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CANN

Heritage Cannabis HoldingsCNSX:CANN Stock Report

Market Cap

CA$51.0m

7D

18.2%

1Y

-50.0%

Updated

26 Oct, 2021

Data

Company Financials +
CANN fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance0/6
Financial Health4/6
Dividends0/6

CANN Overview

Heritage Cannabis Holdings Corp., through its subsidiaries, operates as a cannabinoid company that focuses on the production and sale of medical and recreational hemp-based and cannabis-based products and services in Canada and the United States.

Price History & Performance

Summary of all time highs, changes and price drops for Heritage Cannabis Holdings
Historical stock prices
Current Share PriceCA$0.065
52 Week HighCA$0.045
52 Week LowCA$0.22
Beta0.032
1 Month Change-7.14%
3 Month Change-23.53%
1 Year Change-50.00%
3 Year Change-72.92%
5 Year Change85.71%
Change since IPO-78.33%

Recent News & Updates

Aug 24
Is Heritage Cannabis Holdings (CSE:CANN) A Risky Investment?

Is Heritage Cannabis Holdings (CSE:CANN) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

CANNCA PharmaceuticalsCA Market
7D18.2%-5.7%1.0%
1Y-50.0%0.6%36.8%

Return vs Industry: CANN underperformed the Canadian Pharmaceuticals industry which returned 2% over the past year.

Return vs Market: CANN underperformed the Canadian Market which returned 36.5% over the past year.

Price Volatility

Is CANN's price volatile compared to industry and market?
CANN volatility
CANN Beta0.032
Industry Beta1.85
Market Beta1

Stable Share Price: CANN is more volatile than 90% of Canadian stocks over the past 3 months, typically moving +/- 17% a week.

Volatility Over Time: CANN's weekly volatility (17%) has been stable over the past year, but is still higher than 75% of Canadian stocks.

About the Company

FoundedEmployeesCEOWebsite
2007n/aDavid Schwedehttps://www.heritagecann.com

Heritage Cannabis Holdings Corp., through its subsidiaries, operates as a cannabinoid company that focuses on the production and sale of medical and recreational hemp-based and cannabis-based products and services in Canada and the United States. It offers extraction services; and focuses on processing, manufacturing, and distributing medical cannabis products and cannabis oils. It provides integrative approach to cannabinoid therapy for healthcare consumers and healthcare practitioners.

Heritage Cannabis Holdings Fundamentals Summary

How do Heritage Cannabis Holdings's earnings and revenue compare to its market cap?
CANN fundamental statistics
Market CapCA$51.02m
Earnings (TTM)-CA$19.57m
Revenue (TTM)CA$10.84m

4.7x

P/S Ratio

-2.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CANN income statement (TTM)
RevenueCA$10.84m
Cost of RevenueCA$6.19m
Gross ProfitCA$4.65m
ExpensesCA$24.23m
Earnings-CA$19.57m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.025
Gross Margin42.93%
Net Profit Margin-180.56%
Debt/Equity Ratio6.3%

How did CANN perform over the long term?

See historical performance and comparison

Valuation

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

0.53x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: CANN is good value based on its PB Ratio (0.5x) compared to the CA Pharmaceuticals industry average (2.4x).


Future Growth

How is Heritage Cannabis Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

87.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CANN's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if CANN'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: CANN's revenue (87.1% per year) is forecast to grow faster than the Canadian market (6.7% per year).

High Growth Revenue: CANN's revenue (87.1% 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 CANN's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Heritage Cannabis Holdings performed over the past 5 years?

-42.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CANN is currently unprofitable.

Growing Profit Margin: CANN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CANN is unprofitable, and losses have increased over the past 5 years at a rate of 42.7% per year.

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

Earnings vs Industry: CANN is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (115.1%).


Return on Equity

High ROE: CANN has a negative Return on Equity (-20.09%), as it is currently unprofitable.


Financial Health

How is Heritage Cannabis Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CANN's short term assets (CA$27.1M) exceed its short term liabilities (CA$5.7M).

Long Term Liabilities: CANN's short term assets (CA$27.1M) do not cover its long term liabilities (CA$30.6M).


Debt to Equity History and Analysis

Debt Level: CANN's debt to equity ratio (6.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CANN'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: CANN has sufficient cash runway for 3 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: CANN is forecast to have sufficient cash runway for 2 months based on free cash flow estimates, but has since raised additional capital.


Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if CANN'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 CANN'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?

0.6yrs

Average management tenure


CEO

David Schwede

0.17

Tenure

Mr. David Werner-Paul Schwede has been a Director of Heritage Cannabis Holdings Corp. since August 2021. He has been the Chief Executive Officer of Heritage Cannabis Holdings Corp. since August 2021. He se...


Leadership Team

Experienced Management: CANN's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: CANN's board of directors are not considered experienced ( 2.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 65.7%.


Top Shareholders

Company Information

Heritage Cannabis Holdings Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: Heritage Cannabis Holdings Corp.
  • Ticker: CANN
  • Exchange: CNSX
  • Founded: 2007
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$51.017m
  • Shares outstanding: 784.88m
  • Website: https://www.heritagecann.com

Number of Employees


Location

  • Heritage Cannabis Holdings Corp.
  • 77 Bloor Street West
  • Suite 600
  • Toronto
  • Ontario
  • M5S 1M2
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 22:40
End of Day Share Price2021/10/26 00:00
Earnings2021/07/31
Annual Earnings2020/10/31


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.