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ZYBERNO

Stock Report

Updated Sep 1, 2026

VIREO GROWTH INC. (VREOF)

Healthcare • OTC

$10.60

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

17.0/100

POOR BUSINESS

VIREO GROWTH INC. (VREOF) scores 17/100 — 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 VREOF 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?

-100.0%

Overvalued

Growth gap unavailable — insufficient data for reverse DCF calculation.

⚠ Significant divergence between Owner Earnings and Free Cash Flow (1.11×). Intrinsic Value and Brina Gap are likely overstated — acquisition-related D&A is inflating Owner Earnings. Verify earnings quality before acting.

🎯 Expected Annual Return →

-20.0%

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 VREOF valuation analysis · → View full VREOF 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 (-20.8%)

Debt-to-Equity (Solvency Risk):AVERAGE (0.95x)

Operating Margin (Operational Efficiency):CRITICAL (0.3%)

Return on Capital (Capital Efficiency):CRITICAL (0.1%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

VIREO GROWTH INC. (VREOF) stock report — Zyberno Score 17/100 (POOR BUSINESS), Margin of Safety -100.0%, -20% expected annual return. Full financial analysis on Zyberno.

According to Zyberno's DCF model, VIREO GROWTH INC. (VREOF) trades at $10.60 against an estimated intrinsic value per share of $1.39 — a -100.0% Margin of Safety based on Owner Earnings of $2.02M TTM, projected at 100.0% growth for 10 years with a 2.5% terminal growth rate. Zyberno's model translates this into a 5-year expected return of -20.0% annually.

Over the trailing twelve months, VREOF generated $2.02M in Owner Earnings. Capital was deployed as follows: $37.98M invested in capital expenditures. Owner Earnings have grown at 100.0% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:10.60

Market Cap:$477.92M

Valuation Multiples (3)

P/B Ratio:1.08x

P/S Ratio:0.93x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$641.12M

Ev Ebitda Ratio:25.94x

Price Action & Momentum (3)

12-1 Momentum:

-45.1% (22th pctile)

📈 Click to view full VREOF Momentum analysis →

Momentum Percentile:22 / 100

% of 52-Week High:57.9%

B. Profitability Assessment

Return Metrics (3)

ROE:

-20.8%

📊 Click to view full VREOF ROE analysis →

ROA:-7.3%

Roic:

0.1%

📊 Click to view full VREOF ROIC analysis →

Margin Analysis (3)

Operating Margin Ttm:0.3%

Net Margin Ttm:-13.1%

Ebitda Margin:4.8%

TTM Performance (3)

Gross Margin Ttm:48.6%

Operating Margin Ttm:0.3%

Net Margin Ttm:-13.1%

Yield Metrics (3)

Earnings Yield:-$0.57

Owner Earnings Yield:$0.42

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.48

📊 Click to view full VREOF Earnings Surprise analysis →

EPS Surprise vs Expected:100.0%

Latest Earnings Filed:2026-08-14

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):75.5%

Cash Flow Growth (Linear) (1)

Operating Cash Flow Growth Rate (Linear):100.0%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):32.5%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:1.01x

Quick Ratio:0.63x

Cash Ratio:0.26x

Leverage Analysis (3)

Debt To Equity Ttm:0.95x

Debt-to-Equity Ratio:0.95x

Debt To Ebitda:10.77x

Coverage Ratios (2)

Interest Coverage Ratio:-0.04x

Times Interest Earned:-0.04

Capital Structure (4)

Working Capital:3,800,000.00

Cash And Cash Equivalents:103,100,000.00

Long Term Debt:$141.20M

Net Debt:$163.20M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $511.67M

Linear Growth: 75.5%

📊 Click to view full VREOF Revenue analysis & methodology →

Cost Of Revenue Ttm:$0.00

Profitability Breakdown (2)

Gross profit TTM: $248.87M

Linear Growth: 75.0%

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

Operating income TTM: $1.69M

Linear Growth: 32.5%

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

Bottom Line Performance (3)

-$67.07M

Income Before Tax:-$15.00M

Ebitda Ttm:24,715,234.00

Operating Expenses (5)

Operating Expenses:247,170,700.00

R And D Expense:0.00

Sga Expense:167,858,145.00

Income Tax Expense:$28.23M

Interest Expense:29,753,565.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:80.2%

Ebitda Margin:4.8%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$1.27B

Current Assets:$394.50M

Ppe Net:110,660,253.00

Goodwill:161,100,000.00

Intangible Assets:$218.70M

Liability Structure (4)

Total Liabilities:831,200,000.00

Current Liabilities:390,700,000.00

Long Term Debt:$141.20M

Short Term Debt:$125.10M

Equity & Capital (3)

Equity:$442.50M

Retained Earnings:-$320.00M

Common Stock:0.00

Working Capital Items (3)

Accounts Receivable:14,100,000.00

Inventory:149,400,000.00

Accounts Payable:125,100,000.00

Special Items (2)

Contract Liabilities:5,300,000.00

Stock Based Compensation:7,500,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $18.93M

Linear Growth: 100.0%

-$19.04M

Investment Activities (2)

Investing Cash Flow:$8.00M

Capital Expenditures Ttm:37,977,279.00

Financing Activities (3)

Financing Cash Flow:-$4.60M

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

Non-Cash Items (1)

Depreciation Amortization Ttm:23,020,716.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-0.06

-$0.06

Earnings Per Share Ttm:-$1.49

Revenue & Cash Per Share (2)

Sales Per Share Ttm:11.35

Operating Cash Flow Per Share:$0.08

Book Value & Capital (2)

Book Value Per Share:$9.81

Cash Per Share:2.29

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.55x

Working Capital Turnover Ttm:134.65x

Receivables Management (2)

Receivables Turnover Ttm:36.29x

Days Sales Outstanding Ttm:10.06

Inventory Management (2)

Inventory Turnover Ttm:3.42x

Days Inventory Outstanding Ttm:106.58

Payables & Cash Cycle (2)

Days Payable Outstanding:89.24

Cash Conversion Cycle:27.39

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:60.00

Quality Score:40.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $2.02M

Linear Growth: 100.0%

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

Owner Earnings Per Share:$0.04

Owner Earnings Yield:$0.42

Growth Assessment (1)

Owner Earnings Growth Rate:$100.00

Intrinsic Value Models (1)

Intrinsic Value:

$62.75M

📊 Click to view full VREOF DCF valuation →

Margin of Safety (1)

Margin Of Safety:

-100.0%

📊 Click to view full VREOF valuation analysis →

Return Scenarios (1)

Theoretical 5-Year Return:

-20.0%

📊 Click to view full VREOF expected return analysis →

Investment Assessment (1)

Buffett Assessment:Overvalued

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (2)

Revenue Growth Rate (Linear):75.5%

Operating Income Growth Rate (Linear):32.5%

Cash Flow Growth Rates (1)

Operating Cash Flow Growth Rate (Linear):100.0%

Other Growth Rates (3)

Gross Profit Growth Rate (Linear):75.0%

Book Value Growth Rate (Linear):100.0%

Owner Earnings Growth Rate:$100.00

C. Company Profile & Context

Corporate Information (6)

Symbol:VREOF

Company Name:VIREO GROWTH INC.

Sector:Healthcare

Industry:Pharmaceuticals

Exchange:OTC

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:medium

Volume Category:N/A

Share Structure (3)

Shares Outstanding:45.09M

Shares Outstanding Basic:45.09M

Shares Outstanding Diluted:45.09M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-09-01 07:57:48 UTC

Data Timestamp:2026-09-01T07:57:48.372439