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ZYBERNO

Stock Report

Updated Jun 12, 2026

DAVIDsTEA Inc. (DTEAF)

Consumer Staples • Over The Counter

$0.70

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

27.0/100

POOR BUSINESS

DAVIDsTEA Inc. (DTEAF) scores 27/100 — concerning metrics indicating significant structural or financial risks.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full DTEAF quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

-14.6%

Overvalued

Growth gap unavailable — insufficient data for reverse DCF calculation.

🎯 Expected Annual Return →

-17.1%

5-year annualised assuming price converges to intrinsic value

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full DTEAF valuation analysis · → View full DTEAF Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-23.4%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.00x)

Operating Margin (Operational Efficiency):CRITICAL (-10.8%)

Return on Capital (Capital Efficiency):CRITICAL (-39.6%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

DAVIDsTEA Inc. (DTEAF) stock report — Zyberno Score 27/100 (POOR BUSINESS), Margin of Safety -14.6%, -17% expected annual return. Full financial analysis on Zyberno.

According to Zyberno's DCF model, DAVIDsTEA Inc. (DTEAF) trades at $0.70 against an estimated intrinsic value per share of $0.61 — a -14.6% Margin of Safety based on Owner Earnings of $3.83M TTM, projected at -14.9% growth for 10 years with a 2.5% terminal growth rate. Zyberno's model translates this into a 5-year expected return of -17.1% annually.

Over the trailing twelve months, DTEAF generated $3.83M in Owner Earnings. Capital was deployed as follows: $37.20K invested in capital expenditures. Reinvestment rate: 72.1%. Owner Earnings have declined at 14.9% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:0.70

Market Cap:$18.48M

Valuation Multiples (4)

P/E Ratio:

0.30x

📊 Click to view full DTEAF P/E analysis →

P/B Ratio:0.68x

P/S Ratio:0.28x

Peg Ratio:-999.00x

Enterprise Metrics (1)

Enterprise Value:$4.85M

B. Profitability Assessment

Return Metrics (5)

ROE:

-23.4%

📊 Click to view full DTEAF ROE analysis →

ROA:-14.1%

Roic:

-39.6%

📊 Click to view full DTEAF ROIC analysis →

Reinvestment Rate:72.1%

Fundamental Growth Rate (g):-28.5%

Margin Analysis (3)

Operating Margin Ttm:-10.8%

Net Margin Ttm:-11.2%

Ebitda Margin:-4.9%

TTM Performance (3)

Gross Margin Ttm:40.9%

Operating Margin Ttm:-10.8%

Net Margin Ttm:-11.2%

Yield Metrics (3)

Earnings Yield:$333.65

Owner Earnings Yield:$20.71

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-23.4%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):-19.8%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):-14.9%

Operating Cash Flow Growth Rate (Linear):33.3%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):-35.4%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:2.50x

Quick Ratio:1.17x

Cash Ratio:0.85x

Leverage Analysis (3)

Debt To Equity Ttm:0.00x

Debt-to-Equity Ratio:0.00x

Debt To Ebitda:-999.00x

Coverage Ratios (2)

Interest Coverage Ratio:132.99x

Times Interest Earned:132.99

Capital Structure (4)

Working Capital:24,132,048.47

Cash And Cash Equivalents:13,626,634.43

Long Term Debt:$0.00

Net Debt:-$13.63M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $65.61M

Linear Growth: -23.4%

📊 Click to view full DTEAF Revenue analysis & methodology →

Cost Of Revenue Ttm:$38.75M

Profitability Breakdown (2)

Gross profit TTM: $26.86M

Linear Growth: -26.0%

📊 Click to view full DTEAF Gross Profit analysis & methodology →

Operating income TTM: -$7.09M

Linear Growth: -35.4%

📊 Click to view full DTEAF Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: -$7.32M

Linear Growth: -19.8%

📊 Click to view full DTEAF Net Income analysis & methodology →

Income Before Tax:$0.00

Ebitda Ttm:-3,222,804.92

Operating Expenses (5)

Operating Expenses:0.00

R And D Expense:0.00

Sga Expense:0.00

Income Tax Expense:$1.07M

Interest Expense:414,922.72

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:0.0%

Ebitda Margin:-4.9%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$49.06M

Current Assets:$40.20M

Ppe Net:412,061.18

Goodwill:0.00

Intangible Assets:$1.60M

Liability Structure (4)

Total Liabilities:21,995,911.85

Current Liabilities:16,065,378.49

Long Term Debt:$0.00

Short Term Debt:$0.00

Equity & Capital (3)

Equity:$27.06M

Retained Earnings:$0.00

Common Stock:0.00

Working Capital Items (3)

Accounts Receivable:2,816,466.81

Inventory:21,450,789.24

Accounts Payable:10,333,721.88

Special Items (2)

Contract Liabilities:0.00

Stock Based Compensation:0.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $3.86M

Linear Growth: 33.3%

Free cash flow TTM: $3.83M

Linear Growth: -14.9%

📊 Click to view full DTEAF Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:$0.00

Capital Expenditures Ttm:37,199.97

Financing Activities (3)

Financing Cash Flow:-$538.68K

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):2.44

Eps diluted TTM: $2.32

Linear Growth: 100.0%

📊 Click to view full DTEAF EPS analysis & methodology →

Earnings Per Share Ttm:-$0.28

Revenue & Cash Per Share (2)

Sales Per Share Ttm:2.47

Operating Cash Flow Per Share:-$0.11

Book Value & Capital (2)

Book Value Per Share:$1.02

Cash Per Share:0.51

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:1.26x

Working Capital Turnover Ttm:2.72x

Receivables Management (2)

Receivables Turnover Ttm:23.30x

Days Sales Outstanding Ttm:15.67

Inventory Management (2)

Inventory Turnover Ttm:1.81x

Days Inventory Outstanding Ttm:202.04

Payables & Cash Cycle (2)

Days Payable Outstanding:97.33

Cash Conversion Cycle:120.38

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:100.00

Quality Score:70.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $3.83M

Linear Growth: -14.9%

📊 Click to view full DTEAF Owner Earnings analysis & methodology →

Owner Earnings Per Share:$0.14

Owner Earnings Yield:$20.71

Growth Assessment (1)

Owner Earnings Growth Rate:-$14.86

Damodaran Growth Analysis (2)

Reinvestment Rate:72.1%

Fundamental Growth Rate (g):-28.5%

Intrinsic Value Models (1)

Intrinsic Value:

$16.13M

📊 Click to view full DTEAF DCF valuation →

Margin of Safety (1)

Margin Of Safety:

-14.6%

📊 Click to view full DTEAF valuation analysis →

Return Scenarios (1)

Theoretical 5-Year Return:

-17.1%

📊 Click to view full DTEAF expected return analysis →

Investment Assessment (1)

Buffett Assessment:Overvalued

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):-23.4%

Net Income Growth Rate (Linear):-19.8%

Operating Income Growth Rate (Linear):-35.4%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):-14.9%

Operating Cash Flow Growth Rate (Linear):33.3%

Other Growth Rates (3)

Gross Profit Growth Rate (Linear):-26.0%

Book Value Growth Rate (Linear):-12.2%

Owner Earnings Growth Rate:-$14.86

C. Company Profile & Context

Corporate Information (6)

Symbol:DTEAF

Company Name:DAVIDsTEA Inc.

Sector:Consumer Staples

Industry:Retail-Food Stores

Exchange:Over The Counter

Country:Unknown

Market Classification (3)

Market Cap Category:N/A

Price Category:penny

Volume Category:N/A

Share Structure (3)

Shares Outstanding:26.57M

Shares Outstanding Basic:0

Shares Outstanding Diluted:0

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-06-12 03:12:34 UTC

Data Timestamp:2026-06-12T03:12:34.102094