CNSX:CL

Stock Analysis Report

Executive Summary

Cresco Labs Inc. cultivates, manufactures, and sells medical cannabis and medical cannabis products in the United States.

Snowflake

Fundamentals

Adequate balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

CL

-11.0%

CA Pharmaceuticals

-0.4%

CA Market


1 Year Return

n/a

CL

-61.9%

CA Pharmaceuticals

0.9%

CA Market

Return vs Industry: Insufficient data to determine how CL performed against the Canadian Pharmaceuticals industry.

Return vs Market: Insufficient data to determine how CL performed against the Canadian Market.


Share holder returns

CLIndustryMarket
7 Day1.4%-11.0%-0.4%
30 Day-24.7%-26.9%-2.1%
90 Day-34.6%-35.5%-1.5%
1 Yearn/a-62.2%-61.9%4.4%0.9%
3 Yearn/a84.6%83.3%15.7%5.4%
5 Yearn/a269.8%269.8%26.1%7.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Cresco Labs undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: CL (CA$7.91) is trading below our estimate of fair value (CA$382.4)

Significantly Undervalued: CL is trading below fair value by more than 20%.


Price Based on Earnings

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

PE vs Market: CL is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate CL's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: CL is overvalued based on its PB Ratio (2.5x) compared to the CA Pharmaceuticals industry average (1.9x).


Next Steps

Future Growth

How is Cresco Labs expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

183.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: CL is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CL is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CL is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CL's revenue (86.3% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: CL's revenue (86.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: CL's Return on Equity is forecast to be low in 3 years time (6%).


Next Steps

Past Performance

How has Cresco Labs performed over the past 5 years?

-1131.1%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CL is unprofitable, and there is insufficient past data to establish if their past 5-year earnings growth rate was positive.

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

Earnings vs Industry: CL is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (15.6%).


Return on Equity

High ROE: CL has a negative Return on Equity (-5.39%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CL is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CL is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Cresco Labs's financial position?


Financial Position Analysis

Short Term Liabilities: CL's short term assets (CA$160.2M) exceeds its short term liabilities (CA$31.5M)

Long Term Liabilities: CL's short term assets (CA$160.2M) exceeds its long term liabilities (CA$51.2M)


Debt to Equity History and Analysis

Debt Level: CL is debt free.

Reducing Debt: CL had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if CL's debt is covered by short term assets.


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: CL has less than a year of cash runway based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

Stable Dividend: Insufficient data to determine if CL's dividends per share have been stable in the past.

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

0.9yrs

Average board tenure


CEO

Charlie Bachtell (41yo)

0yrs

Tenure

0

Mr. Charles Bachtell, also known as Charlie, serves as Co-Founder and Chief Executive Officer at Cresco Labs, LLC and has been its Director since November 30, 2018. He served as an Executive Vice President ...


Board Age and Tenure

0.9yrs

Average Tenure

51yo

Average Age

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


Insider Trading

Insider Buying: CL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$133,82404 Oct 19
John Walter
EntityIndividual
Role
Member of the Board of Directors
Director
Shares16,200
Max PriceUS$8.26
BuyUS$1,99230 Sep 19
Dominic Sergi
EntityIndividual
Shares330
Max PriceUS$6.04
BuyUS$95,00025 Sep 19
Brian McCormack
EntityIndividual
Role
Vice Chairman
Co-Founder & Vice-Chairman
Shares14,000
Max PriceUS$6.79
BuyUS$9,97025 Sep 19
Dominic Sergi
EntityIndividual
Shares1,554
Max PriceUS$6.71
BuyUS$97,23420 Sep 19
Randy Podolsky
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$9.72
BuyUS$21,34220 Sep 19
Dominic Sergi
EntityIndividual
Shares3,000
Max PriceUS$7.33
BuyUS$100,27507 May 19
Corcoran Family Foundation., Endowment Arm
EntityCompany
Shares7,750
Max PriceUS$12.94
SellUS$59,47504 Feb 19
David Ellis
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares6,500
Max PriceUS$9.15
BuyUS$34,12517 Dec 18
David Ellis
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares6,500
Max PriceUS$5.25

Ownership Breakdown


Management Team

  • Rob Sampson (45yo)

    Co-Founder & Director

    • Tenure: 0.9yrs
  • Charlie Bachtell (41yo)

    Co-Founder

    • Tenure: 0yrs
  • Dominic Sergi (36yo)

    Co-Founder & Director

    • Tenure: 0.9yrs
  • Brian McCormack (51yo)

    Co-Founder & Vice-Chairman

    • Tenure: 0yrs
  • Joe Caltabiano (42yo)

    President

    • Tenure: 0.9yrs
  • Ken Amann (48yo)

    Chief Financial Officer

    • Tenure: 0yrs
  • David Ellis (37yo)

    Chief Operating Officer

    • Tenure: 0yrs
  • John Schetz (42yo)

    General Counsel

    • Tenure: 0.9yrs
  • Aaron Miles

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Mo Dastagir

    Chief Information Officer

    • Tenure: 0.3yrs

Board Members

  • John Walter (72yo)

    Director

    • Tenure: 2.5yrs
  • Gerry Corcoran (64yo)

    Director

    • Tenure: 2.5yrs
  • Tom Manning (63yo)

    Chairman

    • Tenure: 0.8yrs
  • Rob Sampson (45yo)

    Co-Founder & Director

    • Tenure: 0.9yrs
  • Charlie Bachtell (41yo)

    Co-Founder

    • Tenure: 0yrs
  • Dominic Sergi (36yo)

    Co-Founder & Director

    • Tenure: 0.9yrs
  • Brian McCormack (51yo)

    Co-Founder & Vice-Chairman

    • Tenure: 0yrs
  • Randy Podolsky (64yo)

    Director

    • Tenure: 0.9yrs
  • Joe Caltabiano (42yo)

    President

    • Tenure: 0.9yrs

Company Information

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


Key Information

  • Name: Cresco Labs Inc.
  • Ticker: CL
  • Exchange: CNSX
  • Founded:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$540.840m
  • Shares outstanding: 68.37m
  • Website: https://www.crescolabs.com

Number of Employees


Location

  • Cresco Labs Inc.
  • 400 West Erie Street
  • Suite 110
  • Chicago
  • Illinois
  • 60654
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLCNSX (Canadian National Stock Exchange)YesSubordinate Voting SharesCACADDec 2018
CRLB.FOTCPK (Pink Sheets LLC)YesSubordinate Voting SharesUSUSDDec 2018
6CQDB (Deutsche Boerse AG)YesSubordinate Voting SharesDEEURDec 2018

Biography

Cresco Labs Inc. cultivates, manufactures, and sells medical cannabis and medical cannabis products in the United States. It offers cannabis in flower, vape pens, and various forms of extracts under the cr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 03:24
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

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