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Simply Better Brands (TSE:SBBC)
:SBBC

Simply Better Brands (SBBC) AI Stock Analysis

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Simply Better Brands

(SBBC)

54Neutral
Simply Better Brands shows potential through its strong growth in the TRUBAR division and strategic expansions. However, significant financial challenges and valuation issues weigh on its overall score.

Simply Better Brands (SBBC) vs. S&P 500 (SPY)

Simply Better Brands Business Overview & Revenue Model

Company DescriptionSimply Better Brands Corp. (SBBC) is a consumer products company that focuses on health and wellness, beauty, and pet care sectors. The company is dedicated to developing, marketing, and distributing a portfolio of high-quality products that cater to the growing demand for natural, organic, and sustainable consumer goods. Its core product offerings include plant-based wellness supplements, skincare products, and specialty pet care items, designed to enhance consumers' well-being and lifestyle choices.
How the Company Makes MoneySBBC generates revenue through the sale of its diverse range of consumer products across multiple distribution channels, including e-commerce platforms, retail partnerships, and direct-to-consumer sales. By leveraging strategic marketing initiatives and a robust online presence, the company is able to reach a broad audience seeking natural and sustainable products. Key revenue streams include sales from its branded wellness supplements, beauty care lines, and pet care products. Additionally, collaborations with retail partners and other distribution agreements play a significant role in expanding its market reach and contributing to overall revenue growth.

Simply Better Brands Financial Statement Overview

Summary
Simply Better Brands is facing significant financial challenges, marked by negative EBIT, declining revenue, and high leverage. Although there are some improvements in cash flow and equity, the persistent losses and reliance on debt pose substantial risks.
Income Statement
Simply Better Brands is facing challenges in profitability, with negative EBIT and net income over the last few years. The revenue has significantly dropped from 2023 to 2024, causing concern about growth stability. The gross profit margin remains acceptable, indicating some control over cost of sales. However, the consistent negative net profit margin points to operational inefficiencies.
Balance Sheet
38
The balance sheet reflects high leverage with a substantial debt-to-equity ratio, suggesting financial risk. Stockholders' equity has been negative in previous years, but a positive shift in 2024 is a minor improvement. The equity ratio remains low, indicating heavy reliance on debt financing, which could pose financial stability risks.
Cash Flow
There has been a positive shift in cash flow management with free cash flow turning positive in 2024. The operating cash flow to net income ratio indicates potential improvements in cash generation relative to earnings. However, the historical trend of negative free cash flow raises concerns about sustainability.
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
79.86M65.41M15.63M13.77M25.31M
Gross Profit
46.86M44.56M9.71M8.97M16.82M
EBIT
-10.47M-9.27M-8.72M1.45M5.78M
EBITDA
-18.23M-4.54M-8.06M1.50M5.78M
Net Income Common Stockholders
-24.25M-12.35M-12.82M-2.20M2.89M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.33M2.34M2.23M8.31M1.06M
Total Assets
19.54M36.63M21.81M12.09M3.72M
Total Debt
19.44M19.15M20.66M16.45M128.73K
Net Debt
17.11M16.81M18.43M8.14M-933.02K
Total Liabilities
27.18M25.49M23.86M25.80M1.31M
Stockholders Equity
-3.63M12.59M-650.43K-14.43M1.21M
Cash FlowFree Cash Flow
-3.36M-5.09M-4.98M945.44K5.45M
Operating Cash Flow
-3.36M-4.76M-4.98M945.44K5.46M
Investing Cash Flow
-3.91K3.35M-713.00K-1.77M-10.05K
Financing Cash Flow
3.33M1.49M-379.80K8.07M-5.72M

Simply Better Brands Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.98
Price Trends
50DMA
0.95
Positive
100DMA
1.02
Negative
200DMA
0.85
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
55.81
Neutral
STOCH
80.95
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SBBC, the sentiment is Positive. The current price of 0.98 is above the 20-day moving average (MA) of 0.92, above the 50-day MA of 0.95, and above the 200-day MA of 0.85, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.81 is Neutral, neither overbought nor oversold. The STOCH value of 80.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SBBC.

Simply Better Brands Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$8.81B14.725.05%174.27%3.55%3.81%
54
Neutral
C$102.89M-273.69%-41.62%80.00%
TSACB
50
Neutral
$348.51M27.314.78%16.39%-98.10%
TSOGI
49
Neutral
$190.65M-18.27%7.33%84.41%
47
Neutral
$320.53M-84.50%-16.27%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SBBC
Simply Better Brands
0.98
0.57
139.02%
TSE:WEED
Canopy Growth
1.82
-11.01
-85.81%
TSE:ACB
Aurora Cannabis
6.74
-2.36
-25.93%
TSE:OGI
OrganiGram Holdings
1.64
-0.87
-34.66%

Simply Better Brands Earnings Call Summary

Earnings Call Date:Apr 22, 2025
(Q3-2024)
|
% Change Since: 12.64%|
Next Earnings Date:Jun 02, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong positive sentiment due to the exceptional growth and expansion of the TRUBAR division, significant improvements in financial standing, and promising future outlook. Despite some challenges with smaller business lines and the need for continued investment, the highlights significantly outweigh the lowlights.
Q3-2024 Updates
Positive Updates
Exceptional Revenue Growth
Reported 124% year-over-year growth in total revenue for the quarter, with the TRUBAR division growing 156% year-over-year.
TRUBAR Division Success
TRUBAR division reported $11.5 million in revenue, up from $4.5 million, and is targeting $100 million in a $6 billion industry with a 14% CAGR.
Improved Financial Position
Cash balance of $3.5 million, $10 million available through credit lines, and a $1.2 million reduction in promissory notes and loans payable.
Margin Improvements
Gross margin improved from 40% to 50%, with plans for further margin enhancements as volumes expand.
Expanding Distribution Channels
Significant new distribution channels won, including Costco, Walmart, Whole Foods, Amazon, and CVS. Plan for international expansion and regional wins across North America.
Strong Amazon Performance
Amazon sales increased from $40,000 to over $600,000 per month, with plans to reach a $10 million run rate in 2025.
No Production Capacity Limitations
Current production setup can support well over $100 million with world-class Comans and deep capabilities.
Negative Updates
Relatively Small Other Business Lines
Plant-based wellness and NextGen Beauty divisions contribute minimally to overall revenue, with sales of $1.5 million and $2-3 million respectively.
Continued Investment Required
Need for continued investment in growth, which may impact short-term profitability, with expected 9-10% EBITDA margin in the next year.
Challenges in New Markets
International expansion and deeper penetration in Canada and Walmart require strategic planning and execution.
Company Guidance
During the Simply Better Brands Q3 2024 earnings call, the company reported significant growth metrics, indicating a 124% year-over-year increase in total revenue, primarily driven by its TRUBAR division, which saw a 156% rise. The total revenue for the quarter was $12.1 million, with TRUBAR contributing $11.5 million. The company also reported improvements in gross margin, reaching 50% from a previous 40%. Financially, Simply Better Brands strengthened its position, boasting a cash balance of $3.5 million and access to $10 million in credit lines, while reducing loans payable by $1.2 million. Looking ahead, the company remains confident in its guidance for the remainder of the year, aiming for a 2024 TRUBAR revenue target of $45 million to $50 million, and is focused on expanding its market reach and distribution channels, with plans to enter 15,000 stores by year-end.

Simply Better Brands Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Simply Better Brands Expands TRUBAR™ to Costco Mexico
Positive
Apr 28, 2025

Simply Better Brands Corp. has announced the launch of its TRUBAR™ product line in all Costco Warehouse Club locations across Mexico, marking the brand’s second international market entry following its introduction in Canada. This expansion into Mexico, Costco’s third-largest market, is a strategic move to increase consumer awareness and trial of their clean-ingredient snacks, furthering their global reach and catering to health-conscious consumers.

Spark’s Take on TSE:SBBC Stock

According to Spark, TipRanks’ AI Analyst, TSE:SBBC is a Neutral.

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.

To see Spark’s full report on TSE:SBBC stock, click here.

Business Operations and StrategyFinancial Disclosures
Simply Better Brands Reports 77% TRUBAR Revenue Surge and Rebrands to TRUBAR Inc.
Positive
Apr 22, 2025

Simply Better Brands Corp. reported a significant increase in revenue for fiscal 2024, driven by a 77% rise in TRUBAR™ sales, contributing to 96% of the company’s total revenue. The company plans to rebrand as TRUBAR Inc., focusing solely on its flagship brand, and has announced strategic expansions into major retailers like Sam’s Club and Target, indicating a strong market presence and growth potential.

Spark’s Take on TSE:SBBC Stock

According to Spark, TipRanks’ AI Analyst, TSE:SBBC is a Neutral.

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.

To see Spark’s full report on TSE:SBBC stock, click here.

Product-Related AnnouncementsBusiness Operations and Strategy
Simply Better Brands Expands TRUBAR Distribution to Target Stores
Positive
Apr 14, 2025

Simply Better Brands Corp. has announced the nationwide rollout of its TRUBAR protein bars in select Target stores and online at target.com. This expansion marks a significant step in the brand’s North American distribution strategy, adding to the 15,000 new distribution points secured in 2024. The inclusion of Target as a retail partner aligns with the company’s mission to provide convenient, healthy snacking options to a broader audience, further solidifying its position in the protein-based nutrition market.

Spark’s Take on TSE:SBBC Stock

According to Spark, TipRanks’ AI Analyst, TSE:SBBC is a Neutral.

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.

To see Spark’s full report on TSE:SBBC stock, click here.

Product-Related AnnouncementsFinancial Disclosures
Simply Better Brands’ TRUBAR™ Hits Record Sales Milestone
Positive
Apr 7, 2025

Simply Better Brands Corp. announced that its TRUBAR™ brand achieved a record milestone by surpassing $1.2 million in monthly direct-to-consumer sales in March 2025, marking a significant increase from the previous year. This growth was driven by the launch of four new flavors and strong performance on Amazon, highlighting the brand’s popularity and commitment to product innovation. The company will announce its fourth quarter and year-end 2024 financial results on April 22, 2025, followed by an investor webinar on April 23, 2025.

Spark’s Take on TSE:SBBC Stock

According to Spark, TipRanks’ AI Analyst, TSE:SBBC is a Neutral.

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.

To see Spark’s full report on TSE:SBBC stock, click here.

Business Operations and Strategy
Simply Better Brands to Showcase Growth at ROTH Conference 2025
Positive
Mar 10, 2025

Simply Better Brands Corp. announced its participation in the 37th Annual ROTH Conference, a premier event for growth sectors, where CEO J.R. Kingsley Ward will engage with investors and industry peers. The company will highlight its strategic initiatives and the success of its TRUBAR™ brand, while also supporting the Duane Roth Legacy Bicycle Ride, benefiting the Challenged Athletes Foundation.

Business Operations and StrategyFinancial Disclosures
Simply Better Brands Corp. Reports Robust Growth in DTC Sales for 2024
Positive
Mar 4, 2025

Simply Better Brands Corp. has announced significant growth in its direct-to-consumer sales for 2024, driven primarily by the success of its TRUBAR™ products on Amazon. The company reported a 365% increase in DTC sales from Q1 to Q4-2024, with continued strong performance into January 2025. The growth has led to two TRUBAR™ flavors being ranked among the top 15 trending bars in the Sports Nutrition Protein Bars category on Amazon. This momentum highlights the rising demand for ‘Better-for-You’ snacks and enhances the brand’s digital and retail presence.

Product-Related AnnouncementsExecutive/Board ChangesBusiness Operations and Strategy
Simply Better Brands Expands TRUBAR™ in Canada with Costco Launch
Positive
Feb 24, 2025

Simply Better Brands Corp. has announced the expansion of its TRUBAR™ brand in Canada, marked by its launch in Costco Canada’s West Region. This strategic move is part of the company’s efforts to enhance its market presence and consumer awareness in Canada. To support this growth, Carmen Fadi has been appointed as Director of Canadian Sales for TRUBAR™, bringing extensive experience in sales and business development. Additionally, TRUBAR™ has expanded its retail footprint by partnering with Nature’s Emporium and Freson Bros., further strengthening its accessibility to health-conscious consumers across Canada.

Delistings and Listing ChangesBusiness Operations and Strategy
Simply Better Brands Earns Place on 2025 TSX Venture 50™ List
Positive
Feb 19, 2025

Simply Better Brands Corp. has been recognized on the 2025 TSX Venture 50™ list, ranking seventh among top-performing companies based on its 2024 performance metrics, including significant market capitalization growth and share price appreciation. The company’s restructuring efforts, new banking relationships, and the continued expansion of its TRUBAR product have contributed to its success, highlighting its strategic focus on delivering attractive shareholder returns and leading in the plant-based protein category.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.