| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 5/6 |
| Past Performance | 0/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
HEXO Overview
HEXO Corp., through its subsidiaries, produces, markets, and sells cannabis in Canada.
HEXO Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | CA$2.42 |
| 52 Week High | CA$2.39 |
| 52 Week Low | CA$14.00 |
| Beta | 2.08 |
| 1 Month Change | -21.17% |
| 3 Month Change | -66.48% |
| 1 Year Change | -30.46% |
| 3 Year Change | -93.09% |
| 5 Year Change | n/a |
| Change since IPO | -60.97% |
Recent News & Updates
Shareholder Returns
| HEXO | CA Pharmaceuticals | CA Market | |
|---|---|---|---|
| 7D | -6.9% | 1.8% | -0.3% |
| 1Y | -30.5% | 39.6% | 30.8% |
Return vs Industry: HEXO underperformed the Canadian Pharmaceuticals industry which returned 39.6% over the past year.
Return vs Market: HEXO underperformed the Canadian Market which returned 30.8% over the past year.
Price Volatility
| HEXO volatility | |
|---|---|
| HEXO Beta | 2.08 |
| Industry Beta | 1.84 |
| Market Beta | 1 |
Stable Share Price: HEXO is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 10% a week.
Volatility Over Time: HEXO's weekly volatility (10%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| n/a | n/a | Sebastien St-Louis | https://www.hexocorp.com |
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 Decarb, an activated fine-milled cannabis powder product. The company offers its adult-use and medical products under the HEXO brand name.
HEXO Fundamentals Summary
| HEXO fundamental statistics | |
|---|---|
| Market Cap | CA$688.77m |
| Earnings (TTM) | -CA$214.32m |
| Revenue (TTM) | CA$112.15m |
6.1x
P/S Ratio-3.2x
P/E RatioIs HEXO overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| HEXO income statement (TTM) | |
|---|---|
| Revenue | CA$112.15m |
| Cost of Revenue | CA$101.26m |
| Gross Profit | CA$10.90m |
| Expenses | CA$225.22m |
| Earnings | -CA$214.32m |
Last Reported Earnings
Apr 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.75 |
| Gross Margin | 9.72% |
| Net Profit Margin | -191.10% |
| Debt/Equity Ratio | 6.1% |
How did HEXO perform over the long term?
See historical performance and comparisonValuation
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$2.42) is trading below our estimate of fair value (CA$33.27)
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 Canadian 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 (1.3x) compared to the CA Pharmaceuticals industry average (2.5x).
Future Growth
How is HEXO forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
58.9%
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 (1.5%).
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 (36.9% per year) is forecast to grow faster than the Canadian market (6.1% per year).
High Growth Revenue: HEXO's revenue (36.9% 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 HEXO's Return on Equity is forecast to be high in 3 years time
Past Performance
How has HEXO performed over the past 5 years?
-69.0%
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 69% 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 (115.1%).
Return on Equity
High ROE: HEXO has a negative Return on Equity (-40.66%), as it is currently unprofitable.
Financial Health
How is HEXO's financial position?
Financial Position Analysis
Short Term Liabilities: HEXO's short term assets (CA$251.7M) exceed its short term liabilities (CA$69.7M).
Long Term Liabilities: HEXO's short term assets (CA$251.7M) exceed its long term liabilities (CA$56.3M).
Debt to Equity History and Analysis
Debt Level: HEXO's debt to equity ratio (6.1%) is considered satisfactory.
Reducing Debt: HEXO's debt to equity ratio has reduced from 9.5% to 6.1% 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 sufficient cash runway for more than a year based on its current free cash flow.
Forecast Cash Runway: HEXO has less than a year of cash runway if free cash flow continues to reduce at historical rates of 40.9% each year
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?
2.7yrs
Average management tenure
CEO
Sebastien St-Louis (37 yo)
8.08yrs
Tenure
CA$11,163,766
Compensation
Mr. Sebastien G. St-Louis is the Co-Founder of HEXO Corp. (formerly known as The Hydropothecary Corporation) and has been its Chief Executive Officer, President and Director since August 13, 2013. Mr. St-L...
CEO Compensation Analysis
Compensation vs Market: Sebastien's total compensation ($USD8.79M) is above average for companies of similar size in the Canadian market ($USD876.70K).
Compensation vs Earnings: Sebastien's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: HEXO's management team is considered experienced (2.7 years average tenure).
Board Members
Experienced Board: HEXO's board of directors are not considered experienced ( 2.9 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.
Ownership Breakdown
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 140.7%.
Top Shareholders
Company Information
HEXO Corp.'s employee growth, exchange listings and data sources
Key Information
- Name: HEXO Corp.
- Ticker: HEXO
- Exchange: TSX
- Founded: NaN
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Market Cap: CA$688.769m
- Shares outstanding: 284.62m
- Website: https://www.hexocorp.com
Number of Employees
Location
- HEXO Corp.
- 3000 Solandt Road
- Kanata
- Ontario
- K2K 2X2
- Canada
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/26 22:10 |
| End of Day Share Price | 2021/09/24 00:00 |
| Earnings | 2021/04/30 |
| 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.