TSX:DN

Stock Analysis Report

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Executive Summary

Delta 9 Cannabis Inc. operates as an integrated cannabis company. More Details


Snowflake Analysis

Slightly overvalued with limited growth.


Similar Companies

Share Price & News

How has Delta 9 Cannabis's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.6%

DN

5.6%

CA Pharmaceuticals

-0.4%

CA Market


1 Year Return

-9.4%

DN

-18.6%

CA Pharmaceuticals

-4.0%

CA Market

Return vs Industry: DN exceeded the Canadian Pharmaceuticals industry which returned -18.7% over the past year.

Return vs Market: DN underperformed the Canadian Market which returned -3.9% over the past year.


Shareholder returns

DNIndustryMarket
7 Day3.6%5.6%-0.4%
30 Day1.8%23.0%2.3%
90 Day1.8%10.6%1.7%
1 Year-9.4%-9.4%-18.6%-18.6%-0.5%-4.0%
3 Yearn/a-12.4%-13.1%6.5%-3.9%
5 Yearn/a175.6%174.3%35.4%14.6%

Price Volatility Vs. Market

How volatile is Delta 9 Cannabis's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Delta 9 Cannabis 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: DN (CA$0.58) is trading below our estimate of fair value (CA$2.45)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: DN's PB Ratio (1.4x) is in line with the CA Pharmaceuticals industry average.


Next Steps

Future Growth

How is Delta 9 Cannabis forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

31.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if DN's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if DN's earnings are forecast to grow faster than the Canadian market

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

Revenue vs Market: DN's revenue (31% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: DN's revenue (31% 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 DN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Delta 9 Cannabis performed over the past 5 years?

43.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DN is currently unprofitable.

Growing Profit Margin: DN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DN is unprofitable, but has reduced losses over the past 5 years at a rate of 43% per year.

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

Earnings vs Industry: DN is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (30.9%).


Return on Equity

High ROE: DN has a negative Return on Equity (-1.68%), as it is currently unprofitable.


Next Steps

Financial Health

How is Delta 9 Cannabis's financial position?


Financial Position Analysis

Short Term Liabilities: DN's short term assets (CA$32.2M) exceed its short term liabilities (CA$14.6M).

Long Term Liabilities: DN's short term assets (CA$32.2M) exceed its long term liabilities (CA$21.3M).


Debt to Equity History and Analysis

Debt Level: DN's debt to equity ratio (61.6%) is considered high.

Reducing Debt: Insufficient data to determine if DN'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: DN has less than a year of cash runway based on its current free cash flow.

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


Next Steps

Dividend

What is Delta 9 Cannabis's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

2.9yrs

Average management tenure


CEO

John Arbuthnot (30 yo)

3yrs

Tenure

CA$167,190

Compensation

Mr. John William Arbuthnot, IV, also known as John, has been Chief Executive Officer at Delta 9 Cannabis Inc. since October 31, 2017. Mr. Arbuthnot is Co-founder and Vice-President and Responsible Person i ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD127.18K) is about average for companies of similar size in the Canadian market ($USD171.35K).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Arbuthnot
Co-Founder3yrsCA$167.19k20.19%
CA$ 10.6m
John Arbuthnot
Co-Founder3yrsCA$167.19k15.37%
CA$ 8.0m
James Lawson
CFO & Controller2.08yrsCA$126.53k0.24%
CA$ 124.2k
Matthew Sodomsky
Chief Technology Officerno datano datano data
Ian Chadsey
Vice President of Corporate Affairsno datano datano data
Alexa Goertzen
Senior Executive Assistant2.75yrsno datano data

2.9yrs

Average Tenure

Experienced Management: DN's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Arbuthnot
Co-Founder3yrsCA$167.19k20.19%
CA$ 10.6m
John Arbuthnot
Co-Founder3yrsCA$167.19k15.37%
CA$ 8.0m
Hugh Aird
Independent Director2.08yrsCA$48.00kno data
Nitin Kaushal
Independent Director3yrsCA$48.00kno data
Joanne Duhoux-Defehr
Independent Director2.92yrsCA$48.00k0.94%
CA$ 490.1k

3.0yrs

Average Tenure

54yo

Average Age

Experienced Board: DN's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DN 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 2.7%.


Top Shareholders

Company Information

Delta 9 Cannabis Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Delta 9 Cannabis Inc.
  • Ticker: DN
  • Exchange: TSX
  • Founded: 2012
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$52.318m
  • Shares outstanding: 90.20m
  • Website: https://www.delta9.ca

Number of Employees


Location

  • Delta 9 Cannabis Inc.
  • P.O. Box 68096
  • Osborne Village
  • Winnipeg
  • Manitoba
  • R3L 2V9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DNTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 2017
VRND.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 2017
V5D1BST (Boerse-Stuttgart)YesCommon SharesDEEURNov 2017
V5D1DB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2017

Biography

Delta 9 Cannabis Inc. operates as an integrated cannabis company. The company, through its subsidiary, Delta 9 Bio-Tech Inc., engages in the production, distribution, and sale of medical and recreational c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 01:10
End of Day Share Price2020/10/23 00:00
Earnings2020/03/31
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.