Adastra Labs Holdings Ltd. (XTRX) AI Stock Analysis

• Market Cap: C$2.57M
• Dividend Yield: N/A
• Average Volume (3M): 1.40K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.47
• Revenue Growth: 19.31%
• EPS Growth: 43.94%
• Country: CA
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 72
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.47
• Shares Outstanding: 5,597,055
• 10 Day Avg. Volume: 639
• 30 Day Avg. Volume: 1,398
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.07
• Price to Cash Flow (P/CF): 0.50
• P/FCF Ratio: 0.40
• 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

Adastra Labs Holdings Ltd. presents a mixed outlook with strong revenue growth and improving cashflows tempered by significant risks in profitability and leverage. Technical indicators suggest a bearish trend with potential overbought conditions on short-term metrics. The unattractive valuation due to the negative P/E ratio and lack of dividends further impacts the stock's appeal.

Adastra Labs Holdings Ltd. Business Overview & Revenue Model

Company Description

Adastra Labs Holdings Ltd. (XTRX) is a Canadian company operating in the cannabis sector. It specializes in the development and manufacture of cannabis-based products, focusing on extraction and processing. The company is known for its state-of-the-art facilities that produce high-quality cannabis extracts and concentrates for the medicinal and recreational markets.

How the Company Makes Money

Adastra Labs Holdings Ltd. generates revenue primarily through the sale of cannabis extracts and concentrates. The company operates advanced extraction facilities that allow for the efficient processing of cannabis into oils, distillates, and other derivative products. These products are then sold to licensed producers, distributors, and retailers within the cannabis industry. Additionally, Adastra may engage in contract manufacturing agreements with other cannabis companies, providing extraction services in exchange for fees. Partnerships with established cannabis brands and participation in joint ventures can also contribute to the company's earnings.

Adastra Labs Holdings Ltd. Financial Statement Overview

Summary

Adastra Labs Holdings Ltd. shows strong revenue growth and improving cash flow metrics, but faces challenges in profitability and leverage, indicating potential financial risk despite operational efficiency improvements.

Income Statement

Adastra Labs Holdings Ltd. has shown a positive revenue growth trajectory, with a significant increase in revenue from 2019 to 2023. However, profitability remains a challenge, as evidenced by negative EBIT and net income margins. The gross profit margin is relatively healthy, indicating potential for operational efficiency improvements.

Balance Sheet

The company's balance sheet reflects moderate leverage with a debt-to-equity ratio showing an increase in total debt. Stockholders' equity has decreased, indicating potential financial risk. However, the equity ratio remains stable, reflecting a balanced asset allocation.

Cash Flow

Cash flow statements reveal a positive trend in operating and free cash flow over recent years, suggesting improving cash management. The operating cash flow to net income ratio indicates better cash conversion despite negative net income. Free cash flow growth is evident, though capital expenditures have been a consistent outflow.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
22.75M	22.22M	13.30M	5.63M	2.50M	0.00
	Gross Profit
8.30M	7.03M	6.11M	1.94M	785.58K	-78.17K
	EBIT
-925.47K	-1.79M	-800.00K	-2.39M	-7.10M	-1.12M
	EBITDA
-626.59K	-1.41M	-2.62M	-1.39M	-7.07M	-2.34M
	Net Income Common Stockholders
-3.36M	-3.54M	-4.28M	-2.75M	-8.07M	-2.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.38M	1.38M	1.01M	744.54K	1.15M	2.38M
	Total Assets
11.35M	32.34M	31.80M	28.76M	13.74M	11.35M
	Total Debt
5.39M	3.64M	3.95M	3.59M	2.50M	5.39M
	Net Debt
3.02M	2.26M	2.93M	2.85M	1.36M	3.02M
	Total Liabilities
6.27M	17.66M	13.57M	6.38M	3.65M	6.27M
	Stockholders Equity
5.08M	14.69M	18.23M	22.37M	10.09M	5.08M
Cash Flow		Free Cash Flow
-342.74K	1.18M	694.07K	-1.64M	-4.63M	-5.93M
	Operating Cash Flow
-56.28K	1.86M	1.32M	-1.05M	-2.83M	-1.56M
	Investing Cash Flow
-286.46K	-681.05K	-1.03M	-262.81K	-1.79M	-4.25M
	Financing Cash Flow
-532.61K	-815.12K	-22.55K	915.98K	3.40M	5.83M

Adastra Labs Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:XTRX, the sentiment is Neutral. The current price of 0.46 is above the 20-day moving average (MA) of 0.38, above the 50-day MA of 0.35, and below the 200-day MA of 0.68, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 51.73 is Neutral, neither overbought nor oversold. The STOCH value of 81.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:XTRX.

Adastra Labs Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRON	68 Neutral	$990.75M	17.45	3.80%	―	35.87%	―
XTRX	53 Neutral	C$2.57M	―	-17.74%	―	19.31%	43.94%
TRUL	49 Neutral	$1.04B	―	-12.12%	―	6.27%	67.62%
Sector *	48 Neutral	$6.84B	1.02	-53.11%	2.50%	16.84%	0.92%
ACB	47 Neutral	$347.96M	27.10	4.78%	―	16.39%	-98.10%
OGI	47 Neutral	$183.01M	―	-18.27%	―	7.33%	84.41%
WEED	32 Underperform	$257.15M	―	-84.50%	―	-16.27%	76.17%

Adastra Labs Holdings Ltd. Corporate Events

Adastra Holdings Confirms Management Changes Amidst Strategic Growth

Adastra Holdings Ltd. has confirmed its current management structure following a review by the British Columbia Securities Commission. Lachlan McLeod, who resigned as Interim CEO, CFO, and Corporate Secretary, continues to provide financial services as an external consultant through an agreement with Stornoway Consulting Corp. The company’s board is currently handling management duties while they search for permanent replacements for the CEO, CFO, and Corporate Secretary roles. This management update is part of Adastra’s ongoing efforts to maintain transparency and efficiency in its operations, ensuring stability and strategic growth in the competitive cannabis market.

Adastra Holdings Schedules Virtual Annual General Meeting

Adastra Holdings Ltd., a prominent player in cannabis processing, has announced its virtual 2024 Annual General Meeting set for December 13, 2024. Key agenda items include the election of directors and the appointment of auditors for the upcoming year. Shareholders can participate and vote by pre-registering, but must do so before the deadline.