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Charlotte's Web Holdings

TSX:CWEB
Snowflake Description

High growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CWEB
TSX
CA$2B
Market Cap
  1. Home
  2. CA
  3. Pharmaceuticals & Biotech
Company description

Charlotte's Web Holdings, Inc. produces and distributes hemp-based, cannabidiol wellness products in the United States. The last earnings update was 52 days ago. More info.


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  • Charlotte's Web Holdings has significant price volatility in the past 3 months.
CWEB Share Price and Events
7 Day Returns
-4.2%
TSX:CWEB
0.1%
CA Pharmaceuticals
-0.4%
CA Market
1 Year Returns
-
TSX:CWEB
0.8%
CA Pharmaceuticals
-2.8%
CA Market
CWEB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Charlotte's Web Holdings (CWEB) -4.2% 7.3% -25.9% - - -
CA Pharmaceuticals 0.1% -8.9% -25.6% 0.8% 537.9% 406.4%
CA Market -0.4% 0.3% -2.4% -2.8% 7.7% 0.1%
1 Year Return vs Industry and Market
  • No trading data on CWEB.
  • No trading data on CWEB.
Price Volatility
Industry
5yr Volatility vs Market

CWEB Value

 Is Charlotte's Web Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Charlotte's Web Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Charlotte's Web Holdings.

TSX:CWEB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.8%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:CWEB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.733 (1 + (1- 21%) (0.28%))
0.822
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.82
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.822 * 5.96%)
6.85%

Discounted Cash Flow Calculation for TSX:CWEB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Charlotte's Web Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:CWEB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.85%)
2020 51.52 Analyst x2 48.22
2021 71.00 Analyst x1 62.19
2022 87.23 Est @ 22.85% 71.50
2023 101.69 Est @ 16.58% 78.02
2024 114.08 Est @ 12.19% 81.92
2025 124.49 Est @ 9.12% 83.66
2026 133.16 Est @ 6.97% 83.75
2027 140.43 Est @ 5.46% 82.66
2028 146.62 Est @ 4.41% 80.77
2029 152.00 Est @ 3.67% 78.37
Present value of next 10 years cash flows $751.05
TSX:CWEB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $152.00 × (1 + 1.95%) ÷ (6.85% – 1.95%)
$3,161.15
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,161.15 ÷ (1 + 6.85%)10
$1,629.85
TSX:CWEB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $751.05 + $1,629.85
$2,380.90
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,380.90 / 97.36
$24.45
TSX:CWEB Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:CWEB)
1.309
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $24.45 x 1.309
CA$32.01
Value per share (CAD) From above. CA$32.01
Current discount Discount to share price of CA$20.28
= -1 x (CA$20.28 - CA$32.01) / CA$32.01
36.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Charlotte's Web Holdings is available for.
Intrinsic value
37%
Share price is CA$20.28 vs Future cash flow value of CA$32.01
Current Discount Checks
For Charlotte's Web Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Charlotte's Web Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Charlotte's Web Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Charlotte's Web Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Charlotte's Web Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:CWEB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.13
TSX:CWEB Share Price ** TSX (2019-07-18) in CAD CA$20.28
TSX:CWEB Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.764 $15.49
Canada Pharmaceuticals Industry PE Ratio Median Figure of 11 Publicly-Listed Pharmaceuticals Companies 18.39x
Canada Market PE Ratio Median Figure of 538 Publicly-Listed Companies 15.04x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Charlotte's Web Holdings.

TSX:CWEB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:CWEB Share Price ÷ EPS (both in USD)

= 15.49 ÷ 0.13

122.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Charlotte's Web Holdings is overvalued based on earnings compared to the CA Pharmaceuticals industry average.
  • Charlotte's Web Holdings is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Charlotte's Web Holdings's expected growth come at a high price?
Raw Data
TSX:CWEB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 122.56x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
67.4%per year
Canada Pharmaceuticals Industry PEG Ratio Median Figure of 7 Publicly-Listed Pharmaceuticals Companies 1.12x
Canada Market PEG Ratio Median Figure of 247 Publicly-Listed Companies 1.17x

*Line of best fit is calculated by linear regression .

TSX:CWEB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 122.56x ÷ 67.4%

1.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Charlotte's Web Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Charlotte's Web Holdings's assets?
Raw Data
TSX:CWEB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $1.63
TSX:CWEB Share Price * TSX (2019-07-18) in CAD CA$20.28
TSX:CWEB Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.764 $15.49
Canada Pharmaceuticals Industry PB Ratio Median Figure of 144 Publicly-Listed Pharmaceuticals Companies 2.24x
Canada Market PB Ratio Median Figure of 2,441 Publicly-Listed Companies 1.44x
TSX:CWEB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:CWEB Share Price ÷ Book Value per Share (both in USD)

= 15.49 ÷ 1.63

9.53x

* Primary Listing of Charlotte's Web Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Charlotte's Web Holdings is overvalued based on assets compared to the CA Pharmaceuticals industry average.
X
Value checks
We assess Charlotte's Web Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Charlotte's Web Holdings has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CWEB Future Performance

 How is Charlotte's Web Holdings expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
67.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Charlotte's Web Holdings expected to grow at an attractive rate?
  • Charlotte's Web Holdings's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Charlotte's Web Holdings's earnings growth is expected to exceed the Canada market average.
  • Charlotte's Web Holdings's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:CWEB Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:CWEB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 67.4%
TSX:CWEB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 49%
Canada Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 94.6%
Canada Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 53.6%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:CWEB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:CWEB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31 696 2
2021-12-31 444 111 102 4
2020-12-31 348 92 73 6
2019-12-31 137 27 28 6
TSX:CWEB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 78 -9 11
2018-12-31 70 -1 12
2018-09-30 61 4 11
2018-06-30 54 11 11
2018-03-31 46 10 9
2017-12-31 40 8 7
2016-12-31 15 0 1

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Charlotte's Web Holdings's earnings are expected to grow significantly at over 20% yearly.
  • Charlotte's Web Holdings's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:CWEB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Charlotte's Web Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CWEB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 2.85 2.85 2.85 1.00
2022-12-31 1.90 1.90 1.90 1.00
2021-12-31 1.06 1.27 0.92 3.00
2020-12-31 0.74 0.91 0.63 4.00
2019-12-31 0.27 0.30 0.24 5.00
TSX:CWEB Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.13
2018-12-31 0.14
2018-09-30 0.14
2018-06-30 0.14
2018-03-31 0.11
2017-12-31 0.09
2016-12-31 0.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Charlotte's Web Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Charlotte's Web Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Charlotte's Web Holdings has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CWEB Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Charlotte's Web Holdings's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if Charlotte's Web Holdings's year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Charlotte's Web Holdings's 1-year earnings growth to the 5-year average due to insufficient past data.
  • Charlotte's Web Holdings's earnings growth has not exceeded the CA Pharmaceuticals industry average in the past year (22.3% vs 22.9%).
Earnings and Revenue History
Charlotte's Web Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Charlotte's Web Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CWEB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 78.11 11.04 42.04 0.90
2018-12-31 69.50 11.81 35.15 0.84
2018-09-30 60.60 11.01 28.53 0.52
2018-06-30 54.14 11.34 24.07 0.54
2018-03-31 45.98 9.03 20.64 0.55
2017-12-31 40.01 7.48 17.41 0.51
2016-12-31 14.73 0.61 8.18 0.45

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Charlotte's Web Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Charlotte's Web Holdings used its assets less efficiently than the CA Pharmaceuticals industry average last year based on Return on Assets.
  • Unable to establish if Charlotte's Web Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Charlotte's Web Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Charlotte's Web Holdings has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CWEB Health

 How is Charlotte's Web Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Charlotte's Web Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Charlotte's Web Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Charlotte's Web Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Charlotte's Web Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 6075.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Charlotte's Web Holdings Company Filings, last reported 3 months ago.

TSX:CWEB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 151.60 0.02 69.06
2018-12-31 121.50 0.02 73.40
2018-09-30 96.17 0.02 79.36
2018-06-30 19.83 0.03 10.78
2018-03-31 16.00 1.08 10.38
2017-12-31 12.64 1.08 7.06
2016-12-31 4.70 0.38 1.09
  • Charlotte's Web Holdings's level of debt (0%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Charlotte's Web Holdings's debt level has increased without past 5-year debt data.
  • Operating cash flow is negative therefore debt is not well covered.
  • Charlotte's Web Holdings earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Charlotte's Web Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Charlotte's Web Holdings has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CWEB Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Charlotte's Web Holdings dividends.
If you bought CA$2,000 of Charlotte's Web Holdings shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Charlotte's Web Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Charlotte's Web Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:CWEB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
North America Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.8%
Canada Market Average Dividend Yield Market Cap Weighted Average of 336 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:CWEB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Charlotte's Web Holdings has not reported any payouts.
  • Unable to verify if Charlotte's Web Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Charlotte's Web Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Charlotte's Web Holdings has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Charlotte's Web Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Charlotte's Web Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Charlotte's Web Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CWEB Management

 What is the CEO of Charlotte's Web Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Deanie Elsner
AGE 56
TENURE AS CEO 0.2 years
CEO Bio

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, Kellogg Company. Ms. Elsner serves as a Director of Owens Corning since February 12, 2018. Ms. Elsner served as Chief Marketing Officer of Kraft Foods Group, Inc. from February 2013 and as its Executive Vice President from October 1, 2012 to February 28, 2015. Ms. Elsner and served as President of Kraft Foods Group, Inc. She served as an Executive Vice President and President of Beverages at Kraft Foods Group, Inc. since October 1, 2012. She oversees manufacturing, marketing and sales of iconic brands like Maxwell House coffee – one of Kraft’s “billion-dollar brands” – and Kool-Aid beverages. Other well-known names within her portfolio are Capri Sun, Country Time, Crystal Light Gevalia coffee, and its single-serve beverage system, Tassimo. Previously, she managed Kraft Foods Inc.’s European coffee business. In that role, she was instrumental in turning around the coffee business in Europe and in establishing a clear roadmap to success for this category. She joined Kraft in 1992 as an Assistant Brand Manager in Glenview, Illinois. She held a variety of marketing management positions in Grocery and Kraft’s former pizza business before being named Category Business Director, Boca Foods. In that role, she managed the integration of Boca Foods into the Oscar Mayer Division in 2001. Two years later, she was appointed Category Business Director for Lunchables lunch combinations and was recognized for turning that business around. Prior to joining Kraft, She worked in Sales for Procter & Gamble and Johnson & Johnson. Ms. Elsner has served on the board of the Ad Council as well as the Museum of Science and Industry in Chicago. Ms. Elsner was recognized as being among the Forbes 50 Most Influential Global CMOs in 2014. Ms. Elsner received a bachelor’s degree in Marketing and Entrepreneurial Studies from the University of Arizona and an MBA in Marketing and Finance from the University of Chicago.

CEO Compensation
  • Insufficient data for Deanie to compare compensation growth.
  • Insufficient data for Deanie to establish whether their remuneration is reasonable compared to companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Charlotte's Web Holdings management team in years:

0.5
Average Tenure
56
Average Age
  • The average tenure for the Charlotte's Web Holdings management team is less than 2 years, this suggests a new team.
Management Team

Joel Stanley

TITLE
Co-Founder & Chairman
AGE
39

Deanie Elsner

TITLE
President
AGE
56
TENURE
0.2 yrs

Jared Stanley

TITLE
Co-Founder
AGE
32

Rich Mohr

TITLE
Chief Financial Officer
AGE
59
TENURE
1.2 yrs

Stephen Lermer

TITLE
Chief Operating Officer
AGE
62
TENURE
0.5 yrs

Mark Kuspa

TITLE
Vice President of Sales

Bo Becker

TITLE
Vice President of Marketing

Hess Moallem

TITLE
TENURE
0.2 yrs

Eugenio Mendez

TITLE
Chief Growth Officer
TENURE
0.5 yrs

Tony True

TITLE
Chief Customer Officer
Board of Directors Tenure

Average tenure and age of the Charlotte's Web Holdings board of directors in years:

1.2
Average Tenure
46
Average Age
  • The average tenure for the Charlotte's Web Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Joel Stanley

TITLE
Co-Founder & Chairman
AGE
39

Deanie Elsner

TITLE
President
AGE
56
TENURE
0.2 yrs

Jared Stanley

TITLE
Co-Founder
AGE
32
TENURE
1 yrs

John Held

TITLE
Lead Independent Director
AGE
56

William West

TITLE
Independent Director
AGE
46
TENURE
1.2 yrs

Juan Sartori

TITLE
Independent Director
AGE
38
TENURE
1.2 yrs

Shane Hoyne

TITLE
Independent Director
AGE
46
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • Charlotte's Web Holdings individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
27. May 19 Sell Jared Stanley Individual 24. May 19 24. May 19 -71,807 CA$20.00 CA$-1,436,140
27. May 19 Sell Joel Stanley Individual 24. May 19 24. May 19 -70,299 CA$20.00 CA$-1,405,980
17. May 19 Sell Eugenio Mendez Individual 15. May 19 15. May 19 -56,630 CA$20.00 CA$-1,132,600
17. May 19 Sell Arvesa Corp Company 15. May 19 15. May 19 -1,000,000 CA$20.00 CA$-19,999,999
X
Management checks
We assess Charlotte's Web Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Charlotte's Web Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CWEB News

Simply Wall St News

Is Charlotte's Web Holdings, Inc. (TSE:CWEB) Trading At A 44% Discount?

Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $5.52 $51.52 $71.00 $87.23 $101.69 $114.08 $124.49 $133.16 $140.43 $146.62 Growth Rate Estimate Source Analyst x1 Analyst x2 Analyst x1 Est @ 22.85% Est @ 16.58% Est @ 12.19% Est @ 9.12% Est @ 6.97% Est @ 5.46% Est @ 4.41% Present Value ($, Millions) Discounted @ 6.72% $5.17 $45.24 $58.42 $67.26 $73.48 $77.25 $78.98 $79.17 $78.24 $76.55 Present Value of 10-year Cash Flow (PVCF)= $639.75m "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … TSX:CWEB Intrinsic value, June 26th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

CWEB Company Info

Description

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.

Details
Name: Charlotte's Web Holdings, Inc.
CWEB
Exchange: TSX
Founded: 2018
CA$1,974,469,601
97,360,434
Website: http://www.charlottesweb.com
Address: Charlotte's Web Holdings, Inc.
2425 55th Street,
Suite 200,
Boulder,
Colorado, 80301,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX CWEB Common Shares The Toronto Stock Exchange CA CAD 30. Aug 2018
OTCPK CWBH.F Common Shares Pink Sheets LLC US USD 30. Aug 2018
Number of employees
Current staff
Staff numbers
258
Charlotte's Web Holdings employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 01:05
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/06/03
Last earnings filing: 2019/05/28
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.