TSX:AH

Stock Analysis Report

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Executive Summary

Aleafia Health Inc. operates as an integrated cannabis health and wellness company. More Details


Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Aleafia Health's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

1.9%

AH

0.2%

CA Healthcare

0.07%

CA Market


1 Year Return

-27.0%

AH

-5.4%

CA Healthcare

-3.6%

CA Market

Return vs Industry: AH underperformed the Canadian Healthcare industry which returned -5.8% over the past year.

Return vs Market: AH underperformed the Canadian Market which returned -4% over the past year.


Shareholder returns

AHIndustryMarket
7 Day1.9%0.2%0.07%
30 Day16.1%8.6%2.1%
90 Day-22.9%19.8%1.8%
1 Year-27.0%-27.0%-1.1%-5.4%-0.09%-3.6%
3 Yearn/a-2.3%-15.7%3.7%-6.1%
5 Yearn/a-10.7%-29.5%31.1%11.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Aleafia Health undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AH (CA$0.54) is trading below our estimate of fair value (CA$1.76)

Significantly Below Fair Value: AH is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AH is good value based on its PB Ratio (0.4x) compared to the CA Healthcare industry average (2.7x).


Next Steps

Future Growth

How is Aleafia Health forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

111.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: AH is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AH's is expected to become profitable in the next 3 years.

Revenue vs Market: AH's revenue (60.3% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: AH's revenue (60.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AH's Return on Equity is forecast to be low in 3 years time (3.3%).


Next Steps

Past Performance

How has Aleafia Health performed over the past 5 years?

61.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: AH is currently unprofitable.

Growing Profit Margin: AH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if AH's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: AH is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (17.2%).


Return on Equity

High ROE: AH has a negative Return on Equity (-4.64%), as it is currently unprofitable.


Next Steps

Financial Health

How is Aleafia Health's financial position?


Financial Position Analysis

Short Term Liabilities: AH's short term assets (CA$116.0M) exceed its short term liabilities (CA$41.3M).

Long Term Liabilities: AH's short term assets (CA$116.0M) exceed its long term liabilities (CA$36.9M).


Debt to Equity History and Analysis

Debt Level: AH's debt to equity ratio (13.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if AH'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: AH has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if AH has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Aleafia Health current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Geoff Benic

2.33yrs

Tenure

CA$1,044,192

Compensation

Mr. Geoffrey Benic, also known as Geoff, has been Chief Executive Officer of Aleafia Health Inc since June 28, 2018. Previously, Mr. Benic served as the Regional Director of United Parcel Service Canada Lt ...


CEO Compensation Analysis

Compensation vs Market: Geoff's total compensation ($USD794.33K) is above average for companies of similar size in the Canadian market ($USD171.35K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Geoffrey Benic
Chief Executive Officer2.33yrsCA$1.04m0.079%
CA$ 129.1k
Benjamin Ferdinand
CFO & Corporate Secretary2.17yrsCA$807.21kno data
Greg Rossi
Chief Operating Officer2.25yrsCA$603.94kno data
Michael Verbora
Chief Medical Officer2.5yrsCA$561.26k0.057%
CA$ 93.0k
Keith White
President of Clinic Operations1.67yrsCA$1.60mno data
Nicholas Bergamini
Vice President of Investor Relations & Public Affairsno datano data0.0060%
CA$ 9.7k
Geoff Smith
Chief Legal Officer & Corporate Secretary1.58yrsno datano data
Dave Shepherd
Senior Vice President of Human Resources1.75yrsno data0.00041%
CA$ 667.0
Patricia Symmes
Chief Commercial Officer0.17yrno datano data
Katarzyna Malz
Senior Vice President of Operational Risk Management0.75yrno datano data

1.8yrs

Average Tenure

Experienced Management: AH's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Daniel Milliard
Independent Director1.58yrsCA$57.42kno data
Lea Ray
Acting Independent Chairman of the Board0.42yrCA$60.25kno data
Rhonda Lawson
Independent Director0.42yrno data0.00050%
CA$ 813.4
Glenn Washer
Independent Director0.42yrno datano data
Loreto Grimaldi
Independent Director1.58yrsCA$87.75k0.036%
CA$ 58.5k
Mark Sandler
Independent Director2.5yrsCA$71.50kno data

1.0yrs

Average Tenure

58.5yo

Average Age

Experienced Board: AH's board of directors are not considered experienced ( 1 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 9.7%.


Top Shareholders

Company Information

Aleafia Health Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aleafia Health Inc.
  • Ticker: AH
  • Exchange: TSX
  • Founded:
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: CA$162.686m
  • Shares outstanding: 301.27m
  • Website: https://www.aleafiahealth.com

Number of Employees


Location

  • Aleafia Health Inc.
  • 85 Basaltic Road
  • Concord
  • Ontario
  • L4K 1G4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AHTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2018
ALEA.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2018
ARAHDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2018

Biography

Aleafia Health Inc. operates as an integrated cannabis health and wellness company. It produces a portfolio of products, including dried flower and pre-rolls, as well as oil drops and capsules, and oral sp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 00:33
End of Day Share Price2020/10/23 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.