Kaival Brands Innovations Group, Inc. (KAVL) | Investment Case

1. Company Snapshot

1.a. Company Description

Kaival Brands Innovations Group, Inc.distributes electronic nicotine delivery systems (ENDS Products) and related components in the Unites States.The company offers Bidi Stick, a disposable and tamper-resistant ENDS Product in various flavor options; and Bidi Pouch, a tobacco-free nicotine formulation, which contains natural fibers and a chew-base filler in different flavors.

It sells its products to non-retail customers through website bidivapor.com.The company was formerly known as Quick Start Holdings, Inc.and changed its name to Kaival Brands Innovations Group, Inc.

in July 2019.The company is based in Grant-Valkaria, Florida.Kaival Brands Innovations Group, Inc.

is a subsidiary of Kaival Holdings, LLC.

Show Full description

1.b. Last Insights on KAVL

Kaival Brands Innovations Group, Inc. faced challenges due to unfavorable market conditions. A recent financial review compared the company to Turning Point Brands, highlighting differences in institutional ownership, profitability, and analyst recommendations. The company's earnings release revealed pressure on its consumer defensive business. With no recent share buyback announcements, the company's liquidity and cash flow management may be scrutinized. According to recent news, the company's risk profile and valuation may be evaluated by investors, potentially impacting its short-term prospects.

1.c. Company Highlights

Last Price	0.5
Change Percentage	3.84%
Open	0.5
Previous Close	0.48
Market Cap ( Millions)	6
Volume	35865
Year High	1.55
Year Low	0.4
M A 50	0.54
M A 200	0.59

FCF Yield	-49.27%
Dividend Yield	0.00%
ROE	-68.72%
Debt / Equity	7.61%
Net Debt / EBIDTA	6.87%
Price To Book	0.57
Price Earnings Ratio	-0.71
Price To FCF	-2.03
Price To sales	5.27
EV / EBITDA	-0.71

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

Financial Review: Kaival Brands Innovations Group (NASDAQ:KAVL) versus Turning Point Brands (NYSE:TPB)

Oct -23

Source: defenseworld.net

Kaival Brands Innovations Group, Inc. and Delta Corp Holdings Limited Announce Public Filing of Registration Statement on Form F-4 in Connection with Proposed Business Combination

Jan -10

Source: globenewswire.com

KAIVAL BRANDS INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Merger of Kaival Brands Innovations Group, Inc. - KAVL

Sep -30

Source: businesswire.com

Delta Corp Holdings Limited Advances Business Combination With Kaival Brands Innovations Group, Inc. With Confidential Submission of Draft Registration Statement With the Securities and Exchange Commission

Sep -30

Source: globenewswire.com

Shareholder Alert: Ademi LLP Investigates Whether Kaival Brands Innovations Group, Inc. Has Obtained a Fair Price for Its Public Shareholders

Sep -25

Source: businesswire.com

ALERT: Rowley Law PLLC is Investigating Proposed Acquisition of Kaival Brands Innovations Group, Inc.

Sep -23

Source: prnewswire.com

Delta Corp Holdings Limited, a Fast Growing Asset-Light Logistics Company Enters into a Definitive Merger and Share Exchange Agreement with Kaival Brands Innovations Group, Inc.

Sep -23

Source: globenewswire.com

Kaival Brands Announces Closing of $6.0 Million Public Offering

Jun -24

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.65%)

6. Segments

Electronic Cigarettes

Expected Growth: 11.67%

Kaival Brands Innovations Group, Inc.'s 11.67% growth in electronic cigarettes is driven by increasing consumer adoption, rising awareness of health risks associated with traditional tobacco, and strategic partnerships with major retailers. Additionally, the company's focus on innovative products and flavors, as well as expanding online presence, contribute to its rapid growth.

Royalty

Expected Growth: 11.47%

Kaival Brands Innovations Group, Inc.'s 11.47% royalty growth is driven by increasing demand for its proprietary products, strategic partnerships, and expansion into new markets. The company's innovative offerings, such as its flagship product, have resonated with consumers, leading to higher sales and subsequently, higher royalties. Additionally, the company's focus on research and development has enabled it to stay ahead of the competition, further contributing to its growth.

Excise Tax

Expected Growth: 10.77%

Kaival Brands Innovations Group, Inc.'s 10.77% excise tax growth is driven by increasing demand for its vaping products, strategic partnerships, and expansion into new markets. Additionally, the company's focus on compliance with regulations and investments in research and development have contributed to its growth.

7. Detailed Products

Ready-to-Drink Beverages

Kaival Brands offers a range of ready-to-drink beverages, including energy drinks, juice drinks, and other specialty beverages.

Private Label and Contract Manufacturing

Kaival Brands provides private label and contract manufacturing services for beverage companies, offering customized product development and production capabilities.

E-liquids and Vaping Products

Kaival Brands develops and manufactures e-liquids and vaping products, including nicotine and nicotine-free options.

CBD and Hemp Products

Kaival Brands offers a range of CBD and hemp-based products, including tinctures, topicals, and edibles.

8. Kaival Brands Innovations Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Kaival Brands Innovations Group, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the industry.

Bargaining Power Of Customers

Kaival Brands Innovations Group, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Kaival Brands Innovations Group, Inc. relies on a few key suppliers, which gives them some bargaining power, but the company's size and scale also give it negotiating power.

Threat Of New Entrants

The industry in which Kaival Brands Innovations Group, Inc. operates is highly competitive, and the threat of new entrants is high due to low barriers to entry and high demand for innovative products.

Intensity Of Rivalry

The industry in which Kaival Brands Innovations Group, Inc. operates is highly competitive, with many established players and a high level of rivalry, which can lead to pricing pressures and intense competition.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	12.01%
Debt Cost	5.17%
Equity Weight	87.99%
Equity Cost	5.17%
WACC	5.17%
Leverage	13.65%

11. Quality Control: Kaival Brands Innovations Group, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Universal

A-Score: 7.2/10

Value: 7.8

Growth: 5.9

Quality: 4.0

Yield: 10.0

Momentum: 7.0

Volatility: 8.7

1-Year Total Return ->

Vector

A-Score: 4.9/10

Value: 5.1

Growth: 5.3

Quality: 6.0

Yield: 5.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

Turning Point Brands

A-Score: 4.8/10

Value: 1.9

Growth: 5.6

Quality: 6.4

Yield: 0.0

Momentum: 10.0

Volatility: 5.0

1-Year Total Return ->

MGP Ingredients

A-Score: 3.8/10

Value: 6.9

Growth: 5.0

Quality: 3.2

Yield: 2.0

Momentum: 0.0

Volatility: 5.7

1-Year Total Return ->

Kaival Brands

A-Score: 3.5/10

Value: 8.0

Growth: 4.0

Quality: 4.6

Yield: 0.0

Momentum: 4.5

Volatility: 0.0

1-Year Total Return ->

Ispire Technology

A-Score: 2.6/10

Value: 7.6

Growth: 2.6

Quality: 3.6

Yield: 0.0

Momentum: 1.0

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

12.94%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.17%

Kaival Brands Innovations Group, Inc. - US4831044023

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on KAVL

1.c. Company Highlights

More Volatile

Cheaper

Lower Growth

Revenues Miss

Weak Momentum

Earnings Beats

Earnings Miss

Lower Yield

Fairly Valued

Average Yield

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.65%)

6. Segments

Electronic Cigarettes

Expected Growth: 11.67%

Royalty

Expected Growth: 11.47%

Excise Tax

Expected Growth: 10.77%

7. Detailed Products

Ready-to-Drink Beverages

Private Label and Contract Manufacturing

E-liquids and Vaping Products

CBD and Hemp Products

8. Kaival Brands Innovations Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Kaival Brands Innovations Group, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.5$

Current Price

0.5$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA