Market Cap
CA$691.3m
Last Updated
2020/12/02 00:14 UTC
Data Sources
Company Financials +
Executive Summary
HEXO Corp., through its subsidiaries, produces, markets, and sells cannabis in Canada. More Details
Snowflake Analysis
High growth potential with adequate balance sheet.
Similar Companies
Share Price & News
How has HEXO's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HEXO is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 14% a week.
Volatility Over Time: HEXO's weekly volatility has decreased from 20% to 14% over the past year.
Market Performance
7 Day Return
31.4%
HEXO
6.5%
CA Pharmaceuticals
-0.002%
CA Market
1 Year Return
-51.7%
HEXO
18.9%
CA Pharmaceuticals
0.7%
CA Market
Return vs Industry: HEXO underperformed the Canadian Pharmaceuticals industry which returned 28.2% over the past year.
Return vs Market: HEXO underperformed the Canadian Market which returned -0.8% over the past year.
Shareholder returns
| HEXO | Industry | Market | |
|---|---|---|---|
| 7 Day | 31.4% | 6.5% | -0.002% |
| 30 Day | 70.4% | 34.1% | 11.9% |
| 90 Day | 51.6% | 41.8% | 5.7% |
| 1 Year | -51.7%-51.7% | 18.9%18.9% | 4.4%0.7% |
| 3 Year | -56.9%-56.9% | -32.8%-33.9% | 12.7%1.7% |
| 5 Year | n/a | 284.4%280.8% | 53.8%30.2% |
Long-Term Price Volatility Vs. Market
How volatile is HEXO's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Analysts Have Been Trimming Their HEXO Corp. (TSE:HEXO) Price Target After Its Latest Report1 month ago | Simply Wall St
HEXO's (TSE:HEXO) Stock Price Has Reduced 70% In The Past Year3 months ago | Simply Wall St
Estimating The Fair Value Of HEXO Corp. (TSE:HEXO)Valuation
Is HEXO 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: HEXO (CA$1.38) is trading below our estimate of fair value (CA$2.86)
Significantly Below Fair Value: HEXO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HEXO is unprofitable, so we can't compare its PE Ratio to the CA Pharmaceuticals industry average.
PE vs Market: HEXO 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 HEXO's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: HEXO is good value based on its PB Ratio (1.2x) compared to the CA Pharmaceuticals industry average (1.6x).
Next Steps
Future Growth
How is HEXO forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
128.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HEXO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).
Earnings vs Market: HEXO is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: HEXO's is expected to become profitable in the next 3 years.
Revenue vs Market: HEXO's revenue (29.2% per year) is forecast to grow faster than the Canadian market (6.2% per year).
High Growth Revenue: HEXO's revenue (29.2% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HEXO is forecast to be unprofitable in 3 years.
Next Steps
Past Performance
How has HEXO performed over the past 5 years?
-87.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HEXO is currently unprofitable.
Growing Profit Margin: HEXO is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: HEXO is unprofitable, and losses have increased over the past 5 years at a rate of 87.4% per year.
Accelerating Growth: Unable to compare HEXO's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: HEXO is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-45%).
Return on Equity
High ROE: HEXO has a negative Return on Equity (-98.17%), as it is currently unprofitable.
Next Steps
Financial Health
How is HEXO's financial position?
Financial Position Analysis
Short Term Liabilities: HEXO's short term assets (CA$305.7M) exceed its short term liabilities (CA$82.5M).
Long Term Liabilities: HEXO's short term assets (CA$305.7M) exceed its long term liabilities (CA$53.7M).
Debt to Equity History and Analysis
Debt Level: HEXO's debt to equity ratio (10.6%) is considered satisfactory.
Reducing Debt: HEXO's debt to equity ratio has reduced from 45.7% to 10.6% 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: HEXO has less than a year of cash runway based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if HEXO has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Next Steps
Dividend
What is HEXO current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate HEXO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate HEXO'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 HEXO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if HEXO'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 HEXO'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?
1.8yrs
Average management tenure
CEO
Sebastien St-Louis (36 yo)
7.25yrs
Tenure
CA$8,849,943
Compensation
Mr. Sebastien G. St-Louis is the Co-Founder of HEXO Corp. (formerly known as The Hydropothecary Corporation) and has been its Chief Executive Officer, President and Director since August 13, 2013. Mr. St-L...
CEO Compensation Analysis
Compensation vs Market: Sebastien's total compensation ($USD6.83M) is above average for companies of similar size in the Canadian market ($USD853.56K).
Compensation vs Earnings: Sebastien's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 7.25yrs | CA$8.85m | 1.31% CA$ 9.1m | |
| General Counsel | 2.67yrs | CA$1.20m | 0% CA$ 0 | |
| Chief People Officer | 2.17yrs | CA$1.27m | no data | |
| Consultant | 1.08yrs | CA$509.09k | no data | |
| Co-Founder & Director | 7.25yrs | CA$538.91k | 0.47% CA$ 3.2m | |
| Chief Financial Officer | 0.083yr | no data | no data | |
| Chief Operating Officer | 1.5yrs | no data | no data | |
| Manager of Financial Reporting & Investor Relations | no data | no data | no data | |
| Director of Customer Experience & Compliance | no data | no data | no data | |
| Vice President of Communication | 1.83yrs | no data | no data | |
| Vice-President of Sales | 2.67yrs | no data | no data | |
| Chief Development Officer | 0.83yr | CA$407.09k | 0% CA$ 0 |
1.8yrs
Average Tenure
48yo
Average Age
Experienced Management: HEXO's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 7.25yrs | CA$8.85m | 1.31% CA$ 9.1m | |
| Co-Founder & Director | 7.25yrs | CA$538.91k | 0.47% CA$ 3.2m | |
| Independent Chairman of the Board | no data | CA$600.75k | 0.48% CA$ 3.3m | |
| Independent Director | 6yrs | CA$534.55k | no data | |
| Independent Director | 0.083yr | no data | no data | |
| Independent Director | 4yrs | CA$562.69k | 2.99% CA$ 20.7m |
6.0yrs
Average Tenure
47yo
Average Age
Experienced Board: HEXO's board of directors are considered experienced (6 years average tenure).
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 substantially diluted in the past year, with total shares outstanding growing by 96.7%.
Top Shareholders
Company Information
HEXO Corp.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: HEXO Corp.
- Ticker: HEXO
- Exchange: TSX
- Founded:
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Market Cap: CA$691.327m
- Shares outstanding: 483.45m
- Website: https://www.hexocorp.com
Number of Employees
Location
- HEXO Corp.
- 3000 Solandt Road
- Kanata
- Ontario
- K2K 2X2
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HEXO | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Mar 2017 |
| HEXO | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Mar 2017 |
| 74H | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Mar 2017 |
Biography
HEXO Corp., through its subsidiaries, produces, markets, and sells cannabis in Canada. It offers dried cannabis under the Time of Day and H2 lines; Elixir, a cannabis oil sublingual mist product line; and ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/12/02 00:14 |
| End of Day Share Price | 2020/12/01 00:00 |
| Earnings | 2020/07/31 |
| Annual Earnings | 2020/07/31 |
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.