CNSX:LOVE

Stock Analysis Report

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Executive Summary

Cannara Biotech Inc., together with its subsidiaries, engages in the indoor cultivation, processing, and sale of cannabis and cannabis-infused products in Canada. More Details


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has Cannara Biotech's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

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


Market Performance


7 Day Return

12.5%

LOVE

13.8%

CA Pharmaceuticals

-0.5%

CA Market


1 Year Return

-12.9%

LOVE

46.7%

CA Pharmaceuticals

1.6%

CA Market

Return vs Industry: LOVE underperformed the Canadian Pharmaceuticals industry which returned 47.2% over the past year.

Return vs Market: LOVE underperformed the Canadian Market which returned 1.7% over the past year.


Shareholder returns

LOVEIndustryMarket
7 Day12.5%13.8%-0.5%
30 Day50.0%30.6%2.9%
90 Day50.0%81.5%12.2%
1 Year-12.9%-12.9%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 Cannara Biotech's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cannara Biotech undervalued compared to its fair value and its price relative to the market?

2.6x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: LOVE's PB Ratio (2.6x) is in line with the CA Pharmaceuticals industry average.


Next Steps

Future Growth

How is Cannara Biotech forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

59.9%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Cannara Biotech has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Cannara Biotech performed over the past 5 years?

-1.3%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: LOVE is currently unprofitable.

Growing Profit Margin: LOVE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if LOVE's year-on-year earnings growth rate was positive over the past 5 years.

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

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


Return on Equity

High ROE: LOVE has a negative Return on Equity (-34.13%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cannara Biotech's financial position?


Financial Position Analysis

Short Term Liabilities: LOVE's short term assets (CA$10.5M) exceed its short term liabilities (CA$3.5M).

Long Term Liabilities: LOVE's short term assets (CA$10.5M) do not cover its long term liabilities (CA$13.0M).


Debt to Equity History and Analysis

Debt Level: LOVE's debt to equity ratio (32%) is considered satisfactory.

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

Forecast Cash Runway: LOVE has less than a year of cash runway if free cash flow continues to grow at historical rates of 18.8% each year.


Next Steps

Dividend

What is Cannara Biotech current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

0.2yrs

Average management tenure


CEO

Zohar Krivorot (43 yo)

no data

Tenure

CA$92,307

Compensation

Mr. Zohar Krivorot is Founder, President, Chief Executive Officer and Director at Cannara Biotech Inc. since December 31, 2018 and also serves as its Chairman. A successful entrepreneur, Mr. Krivorot has f...


CEO Compensation Analysis

Compensation vs Market: Zohar's total compensation ($USD72.48K) is below average for companies of similar size in the Canadian market ($USD153.12K).

Compensation vs Earnings: Zohar's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Zohar Krivorot
Founderno dataCA$92.31kno data
Lennie Ryer
Executive Officer0.17yrCA$300.00k0%
CA$ 0
Nicholas Sosiak
Interim Chief Financial Officer0.17yrno data0.098%
CA$ 97.6k
Noemi Follain
Vice President of Finance & Accounting1yrno datano data
Anthony Manouk
VP Compliance & GMno datano datano data
Mikail Fancy
Senior Vice President of Marketing & Salesno datano datano data
Julia Bouvet
Chief of Staffno datano datano data
Alexander Wolfe
Vice President of Business Developmentno dataCA$193.63kno data
Etienne Ledoux
Executive Officerno dataCA$300.00kno data

0.2yrs

Average Tenure

Experienced Management: LOVE's management team is not considered experienced ( 0.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Zohar Krivorot
Founderno dataCA$92.31kno data
Jacob Kay
Independent Director1.75yrsCA$18.50k0.30%
CA$ 295.6k
Donald Olds
Independent Director0.17yrno datano data
Derek Stern
Independent Director2.08yrsCA$19.00kno data
Mary Durocher
Independent Director0.67yrCA$4.00kno data

1.2yrs

Average Tenure

56.5yo

Average Age

Experienced Board: LOVE's board of directors are not considered experienced ( 1.2 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 4.4%.


Top Shareholders

Company Information

Cannara Biotech Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cannara Biotech Inc.
  • Ticker: LOVE
  • Exchange: CNSX
  • Founded: 2017
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$99.608m
  • Shares outstanding: 737.84m
  • Website: https://cannara.ca

Number of Employees


Location

  • Cannara Biotech Inc.
  • 333 Decarie boulevard
  • Suite 200
  • Montreal
  • Quebec
  • H4N 3M9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LOVECNSX (Canadian National Stock Exchange)YesCommon SharesCACADJan 2019
LOVF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 2019
8CBDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 2019

Biography

Cannara Biotech Inc., together with its subsidiaries, engages in the indoor cultivation, processing, and sale of cannabis and cannabis-infused products in Canada. It also offers hemp based CBD products thr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/17 00:19
End of Day Share Price2021/01/15 00:00
Earnings2020/08/31
Annual Earnings2020/08/31


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.