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CBDY Stock Analysis - Target Group Inc. AI Rating

CBDY OTC Medicinal Chemicals & Botanical Products DE CIK: 0001586554
Recently Updated • Analysis: Mar 21, 2026 • SEC Data: 2025-09-30
AI Rating
STRONG SELL
95% Confidence

📊 CBDY Key Takeaways

Revenue: $3.1M
Net Margin: -25.7%
Free Cash Flow: $-595.6K
Current Ratio: 0.17x
Debt/Equity: N/A
EPS: $0.00
AI Rating: STRONG SELL with 95% confidence

Investment Thesis

Target Group Inc. exhibits severe financial distress with negative stockholders' equity of -$7.4M, liabilities exceeding assets by $7.4M, and critical liquidity ratios (current ratio of 0.17x) indicating inability to meet short-term obligations. While revenue grew 77.2% YoY to $3.1M, the company is burning cash with negative operating cash flow of -$591.6K and continues to operate at significant losses despite strong 56.6% gross margins, suggesting structural operational problems.

CBDY Strengths

  • + Strong revenue growth of 77.2% year-over-year demonstrates market demand
  • + Healthy gross margin of 56.6% indicates viable product economics at production level
  • + Modest capital expenditure needs ($3.9K) suggest asset-light business model

CBDY Risks

  • ! Negative stockholders' equity of -$7.4M represents technical insolvency and bankruptcy risk
  • ! Critical liquidity crisis with current ratio of 0.17x and only $337.5K cash against $13.6M liabilities
  • ! Negative operating cash flow of -$591.6K combined with $7.5M long-term debt creates unsustainable burn rate
  • ! Operating losses of -$807.4K on $3.1M revenue indicate severe cost structure problems despite growth
  • ! No insider buying activity in past 90 days suggests lack of management confidence

Key Metrics to Watch

CBDY Financial Metrics

Revenue
$3.1M
Net Income
$-807.4K
EPS (Diluted)
$0.00
Free Cash Flow
$-595.6K
Total Assets
$6.2M
Cash Position
$337.5K

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

CBDY Profitability Ratios

Gross Margin 56.6%
Operating Margin -25.7%
Net Margin -25.7%
ROE N/A
ROA -13.0%
FCF Margin -18.9%

CBDY vs Default Sector

How Target Group Inc. compares to Default sector averages

Net Margin
CBDY -25.7%
vs
Sector Avg 12.0%
CBDY Sector
ROE
CBDY 0.0%
vs
Sector Avg 15.0%
CBDY Sector
Current Ratio
CBDY 0.2x
vs
Sector Avg 1.8x
CBDY Sector
Debt/Equity
CBDY 0.0x
vs
Sector Avg 0.7x
CBDY Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CBDY Balance Sheet & Liquidity

Current Ratio
0.17x
Quick Ratio
0.06x
Debt/Equity
N/A
Debt/Assets
220.0%
Interest Coverage
-80,737.50x
Long-term Debt
$7.5M

CBDY 5-Year Financial Trend

CBDY 5-year financial data: Year 2020: Revenue $30.0K, Net Income -$10.4M, EPS N/A. Year 2021: Revenue $30.0K, Net Income -$7.1M, EPS $-0.01. Year 2022: Revenue $0, Net Income $272.9K, EPS $0.00. Year 2023: Revenue $3.7M, Net Income -$4.5M, EPS $-0.01. Year 2024: Revenue $6.6M, Net Income -$323.7K, EPS $0.00.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Target Group Inc.'s revenue has grown significantly by 21,872% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.00 indicates the company is currently unprofitable.

CBDY Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-18.9%
Free cash flow / Revenue

CBDY Quarterly Performance

Quarterly financial performance data for Target Group Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $499.7K -$55.5K $0.00
Q2 2025 $1.2M -$219.8K $0.00
Q1 2025 $1.4M -$108.2K $0.00
Q3 2024 $541.1K -$55.5K $0.00
Q2 2024 $759.0K $218.1K $0.00
Q3 2023 N/A -$138.7K N/A
Q2 2023 N/A $218.1K $0.00
Q1 2023 N/A -$193.2K $0.00

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CBDY Capital Allocation

Operating Cash Flow
-$591.6K
Cash generated from operations
Capital Expenditures
$3.9K
Investment in assets
Dividends
None
No dividend program

CBDY SEC Filings

Access official SEC EDGAR filings for Target Group Inc. (CIK: 0001586554)

📋 Recent SEC Filings

Date Form Document Action
Nov 7, 2025 10-Q tmb-20250930x10q.htm View →
Aug 18, 2025 8-K tm2523682d1_8k.htm View →
Aug 12, 2025 10-Q tmb-20250630x10q.htm View →
May 9, 2025 10-Q tmb-20250331x10q.htm View →
Mar 27, 2025 10-K tmb-20241231x10k.htm View →

Frequently Asked Questions about CBDY

What is the AI rating for CBDY?

Target Group Inc. (CBDY) has an AI rating of STRONG SELL with 95% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CBDY's key strengths?

Strong revenue growth of 77.2% year-over-year demonstrates market demand. Healthy gross margin of 56.6% indicates viable product economics at production level.

What are the risks of investing in CBDY?

Negative stockholders' equity of -$7.4M represents technical insolvency and bankruptcy risk. Critical liquidity crisis with current ratio of 0.17x and only $337.5K cash against $13.6M liabilities.

What is CBDY's revenue and growth?

Target Group Inc. reported revenue of $3.1M.

Does CBDY pay dividends?

Target Group Inc. does not currently pay dividends.

Where can I find CBDY SEC filings?

Official SEC filings for Target Group Inc. (CIK: 0001586554) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CBDY's EPS?

Target Group Inc. has a diluted EPS of $0.00.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 21, 2026 | Data as of: 2025-09-30 | Powered by Claude AI