Kaival Brands Innovations Group Inc.
Find Ratings ReportsKAIVAL BRANDS INNV GROUP INC's gross profit margin for the fourth quarter of its fiscal year 2023 has significantly decreased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its subsector. KAIVAL BRANDS INNV GROUP INC has very weak liquidity. Currently, the Quick Ratio is 0.48 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 38.33% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 3.96 | 3.01 |
EBITDA ($mil) | -1.85 | -2.73 |
EBIT ($mil) | -2.04 | -2.73 |
Net Income ($mil) | -2.38 | -2.72 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 0.53 | 3.69 |
Total Assets ($mil) | 19.39 | 12.44 |
Total Debt ($mil) | 1.85 | 1.22 |
Equity ($mil) | 13.56 | 9.8 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 21.71 | 36.55 |
EBITDA Margin | -46.62 | -90.7 |
Operating Margin | -51.58 | -90.7 |
Sales Turnover | 0.68 | 1.03 |
Return on Assets | -57.42 | -115.54 |
Return on Equity | -82.94 | -146.62 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.39 | 5.72 |
Debt/Capital | 0.12 | 0.11 |
Interest Expense | 0.0 | 0.0 |
Interest Coverage | 0.0 | 0.0 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 2.79 | 2.67 |
Div / share | 0.0 | 0.0 |
EPS | -0.84 | -1.05 |
Book value / share | 4.85 | 3.66 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 142563.0 | 515888.0 |
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.43 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 20.75. The current price-to-sales ratio is well below the S&P 500 average and is also below the subsector average, indicating a discount. After reviewing these and other key valuation criteria, KAIVAL BRANDS INNV GROUP INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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KAVL NM | Peers 23.56 | KAVL NM | Peers 12.26 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. KAVL's P/E is negative making this valuation measure meaningless. |
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. KAVL's P/CF is negative making the measure meaningless. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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KAVL NA | Peers 14.94 | KAVL NA | Peers 1.03 | |||||||||||||||||||||
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential. Ratio not available. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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KAVL 0.43 | Peers 20.75 | KAVL 51.29 | Peers 39.44 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. KAVL is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. KAVL is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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KAVL 0.45 | Peers 0.57 | KAVL 2.55 | Peers 2.59 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. KAVL is trading at a discount to its subsector on this measurement. |
Average. Comparing a company's sales growth to its subsector helps to determine if the company is adding or losing market share. KAVL is keeping pace with its peers on the basis of sales growth. |
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