Creso Pharma (ASX:CPH) - Share price, News & Analysis

CPH fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

CPH Overview

Risk Analysis

Earnings have declined by 29.6% per year over past 5 years

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Does not have meaningful revenue (A$4M)

Price History & Performance

Summary of all time highs, changes and price drops for Creso Pharma
Historical stock prices
Current Share Price	AU$0.12
52 Week High	AU$0.024
52 Week Low	AU$0.47
Beta	3.39
1 Month Change	0%
3 Month Change	-11.54%
1 Year Change	296.55%
3 Year Change	-75.53%
5 Year Change	-63.49%
Change since IPO	-55.77%

Shareholder Returns

	CPH	AU Pharmaceuticals	AU Market
7D	4.5%	1.8%	1.7%
1Y	296.6%	5.8%	20.2%

Return vs Industry: CPH exceeded the Australian Pharmaceuticals industry which returned 4.9% over the past year.

Return vs Market: CPH exceeded the Australian Market which returned 20.3% over the past year.

Price Volatility

Is CPH's price volatile compared to industry and market?
CPH volatility
CPH Beta	3.39
Industry Beta	1.3
Market Beta	1

Stable Share Price: CPH is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: CPH's weekly volatility has decreased from 21% to 8% over the past year.

About the Company

Founded	Employees	CEO	Website
2015	n/a	n/a	https://www.cresopharma.com

Creso Pharma Limited develops, registers, and commercializes pharmaceutical-grade cannabis, and hemp-based nutraceutical products and treatments for human and animal health in Europe, the Middle East, North America, and the Asia Pacific. The company develops and commercializes therapeutic products; and cultivates and harvests cannabis plants, as well as supplies dried cannabis plant retail products. Its products include anibidiol, a complementary feed product for companion animals; cannaQIX, a nutraceutical product containing hemp oil extract, and vitamins and zinc that reduces stress and supports psychological and nervous functions in humans; and topical and skin care products, which include cannaDOL, a CBD-based topical gel associated with a mixture of cooling and warming essential oils.

Creso Pharma Fundamentals Summary

How do Creso Pharma's earnings and revenue compare to its market cap?
CPH fundamental statistics
Market Cap	AU$138.18m
Earnings (TTM)	-AU$32.34m
Revenue (TTM)	AU$4.03m

34.3x

P/S Ratio

-4.3x

P/E Ratio

Is CPH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CPH income statement (TTM)
Revenue	AU$4.03m
Cost of Revenue	AU$7.28m
Gross Profit	-AU$3.26m
Expenses	AU$29.08m
Earnings	-AU$32.34m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.027
Gross Margin	-80.93%
Net Profit Margin	-803.27%
Debt/Equity Ratio	0.0%

How did CPH perform over the long term?

See historical performance and comparison

Valuation

Is Creso Pharma undervalued compared to its fair value and its price relative to the market?

5.16x

Price to Book (PB) ratio

Share Price vs. Fair Value

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

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

Price To Earnings Ratio

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

PE vs Market: CPH 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 CPH's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: CPH is overvalued based on its PB Ratio (5.2x) compared to the AU Pharmaceuticals industry average (3.5x).

Future Growth

How is Creso Pharma forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

67.4%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Creso Pharma has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Creso Pharma performed over the past 5 years?

-29.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CPH is currently unprofitable.

Growing Profit Margin: CPH is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: CPH is unprofitable, and losses have increased over the past 5 years at a rate of 29.6% per year.

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

Earnings vs Industry: CPH is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (17.4%).

Return on Equity

High ROE: CPH has a negative Return on Equity (-120.75%), as it is currently unprofitable.

Financial Health

How is Creso Pharma's financial position?

Financial Position Analysis

Short Term Liabilities: CPH's short term assets (A$16.6M) exceed its short term liabilities (A$1.3M).

Long Term Liabilities: CPH has no long term liabilities.

Debt to Equity History and Analysis

Debt Level: CPH is debt free.

Reducing Debt: CPH had no debt 5 years ago.

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: CPH has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: CPH has less than a year of cash runway if free cash flow continues to reduce at historical rates of 25% each year

Dividend

What is Creso Pharma current dividend yield, its reliability and sustainability?

Dividend Yield vs Market

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

High Dividend: Unable to evaluate CPH'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 CPH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CPH'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 CPH's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.

Next Steps

Explore strong dividend paying companies in the Pharmaceuticals & Biotech industry.

Management

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

3.0yrs

Average management tenure

CEO

Creso Pharma has no CEO, or we have no data on them.

Leadership Team

Experienced Management: CPH's management team is considered experienced (3 years average tenure).

Board Members

Experienced Board: CPH's board of directors are considered experienced (3.7 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 74.5%.

Data	Last Updated (UTC time)
Company Analysis	2021/10/19 15:54
End of Day Share Price	2021/10/19 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data