ASX:CAN

Stock Analysis Report

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Executive Summary

Cann Group Limited engages in research and development, cultivation and production, manufacturing, clinical evaluation, processing, packaging, and distribution and supply of medicinal cannabis for various diseases and medical conditions in Australia. More Details


Snowflake Analysis

Excellent balance sheet with limited growth.

Share Price & News

How has Cann Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CAN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-22.1%

CAN

-5.7%

AU Pharmaceuticals

-3.9%

AU Market


1 Year Return

-71.4%

CAN

-32.4%

AU Pharmaceuticals

-9.6%

AU Market

Return vs Industry: CAN underperformed the Australian Pharmaceuticals industry which returned -32.4% over the past year.

Return vs Market: CAN underperformed the Australian Market which returned -9.6% over the past year.


Shareholder returns

CANIndustryMarket
7 Day-22.1%-5.7%-3.9%
30 Day-27.7%-13.7%1.8%
90 Day-36.2%-8.3%1.7%
1 Year-71.4%-71.4%-32.3%-32.4%-6.4%-9.6%
3 Year-84.0%-84.0%-40.8%-41.7%12.3%-1.9%
5 Yearn/a-36.9%-40.4%40.0%11.3%

Price Volatility Vs. Market

How volatile is Cann Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cann Group undervalued compared to its fair value and its price relative to the market?

0.7x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CAN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CAN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CAN is unprofitable, so we can't compare its PE Ratio to the XO Pharmaceuticals industry average.

PE vs Market: CAN is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CAN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CAN is good value based on its PB Ratio (0.7x) compared to the AU Pharmaceuticals industry average (3.4x).


Next Steps

Future Growth

How is Cann Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

52.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CAN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CAN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CAN's revenue (59.9% per year) is forecast to grow faster than the Australian market (4.8% per year).

High Growth Revenue: CAN's revenue (59.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CAN is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Cann Group performed over the past 5 years?

-40.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAN is currently unprofitable.

Growing Profit Margin: CAN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CAN is unprofitable, and losses have increased over the past 5 years at a rate of 40.8% per year.

Accelerating Growth: Unable to compare CAN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CAN is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (117.8%).


Return on Equity

High ROE: CAN has a negative Return on Equity (-27.73%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cann Group's financial position?


Financial Position Analysis

Short Term Liabilities: CAN's short term assets (A$12.5M) exceed its short term liabilities (A$6.5M).

Long Term Liabilities: CAN's short term assets (A$12.5M) exceed its long term liabilities (A$8.8M).


Debt to Equity History and Analysis

Debt Level: CAN's debt to equity ratio (13.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CAN's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CAN has sufficient cash runway for 0 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: CAN is forecast to have sufficient cash runway for 3 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

What is Cann Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CAN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CAN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CAN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CAN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CAN's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.4yrs

Average management tenure


CEO

Peter Crock

4.42yrs

Tenure

AU$492,065

Compensation

Mr. Peter Crock, B.Ag.Sci (Hons), MBA has been Chief Executive Officer at Cann Group Limited since May 23, 2016. Mr. Crock is an experienced public company senior manager with strong skills in marketing an ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD346.31K) is about average for companies of similar size in the Australian market ($USD274.23K).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Peter Crock
Chief Executive Officer4.42yrsAU$492.07k0.13%
A$ 102.1k
Greg Bullock
Chief Financial Officer0.42yrAU$444.63kno data
Shane Duncan
Chief Operating Officer0.25yrAU$298.44kno data
Geoff Aldred
Chief Projects & Information Officer0.25yrAU$3.76mno data
Geraldine Farrell
Chief Compliance Officer & Company Secretary0.83yrAU$275.66kno data
Clive Fanning
Head of Investor Relationsno datano datano data
Steven Notaro
Head of Legalno dataAU$204.01k0%
A$ 0

0.4yrs

Average Tenure

Experienced Management: CAN's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CAN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 90.3%.


Top Shareholders

Company Information

Cann Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cann Group Limited
  • Ticker: CAN
  • Exchange: ASX
  • Founded: 2014
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$80.973m
  • Shares outstanding: 269.91m
  • Website: https://www.canngrouplimited.com

Location

  • Cann Group Limited
  • Walter & Eliza Hall Inst. of Medical Res
  • 4 Research Avenue
  • Bundoora
  • Victoria
  • 3083
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CANASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2017
CANCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2017
CVJDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2017
CNGG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2017

Biography

Cann Group Limited engages in research and development, cultivation and production, manufacturing, clinical evaluation, processing, packaging, and distribution and supply of medicinal cannabis for various ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 10:44
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.