CNSX:ACRG.U

Stock Analysis Report

Executive Summary

Acreage Holdings, Inc., formerly High Street Capital Partners, is a principal investment firm specializing in cannabis industry.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has Acreage Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.8%

ACRG.U

13.3%

CA Pharmaceuticals

4.5%

CA Market


1 Year Return

-88.4%

ACRG.U

-74.3%

CA Pharmaceuticals

-24.5%

CA Market

Return vs Industry: ACRG.U underperformed the Canadian Pharmaceuticals industry which returned -74.3% over the past year.

Return vs Market: ACRG.U underperformed the Canadian Market which returned -24.5% over the past year.


Shareholder returns

ACRG.UIndustryMarket
7 Day4.8%13.3%4.5%
30 Day-39.6%-18.9%-20.1%
90 Day-59.6%-35.3%-24.9%
1 Year-86.6%-88.4%-74.3%-74.3%-22.0%-24.5%
3 Yearn/a-15.3%-15.9%-14.2%-22.2%
5 Yearn/a199.2%199.2%-1.9%-16.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Acreage Holdings undervalued compared to its fair value and its price relative to the market?

38.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACRG.U ($2.39) is trading below our estimate of fair value ($3.86)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ACRG.U is good value based on its PB Ratio (0.5x) compared to the CA Pharmaceuticals industry average (0.9x).

Future Growth

How is Acreage Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

56.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACRG.U is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).

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

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

Revenue vs Market: ACRG.U's revenue (71.8% per year) is forecast to grow faster than the Canadian market (3.8% per year).

High Growth Revenue: ACRG.U's revenue (71.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ACRG.U's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Acreage Holdings performed over the past 5 years?

26.9%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: ACRG.U is currently unprofitable.

Growing Profit Margin: ACRG.U is currently unprofitable.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: ACRG.U is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-9.9%).


Return on Equity

High ROE: ACRG.U has a negative Return on Equity (-34.91%), as it is currently unprofitable.

Financial Health

How is Acreage Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ACRG.U's short term assets ($92.8M) exceed its short term liabilities ($21.5M).

Long Term Liabilities: ACRG.U's short term assets ($92.8M) exceed its long term liabilities ($91.0M).


Debt to Equity History and Analysis

Debt Level: ACRG.U's debt to equity ratio (0.6%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: ACRG.U's debt is covered by short term assets (assets are 26.8x 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: ACRG.U has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ACRG.U has less than a year of cash runway if free cash flow continues to reduce at historical rates of -76.5% each year

Dividend

What is Acreage Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

Management

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

1.0yrs

Average management tenure


CEO

Kevin Murphy (56yo)

no data

Tenure

US$10,473,000

Compensation

Mr. Kevin P. Murphy is a Founder of Acreage Holdings, Inc. and has been its Chief Executive Officer since April 2014 and was its President since April 18, 2019. He has been President of Acreage Holdings, I ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD10.47M) is above average for companies of similar size in the Canadian market ($USD1.23M).

Compensation vs Earnings: Insufficient data to compare Kevin's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Murphy
Founderno dataUS$10.47m4.78% $15.1m
Glen Leibowitz
Chief Financial Officer2yrsUS$4.83m1.49% $4.7m
Robert Daino
Chief Operating Officer1.58yrsUS$4.84m1.95% $6.2m
James Doherty
General Counsel1.25yrsUS$4.79m0.11% $336.1k
Alfred Miranda
Senior VP & Chief Information Officer0.67yrno datano data
Steven Hardardt
Executive VP0.58yrno datano data
Howard Schacter
Vice President of Communications1.58yrsno datano data
Steve West
Vice President of Investor Relationsno datano datano data
Christine Rigby
Vice President of Investor Relations0.83yrno datano data
Corey Burchman
Chief Medical Officer0.83yrno datano data

1.0yrs

Average Tenure

51.5yo

Average Age

Experienced Management: ACRG.U's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kevin Murphy
Founderno dataUS$10.47m4.78% $15.1m
William Van Faasen
Independent Director1.25yrsUS$3.99m0.33% $1.1m
Douglas Maine
Lead Independent Director1.25yrsUS$3.99m0.032% $99.6k
John Boehner
Director1.25yrsno datano data
Brian Mulroney
Director1.25yrsUS$10.49mno data

1.3yrs

Average Tenure

70yo

Average Age

Experienced Board: ACRG.U's board of directors are not considered experienced ( 1.3 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: ACRG.U insiders have only sold shares 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 29.3%.


Top Shareholders

Company Information

Acreage Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Acreage Holdings, Inc.
  • Ticker: ACRG.U
  • Exchange: CNSX
  • Founded: 2014
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: US$316.053m
  • Market Cap: US$216.924m
  • Shares outstanding: 119.72m
  • Website: https://www.acreageholdings.com

Location

  • Acreage Holdings, Inc.
  • 366 Madison Avenue
  • 11th Floor
  • New York
  • New York
  • 10017
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACRG.UCNSX (Canadian National Stock Exchange)YesSubordinate Voting SharesCAUSDNov 2018
ACRG.FOTCPK (Pink Sheets LLC)YesSubordinate Voting SharesUSUSDNov 2018
0VZDB (Deutsche Boerse AG)YesSubordinate Voting SharesDEEURNov 2018

Biography

Acreage Holdings, Inc., formerly High Street Capital Partners, is a principal investment firm specializing in cannabis industry. Acreage Holdings, Inc. was founded in 2014 and is based in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:42
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.