CNSX:BIO

Stock Analysis Report

Executive Summary

Biome Grow Inc., through its subsidiaries, operates as a licensed producer of cannabis in Nova Scotia under Canada’s ACMPR.

Rewards

Trading at 98.2% below its fair value

Revenue is forecast to grow 161.37% per year

Revenue grew by 58732.7% over the past year

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been diluted in the past year

Does not have meaningful revenue (CA$3M)

Does not have a meaningful market cap (CA$22M)



Snowflake Analysis

Slightly overvalued with limited growth.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-9.1%

BIO

3.9%

CA Pharmaceuticals

-0.08%

CA Market


1 Year Return

-59.2%

BIO

-38.7%

CA Pharmaceuticals

10.8%

CA Market

Return vs Industry: BIO underperformed the Canadian Pharmaceuticals industry which returned -38.7% over the past year.

Return vs Market: BIO underperformed the Canadian Market which returned 10.8% over the past year.


Shareholder returns

BIOIndustryMarket
7 Day-9.1%3.9%-0.08%
30 Day-20.0%-9.5%0.01%
90 Day-51.8%-35.6%1.2%
1 Year-59.2%-59.2%-38.7%-38.7%14.4%10.8%
3 Yearn/a43.6%42.6%15.0%4.6%
5 Yearn/a350.6%350.6%40.1%19.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Biome Grow 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: BIO (CA$0.2) is trading below our estimate of fair value (CA$11.28)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: BIO is overvalued based on its PB Ratio (1.8x) compared to the CA Pharmaceuticals industry average (1.3x).


Next Steps

Future Growth

How is Biome Grow forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

161.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if BIO's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if BIO's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BIO's revenue (161.4% per year) is forecast to grow faster than the Canadian market (4.9% per year).

High Growth Revenue: BIO's revenue (161.4% 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 BIO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Biome Grow performed over the past 5 years?

-198.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: BIO is currently unprofitable.

Growing Profit Margin: BIO is currently unprofitable.


Past Earnings Growth Analysis

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

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

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


Return on Equity

High ROE: BIO has a negative Return on Equity (-73.59%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Biome Grow's financial position?


Financial Position Analysis

Short Term Liabilities: BIO's short term assets (CA$2.9M) do not cover its short term liabilities (CA$3.7M).

Long Term Liabilities: BIO has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: BIO's debt to equity ratio (10.2%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: BIO's debt is covered by short term assets (assets are 2.3x 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: BIO has less than a year of cash runway based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.6%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

1.2yrs

Average management tenure


CEO

Khurram Malik 0

1.2yrs

Tenure

CA$86,898

Compensation

Mr. Khurram Malik, MBA, serves as Chief Executive Officer and Director at Biome Grow Inc. since October 03, 2018. Mr. Malik serves as the President of Biome Grow Inc. He was a Clean Technology Analyst at J ...


CEO Compensation Analysis

Compensation vs Market: Khurram's total compensation ($USD65.69K) is below average for companies of similar size in the Canadian market ($USD136.07K).

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


Management Age and Tenure

1.2yrs

Average Tenure

Experienced Management: BIO's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

1.2yrs

Average Tenure

Experienced Board: BIO's board of directors are not considered experienced ( 1.2 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

BuyCA$20,12018 Mar 19
George Smitherman
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Corporate Affairs
Shares34,000
Max PriceCA$0.63
BuyCA$1,56404 Mar 19
George Smitherman
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Corporate Affairs
Shares2,235
Max PriceCA$0.70
BuyCA$13,50020 Feb 19
George Smitherman
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Corporate Affairs
Shares18,000
Max PriceCA$0.75

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.9%.


Management Team

  • Khurram Malik

    CEO, President & Director

    • Tenure: 1.2yrs
    • Compensation: CA$86.90k
  • George Smitherman

    Senior Vice President of Corporate Affairs

    • Tenure: 0.8yrs
    • Compensation: CA$160.00k
  • Abbey Abdiye

    Chief Financial Officer

    • Tenure: 1.2yrs
    • Compensation: CA$25.00k
  • Scott Cuthbertson

    VP of Investor Relations

    • Tenure: 0yrs
  • Frank MacMaster

    President of Highland Grow Inc.

    • Tenure: 0yrs
    • Compensation: CA$231.04k
  • David Callahan

    President of The Back Home Medical Cannabis Corporation

    • Tenure: 0yrs
    • Compensation: CA$144.83k
  • Laird Choi

    Vice President of Corporate Services

    • Tenure: 0yrs
    • Compensation: CA$118.45k

Board Members

  • J. Lievonen

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: CA$160.00k
  • Rita Theil

    Independent Director

    • Tenure: 0.6yrs
  • Steven Poirier (64yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: CA$160.00k
  • Khurram Malik

    CEO, President & Director

    • Tenure: 1.2yrs
    • Compensation: CA$86.90k
  • Brett James

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: CA$160.00k
  • Michael Wiener

    Director

    • Tenure: 0.3yrs

Company Information

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


Key Information

  • Name: Biome Grow Inc.
  • Ticker: BIO
  • Exchange: CNSX
  • Founded:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$22.144m
  • Shares outstanding: 110.72m
  • Website: https://www.biomegrow.com

Location

  • Biome Grow Inc.
  • 480 University Avenue
  • Suite 1401
  • Toronto
  • Ontario
  • M5G 1V2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BIOI.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDOct 2018
BIOCNSX (Canadian National Stock Exchange)YesNew Common SharesCACADOct 2018
6OTADB (Deutsche Boerse AG)YesNew Common SharesDEEUROct 2018

Biography

Biome Grow Inc., through its subsidiaries, operates as a licensed producer of cannabis in Nova Scotia under Canada’s ACMPR. It also operates a virtual reality technology platform that focuses on the medica ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 00:54
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.