ASX:THC

Stock Analysis Report

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Executive Summary

THC Global Group Limited provides medicinal cannabis products to patients in Australia and internationally. More Details


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: THC is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: THC's weekly volatility (11%) has been stable over the past year.


Market Performance


7 Day Return

-8.0%

THC

-5.0%

AU Pharmaceuticals

-1.1%

AU Market


1 Year Return

-24.6%

THC

4.6%

AU Pharmaceuticals

4.4%

AU Market

Return vs Industry: THC underperformed the Australian Pharmaceuticals industry which returned 4.6% over the past year.

Return vs Market: THC underperformed the Australian Market which returned 4.4% over the past year.


Shareholder returns

THCIndustryMarket
7 Day-8.0%-5.0%-1.1%
30 Day-2.1%5.2%0.5%
90 Day-8.0%21.9%4.3%
1 Year-24.6%-24.6%4.8%4.6%7.8%4.4%
3 Year-70.1%-70.1%-41.3%-41.9%29.1%13.5%
5 Yearn/a-26.3%-30.3%71.0%37.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.44x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: THC is good value based on its PB Ratio (1.4x) compared to the AU Pharmaceuticals industry average (3.7x).


Next Steps

Future Growth

How is THC Global Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

66.5%

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 THC Global Group 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.


Next Steps

Past Performance

How has THC Global Group performed over the past 5 years?

-47.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: THC is currently unprofitable.

Growing Profit Margin: THC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: THC is unprofitable, and losses have increased over the past 5 years at a rate of 47.6% per year.

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

Earnings vs Industry: THC is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-23.5%).


Return on Equity

High ROE: THC has a negative Return on Equity (-42.93%), as it is currently unprofitable.


Next Steps

Financial Health

How is THC Global Group's financial position?


Financial Position Analysis

Short Term Liabilities: THC's short term assets (A$12.7M) exceed its short term liabilities (A$2.1M).

Long Term Liabilities: THC's short term assets (A$12.7M) exceed its long term liabilities (A$8.8M).


Debt to Equity History and Analysis

Debt Level: THC's debt to equity ratio (14%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if THC'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: THC has sufficient cash runway for 11 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: THC is forecast to have sufficient cash runway for 8 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if THC'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 THC'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

Jarrod White

0.42

Tenure

AU$197,983

Compensation

Mr. Jarrod Travers White, B.Bus, CA, CTA, is Chief Financial Officer and Joint Company Secretary at High Peak Royalties Limited and was it's Director until October 15, 2018. He serves as the Company Secret...


CEO Compensation Analysis

Compensation vs Market: Jarrod's total compensation ($USD156.66K) is below average for companies of similar size in the Australian market ($USD295.32K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jarrod White
Group Chief Executive Officer0.42yrAU$197.98kno data
Laura Harvey
Chief Operations Officer - Canadano dataAU$68.02kno data
Sonny Didugu
Group COO & Joint Company Secretary0.42yrno datano data
Jim Barlow
Chief Agronomist and Regional Manager of the Americasno datano datano data
Angela Macquire
Chief Operating Officer of THC Pharma1.08yrsno datano data
Diandra Phipps
Chief Operating Officer of Tetra Health0.67yrno datano data
Philip Leighfield
Joint Company Secretary0.42yrno datano data

0.4yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
Gary Radcliff
Non Executive Directorno datano data0.11%
A$ 48.8k
Alan Beasley
Non-Executive Deputy Chairmanno dataAU$55.00k0.46%
A$ 206.8k
Xiaobo Xu
Non-Executive Chairman of the Board2.92yrsAU$128.33k0.97%
A$ 430.2k
Lou Cattelan
Non-Executive Director2.92yrsAU$50.00k0.17%
A$ 77.0k
Gary Radcliff
Non-Executive Director2.92yrsAU$50.00kno data

2.9yrs

Average Tenure

Experienced Board: THC's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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 diluted in the past year, with total shares outstanding growing by 34.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: THC Global Group Limited
  • Ticker: THC
  • Exchange: ASX
  • Founded: 2016
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$44.522m
  • Shares outstanding: 189.46m
  • Website: https://thc.global

Location

  • THC Global Group Limited
  • Australia Square
  • Suite 4102
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
THCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2017
THCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2017
9THDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2017
HDRP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2017

Biography

THC Global Group Limited provides medicinal cannabis products to patients in Australia and internationally. The company operates through two segments, Manufacture and Distribution of Hydroponics Equipment,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/24 07:07
End of Day Share Price2021/02/24 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.