CNSX:BE

Stock Analysis Report

Executive Summary

Beleave Inc. operates as a medical cannabis company in Canada.

Rewards

Trading at 94.1% below its fair value

Risk Analysis

Earnings have declined by -58.01% per year over past 5 years

Shareholders have been substantially diluted in the past year

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

+ 2 more risks


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

25.0%

BE

-6.6%

CA Pharmaceuticals

-0.9%

CA Market


1 Year Return

-79.2%

BE

-53.1%

CA Pharmaceuticals

8.3%

CA Market

Return vs Industry: BE underperformed the Canadian Pharmaceuticals industry which returned -44.8% over the past year.

Return vs Market: BE underperformed the Canadian Market which returned 10.2% over the past year.


Shareholder returns

BEIndustryMarket
7 Day25.0%-6.6%-0.9%
30 Day66.7%6.0%1.1%
90 Day-16.7%-10.4%5.3%
1 Year-79.2%-79.2%-53.1%-53.1%11.7%8.3%
3 Year-90.0%-90.0%35.0%34.1%17.3%6.7%
5 Yearn/a375.6%375.6%33.3%13.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Beleave 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: BE (CA$0.03) is trading below our estimate of fair value (CA$0.42)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: BE is overvalued based on its PB Ratio (1.7x) compared to the CA Pharmaceuticals industry average (1.4x).


Next Steps

Future Growth

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

79.4%

Forecasted Pharmaceuticals & Biotech 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 Beleave 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 Beleave performed over the past 5 years?

-58.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BE is currently unprofitable.

Growing Profit Margin: BE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BE is unprofitable, and losses have increased over the past 5 years at a rate of -58% per year.

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

Earnings vs Industry: BE is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-11.3%).


Return on Equity

High ROE: BE has a negative Return on Equity (-314.72%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Beleave's financial position?


Financial Position Analysis

Short Term Liabilities: BE's short term assets (CA$3.9M) do not cover its short term liabilities (CA$14.0M).

Long Term Liabilities: BE's short term assets (CA$3.9M) exceed its long term liabilities (CA$3.5M).


Debt to Equity History and Analysis

Debt Level: BE's debt to equity ratio (151.9%) is considered high.

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


Balance Sheet

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

Debt Coverage by Assets: BE's debt is not covered by short term assets (assets are 0.4x 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: Whilst unprofitable BE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BE is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -44.7% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.5%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

0.9yrs

Average management tenure


CEO

Kevin Keagan 0

0.08yrs

Tenure

CA$668,650

Compensation

Mr. Kevin Keagan has been Chief Executive Officer of Beleave Inc. since December 19, 2019 and serves as its Director since February 19, 2019. Mr. Keagan served as Chief Communications Officer of Beleave In ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD512.57K) is above average for companies of similar size in the Canadian market ($USD165.37K).

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


Management Age and Tenure

0.9yrs

Average Tenure

Experienced Management: BE's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

0.9yrs

Average Tenure

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


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

SellCA$20,93112 Jul 19
Roger Ferreira
EntityIndividual
Role
Top Key Executive
Co-Founder & Chief Science Officer
Shares280,000
Max PriceCA$0.075
SellCA$15,00015 Apr 19
Roger Ferreira
EntityIndividual
Role
Top Key Executive
Co-Founder & Chief Science Officer
Shares150,000
Max PriceCA$0.10
SellCA$10,50008 Mar 19
Roger Ferreira
EntityIndividual
Role
Top Key Executive
Co-Founder & Chief Science Officer
Shares100,000
Max PriceCA$0.10
SellCA$17,25004 Feb 19
Roger Ferreira
EntityIndividual
Role
Top Key Executive
Co-Founder & Chief Science Officer
Shares150,000
Max PriceCA$0.12

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 51.8%.


Management Team

  • Roger Ferreira (33yo)

    Co-Founder & Chief Science Officer

    • Compensation: CA$466.00k
  • Bill Panagiotakopoulos (43yo)

    COO & Director

    • Tenure: 4.1yrs
    • Compensation: CA$2.23m
  • Dana Gidlow

    Head of Veteran Affairs & Community Outreach

    • Tenure: 3.6yrs
  • Myles Fontaine

    VP of Sales

    • Tenure: 1.5yrs
  • Kevin Keagan

    CEO & Director

    • Tenure: 0.08yrs
    • Compensation: CA$668.65k
  • Justin Kosalka

    Director of Operations


    Board Members

    • Bill Panagiotakopoulos (43yo)

      COO & Director

      • Tenure: 4.1yrs
      • Compensation: CA$2.23m
    • Andrew Steane

      Independent Director & Member of Advisory Board

      • Tenure: 0.9yrs
    • Jeannette VanderMarel

      Director

      • Tenure: 0.3yrs
    • Kevin Keagan

      CEO & Director

      • Tenure: 0.08yrs
      • Compensation: CA$668.65k

    Company Information

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


    Key Information

    • Name: Beleave Inc.
    • Ticker: BE
    • Exchange: CNSX
    • Founded:
    • Industry: Pharmaceuticals
    • Sector: Pharmaceuticals & Biotech
    • Market Cap: CA$17.845m
    • Shares outstanding: 509.86m
    • Website: https://beleave.com

    Location

    • Beleave Inc.
    • 2030 Bristol Circle
    • Suite 115
    • Oakville
    • Ontario
    • L6H 0H2
    • Canada

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    BECNSX (Canadian National Stock Exchange)YesNew Common SharesCACADDec 2015
    4B9DB (Deutsche Boerse AG)YesNew Common SharesDEEURDec 2015
    BLEV.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDDec 2015

    Biography

    Beleave Inc. operates as a medical cannabis company in Canada. The company cultivates and sells medical and recreational cannabis products. It also operates a network of medical cannabis clinics in Ontario and Quebec under the Medi-Green banner. The company sells its products through operating stores and online. Beleave Inc. is headquartered in Oakville, Canada. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/28 01:20
    End of Day Share Price2020/01/27 00:00
    Earnings2019/09/30
    Annual Earnings2019/03/31


    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.