CNSX:BIO

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Biome Grow Inc., through its subsidiaries, cultivates, produces, and distributes cannabis at Antigonish, Nova Scotia. More Details


Snowflake Analysis

Overvalued with worrying balance sheet.

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 is more volatile than 90% of Canadian stocks over the past 3 months, typically moving +/- 36% a week.

Volatility Over Time: BIO's weekly volatility has increased from 30% to 36% over the past year.


Market Performance


7 Day Return

-14.3%

BIO

2.7%

CA Pharmaceuticals

1.7%

CA Market


1 Year Return

-84.2%

BIO

16.0%

CA Pharmaceuticals

0.2%

CA Market

Return vs Industry: BIO underperformed the Canadian Pharmaceuticals industry which returned 5.2% over the past year.

Return vs Market: BIO underperformed the Canadian Market which returned -1.5% over the past year.


Shareholder returns

BIOIndustryMarket
7 Day-14.3%2.7%1.7%
30 Day-25.0%20.2%7.0%
90 Day-53.8%31.0%5.1%
1 Year-84.2%-84.2%16.0%16.0%3.9%0.2%
3 Yearn/a-31.4%-32.4%13.1%2.1%
5 Yearn/a247.2%244.7%46.5%24.1%

Long-Term 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?

0.77x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: BIO is unprofitable, so we can't compare its PE Ratio to the CA 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 good value based on its PB Ratio (0.8x) compared to the CA Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

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

59.4%

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 Biome Grow 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 Biome Grow performed over the past 5 years?

-62.9%

Historical annual 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: BIO is unprofitable, and losses have increased over the past 5 years at a rate of 62.9% per year.

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 (-19.7%).


Return on Equity

High ROE: BIO has a negative Return on Equity (-240.16%), as it is currently unprofitable.


Next Steps

Financial Health

How is Biome Grow's financial position?


Financial Position Analysis

Short Term Liabilities: BIO's short term assets (CA$4.3M) do not cover its short term liabilities (CA$6.3M).

Long Term Liabilities: BIO's short term assets (CA$4.3M) exceed its long term liabilities (CA$1.5M).


Debt to Equity History and Analysis

Debt Level: BIO's debt to equity ratio (69.1%) is considered high.

Reducing Debt: Insufficient data to determine if BIO'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: BIO has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: BIO has less than a year of cash runway if free cash flow continues to reduce at historical rates of 14.8% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate BIO'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 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

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

2.1yrs

Average board tenure


CEO

Khurram Malik

2.08yrs

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 ($USD0.00) is below average for companies of similar size in the Canadian market ($USD164.99K).

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


Board Members

NamePositionTenureCompensationOwnership
Khurram Malik
CEO, President & Director2.08yrsCA$86.90k2.67%
CA$ 90.0k
J. Lievonen
Independent Director2.08yrsCA$160.00kno data
Steven Poirier
Independent Director2.08yrsCA$160.00kno data

2.1yrs

Average Tenure

Experienced Board: BIO's board of directors are not considered experienced ( 2.1 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$3.373m
  • Shares outstanding: 112.42m
  • 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, cultivates, produces, and distributes cannabis at Antigonish, Nova Scotia. The company is headquartered in Toronto, Canada.


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 23:37
End of Day Share Price2020/11/24 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.