Cresco Labs
Market Cap
CA$5.3b
Last Updated
2021/01/17 00:12 UTC
Data Sources
Company Financials +
Executive Summary
Cresco Labs Inc., together with its subsidiaries, cultivates, manufactures, and sells medical cannabis and medical cannabis products in the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with mediocre balance sheet.
Similar Companies
Share Price & News
How has Cresco Labs's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CL is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: CL's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
16.9%
CL
13.8%
CA Pharmaceuticals
-0.5%
CA Market
1 Year Return
90.5%
CL
46.7%
CA Pharmaceuticals
1.6%
CA Market
Return vs Industry: CL exceeded the Canadian Pharmaceuticals industry which returned 47.2% over the past year.
Return vs Market: CL exceeded the Canadian Market which returned 1.7% over the past year.
Shareholder returns
| CL | Industry | Market | |
|---|---|---|---|
| 7 Day | 16.9% | 13.8% | -0.5% |
| 30 Day | 28.7% | 30.6% | 2.9% |
| 90 Day | 74.4% | 81.5% | 12.2% |
| 1 Year | 90.5%90.5% | 46.7%46.7% | 5.3%1.6% |
| 3 Year | n/a | -51.1%-51.8% | 13.1%2.3% |
| 5 Year | n/a | 394.3%390.9% | 66.1%40.5% |
Long-Term 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
5 days ago | Simply Wall St
Did Cresco Labs Inc. (CSE:CL) Insiders Sell Shares?3 weeks ago | Simply Wall St
What Type Of Shareholders Make Up Cresco Labs Inc.'s (CSE:CL) Share Registry?1 month ago | Simply Wall St
Does Cresco Labs (CSE:CL) Have A Healthy Balance Sheet?Valuation
Is Cresco Labs undervalued compared to its fair value and its price relative to the market?
7.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CL (CA$16.67) is trading below our estimate of fair value (CA$17.96)
Significantly Below Fair Value: CL is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: CL is unprofitable, so we can't compare its PE Ratio to the CA Pharmaceuticals industry average.
PE vs Market: CL 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 CL's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: CL is overvalued based on its PB Ratio (4.6x) compared to the CA Pharmaceuticals industry average (2.7x).
Next Steps
Future Growth
How is Cresco Labs forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
115.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).
Earnings vs Market: CL is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: CL's is expected to become profitable in the next 3 years.
Revenue vs Market: CL's revenue (30.3% per year) is forecast to grow faster than the Canadian market (7.9% per year).
High Growth Revenue: CL's revenue (30.3% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CL's Return on Equity is forecast to be low in 3 years time (12.1%).
Next Steps
Past Performance
How has Cresco Labs performed over the past 5 years?
-86.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CL is currently unprofitable.
Growing Profit Margin: CL is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: CL is unprofitable, and losses have increased over the past 5 years at a rate of 86.4% per year.
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 (-61.1%).
Return on Equity
High ROE: CL has a negative Return on Equity (-7.88%), as it is currently unprofitable.
Next Steps
Financial Health
How is Cresco Labs's financial position?
Financial Position Analysis
Short Term Liabilities: CL's short term assets ($257.1M) exceed its short term liabilities ($243.7M).
Long Term Liabilities: CL's short term assets ($257.1M) exceed its long term liabilities ($221.3M).
Debt to Equity History and Analysis
Debt Level: CL's debt to equity ratio (16%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if CL'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: 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
Notable Dividend: Unable to evaluate CL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CL'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 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
How experienced are the management team and are they aligned to shareholders interests?
1.5yrs
Average management tenure
CEO
Charlie Bachtell (42 yo)
no data
Tenure
US$663,700
Compensation
Mr. Charles Bachtell, also known as Charlie, serves as Co-Founder and Chief Executive Officer at Cresco Labs Inc. (formerly known as Cresco Labs, LLC) and has been its Director since February 2015. He serv...
CEO Compensation Analysis
Compensation vs Market: Charlie's total compensation ($USD663.70K) is below average for companies of similar size in the Canadian market ($USD2.98M).
Compensation vs Earnings: Charlie's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | no data | US$663.70k | 0.17% $ 9.0m | |
| Executive Chairman | 2yrs | no data | 0.043% $ 2.2m | |
| Co-Founder & Independent Director | 5.92yrs | no data | no data | |
| Co-Founder & Director | 5.67yrs | no data | 0.086% $ 4.5m | |
| Chief Financial Officer | 0.50yr | no data | no data | |
| Chief Operating Officer | no data | no data | 0.060% $ 3.1m | |
| Senior Vice President & Controller of Accounting | 2yrs | no data | no data | |
| Chief Information Officer | 1.5yrs | no data | no data | |
| General Counsel | 2.17yrs | no data | no data | |
| Vice President of Compliance | no data | no data | no data | |
| Executive Vice President of Compliance | 1.08yrs | no data | no data | |
| Chief Communications Officer | 2.17yrs | no data | 0.085% $ 4.5m |
1.5yrs
Average Tenure
44yo
Average Age
Experienced Management: CL's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | no data | US$663.70k | 0.17% $ 9.0m | |
| Executive Chairman | 2yrs | no data | 0.043% $ 2.2m | |
| Co-Founder & Independent Director | 5.92yrs | no data | no data | |
| Co-Founder & Director | 5.67yrs | no data | 0.086% $ 4.5m | |
| Director | 0.50yr | no data | 0.00085% $ 44.8k | |
| Independent Director | 3.83yrs | no data | 0.11% $ 5.7m | |
| Independent Director | 3.83yrs | no data | 0.0053% $ 281.1k | |
| Independent Director | 0.58yr | no data | no data | |
| Independent Director | 4.08yrs | no data | 0.0043% $ 224.8k |
3.8yrs
Average Tenure
63.5yo
Average Age
Experienced Board: CL's board of directors are considered experienced (3.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CL insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6%.
Top Shareholders
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
- Implied Market Cap: CA$5.265b
- Market Cap: CA$3.925b
- Shares outstanding: 366.40m
- Website: https://www.crescolabs.com
Number of Employees
Location
- Cresco Labs Inc.
- 400 West Erie Street
- Suite 110
- Chicago
- Illinois
- 60654
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CL | CNSX (Canadian National Stock Exchange) | Yes | Subordinate Voting Shares | CA | CAD | Dec 2018 |
| CRLB.F | OTCPK (Pink Sheets LLC) | Yes | Subordinate Voting Shares | US | USD | Dec 2018 |
| 6CQ | DB (Deutsche Boerse AG) | Yes | Subordinate Voting Shares | DE | EUR | Dec 2018 |
Biography
Cresco Labs Inc., together with its subsidiaries, cultivates, manufactures, and sells medical cannabis and medical cannabis products in the United States. It offers cannabis in flowers, live concentrates, ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/17 00:12 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.