past 5 years: DTEA reported negative operating cash flow in multiple years.

1.2 Ratios

DTEA's Return On Assets of 0.30% is on the low side compared to the rest of the industry. DTEA is outperformed by 63.16% of its industry peers.
The Return On Equity of DTEA (0.80%) is worse than 63.16% of its industry peers.
DTEA has a Return On Invested Capital of 2.90%. This is in the lower half of the industry: DTEA underperforms 63.16% of its industry peers.

		Industry Rank	Sector Rank
ROA	0.3%
ROE	0.8%
ROIC	2.9%

ROA(3y)-20.71%

ROA(5y)-6.31%

ROE(3y)-41.53%

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

The Profit Margin of DTEA (0.21%) is worse than 63.16% of its industry peers.
DTEA has a worse Operating Margin (1.77%) than 63.16% of its industry peers.
Looking at the Gross Margin, with a value of 48.48%, DTEA is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
In the last couple of years the Gross Margin of DTEA has declined.

		Industry Rank	Sector Rank
OM	1.77%
PM (TTM)	0.21%
GM	48.48%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y5.52%

GM growth 5Y-2.86%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DTEA is destroying value.
The number of shares outstanding for DTEA has been increased compared to 1 year ago.
Compared to 5 years ago, DTEA has more shares outstanding
DTEA has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of -1.12, we must say that DTEA is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -1.12, DTEA is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
The Debt to FCF ratio of DTEA is 6.08, which is on the high side as it means it would take DTEA, 6.08 years of fcf income to pay off all of its debts.
DTEA has a worse Debt to FCF ratio (6.08) than 63.16% of its industry peers.
DTEA has a Debt/Equity ratio of 0.63. This is a neutral value indicating DTEA is somewhat dependend on debt financing.
DTEA has a Debt to Equity ratio of 0.63. This is comparable to the rest of the industry: DTEA outperforms 57.89% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.63
Debt/FCF	6.08
Altman-Z	-1.12

ROIC/WACC0.34

WACC8.58%

2.3 Liquidity

DTEA has a Current Ratio of 1.57. This is a normal value and indicates that DTEA is financially healthy and should not expect problems in meeting its short term obligations.
DTEA's Current ratio of 1.57 is fine compared to the rest of the industry. DTEA outperforms 73.68% of its industry peers.
A Quick Ratio of 0.61 indicates that DTEA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.61, DTEA is in line with its industry, outperforming 42.11% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.57
Quick Ratio	0.61

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 101.46% over the past year.
The Revenue has decreased by -3.83% in the past year.
Measured over the past years, DTEA shows a very negative growth in Revenue. The Revenue has been decreasing by -20.65% on average per year.

EPS 1Y (TTM)101.46%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%59.66%

Revenue 1Y (TTM)-3.83%

Revenue growth 3Y-15.95%

Revenue growth 5Y-20.65%

Sales Q2Q%0.79%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next YearN/A

Revenue Next 2YN/A

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.

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4. Valuation

4.1 Price/Earnings Ratio

DTEA is valuated quite expensively with a Price/Earnings ratio of 79.00.
63.16% of the companies in the same industry are cheaper than DTEA, based on the Price/Earnings ratio.
DTEA is valuated expensively when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	79
Fwd PE	N/A

4.2 Price Multiples

73.68% of the companies in the same industry are more expensive than DTEA, based on the Enterprise Value to EBITDA ratio.
DTEA's Price/Free Cash Flow is on the same level as the industry average.