CNSX:CL

Stock Analysis Report

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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


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

CLIndustryMarket
7 Day16.9%13.8%-0.5%
30 Day28.7%30.6%2.9%
90 Day74.4%81.5%12.2%
1 Year90.5%90.5%46.7%46.7%5.3%1.6%
3 Yearn/a-51.1%-51.8%13.1%2.3%
5 Yearn/a394.3%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

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

NamePositionTenureCompensationOwnership
Charles Bachtell
Co-Founderno dataUS$663.70k0.17%
$ 9.0m
Thomas J. Manning
Executive Chairman2yrsno data0.043%
$ 2.2m
Dominic Sergi
Co-Founder & Independent Director5.92yrsno datano data
Robert Sampson
Co-Founder & Director5.67yrsno data0.086%
$ 4.5m
Dennis Olis
Chief Financial Officer0.50yrno datano data
David Ellis
Chief Operating Officerno datano data0.060%
$ 3.1m
Brenna Albert
Senior Vice President & Controller of Accounting2yrsno datano data
Mo Dastagir
Chief Information Officer1.5yrsno datano data
John Schetz
General Counsel2.17yrsno datano data
Impola Kelli
Vice President of Complianceno datano datano data
Cora Colvin
Executive Vice President of Compliance1.08yrsno datano data
Jason Erkes
Chief Communications Officer2.17yrsno data0.085%
$ 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

NamePositionTenureCompensationOwnership
Charles Bachtell
Co-Founderno dataUS$663.70k0.17%
$ 9.0m
Thomas J. Manning
Executive Chairman2yrsno data0.043%
$ 2.2m
Dominic Sergi
Co-Founder & Independent Director5.92yrsno datano data
Robert Sampson
Co-Founder & Director5.67yrsno data0.086%
$ 4.5m
Carol Vallone
Director0.50yrno data0.00085%
$ 44.8k
John Walter
Independent Director3.83yrsno data0.11%
$ 5.7m
Gerald Corcoran
Independent Director3.83yrsno data0.0053%
$ 281.1k
Michele Roberts
Independent Director0.58yrno datano data
Randy Podolsky
Independent Director4.08yrsno data0.0043%
$ 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

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., 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/17 00:12
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
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.