CNSX:MMJ

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Matica Enterprises Inc. engages in the medical marijuana business. More Details


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MMJ is more volatile than 90% of Canadian stocks over the past 3 months, typically moving +/- 31% a week.

Volatility Over Time: MMJ's weekly volatility (31%) has been stable over the past year, but is still higher than 75% of Canadian stocks.


Market Performance


7 Day Return

16.7%

MMJ

9.2%

CA Pharmaceuticals

2.8%

CA Market


1 Year Return

-12.5%

MMJ

14.8%

CA Pharmaceuticals

-0.3%

CA Market

Return vs Industry: MMJ underperformed the Canadian Pharmaceuticals industry which returned 13.1% over the past year.

Return vs Market: MMJ underperformed the Canadian Market which returned -0.5% over the past year.


Shareholder returns

MMJIndustryMarket
7 Day16.7%9.2%2.8%
30 Day40.0%30.1%10.0%
90 Day16.7%29.9%5.7%
1 Year-12.5%-12.5%14.8%14.8%3.3%-0.3%
3 Year-89.2%-89.2%-31.8%-32.9%12.2%1.3%
5 Year16.7%16.7%268.2%265.3%49.1%26.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.78x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: MMJ is good value based on its PB Ratio (0.8x) compared to the CA Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

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

60.5%

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 Matica Enterprises 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 Matica Enterprises performed over the past 5 years?

-4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MMJ is currently unprofitable.

Growing Profit Margin: MMJ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MMJ is unprofitable, and losses have increased over the past 5 years at a rate of 4.9% per year.

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

Earnings vs Industry: MMJ is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-45%).


Return on Equity

High ROE: MMJ has a negative Return on Equity (-10.7%), as it is currently unprofitable.


Next Steps

Financial Health

How is Matica Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: MMJ's short term assets (CA$5.1M) exceed its short term liabilities (CA$273.6K).

Long Term Liabilities: MMJ's short term assets (CA$5.1M) exceed its long term liabilities (CA$1.2M).


Debt to Equity History and Analysis

Debt Level: MMJ is debt free.

Reducing Debt: MMJ had no debt 5 years ago.


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: MMJ has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: MMJ has sufficient cash runway for 1.6 years if free cash flow continues to grow at historical rates of 2.9% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

3.7yrs

Average management tenure


CEO

Boris Ziger

8.17yrs

Tenure

CA$1,053,400

Compensation

Mr. Boris Ivan Ziger, HBA, MBA, has been the Chief Executive Officer at Matica Enterprises Inc. since September 2012 and also its Director since March 1, 2012 and serves as its Chairman of the Board. Mr. Z...


CEO Compensation Analysis

Compensation vs Market: Boris's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD166.12K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Boris Ziger
Chairman & CEO8.17yrsCA$1.05m3.59%
CA$ 285.9k
Gurcharn Deol
Interim CFO & Director3.67yrsCA$462.20kno data
Donald Shaxon
Vice President of Corporate Development3.67yrsno datano data

3.7yrs

Average Tenure

Experienced Management: MMJ's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Boris Ziger
Chairman & CEO8.17yrsCA$1.05m3.59%
CA$ 285.9k
Gurcharn Deol
Interim CFO & Director3.67yrsCA$462.20kno data
Ryan Brown
Member of Advisory Board5.25yrsno datano data
Meissam Panah
Independent Director1.5yrsno data0.011%
CA$ 896.9
Ali Gerba
Directorno datano datano data

3.7yrs

Average Tenure

Experienced Board: MMJ's board of directors are considered experienced (3.7 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Matica Enterprises Inc.
  • Ticker: MMJ
  • Exchange: CNSX
  • Founded:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$7.965m
  • Shares outstanding: 318.61m
  • Website: https://www.maticaenterprises.com

Location

  • Matica Enterprises Inc.
  • 44 Victoria Street
  • Suite 1102
  • Toronto
  • Ontario
  • M5C 1Y2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MMJCNSX (Canadian National Stock Exchange)YesCommon SharesCACADJul 2008
39NDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2008
MMJF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 2008

Biography

Matica Enterprises Inc. engages in the medical marijuana business. It offers IONIC MIST, a spray mist that captures and neutralizes cannabis smoke odours. The company was formerly known as Matica Graphite ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 23:29
End of Day Share Price2020/11/26 00:00
Earnings2020/06/30
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.