CNSX:FFNT

Stock Analysis Report

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Executive Summary

4Front Ventures Corp. owns and manages licensed cannabis facilities in state-licensed markets in the United States. More Details


Snowflake Analysis

Limited growth with worrying balance sheet.


Similar Companies

Share Price & News

How has 4Front Ventures's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FFNT is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: FFNT's weekly volatility (12%) has been stable over the past year.


Market Performance


7 Day Return

17.0%

FFNT

3.0%

CA Pharmaceuticals

0.7%

CA Market


1 Year Return

135.8%

FFNT

49.4%

CA Pharmaceuticals

2.1%

CA Market

Return vs Industry: FFNT exceeded the Canadian Pharmaceuticals industry which returned 49.4% over the past year.

Return vs Market: FFNT exceeded the Canadian Market which returned 2.1% over the past year.


Shareholder returns

FFNTIndustryMarket
7 Day17.0%3.0%0.7%
30 Day47.7%32.8%4.6%
90 Day125.7%71.2%13.5%
1 Year135.8%135.8%49.4%49.4%5.8%2.1%
3 Yearn/a-51.7%-52.4%13.9%3.1%
5 Yearn/a413.7%410.0%67.3%41.6%

Long-Term Price Volatility Vs. Market

How volatile is 4Front Ventures's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 4Front Ventures undervalued compared to its fair value and its price relative to the market?

10.01x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: FFNT is overvalued based on its PB Ratio (10x) compared to the CA Pharmaceuticals industry average (2.6x).


Next Steps

Future Growth

How is 4Front Ventures forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

63.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if FFNT's forecast earnings growth is above the savings rate (1.5%).

Earnings vs Market: Insufficient data to determine if FFNT'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: FFNT's revenue (63% per year) is forecast to grow faster than the Canadian market (8% per year).

High Growth Revenue: FFNT's revenue (63% 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 FFNT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has 4Front Ventures performed over the past 5 years?

-80.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FFNT is currently unprofitable.

Growing Profit Margin: FFNT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FFNT is unprofitable, and losses have increased over the past 5 years at a rate of 80.1% per year.

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

Earnings vs Industry: FFNT is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-61.1%).


Return on Equity

High ROE: FFNT has a negative Return on Equity (-266.99%), as it is currently unprofitable.


Next Steps

Financial Health

How is 4Front Ventures's financial position?


Financial Position Analysis

Short Term Liabilities: FFNT's short term assets ($44.5M) exceed its short term liabilities ($24.3M).

Long Term Liabilities: FFNT's short term assets ($44.5M) do not cover its long term liabilities ($122.4M).


Debt to Equity History and Analysis

Debt Level: FFNT's debt to equity ratio (155.3%) is considered high.

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

Forecast Cash Runway: FFNT has less than a year of cash runway if free cash flow continues to reduce at historical rates of 42% each year


Next Steps

Dividend

What is 4Front Ventures's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

1.3yrs

Average management tenure


CEO

Leo Gontmakher (34 yo)

0.83

Tenure

US$166,667

Compensation

Mr. Leonid Gontmakher also known as Leo, has been Chief Executive Officer at 4Front Ventures Corp. since March 27, 2020 and also serves as its Director since July 31, 2019. Mr. Gontmakher served as Preside...


CEO Compensation Analysis

Compensation vs Market: Leo's total compensation ($USD166.67K) is below average for companies of similar size in the Canadian market ($USD1.19M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Joshua Rosen
Executive Chairman0.83yrUS$371.61k3.46%
$ 32.7m
Leonid Gontmakher
CEO & Not Independent Director0.83yrUS$166.67k4.42%
$ 41.7m
Kristopher Krane
President1.5yrsUS$211.01k3.06%
$ 28.8m
Trevor Pratte
Secretaryno dataUS$192.15k3.79%
$ 35.7m
Nicolle Dorsey
Chief Financial Officer0.83yrno datano data
Joseph Feltham
Chief Operating Officer1yrno data0.26%
$ 2.5m
Andrew Thut
Chief Investment Officer1.5yrsno data3.43%
$ 32.3m
Clay Crolius
Principal Accounting Officer & Controller1.33yrsno datano data
David Nathan
Chief Medical Advisor2.25yrsno datano data
Leah Heise
Chief Experience Officer2.75yrsno datano data
Jake Wooten
Finance Directorno datano datano data

1.3yrs

Average Tenure

41.5yo

Average Age

Experienced Management: FFNT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Joshua Rosen
Executive Chairman0.83yrUS$371.61k3.46%
$ 32.7m
Leonid Gontmakher
CEO & Not Independent Director0.83yrUS$166.67k4.42%
$ 41.7m
Kathi Lentzsch
Independent Director1.33yrsUS$6.00kno data
Eric Rey
Independent Chairman of the Board & Lead Director1.5yrsUS$10.00k0.0029%
$ 27.5k
Chetan Gulati
Independent Director0.083yrno data1.06%
$ 10.0m
Roman Tkachenko
Independent Director0.083yrno data2.07%
$ 19.5m
David Daily
Independent Director1.5yrsUS$10.00k0.0032%
$ 30.3k

0.8yrs

Average Tenure

43yo

Average Age

Experienced Board: FFNT's board of directors are not considered experienced ( 0.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 32.6%.


Top Shareholders

Company Information

4Front Ventures Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 4Front Ventures Corp.
  • Ticker: FFNT
  • Exchange: CNSX
  • Founded: 2011
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$943.945m
  • Shares outstanding: 709.73m
  • Website: https://4frontventures.com

Number of Employees


Location

  • 4Front Ventures Corp.
  • 5060 North 40th Street
  • Suite 120
  • Phoenix
  • Arizona
  • 85018
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FFNT.FOTCPK (Pink Sheets LLC)YesClass A Subordinate Voting SharesUSUSDMar 2018
FFNTCNSX (Canadian National Stock Exchange)YesClass A Subordinate Voting SharesCACADMar 2018

Biography

4Front Ventures Corp. owns and manages licensed cannabis facilities in state-licensed markets in the United States. It operates through Retail, Production, Pure Ratios, and Real Estate segments. The compan...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 23:18
End of Day Share Price2021/01/21 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.