CNSX:MJAR

Stock Analysis Report

Executive Summary

MJardin Group, Inc., through its subsidiaries, engages in the cultivation, processing, distribution, and retail of cannabis products in Canada.

Rewards

Revenue is forecast to grow 51.68% per year

Risk Analysis

Earnings have declined by -77.52% per year over past 5 years

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 2 more risks


Snowflake Analysis

Limited growth and overvalued.

Share Price & News

How has MJardin Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.5%

MJAR

7.0%

CA Pharmaceuticals

1.4%

CA Market


1 Year Return

-94.4%

MJAR

-44.7%

CA Pharmaceuticals

10.1%

CA Market

Return vs Industry: MJAR underperformed the Canadian Pharmaceuticals industry which returned -44.8% over the past year.

Return vs Market: MJAR underperformed the Canadian Market which returned 10.2% over the past year.


Shareholder returns

MJARIndustryMarket
7 Day-4.5%7.0%1.4%
30 Day-8.7%15.1%2.6%
90 Day-65.6%-4.6%6.5%
1 Year-94.4%-94.4%-44.7%-44.7%13.7%10.1%
3 Yearn/a45.2%44.1%17.8%7.1%
5 Yearn/a397.8%397.8%36.3%16.3%

Price Volatility Vs. Market

How volatile is MJardin Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MJardin Group undervalued compared to its fair value and its price relative to the market?

0.093x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: MJAR is good value based on its PB Ratio (0.1x) compared to the CA Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is MJardin Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

51.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MJAR's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if MJAR'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: MJAR's revenue (51.7% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: MJAR's revenue (51.7% 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 MJAR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has MJardin Group performed over the past 5 years?

-77.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MJAR is currently unprofitable.

Growing Profit Margin: MJAR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MJAR is unprofitable, and losses have increased over the past 5 years at a rate of -77.5% per year.

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

Earnings vs Industry: MJAR is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-11.3%).


Return on Equity

High ROE: MJAR has a negative Return on Equity (-63.31%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MJardin Group's financial position?


Financial Position Analysis

Short Term Liabilities: MJAR's short term assets (CA$44.8M) exceed its short term liabilities (CA$39.7M).

Long Term Liabilities: MJAR's short term assets (CA$44.8M) do not cover its long term liabilities (CA$192.6M).


Debt to Equity History and Analysis

Debt Level: MJAR's debt to equity ratio (93.5%) is considered high.

Reducing Debt: Insufficient data to determine if MJAR's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: MJAR has a high level of physical assets or inventory.

Debt Coverage by Assets: MJAR's debt is not covered by short term assets (assets are 0.3x debt).


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: MJAR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: MJAR has less than a year of cash runway if free cash flow continues to reduce at historical rates of -104.7% each year


Next Steps

Dividend

What is MJardin Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.4%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate MJAR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MJAR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MJAR'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 MJAR's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of MJardin Group's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average board tenure


CEO

Pat Witcher 0

0.2yrs

Tenure

CA$248,621

Compensation

Mr. Patrick Witcher, also known as Pat, serves as Chief Executive Officer at MJardin Group, Inc. since November 2019 and served as Chief Operating Officer May 7, 2019 until November 2019. Mr. Witcher held  ...


CEO Compensation Analysis

Compensation vs Market: Pat's total compensation ($USD190.59K) is about average for companies of similar size in the Canadian market ($USD165.37K).

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


Board Age and Tenure

0.9yrs

Average Tenure

Experienced Board: MJAR's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$2,30224 Sep 19
Graham Marr
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceCA$0.80
BuyCA$7,55918 Sep 19
Graham Marr
EntityIndividual
Role
Member of the Board of Directors
Director
Shares7,000
Max PriceCA$1.08

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 59.6%.


Management Team

  • Max Nardulli

    Executive Vice President of International Corporate Development

    • Edward Jonasson

      Chief Financial Officer

      • Tenure: 0.2yrs
    • Jeannette Harkin

      Senior VP & Chief of Staff

      • Ben Franz

        Senior Vice President of Cultivation

        • Pat Witcher

          Chief Executive Officer

          • Tenure: 0.2yrs
          • Compensation: CA$248.62k
        • Eric Gattoni

          Senior Vice President of NA - West/Central

          • Christine Halef

            Senior Vice President of Atlantic Canada Operations

            • Ali Mahdavi

              Head of Capital Markets & Investor Relations


              Board Members

              • Lorne Sugarman

                Director

                • Tenure: 0.9yrs
              • Adrian Montgomery (45yo)

                Chairman

                • Tenure: 0.9yrs
              • Glenn Hudson

                Independent Director

                • Tenure: 0.6yrs
              • Graham Marr

                Director

                • Tenure: 1.2yrs
                • Compensation: CA$16.99k
              • James Lowe (39yo)

                Director

                • Tenure: 0.7yrs
              • Roman Kocur

                Independent Director

                • Tenure: 1.2yrs
                • Compensation: CA$16.99k

              Company Information

              MJardin Group, Inc.'s company bio, employee growth, exchange listings and data sources


              Key Information

              • Name: MJardin Group, Inc.
              • Ticker: MJAR
              • Exchange: CNSX
              • Founded: 2014
              • Industry: Pharmaceuticals
              • Sector: Pharmaceuticals & Biotech
              • Market Cap: CA$17.677m
              • Shares outstanding: 84.18m
              • Website: https://www.mjardin.com

              Location

              • MJardin Group, Inc.
              • 3461 Ringsby Court
              • Suite 350
              • Denver
              • Colorado
              • 80216
              • United States

              Listings

              TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
              MJARCNSX (Canadian National Stock Exchange)YesCommon SharesCACADNov 2018
              MJAR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 2018

              Biography

              MJardin Group, Inc., through its subsidiaries, engages in the cultivation, processing, distribution, and retail of cannabis products in Canada. It also provides consulting, design, operational, and other management services, such as strategic capital and financing, project management services for cultivation, licensure support, facility design, systems implementation, equipment leasing, construction oversight, facility ramp-up, and day-to-day personnel management and oversight for licensed cannabis cultivators, processors, and dispensaries in the states of Colorado and Nevada in the United States and in the provinces of Ontario, Manitoba in Canada. The company owns, manages, or advises on a portfolio of 32 cannabis operations. MJardin Group, Inc. was founded in 2014 and is headquartered in Denver, Colorado. 


              Company Analysis and Financial Data Status

              All financial data provided by Standard & Poor's Capital IQ.
              DataLast Updated (UTC time)
              Company Analysis2020/01/21 01:26
              End of Day Share Price2020/01/17 00:00
              Earnings2019/09/30
              Annual Earnings2018/12/31


              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.