TerrAscend
Market Cap
CA$3.4b
Last Updated
2021/01/21 00:40 UTC
Data Sources
Company Financials +
Executive Summary
TerrAscend Corp. cultivates, processes, and sells medical and adult use cannabis in Canada, the United States, and Europe. More Details
Rewards
Risk Analysis
Snowflake Analysis
Exceptional growth potential and slightly overvalued.
Similar Companies
Share Price & News
How has TerrAscend's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TER is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 10% a week.
Volatility Over Time: TER's weekly volatility (10%) has been stable over the past year.
Market Performance
7 Day Return
9.0%
TER
3.0%
CA Pharmaceuticals
0.7%
CA Market
1 Year Return
494.0%
TER
49.4%
CA Pharmaceuticals
2.1%
CA Market
Return vs Industry: TER exceeded the Canadian Pharmaceuticals industry which returned 52.2% over the past year.
Return vs Market: TER exceeded the Canadian Market which returned 2% over the past year.
Shareholder returns
| TER | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.0% | 3.0% | 0.7% |
| 30 Day | 42.0% | 32.8% | 4.6% |
| 90 Day | 123.4% | 71.2% | 13.5% |
| 1 Year | 494.0%494.0% | 49.4%49.4% | 5.8%2.1% |
| 3 Year | 431.7%431.7% | -51.7%-52.4% | 13.9%3.1% |
| 5 Year | n/a | 413.7%410.0% | 67.3%41.6% |
Long-Term Price Volatility Vs. Market
How volatile is TerrAscend's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Does TerrAscend (CSE:TER) Have A Healthy Balance Sheet?1 month ago | Simply Wall St
The TerrAscend (CSE:TER) Share Price Is Up 508% And Shareholders Are Delighted2 months ago | Simply Wall St
Analysts Expect Breakeven For TerrAscend Corp. (CSE:TER) Before LongValuation
Is TerrAscend undervalued compared to its fair value and its price relative to the market?
42.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TER (CA$17.76) is trading below our estimate of fair value (CA$31.06)
Significantly Below Fair Value: TER is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TER is unprofitable, so we can't compare its PE Ratio to the CA Pharmaceuticals industry average.
PE vs Market: TER 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 TER's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: TER is overvalued based on its PB Ratio (26.6x) compared to the CA Pharmaceuticals industry average (2.8x).
Next Steps
Future Growth
How is TerrAscend forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
79.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TER is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).
Earnings vs Market: TER is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: TER's is expected to become profitable in the next 3 years.
Revenue vs Market: TER's revenue (35.2% per year) is forecast to grow faster than the Canadian market (7.9% per year).
High Growth Revenue: TER's revenue (35.2% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TER's Return on Equity is forecast to be high in 3 years time (32.8%)
Next Steps
Past Performance
How has TerrAscend performed over the past 5 years?
-83.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TER is currently unprofitable.
Growing Profit Margin: TER is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: TER is unprofitable, and losses have increased over the past 5 years at a rate of 83.9% per year.
Accelerating Growth: Unable to compare TER's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: TER is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-61.1%).
Return on Equity
High ROE: TER has a negative Return on Equity (-141.64%), as it is currently unprofitable.
Next Steps
Financial Health
How is TerrAscend's financial position?
Financial Position Analysis
Short Term Liabilities: TER's short term assets (CA$111.3M) do not cover its short term liabilities (CA$253.9M).
Long Term Liabilities: TER's short term assets (CA$111.3M) do not cover its long term liabilities (CA$150.1M).
Debt to Equity History and Analysis
Debt Level: TER's debt to equity ratio (52.6%) is considered high.
Reducing Debt: Insufficient data to determine if TER'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: TER has sufficient cash runway for 9 months based on last reported free cash flow, but has since raised additional capital.
Forecast Cash Runway: Insufficient data to determine if TER has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Next Steps
Dividend
What is TerrAscend current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate TER's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate TER'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 TER's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if TER'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 TER'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?
1.1yrs
Average management tenure
CEO
Jason Ackerman (52 yo)
1
Tenure
CA$80,000
Compensation
Mr. Jason Ackerman serves as Chief Executive Officer at TerrAscend Corp. since April 14, 2020. Mr. Ackerman serves as Chief Executive Officer at Fresh Direct Holdings, Inc and Managing Director at Crown Ca...
CEO Compensation Analysis
Compensation vs Market: Jason's total compensation ($USD63.28K) is below average for companies of similar size in the Canadian market ($USD3.03M).
Compensation vs Earnings: Insufficient data to compare Jason's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & CEO | 1yr | CA$80.00k | 0.34% CA$ 11.5m | |
| Co-Founder & Director | 3.83yrs | CA$298.78k | 4.32% CA$ 146.7m | |
| Chief Financial Officer | 0.75yr | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| Chief Legal Officer | 0.42yr | no data | no data | |
| Director of Marketing | 2.58yrs | no data | no data | |
| Vice President of Human Resources | 1.25yrs | no data | no data |
1.1yrs
Average Tenure
44yo
Average Age
Experienced Management: TER's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & CEO | 1yr | CA$80.00k | 0.34% CA$ 11.5m | |
| Co-Founder & Director | 3.83yrs | CA$298.78k | 4.32% CA$ 146.7m | |
| Director | 0.17yr | no data | no data | |
| Independent Director | 3.83yrs | no data | 0.018% CA$ 612.1k | |
| Director | 1.75yrs | CA$33.33k | 0.029% CA$ 995.8k | |
| Independent Director | 2.08yrs | no data | 0.034% CA$ 1.2m | |
| Chairman of the Board | no data | no data | 0.21% CA$ 7.3m |
1.9yrs
Average Tenure
53yo
Average Age
Experienced Board: TER's board of directors are not considered experienced ( 1.9 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.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.8%.
Top Shareholders
Company Information
TerrAscend Corp.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: TerrAscend Corp.
- Ticker: TER
- Exchange: CNSX
- Founded: 2017
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Implied Market Cap: CA$3.393b
- Market Cap: CA$2.716b
- Shares outstanding: 194.99m
- Website: https://www.terrascend.com
Number of Employees
Location
- TerrAscend Corp.
- PO Box 43125
- Mississauga
- Ontario
- L5C 1W2
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TRSS.F | OTCPK (Pink Sheets LLC) | Yes | New Common Shares | US | USD | May 2017 |
| TED | DB (Deutsche Boerse AG) | Yes | New Common Shares | DE | EUR | May 2017 |
| TER | CNSX (Canadian National Stock Exchange) | Yes | New Common Shares | CA | CAD | May 2017 |
Biography
TerrAscend Corp. cultivates, processes, and sells medical and adult use cannabis in Canada, the United States, and Europe. The company provides physician consultations, patient education, and support progr...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 00:40 |
| End of Day Share Price | 2021/01/20 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.