cbdMD, Inc. (YCBD) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

cbdMD, Inc. (YCBD) Healthcare & Pipeline Overview

cbdMD, Inc. develops and distributes a wide range of CBD products, including oils, gummies, and topicals, targeting both human and pet markets. Operating in the evolving cannabis industry, the company utilizes a multi-channel distribution strategy encompassing direct-to-consumer, e-commerce, and wholesale to reach a broad customer base.

What Is the Investment Thesis for YCBD?

Investing in cbdMD, Inc. presents a high-risk, high-reward scenario given the company's position in the volatile CBD market. With a market capitalization of $5.14M, the company's financial performance is closely tied to the growth and acceptance of CBD products. A gross margin of 60.6% indicates strong pricing power, but a negative profit margin of -12.3% and a negative ROE of -43.4% highlight significant challenges in achieving profitability. The company's high debt-to-equity ratio of 6.58 also raises concerns about its financial leverage. Potential catalysts include expanding distribution partnerships and introducing innovative products. However, investors should be aware of the risks associated with regulatory uncertainty and intense competition in the CBD market. The company's beta of 2.11 suggests high volatility, making it suitable only for investors with a high-risk tolerance.

Based on FMP financials and quantitative analysis

YCBD Key Highlights

Market Cap of $5.14M reflects the company's small size and potential for high growth but also higher risk.

• Gross Margin of 60.6% indicates strong pricing power and efficient cost management in product manufacturing.
• Negative Profit Margin of -12.3% highlights challenges in achieving profitability despite strong gross margins.
• Debt-to-Equity Ratio of 6.58 indicates high financial leverage, which could pose risks if the company's performance does not improve.
• Beta of 2.11 suggests the stock is significantly more volatile than the market, appealing to high-risk investors.

Who Are YCBD's Competitors?

YCBD is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are YCBD's Key Strengths?

Established brand recognition in the CBD market.

• Diverse product portfolio catering to different consumer needs.
• Multi-channel distribution network.
• Strong gross margins.

What Are YCBD's Weaknesses?

Negative profit margins and ROE.

• High debt-to-equity ratio.
• Reliance on the volatile CBD market.
• Limited financial resources compared to larger competitors.

What Could Drive YCBD Stock Higher?

Potential changes in federal regulations regarding CBD products could significantly impact the market.

• Expansion of distribution partnerships with major retailers.
• Introduction of new and innovative CBD products.
• Growth in the pet CBD market.

What Are the Key Risks for YCBD?

Financial-distress signal — its Altman Z-Score of -17.45 sits in the distress zone (elevated bankruptcy risk).

• Negative return on equity (-34.3%) — the business is not currently generating profit on shareholder capital.
• Weak fundamentals — a Piotroski F-Score of 1/9 flags soft profitability, leverage or efficiency.
• Regulatory uncertainty and changes in the legal landscape for CBD products.
• Intense competition from other CBD companies.
• Fluctuations in consumer demand for CBD products.
• High debt levels and potential for financial distress.

What Are the Growth Opportunities for YCBD?

• Expansion of Product Lines: cbdMD has the opportunity to expand its product lines to include new and innovative CBD products, such as specialized formulations for specific health conditions. The market for targeted CBD solutions is growing, with consumers seeking products tailored to their individual needs. By investing in research and development, cbdMD can create unique and differentiated products that command higher margins and attract new customers. The timeline for this growth opportunity is ongoing, with continuous product development and innovation expected.
• Strategic Partnerships: Forming strategic partnerships with retailers, healthcare providers, and other organizations can significantly expand cbdMD's reach and market penetration. Collaborating with established players in the health and wellness industry can provide access to new distribution channels and customer segments. For example, partnering with a national pharmacy chain could provide cbdMD with a significant boost in sales and brand awareness. The timeline for securing such partnerships is estimated to be within the next 1-2 years.
• International Expansion: cbdMD has the potential to expand its operations into new international markets, particularly in Europe and Asia, where the demand for CBD products is growing rapidly. Entering new markets requires careful planning and compliance with local regulations, but the potential rewards are significant. By establishing a presence in key international markets, cbdMD can diversify its revenue streams and reduce its reliance on the US market. The timeline for international expansion is estimated to be within the next 2-3 years.
• Increased Marketing and Branding Efforts: Investing in marketing and branding efforts can help cbdMD increase brand awareness and customer loyalty. By developing a strong brand identity and communicating the benefits of its products effectively, cbdMD can differentiate itself from competitors and attract new customers. This includes digital marketing, social media campaigns, and partnerships with influencers. The market size for digital advertising in the health and wellness sector is substantial, offering significant opportunities for cbdMD. The timeline for seeing results from increased marketing efforts is ongoing.
• Focus on Pet CBD Products: The market for CBD products for pets is growing rapidly, as pet owners seek natural solutions for their animals' health and wellness. cbdMD's Paw CBD brand is well-positioned to capitalize on this trend. By expanding its pet product offerings and marketing them effectively, cbdMD can attract a loyal customer base and generate significant revenue. The market size for pet CBD products is projected to reach several billion dollars in the coming years. The timeline for growth in this area is ongoing.

What Are YCBD's Competitive Advantages?

• Brand recognition in the CBD market with the cbdMD and Paw CBD brands.
• Diverse product portfolio catering to both human and pet markets.
• Multi-channel distribution strategy including direct-to-consumer, e-commerce, and wholesale.
• Proprietary formulations and manufacturing processes.

What Does YCBD Do?

cbdMD, Inc., formerly known as Level Brands, Inc., was rebranded in May 2019 to focus on the burgeoning cannabidiol (CBD) market. The company develops, manufactures, markets, and distributes a diverse array of CBD products across the United States and internationally. Its core brand, cbdMD, offers a wide range of products including CBD oils, gummies, capsules, softgels, topicals, functional formulations, and hemp-derived compliant Delta-9 THC products. Recognizing the expanding market for pet wellness, cbdMD also provides products for dogs and cats under the Paw CBD brand, featuring tinctures, chews, and topicals. Beyond CBD, the company has diversified its offerings to include non-cannabinoid functional ingredients, such as functional mushrooms under the ATRx brand, and hemp-derived solutions under the Herbal Oasis brand. cbdMD distributes its products through multiple channels, including direct-to-consumer sales via its e-commerce platform, online marketplaces, wholesale distribution to retailers, and through health and pet channels. This multi-channel approach allows the company to reach a broad customer base and adapt to evolving market trends within the CBD and wellness industries. Headquartered in Charlotte, North Carolina, cbdMD continues to innovate and expand its product lines to meet the growing demand for CBD and related wellness products.

What Products and Services Does YCBD Offer?

• Develops and manufactures a range of CBD products.
• Distributes CBD products in the United States and internationally.
• Offers CBD oils, gummies, capsules, and topicals.
• Provides products for pets under the Paw CBD brand.
• Sells products through direct-to-consumer channels.
• Utilizes e-commerce platforms and online marketplaces.
• Distributes products through wholesale channels.

How Does YCBD Make Money?

• Develops and manufactures CBD products.
• Sells products directly to consumers through its website.
• Distributes products through wholesale channels to retailers.
• Generates revenue through online marketplaces and e-commerce platforms.

What Industry Does YCBD Operate In?

cbdMD, Inc. operates within the rapidly evolving CBD industry, which has experienced significant growth due to increasing consumer awareness and acceptance of CBD products. The market is characterized by intense competition, with numerous companies offering similar products. Regulatory uncertainty remains a key challenge, as the legal landscape for CBD varies across different jurisdictions. cbdMD's multi-channel distribution strategy and diverse product portfolio position it to capture a share of this growing market, but it must navigate the competitive and regulatory challenges effectively.

Who Are YCBD's Key Customers?

• Individual consumers seeking CBD products for personal use.
• Pet owners looking for CBD products for their pets.
• Retailers who sell CBD products to their customers.
• Health and wellness stores.

Company Profile

cbdMD, Inc. operates in the Drug Manufacturers - Specialty & Generic industry within the Healthcare sector. It is headquartered in Charlotte, US. The company is led by CEO T. Ronan Kennedy. YCBD has traded publicly since 2017.

cbdMD, Inc.'s Piotroski F-Score is 1/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of -17.45 places it in the distress zone, a signal of elevated financial risk.

Return on equity for cbdMD, Inc. stands at -34.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -22.0%, showing how much profit it generates from its asset base. A current ratio of 2.50 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -53.9%, the inverse of the P/E and a quick read on earnings relative to price.

YCBD Valuation & Market Position

With a $5.14M market cap, cbdMD, Inc. sits in the micro-cap segment of the market. Relative to its peer group, YCBD's quantitative score of 21/100 is below the peer average of 56/100.

Wall Street analysts project cbdMD, Inc. revenue of about $22.2M for fiscal 2026, with EPS near $-0.19.

YCBD Financials

YCBD Latest News

YCBD Analyst Consensus

YCBD MoonshotScore

YCBD Healthcare Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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