CNSX:MMEN

Stock Analysis Report

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Executive Summary

MedMen Enterprises Inc., together with its subsidiaries, operates as a cannabis company in the United States.


Snowflake Analysis

Imperfect balance sheet with limited growth.


Similar Companies

Share Price & News

How has MedMen Enterprises's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

24.4%

MMEN

7.3%

CA Pharmaceuticals

3.4%

CA Market


1 Year Return

-84.0%

MMEN

-60.4%

CA Pharmaceuticals

-11.0%

CA Market

Return vs Industry: MMEN underperformed the Canadian Pharmaceuticals industry which returned -60.7% over the past year.

Return vs Market: MMEN underperformed the Canadian Market which returned -14.5% over the past year.


Shareholder returns

MMENIndustryMarket
7 Day24.4%7.3%3.4%
30 Day90.2%23.2%2.2%
90 Day47.0%8.5%-7.8%
1 Year-84.0%-84.0%-60.4%-60.4%-7.9%-11.0%
3 Yearn/a16.0%14.9%0.1%-9.2%
5 Yearn/a291.0%291.0%15.3%-1.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is MedMen Enterprises undervalued compared to its fair value and its price relative to the market?

0.35x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: MMEN (CA$0.45) is trading above our estimate of fair value (CA$0.13)

Significantly Below Fair Value: MMEN is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: MMEN is good value based on its PB Ratio (0.3x) compared to the CA Pharmaceuticals industry average (1.2x).


Next Steps

Future Growth

How is MedMen Enterprises forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

55.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMEN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MMEN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MMEN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: MMEN's revenue (29.5% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: MMEN's revenue (29.5% 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 MMEN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has MedMen Enterprises performed over the past 5 years?

-18.2%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: MMEN is currently unprofitable.

Growing Profit Margin: MMEN is currently unprofitable.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: MMEN is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-23.4%).


Return on Equity

High ROE: MMEN has a negative Return on Equity (-255.38%), as it is currently unprofitable.


Next Steps

Financial Health

How is MedMen Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: MMEN's short term assets ($151.2M) do not cover its short term liabilities ($188.8M).

Long Term Liabilities: MMEN's short term assets ($151.2M) do not cover its long term liabilities ($537.4M).


Debt to Equity History and Analysis

Debt Level: MMEN's debt to equity ratio (197.2%) is considered high.

Reducing Debt: Insufficient data to determine if MMEN'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: MMEN has sufficient cash runway for 2 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: MMEN is forecast to have sufficient cash runway for 3 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

What is MedMen Enterprises's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

0.6yrs

Average management tenure


CEO

Tom Lynch (51yo)

0.17

Tenure

Mr. Thomas Jerome Lynch, also known as Tom, serves as Interim Chief Executive Officer and Chief Restructuring Officer at MedMen Enterprises Inc. since March 2020. Mr. Lynch is the Managing Partner of Risk  ...


Leadership Team

NamePositionTenureCompensationOwnership
Benjamin Rose
Executive Chairman1.75yrsno datano data
Adam Bierman
Co-Founder & Director2yrsUS$7.35m0.16% $444.6k
Andrew Modlin
Co-founder & Chief Brand Officerno dataUS$6.20m0.60% $1.7m
Thomas Lynch
Interim Chief Executive Officer & Chief Restructuring Officer0.17yrno datano data
Zeeshan Hyder
Chief Financial Officer0.58yrno datano data
Tim Bossidy
Interim Chief Operating Officer0.17yrno datano data
Stéphanie Van Hassel
Vice President of Investor Relationsno datano datano data
Dan Edwards
Senior Vice President of Legal Affairsno datano datano data
Christian Langbein
Vice President of Communicationsno datano datano data
Esther Song
Senior VP of Marketing & Communications1.33yrsno datano data

0.6yrs

Average Tenure

38yo

Average Age

Experienced Management: MMEN's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Benjamin Rose
Executive Chairman1.75yrsno datano data
Adam Bierman
Co-Founder & Director2yrsUS$7.35m0.16% $444.6k
Christopher Ganan
Chief Strategy Officer & Director0.25yrno data0.72% $2.1m
Melvin Elias
Independent Director0.25yrno datano data
Cameron Smith
Independent Director0.25yrno datano data
Errol Schweizer
Director0.17yrno datano data

0.3yrs

Average Tenure

38yo

Average Age

Experienced Board: MMEN's board of directors are not considered experienced ( 0.3 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: MMEN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

MedMen Enterprises Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MedMen Enterprises Inc.
  • Ticker: MMEN
  • Exchange: CNSX
  • Founded: 2010
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: CA$283.729m
  • Market Cap: CA$171.218m
  • Shares outstanding: 664.29m
  • Website: https://www.medmen.com

Number of Employees


Location

  • MedMen Enterprises Inc.
  • 10115 Jefferson Boulevard
  • Culver City
  • California
  • 90232
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MMENCNSX (Canadian National Stock Exchange)YesClass B Subordinate Voting SharesCACADMay 2018
0JSBST (Boerse-Stuttgart)YesClass B Subordinate Voting SharesDEEURMay 2018
MMNF.FOTCPK (Pink Sheets LLC)YesClass B Subordinate Voting SharesUSUSDMay 2018
0JSDB (Deutsche Boerse AG)YesClass B Subordinate Voting SharesDEEURMay 2018

Biography

MedMen Enterprises Inc., together with its subsidiaries, operates as a cannabis company in the United States. The company cultivates, produces, and retails recreational and medicinal cannabis under the [statemade], LuxLyte, and MedMen Red brand names. It operates 33 retail stores in nine states. The company was founded in 2010 and is headquartered in Culver City, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 04:46
End of Day Share Price2020/05/27 00:00
Earnings2019/12/28
Annual Earnings2019/06/29


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.