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HEXO

HEXOTSX:HEXO Stock Report

Market Cap

CA$688.8m

7D

-6.9%

1Y

-30.5%

Updated

26 Sep, 2021

Data

Company Financials +
HEXO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance0/6
Financial Health5/6
Dividends0/6

HEXO Overview

HEXO Corp., through its subsidiaries, produces, markets, and sells cannabis in Canada.

HEXO Competitors

Green Thumb Industries

CNSX:GTII

CA$8.1b

Canopy Growth

TSX:WEED

CA$6.9b

Cronos Group

TSX:CRON

CA$2.7b

Aurora Cannabis

TSX:ACB

CA$1.5b

Price History & Performance

Summary of all time highs, changes and price drops for HEXO
Historical stock prices
Current Share PriceCA$2.42
52 Week HighCA$2.39
52 Week LowCA$14.00
Beta2.08
1 Month Change-21.17%
3 Month Change-66.48%
1 Year Change-30.46%
3 Year Change-93.09%
5 Year Changen/a
Change since IPO-60.97%

Recent News & Updates

Shareholder Returns

HEXOCA PharmaceuticalsCA 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

Is HEXO's price volatile compared to industry and market?
HEXO volatility
HEXO Beta2.08
Industry Beta1.84
Market Beta1

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

FoundedEmployeesCEOWebsite
n/an/aSebastien St-Louishttps://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

How do HEXO's earnings and revenue compare to its market cap?
HEXO fundamental statistics
Market CapCA$688.77m
Earnings (TTM)-CA$214.32m
Revenue (TTM)CA$112.15m

6.1x

P/S Ratio

-3.2x

P/E Ratio

Is HEXO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HEXO income statement (TTM)
RevenueCA$112.15m
Cost of RevenueCA$101.26m
Gross ProfitCA$10.90m
ExpensesCA$225.22m
Earnings-CA$214.32m

Last Reported Earnings

Apr 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.75
Gross Margin9.72%
Net Profit Margin-191.10%
Debt/Equity Ratio6.1%

How did HEXO perform over the long term?

See historical performance and comparison

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$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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:10
End of Day Share Price2021/09/24 00:00
Earnings2021/04/30
Annual Earnings2020/07/31


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.