TSX:CWEB

Stock Analysis Report

Executive Summary

Charlotte's Web Holdings, Inc. produces and distributes hemp-based, cannabidiol wellness products in the United States.


Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Charlotte's Web Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-11.4%

CWEB

-6.6%

CA Pharmaceuticals

-1.5%

CA Market


1 Year Return

-60.6%

CWEB

-62.6%

CA Pharmaceuticals

2.5%

CA Market

Return vs Industry: CWEB exceeded the Canadian Pharmaceuticals industry which returned -62.6% over the past year.

Return vs Market: CWEB underperformed the Canadian Market which returned 2.5% over the past year.


Shareholder returns

CWEBIndustryMarket
7 Day-11.4%-6.6%-1.5%
30 Day-27.8%-14.9%-0.7%
90 Day-43.2%-13.1%1.8%
1 Year-60.6%-60.6%-62.6%-62.6%5.7%2.5%
3 Yearn/a8.0%7.3%16.8%6.2%
5 Yearn/a305.9%305.9%32.0%12.8%

Price Volatility Vs. Market

How volatile is Charlotte's Web Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Charlotte's Web Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CWEB (CA$7.39) is trading below our estimate of fair value (CA$36.99)

Significantly Below Fair Value: CWEB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CWEB is poor value based on its PE Ratio (82.9x) compared to the Pharmaceuticals industry average (16x).

PE vs Market: CWEB is poor value based on its PE Ratio (82.9x) compared to the Canadian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: CWEB is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: CWEB is overvalued based on its PB Ratio (4.2x) compared to the CA Pharmaceuticals industry average (1.4x).


Next Steps

Future Growth

How is Charlotte's Web Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

58.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWEB's forecast earnings growth (58.7% per year) is above the savings rate (1.4%).

Earnings vs Market: CWEB's earnings (58.7% per year) are forecast to grow faster than the Canadian market (11.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CWEB's revenue (34.4% per year) is forecast to grow faster than the Canadian market (4.6% per year).

High Growth Revenue: CWEB's revenue (34.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CWEB's Return on Equity is forecast to be low in 3 years time (14.6%).


Next Steps

Past Performance

How has Charlotte's Web Holdings performed over the past 5 years?

-42.2%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: CWEB has a high level of non-cash earnings.

Growing Profit Margin: CWEB's current net profit margins (6.8%) are lower than last year (18.2%).


Past Earnings Growth Analysis

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

Accelerating Growth: CWEB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CWEB had negative earnings growth (-42.2%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (-11.3%).


Return on Equity

High ROE: CWEB's Return on Equity (4.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Charlotte's Web Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CWEB's short term assets ($119.5M) exceed its short term liabilities ($23.5M).

Long Term Liabilities: CWEB's short term assets ($119.5M) exceed its long term liabilities ($28.3M).


Debt to Equity History and Analysis

Debt Level: CWEB's debt to equity ratio (0.01%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CWEB's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CWEB's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: CWEB earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CWEB has a high level of physical assets or inventory.

Debt Coverage by Assets: CWEB's debt is covered by short term assets (assets are 8533.8x debt).


Next Steps

Dividend

What is Charlotte's Web Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.6%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate CWEB's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CWEB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CWEB'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 CWEB'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

Deanie Elsner (56yo)

0.8yrs

Tenure

0

Ms. Adrienne D. Elsner, also known as Deanie, has been Chief Executive Officer, President and Director of Charlotte's Web Holdings, Inc., since May 15, 2019. Ms. Elsner serves as President of U.S. Snacks,  ...


Leadership Team

NamePositionTenureCompensationOwnership
Joel Stanley
Co-Founder & Chairman0yrsUS$210.84k4.22% $32.9m
Jared Stanley
Co-Founder1.6yrsUS$212.99k4.31% $33.6m
Hesaam Moallem
0.8yrsUS$848.12kno data
Richard Mohr
0.5yrsUS$228.58kno data
Adrienne Elsner
President0.8yrsno datano data
Russell Hammer
Executive VP & CFO0.5yrsno datano data
Paul Lanham
Chief Information & Ecommerce Officer0.6yrsno datano data
Cory Pala
Director of Investor Relations0yrsno datano data
Kelly Shea
Senior VP of Government Affairs & Corporate Communications0.08yrsno datano data
Tony True
Chief Customer Officer0.6yrsno datano data

0.6yrs

Average Tenure

56yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Joel Stanley
Co-Founder & Chairman0yrsUS$210.84k4.22% $32.9m
Jared Stanley
Co-Founder1.6yrsUS$212.99k4.31% $33.6m
Adrienne Elsner
President0.8yrsno datano data
Jacques Tortoroli
Independent Director0.3yrsno datano data
John Held
Lead Independent Director0yrsUS$89.72kno data
Shane Hoyne
Independent Director1.8yrsUS$71.07kno data
William West
Independent Director1.8yrsUS$72.29kno data

1.6yrs

Average Tenure

46yo

Average Age

Experienced Board: CWEB's board of directors are not considered experienced ( 1.6 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.7%.


Top Shareholders

Company Information

Charlotte's Web Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Charlotte's Web Holdings, Inc.
  • Ticker: CWEB
  • Exchange: TSX
  • Founded: 2018
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$780.051m
  • Shares outstanding: 105.55m
  • Website: https://www.charlottesweb.com

Number of Employees


Location

  • Charlotte's Web Holdings, Inc.
  • 1600 Pearl Street
  • Suite 300
  • Boulder
  • Colorado
  • 80302
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CWEBTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2018
CWBH.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2018

Biography

Charlotte's Web Holdings, Inc. produces and distributes hemp-based, cannabidiol wellness products in the United States. It offers products in the categories of tinctures, capsules and topical products. Charlotte's Web Holdings, Inc. distributes its products under the Charlotte’s Web name through its e-commerce Website, as well as wholesalers, and brick and mortar retailers. The company was formerly known as Stanley Brothers Holdings Inc. and changed its name to Charlotte’s Web Holdings, Inc. in July 2018. The company was incorporated in 2018 and is headquartered in Boulder, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 01:56
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.