Odd Burger Corporation operates as a plant-based technology company in Canada. It manufactures and distributes plant-based proteins and dairy alternatives through a food service product line that is used at corporate owned and franchised vegan restaurant locations. The company was founded in 2014 and is headquartered in London, Canada.

Odd Burger Corporation

Consumer Cyclical

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

ODD.V reported revenue of CAD 3mn in the last 12 months, down 3% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 42% from FY23 to CAD -0.02.

The stock's performance has been mixed in the past six months, with growth following a decline. The stock has lagged its global peers from the same sector and industry (as shown above), underperforming then by 15ppts in total. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The company has reported very poor EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -46.9% in the last 12 months, up from -82.9% in FY23. 

Historically, ODD.V has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -68.7%, a growth from -113.3% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to 61700.8%, above the peers. 

Odd Burger Corporation reported a return on equity (RoE) of 79.0% in the last 12 months, down from 375.8% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to -51.4% in the last 12 months, an increase from -76.9% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -40.0 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

ODD.V has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is relatively stable and becomes extremely unfavourable on the days with the lowest activity. However, under highly turbulent market conditions, the trading volume tends to improve significantly. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, bleak profitability, negligible return on capital, inadequate interest coverage, and poor cash flow generation. We note resilient historical revenue growth, low margin volatility, and an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, ODD.V is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, ODD.V is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. 

Odd Burger Corporation

CA$ 0.23

1

Odd Burger Corporation

CA$ 0.23

1

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Risk / Profitability

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Profitability factor

CA$ 0.23

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