CNSX:GTII

Stock Analysis Report

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Executive Summary

Green Thumb Industries Inc. manufactures, distributes, and sells various cannabis products for medical and adult-use in the United States.


Snowflake Analysis

High growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Green Thumb Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GTII's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.2%

GTII

2.5%

CA Pharmaceuticals

0.9%

CA Market


1 Year Return

69.8%

GTII

-43.4%

CA Pharmaceuticals

-1.2%

CA Market

Return vs Industry: GTII exceeded the Canadian Pharmaceuticals industry which returned -48.7% over the past year.

Return vs Market: GTII exceeded the Canadian Market which returned -2.7% over the past year.


Shareholder returns

GTIIIndustryMarket
7 Day7.2%2.5%0.9%
30 Day27.9%9.2%6.3%
90 Day78.0%26.5%15.3%
1 Year69.8%69.8%-43.4%-43.4%2.2%-1.2%
3 Yearn/a5.3%4.4%13.2%2.4%
5 Yearn/a307.4%307.4%38.9%17.8%

Price Volatility Vs. Market

How volatile is Green Thumb Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Green Thumb Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GTII (CA$19.76) is trading below our estimate of fair value (CA$120.61)

Significantly Below Fair Value: GTII is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: GTII is overvalued based on its PB Ratio (3.6x) compared to the CA Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is Green Thumb Industries forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

74.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GTII is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: GTII is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GTII's is expected to become profitable in the next 3 years.

Revenue vs Market: GTII's revenue (28.2% per year) is forecast to grow faster than the Canadian market (6.1% per year).

High Growth Revenue: GTII's revenue (28.2% 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 GTII's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Green Thumb Industries performed over the past 5 years?

-89.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GTII is currently unprofitable.

Growing Profit Margin: GTII is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GTII is unprofitable, and losses have increased over the past 5 years at a rate of 89.2% per year.

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

Earnings vs Industry: GTII is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-12.4%).


Return on Equity

High ROE: GTII has a negative Return on Equity (-6.29%), as it is currently unprofitable.


Next Steps

Financial Health

How is Green Thumb Industries's financial position?


Financial Position Analysis

Short Term Liabilities: GTII's short term assets ($140.8M) exceed its short term liabilities ($128.3M).

Long Term Liabilities: GTII's short term assets ($140.8M) do not cover its long term liabilities ($242.0M).


Debt to Equity History and Analysis

Debt Level: GTII's debt to equity ratio (10.9%) is considered satisfactory.

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

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


Next Steps

Dividend

What is Green Thumb Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

0.8yrs

Average management tenure


CEO

Ben Kovler (41 yo)

2yrs

Tenure

US$3,915,943

Compensation

Mr. Benjamin Kovler, also known as Ben, serves as Chairman at Green Thumb Industries Inc. and has been its Director since 2014. He is Founder of Green Thumb Industries Inc. He also serves as CEO at Green T ...


CEO Compensation Analysis

Compensation vs Market: Ben's total compensation ($USD3.92M) is about average for companies of similar size in the Canadian market ($USD3.12M).

Compensation vs Earnings: Ben's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Benjamin Kovler
Founder2yrsUS$3.92m8.31%
$ 364.7m
Anthony Georgiadis
CFO & Director3.08yrsUS$3.57m2.03%
$ 89.2m
Jennifer Dooley
Chief Strategy Officerno dataUS$1.88m0.22%
$ 9.8m
Alejandro Yemenidjian
MD of Integral Associates & Director1.17yrsUS$227.74k1.91%
$ 84.0m
Mathew Faulkner
Chief Accounting Officerno datano datano data
Swadheen Sehgal
Chief Information Officer0.17yrno datano data
Beth Burk
General Counsel & Secretary0.75yrno data0.021%
$ 918.7k
Linda Marsicano
Vice President of Communicationsno datano datano data
Daniel Shaker
Senior VP of National Salesno datano datano data
Kate Denton
Senior Vice President of Marketing1.58yrsno datano data
Julie Knudson
Chief People Officerno datano data0.022%
$ 988.1k
Andrew Grossman
Head of Capital Markets0.42yrUS$322.98k1.28%
$ 56.3m

0.8yrs

Average Tenure

48yo

Average Age

Experienced Management: GTII's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Benjamin Kovler
Founder2yrsUS$3.92m8.31%
$ 364.7m
Anthony Georgiadis
CFO & Director3.08yrsUS$3.57m2.03%
$ 89.2m
Alejandro Yemenidjian
MD of Integral Associates & Director1.17yrsUS$227.74k1.91%
$ 84.0m
Glen Senk
Independent Non Executive Director2.17yrsUS$50.00k0.096%
$ 4.2m
William Gruver
Independent Non Executive Director1.33yrsUS$268.29k0.0098%
$ 431.7k
Westley Moore
Independent Non Executive Director2.08yrsUS$50.00k0.034%
$ 1.5m
Wendy Berger
Non Executive Director5.5yrsUS$50.00k0.92%
$ 40.3m

2.2yrs

Average Tenure

54yo

Average Age

Experienced Board: GTII's board of directors are not considered experienced ( 2.2 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 diluted in the past year, with total shares outstanding growing by 2.9%.


Top Shareholders

Company Information

Green Thumb Industries Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Green Thumb Industries Inc.
  • Ticker: GTII
  • Exchange: CNSX
  • Founded: 2014
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$4.392b
  • Shares outstanding: 222.25m
  • Website: https://www.gtigrows.com

Number of Employees


Location

  • Green Thumb Industries Inc.
  • 325 West Huron Street
  • Suite 412
  • Chicago
  • Illinois
  • 60654
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GTBI.FOTCPK (Pink Sheets LLC)YesSubordinate Voting SharesUSUSDJun 2018
R9U2DB (Deutsche Boerse AG)YesSubordinate Voting SharesDEEURJun 2018
GTIICNSX (Canadian National Stock Exchange)YesSubordinate Voting SharesCACADJun 2018

Biography

Green Thumb Industries Inc. manufactures, distributes, and sells various cannabis products for medical and adult-use in the United States. It offers cannabis flower; and processed and packaged products, in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 23:52
End of Day Share Price2020/08/12 00:00
Earnings2020/03/31
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.