TSX:CWEB

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Executive Summary

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


Snowflake Analysis

High growth potential with mediocre 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 is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: CWEB's weekly volatility (14%) has been stable over the past year.


Market Performance


7 Day Return

-2.0%

CWEB

1.0%

CA Pharmaceuticals

-0.2%

CA Market


1 Year Return

-41.5%

CWEB

56.7%

CA Pharmaceuticals

1.4%

CA Market

Return vs Industry: CWEB underperformed the Canadian Pharmaceuticals industry which returned 56.7% over the past year.

Return vs Market: CWEB underperformed the Canadian Market which returned 1.4% over the past year.


Shareholder returns

CWEBIndustryMarket
7 Day-2.0%1.0%-0.2%
30 Day13.7%29.6%2.8%
90 Day52.2%73.6%12.4%
1 Year-41.5%-41.5%56.7%56.7%5.0%1.4%
3 Yearn/a-51.2%-51.9%13.4%2.7%
5 Yearn/a401.7%398.3%59.7%35.2%

Long-Term 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?

2.45x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CWEB (CA$5.98) is trading above our estimate of fair value (CA$4.48)

Significantly Below Fair Value: CWEB is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: CWEB is good value based on its PB Ratio (2.5x) compared to the CA Pharmaceuticals industry average (2.8x).


Next Steps

Future Growth

How is Charlotte's Web Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

72.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWEB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: CWEB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CWEB's is expected to become profitable in the next 3 years.

Revenue vs Market: CWEB's revenue (34% per year) is forecast to grow faster than the Canadian market (8% per year).

High Growth Revenue: CWEB's revenue (34% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CWEB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-87.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWEB is currently unprofitable.

Growing Profit Margin: CWEB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CWEB is unprofitable, and losses have increased over the past 5 years at a rate of 87.8% per year.

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

Earnings vs Industry: CWEB is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-61.1%).


Return on Equity

High ROE: CWEB has a negative Return on Equity (-19.23%), as it is currently unprofitable.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: CWEB's short term assets ($163.9M) exceed its short term liabilities ($35.3M).

Long Term Liabilities: CWEB's short term assets ($163.9M) exceed its long term liabilities ($28.7M).


Debt to Equity History and Analysis

Debt Level: CWEB's debt to equity ratio (0.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CWEB'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: Insufficient data to determine if CWEB has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CWEB has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CWEB'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 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?

1.4yrs

Average management tenure


CEO

Deanie Elsner (57 yo)

1.67yrs

Tenure

US$2,826,620

Compensation

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, ...


CEO Compensation Analysis

Compensation vs Market: Deanie's total compensation ($USD2.83M) is above average for companies of similar size in the Canadian market ($USD1.18M).

Compensation vs Earnings: Insufficient data to compare Deanie's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Adrienne Elsner
President1.67yrsUS$2.83m0.014%
$ 124.7k
Jared Stanley
Co-Founder2.5yrsUS$362.34k3.16%
$ 27.8m
Russell Hammer
Executive VP & CFO1.42yrsUS$1.69m0.011%
$ 99.5k
Paul Lanham
Chief Information & Ecommerce Officer1.5yrsUS$931.24kno data
Hesaam Moallem
1.67yrsUS$294.25kno data
Richard Mohr
1.42yrsUS$311.66kno data
Joel Stanley
Co-Founder & Director2.5yrsUS$210.84k3.16%
$ 27.8m
David Panter
Chief Operating Officer0.83yrno datano data
Cory Pala
Director of Investor Relationsno datano datano data
Kelly Shea
Senior VP of Government Affairs & Corporate Communications1yrno datano data
Tony True
Chief Customer Officer1.5yrsno datano data
Tim Orr
Senior Vice President of Innovation0.83yrno datano data

1.4yrs

Average Tenure

57yo

Average Age

Experienced Management: CWEB's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Adrienne Elsner
President1.67yrsUS$2.83m0.014%
$ 124.7k
Jared Stanley
Co-Founder2.5yrsUS$362.34k3.16%
$ 27.8m
Joel Stanley
Co-Founder & Director2.5yrsUS$210.84k3.16%
$ 27.8m
Jacques Tortoroli
Independent Director1.17yrsUS$66.71kno data
Susan L. Vogt
Independent Director0.33yrno datano data
John Held
Independent Chairman of Board & Lead Director0.33yrUS$185.00k0.014%
$ 126.2k
Jean Birch
Independent Director0.50yrno data0.0054%
$ 47.4k

1.2yrs

Average Tenure

57yo

Average Age

Experienced Board: CWEB's board of directors are not considered experienced ( 1.2 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 29.6%.


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$880.372m
  • Shares outstanding: 139.52m
  • 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. The company offers products in the categories of tinctures, capsules, gummies, topical...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 23:19
End of Day Share Price2021/01/22 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.