(DTEA) DAVIDsTEA - Ratings and Ratios

DAVIDsTEA Inc. (V:DTEA) is a specialty tea retailer operating primarily in Canada and the United States. The company offers a diverse range of tea products, including loose-leaf teas, pre-packaged teas, tea sachets, and tea-related gifts. Additionally, it provides tea accessories and a selection of food and beverages. DAVIDsTEA distributes its products through multiple channels, including its e-commerce platform (davidstea.com), the Amazon marketplace, wholesale partnerships, and its network of company-owned storefronts. Established in 2008, the company is headquartered in Mount Royal, Canada.

As a publicly traded entity, DAVIDsTEA Inc. is listed on the TSX Venture Exchange under the ticker symbol DTEA. The company operates within the Packaged Foods & Meats sub-industry and is categorized under common stock. Its current market capitalization stands at 21.56M CAD, with a price-to-book (P/B) ratio of 0.27, indicating undervaluation relative to its book value. The companys price-to-sales (P/S) ratio is 0.34, suggesting a lower valuation compared to its revenue. Notably, the return on equity (RoE) is 161.70, highlighting efficient use of shareholder equity.

From a technical perspective, DTEAs stock has shown recent weakness, with its last price of 0.82 falling below its 20-day (0.92) and 50-day (0.96) simple moving averages (SMA). However, it remains above its 200-day SMA of 0.44, signaling a potential longer-term uptrend. The average true range (ATR) of 0.11 reflects moderate volatility, while the average 20-day trading volume of 9,268 shares indicates limited liquidity.

3-Month Forecast (Based on Technical and Fundamental Data): - Technical Outlook: DTEAs stock price is expected to face resistance near the 0.92 (SMA 20) and 0.96 (SMA 50) levels. Support is anticipated at the 0.44 (SMA 200) level. Volatility (ATR: 0.11) may lead to sideways movement within this range. - Fundamental Outlook: The companys low P/B (0.27) and P/S (0.34) ratios suggest undervaluation. However, the lack of profitability (P/E: 0.00) and small market capitalization may weigh on investor sentiment. The high RoE (161.70%) indicates strong equity returns, but this must be balanced against the companys overall financial health. Overall, DTEA is likely to remain range-bound in the near term, with potential for modest upside if it can break above key resistance levels. Investors should monitor liquidity and fundamental improvements for clearer directional signals.