CNSX:THC

Stock Analysis Report

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Executive Summary

THC Biomed Intl Ltd. produces and sells medical and recreational cannabis in Canada. More Details


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

How has THC Biomed Intl's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: THC is more volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: THC's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of Canadian stocks.


Market Performance


7 Day Return

5.9%

THC

9.2%

CA Pharmaceuticals

2.8%

CA Market


1 Year Return

-40.0%

THC

14.8%

CA Pharmaceuticals

-0.3%

CA Market

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

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


Shareholder returns

THCIndustryMarket
7 Day5.9%9.2%2.8%
30 Day-5.3%30.1%10.0%
90 Day-47.1%29.9%5.7%
1 Year-40.0%-40.0%14.8%14.8%3.3%-0.3%
3 Year-88.2%-88.2%-31.8%-32.9%12.2%1.3%
5 Year0%0%268.2%265.3%49.1%26.2%

Long-Term Price Volatility Vs. Market

How volatile is THC Biomed Intl's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is THC Biomed Intl undervalued compared to its fair value and its price relative to the market?

0.96x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: THC is good value based on its PB Ratio (1x) compared to the CA Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is THC Biomed Intl 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 THC Biomed Intl 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 THC Biomed Intl performed over the past 5 years?

-32.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: THC is currently unprofitable.

Growing Profit Margin: THC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: THC is unprofitable, and losses have increased over the past 5 years at a rate of 32.2% per year.

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

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


Return on Equity

High ROE: THC has a negative Return on Equity (-1.09%), as it is currently unprofitable.


Next Steps

Financial Health

How is THC Biomed Intl's financial position?


Financial Position Analysis

Short Term Liabilities: THC's short term assets (CA$8.0M) exceed its short term liabilities (CA$5.6M).

Long Term Liabilities: THC's short term assets (CA$8.0M) exceed its long term liabilities (CA$1.3M).


Debt to Equity History and Analysis

Debt Level: THC's debt to equity ratio (26.9%) is considered satisfactory.

Reducing Debt: THC had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


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: THC has sufficient cash runway for 7 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: THC is forecast to have sufficient cash runway for 1 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

What is THC Biomed Intl current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

5.3yrs

Average management tenure


CEO

John Miller

5.58yrs

Tenure

CA$66,750

Compensation

Mr. John Miller serves as Chief Executive Officer at THC Biomed Intl Ltd. since April 29, 2015. He is also President at THC Biomed Intl Ltd. and its Director since June 3, 2014. He was Director and Office...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD51.28K) is below average for companies of similar size in the Canadian market ($USD166.12K).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Miller
President5.58yrsCA$66.75k19.06%
CA$ 3.0m
Jung Hee
Co-Founder6.42yrsCA$66.66k9.89%
CA$ 1.5m
Damien Reynolds
Chief Capital Markets Officer5.33yrsno datano data
Dianne Szigety
Corporate Secretary4.92yrsno datano data

5.3yrs

Average Tenure

Experienced Management: THC's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Miller
President5.58yrsCA$66.75k19.06%
CA$ 3.0m
Jung Hee
Co-Founder6.42yrsCA$66.66k9.89%
CA$ 1.5m
Jason Springett
Member of Advisory Board5.33yrsno datano data
Donald Shaxon
Member of Advisory Board5.33yrsno datano data
Ashish Dave
Independent Director3.42yrsCA$6.50kno data
Penelope Laine
Independent Director0.67yrno data0.0061%
CA$ 950.2

5.3yrs

Average Tenure

Experienced Board: THC's board of directors are considered experienced (5.3 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 been diluted in the past year, with total shares outstanding growing by 6.9%.


Top Shareholders

Company Information

THC Biomed Intl Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: THC Biomed Intl Ltd.
  • Ticker: THC
  • Exchange: CNSX
  • Founded: 2012
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$15.525m
  • Shares outstanding: 163.43m
  • Website: https://thcbiomed.com

Number of Employees


Location

  • THC Biomed Intl Ltd.
  • 1340 St. Paul Street
  • Kelowna
  • British Columbia
  • V1Y 2E1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TFHDDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1988
THCCNSX (Canadian National Stock Exchange)YesCommon SharesCACADSep 1988

Biography

THC Biomed Intl Ltd. produces and sells medical and recreational cannabis in Canada. The company conducts research and development of products and services related to the medical cannabis industry. It also...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 00:57
End of Day Share Price2020/11/26 00:00
Earnings2020/07/31
Annual Earnings2020/07/31


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.