TSX:DN

Stock Analysis Report

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Market Cap

CA$43.1m

Last Updated

2021/07/25 00:26 UTC

Data Sources

Company Financials +

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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DN's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0%

DN

-2.7%

CA Pharmaceuticals

0.07%

CA Market


1 Year Return

-25.0%

DN

51.5%

CA Pharmaceuticals

28.2%

CA Market

Return vs Industry: DN underperformed the Canadian Pharmaceuticals industry which returned 51.7% over the past year.

Return vs Market: DN underperformed the Canadian Market which returned 28% over the past year.


Shareholder returns

DNIndustryMarket
7 Day0%-2.7%0.07%
30 Day-8.7%-11.7%-1.7%
90 Day-26.3%-12.0%2.5%
1 Year-25.0%-25.0%51.5%51.5%32.1%28.2%
3 Year-61.5%-61.5%-38.0%-38.7%29.4%16.9%
5 Yearn/a228.3%226.0%50.2%28.0%

Long-Term 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?

1.49x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: DN is unprofitable, so we can't compare its PE Ratio to the Canadian 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 is good value based on its PB Ratio (1.5x) compared to the CA Pharmaceuticals industry average (2.8x).


Future Growth

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

95.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: DN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: DN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: DN's revenue (25% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: DN's revenue (25% 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


Past Performance

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

8.4%

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 8.4% 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 (12.1%).


Return on Equity

High ROE: DN has a negative Return on Equity (-38.42%), as it is currently unprofitable.


Financial Health

How is Delta 9 Cannabis's financial position?


Financial Position Analysis

Short Term Liabilities: DN's short term assets (CA$31.4M) exceed its short term liabilities (CA$16.9M).

Long Term Liabilities: DN's short term assets (CA$31.4M) exceed its long term liabilities (CA$27.7M).


Debt to Equity History and Analysis

Debt Level: DN's debt to equity ratio (83.8%) is considered high.

Reducing Debt: DN 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: Insufficient data to determine if DN has enough 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.


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?

3.6yrs

Average management tenure


CEO

John Arbuthnot (31 yo)

3.75yrs

Tenure

CA$414,931

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 ($USD329.81K) is above average for companies of similar size in the Canadian market ($USD164.57K).

Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: DN's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: DN's board of directors are considered experienced (3.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: DN insiders have sold more shares than they have bought 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 15.1%.


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$43.118m
  • Shares outstanding: 102.66m
  • 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


Biography

Delta 9 Cannabis Inc. operates as an integrated cannabis company. The company, through its subsidiary, Delta 9 Bio-Tech Inc., engages in the cultivation, processing, extraction, wholesale distribution, ret...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/25 00:26
End of Day Share Price2021/07/23 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.