Kaival Brands Innovations Group (KAVL) AI Stock Analysis

• Market Cap: $5.58M
• Dividend Yield: N/A
• Average Volume (3M): 77.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: -71.85%
• EPS Growth: 59.22%
• Country: US
• Employees: 3
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Tobacco
• EPS (TTM): -1.55
• Shares Outstanding: 11,542,302
• 10 Day Avg. Volume: 41,174
• 30 Day Avg. Volume: 77,051
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.70
• Price to Cash Flow (P/CF): -1.80
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Kaival Brands Innovations Group has a low overall score of 31 due to significant financial and operational challenges. The company is grappling with declining revenues, persistent losses, and liquidity issues, as indicated by the income statement and cash flow scores. Technical analysis further supports a negative outlook, with the stock trading below key moving averages and showing oversold conditions. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield, reflecting the underlying struggles in generating positive earnings. These factors collectively suggest a cautious stance for potential investors.

Kaival Brands Innovations Group Business Overview & Revenue Model

Company Description

Kaival Brands Innovations Group (KAVL) is a company primarily focused on the distribution and marketing of innovative products within the consumer goods sector, particularly in the tobacco and nicotine-related products market. The company aims to provide adult consumers with cutting-edge alternatives to traditional tobacco products, leveraging unique technology and user experience designs to enhance product appeal and compliance with regulatory standards.

How the Company Makes Money

Kaival Brands Innovations Group generates revenue through the sale and distribution of its flagship product lines, particularly focusing on nicotine delivery systems. The company's primary revenue streams include wholesale distribution agreements with large retail chains and specialty stores, providing its products to a broad consumer base. Additionally, KAVL benefits from strategic partnerships and exclusive distribution rights with product manufacturers, enhancing its market reach and competitive edge. Licensing agreements and potential royalties from product innovations may also contribute to its income, although the company's core earnings are predominantly from the direct sales of its marketed products.

Kaival Brands Innovations Group Financial Statement Overview

Summary

Kaival Brands Innovations Group faces significant financial challenges across all verticals. The company is struggling with declining revenues and persistent losses, which are reflected in weak income statement metrics. While the balance sheet shows strong equity, the lack of leverage and diminishing asset base raise concerns about future growth potential. The company's cash flow situation is precarious, relying heavily on external financing to support operations, highlighting the urgent need for improved cash generation and operational efficiency.

Income Statement

Kaival Brands Innovations Group's income statement reflects significant challenges, with a consistent decline in revenue and profitability. The TTM data shows a sharp drop in total revenue to $3.7 million from $5.9 million in the previous year, indicating a negative revenue growth trend. The company also reports negative EBIT, EBITDA, and net profit margins, reflecting ongoing operational losses and financial strain.

Balance Sheet

The balance sheet reveals a mixed financial position. The company's equity ratio is strong at approximately 89.8%, demonstrating good asset backing by equity. However, the debt-to-equity ratio is low at roughly 0.065, indicating limited leverage, which could restrict growth opportunities. Despite a healthy stockholders' equity, the overall financial stability is compromised by declining total assets and cash reserves.

Cash Flow

The cash flow statement highlights critical issues, with negative free cash flow and operating cash flow indicating liquidity problems. The TTM free cash flow is negative at $-1.8 million, a deterioration from the previous period. The company has been relying on financing activities to support operations, which is unsustainable in the long term without improved cash generation from core activities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.72M	5.88M	13.09M	12.76M	58.78M	64.31M
	Gross Profit
1.41M	2.61M	2.57M	1.24M	11.93M	10.06M
	EBIT
-6.91M	-5.71M	-10.66M	-14.39M	-10.47M	5.36M
	EBITDA
-7.78M	-5.16M	-10.34M	-14.39M	-10.47M	5.36M
	Net Income Common Stockholders
-8.67M	-6.70M	-11.13M	-14.37M	-9.03M	3.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.43M	3.90M	533.66K	3.69M	7.76M	7.42M
	Total Assets
14.07M	16.00M	19.39M	12.44M	30.19M	8.92M
	Total Debt
817.11K	866.21K	1.85M	1.22M	59.20K	70.91K
	Net Debt
-1.61M	-3.04M	1.32M	-2.47M	-7.70M	-7.35M
	Total Liabilities
1.43M	2.19M	5.83M	2.64M	13.87M	4.50M
	Stockholders Equity
12.64M	13.82M	13.56M	9.80M	16.32M	4.42M
Cash Flow		Free Cash Flow
-1.82M	-672.63K	-2.98M	-5.71M	-9.31M	7.60M
	Operating Cash Flow
-1.82M	-672.63K	-2.97M	-5.71M	-9.31M	7.60M
	Investing Cash Flow
0.00	0.00	-315.77K	0.00	0.00	0.00
	Financing Cash Flow
3.66M	4.04M	136.79K	1.57M	9.72M	-179.92K

Kaival Brands Innovations Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KAVL, the sentiment is Negative. The current price of 0.48 is below the 20-day moving average (MA) of 0.52, below the 50-day MA of 0.71, and below the 200-day MA of 0.88, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 38.39 is Neutral, neither overbought nor oversold. The STOCH value of 31.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KAVL.

Kaival Brands Innovations Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RLX	64 Neutral	$2.12B	27.97	3.49%	0.46%	106.83%	10.27%
Sector *	60 Neutral	$6.56B	11.42	3.23%	4.27%	2.37%	-21.19%
TPB	59 Neutral	$1.00B	26.45	27.80%	0.49%	-0.13%	2.92%
ISPR	49 Neutral	$162.71M	―	-86.30%	―	5.10%	-137.46%
GNLN	37 Underperform	$2.03M	―	-200.95%	―	-79.69%	89.11%
XXII	36 Underperform	$1.79M	―	-385.90%	―	-65.44%	96.80%
KAVL	31 Underperform	$5.58M	―	-70.92%	―	-71.85%	59.22%

Kaival Brands Innovations Group Corporate Events

Kaival Brands Aligns Leadership with Shareholder Interests

The Company has entered into a consulting agreement with Interim CEO Mark Thoenes, offering $25,000 monthly and 100,000 shares of common stock. Simultaneously, an employment agreement with Interim CFO Eric Morris ensures a $180,000 annual salary, potential $20,000 bonus, and 250,000 shares of restricted stock. These strategic moves reflect the Company’s commitment to aligning leadership incentives with shareholder interests.

Kaival Brands Announces Strategic Merger with Delta Corp

Kaival Brands Innovations Group, Inc. has announced a major step forward with a Merger Agreement involving Delta Corp Holdings Limited and other parties, aimed at creating a formidable Business Combination. The announcement, which includes detailed plans for the transaction and its benefits, could have significant implications for shareholders and the financial market. Investors and stakeholders are advised to stay informed by reading the forthcoming materials, including a proxy statement and prospectus, which will contain vital information about the merger’s impact and strategic advantages. As the companies navigate through the approval process, the market eagerly anticipates the potential growth and competitive edge this Business Combination could bring.

Kaival Brands Appoints Mark Thoenes as Interim CEO

Mark Thoenes has been appointed as the interim CEO of Kaival Brands Innovations Group, Inc. following the unexpected passing of the former CEO, Nirajkumar Patel. Thoenes brings over 35 years of experience, including a significant tenure as CFO of the publicly traded Rentrak Corporation and as a licensed CPA since 1984. His background includes founding MLT Consulting Services, LLC and serving on the board of the company since August 2024, showcasing his extensive leadership in finance and operations.