High Tide Inc. (HITI)
Valuation Overview•Is High Tide Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Fragile underlying quality score of 22/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Highly distressed profile flashing severe fundamental warning signs.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
HITI struggles with subpar profitability and pressured margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company is driving exceptional top-line expansion (18.5% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-0.5%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $179.3M | +13.7% | +18.5% | +48.1% | — | |
| EBITDA | $14.2M | — | — | — | — | |
| Net Income | -$197K | -1070.1% | +10.9% | — | — | |
| EPS (Diluted) | $-0.00 | -1037.6% | — | — | — | |
| Free Cash Flow | $2.3M | -48.8% | — | +16.8% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 21.7% | 26.7% | 28.7% | 34.7% |
| Operating Margin | -0.5% | -3.3% | -8.1% | -11.7% |
| Net Margin | -6.6% | -5.8% | -11.3% | -18.3% |
| FCF Margin | 2.2% | 3.4% | 0.3% | -20.6% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $-0.02 | $0.01 | +150.0% | ||
| Q1'26 | $-0.00 | $0.01 | +508.2% | ||
| Q1'26 | $0.00 | $0.01 | +180.1% | ||
| Q3'25 | $-0.01 | $0.01 | +301.6% | ||
| Q2'25 | $-0.03 | $-0.03 | -12.9% | ||
| Q1'25 | $-0.02 | $-0.02 | -9.0% | ||
| Q1'25 | $-0.02 | $-0.04 | -100.0% | ||
| Q3'24 | $0.00 | $0.01 | +139.8% |
Total return is +0.9% (1Y), lagging the benchmark by -19.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -21.1% | -28.4% | — |
| 1Y | +0.9% | -19.9% | — |
| 3YCAGR | +21.9% | +3.8% | — |
| 5YCAGR | -22.8% | -34.4% | — |
| 10YCAGR | -5.9% | -19.6% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about High Tide Inc. (HITI) valuation, health, and returns.
Based on peer relative multiples, High Tide Inc. appears Limited: Slightly cheap versus peers compared to industry peers.
High Tide Inc. has multiple valuation anchors: Peer Relative Fair Value: $2.52 | Wall Street Analyst Target: $2.70 (implying +20.5% upside). A convergence of these signals offers higher conviction.
High Tide Inc. displays weak financial health with a composite quality score of 22/100, supported by a Altman Z-Score of 0.8 (distress zone), Piotroski F-Score of 3/9, Return on Invested Capital (ROIC) of -4.9%.
High Tide Inc. pays a 0.5% dividend yield, covered by a 0% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
High Tide Inc.'s current growth trajectory is Decelerating. The company achieved +13.7% 1Y revenue growth and -1037.6% 1Y EPS growth, compared to its 3Y revenue CAGR of +18.5%.
Wall Street consensus is Buy based on 4 analysts, beating EPS expectations in 58% of recent quarters with a 4-quarter streak. The consensus price target represents a +20.5% change from current levels.
Investment risks for High Tide Inc. include: -44.7% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 0.91x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.