Simply Better Brands (SBBC) AI Stock Analysis

• Market Cap: C$99.68M
• Dividend Yield: N/A
• Average Volume (3M): 312.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -49.45%
• EPS Growth: 31.75%
• Country: CA
• Employees: 16
• Sector: Consumer Defensive
• Sector Strength: 90
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.23
• Shares Outstanding: 107,180,250
• 10 Day Avg. Volume: 446,650
• 30 Day Avg. Volume: 312,956
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.50
• Price to Cash Flow (P/CF): -5.30
• 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

Simply Better Brands' overall score is driven by financial challenges and valuation concerns, despite positive momentum and strategic growth initiatives in the TRUBAR division. The financial instability due to negative earnings and cash flows is a significant risk, while the earnings call and corporate events highlight potential growth opportunities.

Simply Better Brands Business Overview & Revenue Model

Company Description

Simply Better Brands Corp. (SBBC) is a health and wellness company that operates in the sectors of consumer packaged goods, focusing on plant-based products. Its core products and services include a range of wellness brands that promote holistic health, such as nutritional supplements, personal care items, and hemp-derived CBD products. The company's portfolio is designed to meet the growing demand for natural and sustainable products that support a healthy lifestyle.

How the Company Makes Money

Simply Better Brands generates revenue through the sale of its consumer packaged goods across various distribution channels. Key revenue streams include direct-to-consumer sales via e-commerce platforms, as well as wholesale distribution to retail partners. The company benefits from significant partnerships with retail chains and online marketplaces that enhance its market reach and visibility. Additionally, SBBC may engage in strategic collaborations and licensing agreements to expand its product offerings and enter new markets, contributing to its overall earnings.

Simply Better Brands Financial Statement Overview

Summary

Simply Better Brands faces significant financial challenges with persistent losses, high leverage, and negative cash flows. Despite some stabilization in equity, the company needs to address operational inefficiencies and improve revenue growth to enhance financial health.

Income Statement

The company has experienced a significant decline in revenue from 2023 to TTM. Gross profit margin remains relatively stable at 43.06% for TTM, but net profit margin is negative at -19.15%, indicating ongoing losses. The EBIT and EBITDA margins are also negative, reflecting operational challenges. Revenue growth showed a negative trend from 2023 to TTM.

Balance Sheet

The balance sheet shows high leverage with a debt-to-equity ratio of 0.87 in TTM. The return on equity cannot be assessed due to negative equity in 2023 but improved to a positive value in TTM. The equity ratio is 38.23%, indicating moderate financial stability but with potential risk due to past negative equity.

Cash Flow

The cash flow statement reflects challenges with negative operating and free cash flows in TTM, similar to previous periods. The operating to net income ratio indicates inefficiencies in translating income to cash. Free cash flow growth was negative, highlighting ongoing cash flow constraints.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
45.44M	79.86M	65.41M	15.63M	13.77M	25.31M
	Gross Profit
19.57M	46.86M	44.56M	9.71M	8.97M	16.82M
	EBIT
-3.18M	-10.47M	-9.27M	-8.72M	1.45M	5.78M
	EBITDA
2.76M	-18.23M	-4.54M	-8.06M	1.50M	5.78M
	Net Income Common Stockholders
-8.70M	-24.25M	-12.35M	-12.82M	-2.20M	2.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.06M	2.33M	2.34M	2.23M	8.31M	1.06M
	Total Assets
3.72M	19.54M	36.63M	21.81M	12.09M	3.72M
	Total Debt
128.73K	19.44M	19.15M	20.66M	16.45M	128.73K
	Net Debt
-933.02K	17.11M	16.81M	18.43M	8.14M	-933.02K
	Total Liabilities
1.31M	27.18M	25.49M	23.86M	25.80M	1.31M
	Stockholders Equity
1.21M	-3.63M	12.59M	-650.43K	-14.43M	1.21M
Cash Flow		Free Cash Flow
-1.24M	-3.36M	-5.09M	-4.98M	945.44K	5.45M
	Operating Cash Flow
-1.22M	-3.36M	-4.76M	-4.98M	945.44K	5.46M
	Investing Cash Flow
-80.90K	-3.91K	3.35M	-713.00K	-1.77M	-10.05K
	Financing Cash Flow
1.74M	3.33M	1.49M	-379.80K	8.07M	-5.72M

Simply Better Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SBBC, the sentiment is Negative. The current price of 0.86 is below the 20-day moving average (MA) of 0.98, below the 50-day MA of 1.03, and above the 200-day MA of 0.84, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.77 is Neutral, neither overbought nor oversold. The STOCH value of 21.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SBBC.

Simply Better Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$19.87B	13.65	-16.14%	3.29%	1.16%	3.90%
OGI	52 Neutral	$166.66M	―	-18.27%	―	7.33%	84.41%
SBBC	48 Neutral	C$99.68M	―	-273.69%	―	-49.45%	31.75%
ACB	47 Neutral	$314.49M	24.73	4.78%	―	16.39%	-98.10%
WEED	42 Neutral	$235.42M	―	-84.50%	―	-16.27%	―

Simply Better Brands Corporate Events

TRUBAR™ by Simply Better Brands Earns Seed Oil Free Certification

Simply Better Brands Corp. announced that its TRUBAR™ line has achieved Seed Oil Free Certification, ensuring its products are free from all seed oils through rigorous third-party testing. This certification positions TRUBAR™ as a leader in the plant-based protein bar category, addressing the growing consumer concern over seed oils and enhancing its market appeal to health-conscious consumers.

Simply Better Brands Expands TRUBAR™ Distribution via Gopuff

Simply Better Brands Corp. has expanded the distribution of its TRUBAR™ product by launching it on Gopuff, an instant commerce platform in major U.S. markets. This move enhances the company’s presence in the e-commerce channel, providing Gopuff customers with a quick and convenient option for healthy snacking, aligning with the company’s strategy to innovate and expand its market reach.

Simply Better Brands Expands TRUBAR™ Distribution to Sam’s Club Stores

Simply Better Brands Corp. has announced the nationwide launch of TRUBAR™ in select Sam’s Club stores across the U.S., marking a strategic expansion in its North American distribution network. This move follows a successful online introduction on samsclub.com, aiming to enhance brand visibility and customer engagement in the warehouse retail channel.

Simply Better Brands’ TRUBAR Gains National Exposure in U.S. Warehouse Club Promotion

Simply Better Brands Corp. announced that its TRUBAR brand has been selected for a national promotion program with a major U.S. warehouse club retailer, marking its third consecutive year of participation. The promotion, running from January 2-31, 2025, will feature TRUBAR’s top-selling bars and is expected to significantly enhance the brand’s visibility and distribution across the United States. Additionally, SBBC has engaged Winning Media to execute a digital awareness campaign aimed at boosting investor focus and corporate visibility.

Simply Better Brands’ Strategic Leadership Appointments

Simply Better Brands Corp. has announced key leadership appointments as it continues its growth trajectory. Claire Ughetto will lead operations with her extensive supply chain experience, while Laura Freimane steps in as Chief Financial Officer, bringing substantial financial expertise to the company.

Simply Better Brands Secures $10M Credit Facility

Simply Better Brands has secured a new $10 million credit facility from BMO to expand its TRUBAR sales in North American and international markets. This facility, supported by the Export Development Canada program, replaces a previous $5 million facility and allows borrowing against accounts receivable and inventory. The partnership aims to boost TRUBAR’s growth, innovation, and market reach.

Simply Better Brands Reports Strong Q3 Growth

Simply Better Brands has reported a remarkable 124% increase in revenue for the third quarter of 2024, attributed largely to the success of TRUBAR, which saw a 156% rise in revenue. The company has also significantly improved its financial standing, transforming a working capital deficit into a positive position while expanding TRUBAR’s distribution across major retailers in North America.