Avant Brands (AVNT) AI Stock Analysis

• Market Cap: $8.88M
• Dividend Yield: N/A
• Average Volume (3M): 5.41K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.15
• Revenue Growth: 32.63%
• EPS Growth: -90.15%
• Country: CA
• Employees: 180
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 10,824,207
• 10 Day Avg. Volume: 2,535
• 30 Day Avg. Volume: 5,409
• PEG Ratio: -0.04
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.66
• 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

• Rating: 43 Neutral
• Price Target: ―

Avant Brands is experiencing revenue growth and international expansion, which are positives for future prospects. However, the company faces significant profitability challenges, reflected in negative margins and return on equity. Technical indicators show neutral to weak momentum, and the valuation is impacted by negative earnings and lack of dividends. Overall, while growth potential exists, profitability and valuation concerns weigh heavily on the stock’s score.

Avant Brands Business Overview & Revenue Model

Company Description

Avant Brands Inc. cultivates, produces, and markets premium cannabis products in Canada. The company offers medical and recreational cannabis products under the BLK MKT, Tenzo, GreenTec, cognoscente, Treehugger, and Pristine brands. It distributes cannabis through medical and recreational sales channels, as well as an e-commerce website. The company was formerly known as GTEC Holdings Ltd. and changed its name to Avant Brands Inc. in July 2021. Avant Brands Inc. was incorporated in 2017 and is headquartered in Kelowna, Canada.

How the Company Makes Money

Avant Brands generates revenue primarily through the cultivation, production, and sale of cannabis products. The company's key revenue streams include direct sales to consumers through retail channels, as well as wholesale distribution to licensed dispensaries and other retail partners. Avant Brands leverages its strong brand reputation and commitment to quality to drive sales, while also exploring opportunities for strategic partnerships and product innovations to expand its market share and enhance its revenue potential.

Avant Brands Financial Statement Overview

Summary

Avant Brands faces significant challenges in achieving profitability and maintaining financial stability. While revenue has grown, persistent negative profit margins and operational inefficiencies hinder overall financial health. The balance sheet stability is somewhat reassuring, but negative equity trends and cash flow inconsistencies pose risks. The company needs to improve cost management and operational efficiency to strengthen its financial position.

Income Statement

Avant Brands has experienced revenue growth from 2020 to the TTM period, but the company struggles with negative profit margins. The gross profit margin is negative, reflecting cost challenges. Net profit margin is also significantly negative due to high operating expenses relative to revenue. The EBITDA and EBIT margins are deeply negative as well, indicating operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio over time, with equity covering liabilities, indicating some stability. However, the negative trajectory in stockholders' equity and total assets highlights potential financial strain. Return on equity is negative due to ongoing net losses, raising concerns about future profitability.

Cash Flow

Avant Brands shows a fluctuating cash flow situation. The operating cash flow to net income ratio is positive, suggesting some conversion efficiency, but free cash flow remains limited and inconsistent. Free cash flow growth has been erratic, highlighting challenges in generating consistent cash from operations.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
36.33M	35.80M	26.34M	20.15M	9.50M	7.91M
	Gross Profit
-2.14M	-1.68M	12.43M	3.91M	1.90M	6.15M
	EBIT
-12.17M	-13.35M	-1.45M	-8.54M	-3.86M	1.22M
	EBITDA
-17.25M	-19.45M	4.84M	-3.08M	-9.31M	-5.07M
	Net Income Common Stockholders
-20.72M	-22.55M	-5.07M	-7.54M	-11.23M	-10.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
794.00K	1.74M	794.00K	6.78M	14.49M	625.00K
	Total Assets
82.55M	59.47M	82.55M	67.03M	50.57M	40.80M
	Total Debt
18.70M	17.01M	18.70M	3.01M	623.00K	7.50M
	Net Debt
17.93M	15.27M	17.93M	-3.75M	-13.69M	6.87M
	Total Liabilities
33.22M	26.62M	33.22M	18.79M	2.70M	12.38M
	Stockholders Equity
49.33M	32.85M	49.33M	43.92M	47.87M	28.42M
Cash Flow		Free Cash Flow
321.00K	401.00K	1.85M	-4.90M	-6.22M	-1.12M
	Operating Cash Flow
429.00K	507.00K	5.41M	-3.46M	-5.62M	-357.00K
	Investing Cash Flow
-89.00K	-78.00K	-7.03M	-3.10M	-1.65M	-1.38M
	Financing Cash Flow
-88.00K	539.00K	-4.38M	-993.00K	20.96M	393.00K

Avant Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.82
• 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 TSE:AVNT, the sentiment is Negative. The current price of 0.82 is below the 20-day moving average (MA) of 0.87, below the 50-day MA of 0.96, and below the 200-day MA of 0.98, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 39.70 is Neutral, neither overbought nor oversold. The STOCH value of 22.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AVNT.

Avant Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DHB	64 Neutral	C$6.88M	181.82	-3.45%	―	4.04%	80.24%
Sector *	53 Neutral	$5.22B	3.32	-45.04%	2.83%	16.81%	-0.27%
AVNT	43 Neutral	$8.88M	―	-51.80%	―	32.63%	-90.15%
SRUTF		$5.31M	―		―	―	―
LVRLF		$4.79M	―		―	―	―
IMCC		$19.09M	―	-63.75%	―	―	―
CLCFF		$7.38M	6.60	9.27%	―	―	―

Avant Brands Corporate Events

Avant Brands Inc. Announces Key Outcomes from 2025 Annual General Meeting

Avant Brands Inc. held its 2025 Annual General Meeting, where 16.19% of its common shares were represented. Key outcomes included the election of six directors, re-appointment of Ernst & Young LLP as auditors, and approval of amendments to the company’s deferred share unit and long-term incentive plans. Additionally, the repricing of certain warrants and convertible debentures was approved, reflecting strategic adjustments to enhance shareholder value and operational flexibility.

Avant Brands Announces Shareholder Meeting and Repricing Amendments

Avant Brands Inc. has announced its upcoming annual general and special meeting of shareholders, scheduled for May 30, 2025. The meeting will address several key business items, including the approval of repricing amendments to the exercise price of certain warrants and the conversion price of debentures, which were previously issued in a private placement. These amendments, aimed at adjusting the financial terms of the debentures and warrants, are subject to shareholder and Toronto Stock Exchange approval. This move could potentially impact Avant’s financial strategy and market positioning, offering more favorable terms to stakeholders involved in these financial instruments.

Avant Brands Reports Strong Q1 2025 Financial Results Amid International Growth

Avant Brands reported strong financial results for Q1 2025, with significant increases in gross and net revenue, driven by robust international demand for its premium cannabis products. The company achieved a 41% increase in export wholesale revenue, particularly in markets like Australia, Germany, and Israel. Despite a decline in recreational and domestic wholesale revenue due to strategic realignment, Avant continues to focus on scaling its global footprint and delivering sustainable long-term value.