Ionic Brands (CNSX:IONC) - Share price, News & Analysis

IONC fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

IONC Stock Overview

Ionic Brands Corp., through its subsidiaries, extracts, manufactures, brands, and distributes cannabis consumables and concentrate extract products in Washington and Oregon.

Risk Analysis

Earnings have declined by 17.6% per year over past 5 years

Highly volatile share price over the past 3 months

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap (CA$2M)

Ionic Brands Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ionic Brands
Historical stock prices
Current Share Price	CA$0.005
52 Week High	CA$0.18
52 Week Low	CA$0.005
Beta	1.92
1 Month Change	0%
3 Month Change	-66.67%
1 Year Change	-96.30%
3 Year Change	-99.83%
5 Year Change	n/a
Change since IPO	-99.87%

Shareholder Returns

	IONC	CA Tobacco	CA Market
7D	0%	3.7%	-3.0%
1Y	-96.3%	-73.9%	4.2%

Return vs Industry: IONC underperformed the Canadian Tobacco industry which returned -73.9% over the past year.

Return vs Market: IONC underperformed the Canadian Market which returned -0.1% over the past year.

Price Volatility

Is IONC's price volatile compared to industry and market?
IONC volatility
IONC Average Weekly Movement	75.0%
Tobacco Industry Average Movement	15.6%
Market Average Movement	9.6%
10% most volatile stocks in CA Market	16.4%
10% least volatile stocks in CA Market	4.2%

Stable Share Price: IONC is more volatile than 90% of Canadian stocks over the past 3 months, typically moving +/- 75% a week.

Volatility Over Time: IONC's weekly volatility has increased from 42% to 75% over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	61	John Gorst	https://www.ionicbrands.com

Ionic Brands Corp., through its subsidiaries, extracts, manufactures, brands, and distributes cannabis consumables and concentrate extract products in Washington and Oregon. The company provides cannabis oils and concentrates, infusions, and distillates; vaporizers; and hard goods, such as cartridges, applicators, pens, jars, etc. It also offers services and products ancillary to the cannabis production and processing industry, including the leasing of processing and transportation equipment; sourcing of devices, packaging, and labeling; and licensing of intellectual properties, as well as provision of operation and marketing support services to the licensed cannabis processors and producers. The company offers its products and services under the IONIC, Zoots, and Dabulous brands.

Ionic Brands Fundamentals Summary

How do Ionic Brands's earnings and revenue compare to its market cap?
IONC fundamental statistics
Market Cap	US$1.33m
Earnings (TTM)	-US$12.62m
Revenue (TTM)	US$21.39m

0.1x

P/S Ratio

-0.1x

P/E Ratio

Is IONC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
IONC income statement (TTM)
Revenue	US$21.39m
Cost of Revenue	US$17.80m
Gross Profit	US$3.59m
Other Expenses	US$16.21m
Earnings	-US$12.62m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.037
Gross Margin	16.77%
Net Profit Margin	-59.01%
Debt/Equity Ratio	11.7%

How did IONC perform over the long term?

See historical performance and comparison

Valuation

Is Ionic Brands undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

In this section, we usually try to help investors determine whether Ionic Brands is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Ionic Brands has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

6.4%

Forecasted Food, Beverage & Tobacco 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 Ionic Brands 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 Ionic Brands performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-17.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IONC is currently unprofitable.

Growing Profit Margin: IONC is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: IONC is unprofitable, and losses have increased over the past 5 years at a rate of 17.6% per year.

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

Earnings vs Industry: IONC is unprofitable, making it difficult to compare its past year earnings growth to the Tobacco industry (11.4%).

Return on Equity

High ROE: IONC has a negative Return on Equity (-53.51%), as it is currently unprofitable.

Financial Health

How is Ionic Brands's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: IONC's short term assets ($9.6M) exceed its short term liabilities ($6.6M).

Long Term Liabilities: IONC's short term assets ($9.6M) exceed its long term liabilities ($4.0M).

Debt to Equity History and Analysis

Debt Level: IONC's net debt to equity ratio (8.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if IONC'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: IONC has sufficient cash runway for 1 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: IONC is forecast to have sufficient cash runway for 1 months based on free cash flow estimates, but has since raised additional capital.

Dividend

What is Ionic Brands's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as IONC has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Food, Beverage & Tobacco industry.

Management

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

3.2yrs

Average management tenure

CEO

John Gorst (52 yo)

3.17yrs

Tenure

US$77,900

Compensation

Mr. John Phillip Gorst has been the Chief Executive Officer and Director of Ionic Brands Corp. (formerly Zara Resources Inc.) since March 22, 2019 and serves as its Chairman of the Board. Prior to joining...

CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD77.90K) is below average for companies of similar size in the Canadian market ($USD167.30K).

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

Leadership Team

Experienced Management: IONC's management team is considered experienced (3.2 years average tenure).

Board Members

Experienced Board: IONC's board of directors are considered experienced (3.2 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 206.6%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/14 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2021/09/30
Annual Earnings	2020/12/31