TSXV:EAST

Stock Analysis Report

EastWest Bioscience

Executive Summary

EastWest Bioscience Inc. manufactures and distributes premium hemp-based consumer products in Canada and the United States.

Risk Analysis

Earnings have declined by -73.74% per year over past 5 years

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Makes less than USD$1m in revenue (CA$1M)

+ 2 more risks


Snowflake Analysis

Overvalued with worrying balance sheet.


Similar Companies

Share Price & News

How has EastWest Bioscience's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EAST has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-14.3%

EAST

-0.8%

CA Personal Products

0.1%

CA Market


1 Year Return

-83.3%

EAST

-17.1%

CA Personal Products

12.1%

CA Market

Return vs Industry: EAST underperformed the Canadian Personal Products industry which returned -17.1% over the past year.

Return vs Market: EAST underperformed the Canadian Market which returned 12.1% over the past year.


Shareholder returns

EASTIndustryMarket
7 Day-14.3%-0.8%0.1%
30 Day-14.3%-1.6%0.2%
90 Day-40.0%-16.4%0.7%
1 Year-83.3%-83.3%-16.6%-17.1%15.9%12.1%
3 Yearn/a106.2%106.2%16.0%5.4%
5 Yearn/a75.6%57.4%33.5%13.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is EastWest Bioscience undervalued compared to its fair value and its price relative to the market?

1.43x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: EAST is good value based on its PB Ratio (1.4x) compared to the CA Personal Products industry average (1.8x).


Next Steps

Future Growth

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

15.0%

Forecasted Household 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 EastWest Bioscience 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 EastWest Bioscience performed over the past 5 years?

-73.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EAST is currently unprofitable.

Growing Profit Margin: EAST is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EAST is unprofitable, and losses have increased over the past 5 years at a rate of -73.7% per year.

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

Earnings vs Industry: EAST is unprofitable, making it difficult to compare its past year earnings growth to the Personal Products industry (24.8%).


Return on Equity

High ROE: EAST has a negative Return on Equity (-253.44%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is EastWest Bioscience's financial position?


Financial Position Analysis

Short Term Liabilities: EAST's short term assets (CA$1.8M) exceed its short term liabilities (CA$865.1K).

Long Term Liabilities: EAST's short term assets (CA$1.8M) do not cover its long term liabilities (CA$2.3M).


Debt to Equity History and Analysis

Debt Level: EAST's debt to equity ratio (118.8%) is considered high.

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


Balance Sheet

Inventory Level: EAST has a high level of physical assets or inventory.

Debt Coverage by Assets: EAST's debt is not covered by short term assets (assets are 0.9x 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: EAST has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: EAST has less than a year of cash runway if free cash flow continues to reduce at historical rates of -78.5% each year


Next Steps

Dividend

What is EastWest Bioscience's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if EAST'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 EAST'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 EastWest Bioscience's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average board tenure


CEO

Rodney Gelineau (49yo)

0yrs

Tenure

CA$103,362

Compensation

Mr. Rodney Gelineau is Co-Founder, Chief Executive Officer, President and Director of EastWest Bioscience Inc. (Former Name: Harbour Star Capital Inc.). He served as the President and Chief Executive Offic ...


CEO Compensation Analysis

Compensation vs Market: Rodney's total compensation ($USD78.30K) is below average for companies of similar size in the Canadian market ($USD170.54K).

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


Board Age and Tenure

0.9yrs

Average Tenure

Experienced Board: EAST's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: EAST insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$10,00027 Nov 19
Warchest Holdings Limited
EntityCompany
Shares66,667
Max PriceCA$0.15
BuyCA$6,17006 Nov 19
Rodney Gelineau
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares162,000
Max PriceCA$0.04
BuyCA$1,34706 Nov 19
Ciska Asriel
EntityIndividual
Role
Top Key Executive
Co-Founder & COO
Shares38,500
Max PriceCA$0.035
BuyCA$9,50001 Aug 19
Ciska Asriel
EntityIndividual
Role
Top Key Executive
Co-Founder & COO
Shares100,000
Max PriceCA$0.095
BuyCA$6,50018 Apr 19
Rodney Gelineau
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares65,000
Max PriceCA$0.10
BuyCA$18,00007 Apr 19
Rodney Gelineau
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares120,000
Max PriceCA$0.15
BuyCA$75,00007 Apr 19
Ciska Asriel
EntityIndividual
Role
Top Key Executive
Co-Founder & COO
Shares500,000
Max PriceCA$0.15

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 71.6%.


Management Team

  • Rodney Gelineau (49yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: CA$103.36k
  • Scott Reeves (49yo)

    Secretary

    • Tenure: 0.7yrs
  • Richard Shatto (62yo)

    Vice President of Marketing & Administration

    • Tenure: 0yrs
    • Compensation: CA$57.26k
  • Ciska Asriel

    Co-Founder & COO

    • Tenure: 0yrs
    • Compensation: CA$30.00k
  • Paul Marjerrison

    Chief Financial Officer

    • Tenure: 0.9yrs

Board Members

  • Rodney Gelineau (49yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: CA$103.36k
  • Steve Langford

    Member of Retail Advisory Board

    • Tenure: 0.9yrs
  • Helen Langford

    Member of Retail Advisory Board

    • Tenure: 0.9yrs
  • Nathan Lidder

    Independent Director

    • Tenure: 1.3yrs
  • Thomas Kim

    Member of Retail Advisory Board

    • Tenure: 0.9yrs
  • Paul Mandl

    Independent Director

    • Tenure: 0.7yrs
  • Jeff Bierman

    Independent Director

    • Tenure: 0.7yrs

Company Information

EastWest Bioscience Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EastWest Bioscience Inc.
  • Ticker: EAST
  • Exchange: TSXV
  • Founded:
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: CA$2.447m
  • Shares outstanding: 81.56m
  • Website: https://www.eastwestbioscience.com

Location

  • EastWest Bioscience Inc.
  • 885 Dunsmuir Street
  • Suite 410
  • Vancouver
  • British Columbia
  • V6C 1N5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EASTTSXV (TSX Venture Exchange)YesNew Common SharesCACADJul 2018
HBOS.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDJul 2018

Biography

EastWest Bioscience Inc. manufactures and distributes premium hemp-based consumer products in Canada and the United States. It offers natural biopharmaceutical health supplements; natural hemp superfoods;  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 01:48
End of Day Share Price2019/12/13 00:00
Earnings2019/04/30
Annual Earnings2018/07/31


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.