SIMPLY BETTER BRANDS CORP (SBBC.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:SBBC - CA82888R1055 - Common Stock
0.86 CAD
-0.04 (-4.44%)
SBBC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 34 industry peers in the Pharmaceuticals industry. Both the profitability and financial health of SBBC have multiple concerns. SBBC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year SBBC has reported negative net income.
- In the past year SBBC had a positive cash flow from operations.
- In the past 5 years SBBC always reported negative net income.
- In multiple years SBBC reported negative operating cash flow during the last 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of -1.47%, SBBC is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
- SBBC has a Return On Equity of -22.83%. This is comparable to the rest of the industry: SBBC outperforms 47.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.47% | ||
| ROE | -22.83% | ||
| ROIC | N/A |
ROA(3y)-53.1%
ROA(5y)-47.26%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- SBBC has a Gross Margin (29.78%) which is comparable to the rest of the industry.
- SBBC's Gross Margin has declined in the last couple of years.
- SBBC does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 29.78% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-22.17%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- SBBC does not have a ROIC to compare to the WACC, probably because it is not profitable.
- Compared to 1 year ago, SBBC has more shares outstanding
- The number of shares outstanding for SBBC has been increased compared to 5 years ago.
- Compared to 1 year ago, SBBC has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of -0.48, we must say that SBBC is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of SBBC (-0.48) is comparable to the rest of the industry.
- The Debt to FCF ratio of SBBC is 6.61, which is on the high side as it means it would take SBBC, 6.61 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 6.61, SBBC is doing good in the industry, outperforming 79.41% of the companies in the same industry.
- A Debt/Equity ratio of 2.69 is on the high side and indicates that SBBC has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 2.69, SBBC is doing worse than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 6.61 | ||
| Altman-Z | -0.48 |
ROIC/WACCN/A
WACC7.68%
2.3 Liquidity
- A Current Ratio of 0.90 indicates that SBBC may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.90, SBBC is doing worse than 82.35% of the companies in the same industry.
- A Quick Ratio of 0.74 indicates that SBBC may have some problems paying its short term obligations.
- SBBC has a worse Quick ratio (0.74) than 73.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 98.61% over the past year.
- Looking at the last year, SBBC shows a very negative growth in Revenue. The Revenue has decreased by -42.52% in the last year.
- SBBC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 42.58% yearly.
EPS 1Y (TTM)98.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%57.93%
Revenue 1Y (TTM)-42.52%
Revenue growth 3Y42.58%
Revenue growth 5YN/A
Sales Q2Q%3.75%
3.2 Future
- SBBC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.10% yearly.
- The Revenue is expected to grow by 35.80% on average over the next years. This is a very strong growth
EPS Next Y0%
EPS Next 2Y29.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year41.19%
Revenue Next 2Y35.8%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for SBBC. In the last year negative earnings were reported.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for SBBC. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- 64.71% of the companies in the same industry are more expensive than SBBC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.09 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- SBBC's earnings are expected to grow with 29.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y29.1%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for SBBC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SIMPLY BETTER BRANDS CORP / SBBC.CA FAQ
What is the ChartMill fundamental rating of SIMPLY BETTER BRANDS CORP (SBBC.CA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to SBBC.CA.
What is the valuation status of SIMPLY BETTER BRANDS CORP (SBBC.CA) stock?
ChartMill assigns a valuation rating of 2 / 10 to SIMPLY BETTER BRANDS CORP (SBBC.CA). This can be considered as Overvalued.
How profitable is SIMPLY BETTER BRANDS CORP (SBBC.CA) stock?
SIMPLY BETTER BRANDS CORP (SBBC.CA) has a profitability rating of 2 / 10.
What is the earnings growth outlook for SIMPLY BETTER BRANDS CORP?
The Earnings per Share (EPS) of SIMPLY BETTER BRANDS CORP (SBBC.CA) is expected to decline by 0% in the next year.
Is the dividend of SIMPLY BETTER BRANDS CORP sustainable?
The dividend rating of SIMPLY BETTER BRANDS CORP (SBBC.CA) is 0 / 10 and the dividend payout ratio is 0%.