CNSX:TER

Stock Analysis Report

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Executive Summary

TerrAscend Corp. cultivates, processes, and sells medical and adult use cannabis in Canada, the United States, and Europe. More Details


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

TERIndustryMarket
7 Day9.0%3.0%0.7%
30 Day42.0%32.8%4.6%
90 Day123.4%71.2%13.5%
1 Year494.0%494.0%49.4%49.4%5.8%2.1%
3 Year431.7%431.7%-51.7%-52.4%13.9%3.1%
5 Yearn/a413.7%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

Valuation

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

NamePositionTenureCompensationOwnership
Jason Ackerman
Executive Chairman & CEO1yrCA$80.00k0.34%
CA$ 11.5m
Michael Nashat
Co-Founder & Director3.83yrsCA$298.78k4.32%
CA$ 146.7m
Keith Stauffer
Chief Financial Officer0.75yrno datano data
Matthew Chesler
Head of Investor Relationsno datano datano data
Jason Marks
Chief Legal Officer0.42yrno datano data
Dawn Vanek-Mithra
Director of Marketing2.58yrsno datano data
Joanna Halligan
Vice President of Human Resources1.25yrsno datano 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

NamePositionTenureCompensationOwnership
Jason Ackerman
Executive Chairman & CEO1yrCA$80.00k0.34%
CA$ 11.5m
Michael Nashat
Co-Founder & Director3.83yrsCA$298.78k4.32%
CA$ 146.7m
Edward Schutter
Director0.17yrno datano data
Richard Mavrinac
Independent Director3.83yrsno data0.018%
CA$ 612.1k
Lisa Swartzman
Director1.75yrsCA$33.33k0.029%
CA$ 995.8k
Craig Collard
Independent Director2.08yrsno data0.034%
CA$ 1.2m
Jason Wild
Chairman of the Boardno datano data0.21%
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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRSS.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDMay 2017
TEDDB (Deutsche Boerse AG)YesNew Common SharesDEEURMay 2017
TERCNSX (Canadian National Stock Exchange)YesNew Common SharesCACADMay 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 00:40
End of Day Share Price2021/01/20 00:00
Earnings2020/09/30
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.