TSXV:CUB

Stock Analysis Report

Executive Summary

CubicFarm Systems Corp. develops, manufactures, and sells cubic farming systems for farmers.

Snowflake

Fundamentals

Excellent balance sheet with weak fundamentals.

Share Price & News

How has CubicFarm Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-23.3%

CUB

0.8%

CA Machinery

-0.3%

CA Market


1 Year Return

n/a

CUB

-25.3%

CA Machinery

0.9%

CA Market

Return vs Industry: Insufficient data to determine how CUB performed against the Canadian Machinery industry.

Return vs Market: Insufficient data to determine how CUB performed against the Canadian Market.


Share holder returns

CUBIndustryMarket
7 Day-23.3%0.8%-0.3%
30 Day-29.2%-6.9%-2.1%
90 Day-38.7%-14.2%-1.5%
1 Yearn/a-23.2%-25.3%4.4%0.9%
3 Yearn/a0.5%-6.0%15.7%5.4%
5 Yearn/a24.5%15.0%26.1%7.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is CubicFarm Systems undervalued based on future cash flows and its price relative to the stock market?

3.31x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: Insufficient data to calculate CUB's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate CUB's fair value to establish if it is undervalued.


Price Based on Earnings

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

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


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: CUB is overvalued based on its PB Ratio (3.3x) compared to the CA Machinery industry average (2.1x).


Next Steps

Future Growth

How is CubicFarm Systems expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

30.8%

Forecasted Capital Goods 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 CubicFarm Systems 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

  • Examine CubicFarm Systems's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • CubicFarm Systems competitive advantages and company strategy can generally be found in its financial reports archived here.
  • Explore growth companies in the Capital Goods industry.

Past Performance

How has CubicFarm Systems performed over the past 5 years?

-280.6%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CUB is unprofitable, and there is insufficient past data to establish if their past 5-year earnings growth rate was positive.

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

Earnings vs Industry: CUB is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-6.2%).


Return on Equity

High ROE: CUB has a negative Return on Equity (-29.31%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CUB is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CUB is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is CubicFarm Systems's financial position?


Financial Position Analysis

Short Term Liabilities: CUB's short term assets (CA$15.9M) exceeds its short term liabilities (CA$3.8M)

Long Term Liabilities: CUB has no long term liabilities


Debt to Equity History and Analysis

Debt Level: CUB's debt to equity ratio (4.9%) is considered satisfactory

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


Balance Sheet

Inventory Level: CUB has a low level of unsold assets or inventory.

Debt Coverage by Assets: CUB's debt is covered by short term assets (assets are 19.840290x debt).


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: CUB has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: CUB has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -74% each year


Next Steps

Dividend

What is CubicFarm Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage4.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

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

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


Next Steps

Management

What is the CEO of CubicFarm Systems's salary, the management and board of directors tenure and is there insider trading?


CEO

Dave Dinesen 0

4.8yrs

Tenure

0

Mr. Dave Dinesen is Chief Executive Officer of CubicFarm Systems Corp. since 2015 and serves as its Director. Mr. Dinesen served as Chief Executive Officer and President of Sterling International at Sterli ...


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$771,03422 Jul 19
Nu Skin Enterprises, Inc.
EntityCompany
Shares767,503
Max PriceCA$1.00

Ownership Breakdown


Management Team

  • Dave Dinesen

    CEO & Director

    • Tenure: 4.8yrs
  • Rodrigo Santana

    President

    • Tenure: 0.3yrs
  • Jo-Ann Ostermann

    Vice President

    • Tenure: 0yrs
  • John de Jonge

    Chief Design & Installation Officer and Director

    • Tenure: 0yrs
  • Ross Rayment

    Vice President of Corporate Development

    • Tenure: 0yrs

Board Members

  • Leo Benne (51yo)

    Director

    • Tenure: 0yrs
  • Daniel Burns (58yo)

    Chairman

    • Tenure: 0yrs
  • Dave Dinesen

    CEO & Director

    • Tenure: 4.8yrs
  • Dean Drysdale

    Director

    • Tenure: 0yrs
  • John Hoekstra (50yo)

    Director

    • Tenure: 0yrs
  • John de Jonge

    Chief Design & Installation Officer and Director

    • Tenure: 0yrs
  • Michael McCarthy

    Director

    • Tenure: 0yrs
  • Chris Ericson

    Director

    • Tenure: 0.2yrs

Company Information

CubicFarm Systems Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CubicFarm Systems Corp.
  • Ticker: CUB
  • Exchange: TSXV
  • Founded: 2015
  • Industry: Agricultural and Farm Machinery
  • Sector: Capital Goods
  • Market Cap: CA$38.723m
  • Shares outstanding: 84.18m
  • Website: https://cubicfarms.com

Location

  • CubicFarm Systems Corp.
  • 7170 Glover Road
  • PO Box 73
  • Langley
  • British Columbia
  • V2Y 0W9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CUBTSXV (TSX Venture Exchange)YesCommon SharesCACADJul 2019

Biography

CubicFarm Systems Corp. develops, manufactures, and sells cubic farming systems for farmers. Its systems help farmers to produce lettuce, herbs, and microgreens for retail stores, restaurants, institutions ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 03:26
End of Day Share Price2019/10/11 00:00
Earnings2019/03/31
Annual Earnings2018/06/30


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.

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