TSX:OGI

Stock Analysis Report

Executive Summary

OrganiGram Holdings Inc., through its subsidiaries, produces and sells cannabis and cannabis-derived products in Canada.

Rewards

Trading at 84% below its fair value

Earnings are forecast to grow 52.55% per year

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has OrganiGram Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OGI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

22.2%

OGI

6.6%

CA Pharmaceuticals

0.2%

CA Market


1 Year Return

-54.6%

OGI

-58.3%

CA Pharmaceuticals

4.9%

CA Market

Return vs Industry: OGI exceeded the Canadian Pharmaceuticals industry which returned -57.9% over the past year.

Return vs Market: OGI underperformed the Canadian Market which returned 5.8% over the past year.


Shareholder returns

OGIIndustryMarket
7 Day22.2%6.6%0.2%
30 Day-15.0%-14.5%0.4%
90 Day-6.5%-15.3%3.7%
1 Year-54.6%-54.6%-58.3%-58.3%8.2%4.9%
3 Year32.6%32.6%10.7%10.0%15.9%5.5%
5 Year588.5%588.5%303.6%303.6%33.8%14.3%

Price Volatility Vs. Market

How volatile is OrganiGram Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is OrganiGram Holdings 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: OGI (CA$3.55) is trading below our estimate of fair value (CA$22.2)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: OGI is overvalued based on its PB Ratio (1.7x) compared to the CA Pharmaceuticals industry average (1.4x).


Next Steps

Future Growth

How is OrganiGram Holdings forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

52.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OGI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).

Earnings vs Market: OGI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: OGI's is expected to become profitable in the next 3 years.

Revenue vs Market: OGI's revenue (26.6% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: OGI's revenue (26.6% 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 OGI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has OrganiGram Holdings performed over the past 5 years?

29.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OGI is currently unprofitable.

Growing Profit Margin: OGI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OGI is unprofitable, but has reduced losses over the past 5 years at a rate of 29.3% per year.

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

Earnings vs Industry: OGI is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-11.3%).


Return on Equity

High ROE: OGI has a negative Return on Equity (-12.13%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is OrganiGram Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: OGI's short term assets (CA$191.8M) exceed its short term liabilities (CA$49.0M).

Long Term Liabilities: OGI's short term assets (CA$191.8M) exceed its long term liabilities (CA$91.7M).


Debt to Equity History and Analysis

Debt Level: OGI's debt to equity ratio (25.7%) is considered satisfactory.

Reducing Debt: OGI's debt to equity ratio has reduced from 36.3% to 25.7% over the past 5 years.


Balance Sheet

Inventory Level: OGI has a high level of physical assets or inventory.

Debt Coverage by Assets: OGI's debt is covered by short term assets (assets are 2.3x debt).


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: OGI has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: OGI has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is OrganiGram Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage2.7%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate OGI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if OGI's dividends per share have been stable in the past.

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

2.2yrs

Average management tenure


CEO

Greg Engel (54yo)

2.9yrs

Tenure

CA$1,074,643

Compensation

Mr. Gregory Engel, also known as Greg, has been Chief Executive Officer of OrganiGram Holdings Inc. since March 13, 2017. Mr. Engel has served in a number of senior-level and executive positions in related ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD812.32K) is about average for companies of similar size in the Canadian market ($USD963.71K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Engel
CEO & Director2.9yrsCA$1.07m0.046% CA$268.5k
Paolo De Luca
Chief Financial Officer2.2yrsCA$852.71k0.028% CA$164.5k
Raymond Gracewood
Senior Vice President of Marketing & Communications0.8yrsCA$487.16k0.044% CA$256.1k
Timothy Emberg
Senior Vice President of Sales & Commercial Operations2.3yrsCA$563.50kno data
Matt Rogers
Vice President of Operations0yrsno data0.014% CA$79.8k
Amy Schwalm
Vice President of Investor Relations1.1yrsno datano data
Helen Martin
Senior VP of Strategic & Legal Affairs and Company Secretary0.8yrsno datano data
James Cavanagh
Chief of Staff0yrsno datano data
Larry Rogers
Vice President of International Business Development2.3yrsCA$222.73kno data
Peter Hanson
Director of Finance2.2yrsCA$143.13kno data

2.2yrs

Average Tenure

46yo

Average Age

Experienced Management: OGI's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory Engel
CEO & Director2.9yrsCA$1.07m0.046% CA$268.5k
Peter Amirault
Chairman & Lead Director1.9yrsCA$502.60k0.098% CA$572.8k
Derrick West
Independent Director2.2yrsCA$469.00k0.0040% CA$23.5k
Dexter D. John
Independent Director1.2yrsCA$283.45k0.0036% CA$21.0k
Michel Bourque
Independent Director5.1yrsCA$472.75kno data
Sherry Porter
Independent Director1.2yrsCA$280.71k0.0043% CA$25.0k

2.0yrs

Average Tenure

54yo

Average Age

Experienced Board: OGI's board of directors are not considered experienced ( 2 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: OGI 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 17.2%.


Top Shareholders

Company Information

OrganiGram Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: OrganiGram Holdings Inc.
  • Ticker: OGI
  • Exchange: TSX
  • Founded: 2013
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$584.907m
  • Shares outstanding: 163.38m
  • Website: https://www.organigram.ca

Number of Employees


Location

  • OrganiGram Holdings Inc.
  • 35 English Drive
  • Moncton
  • New Brunswick
  • E1E 3X3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OGITSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2014
OGINasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDAug 2014
0OGDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2014
0VB6LSE (London Stock Exchange)YesCommon SharesGBCADAug 2014

Biography

OrganiGram Holdings Inc., through its subsidiaries, produces and sells cannabis and cannabis-derived products in Canada. It offers cannabis flowers, cannabis oils, and pre-rolls for adult recreational consumers under the Edison Reserve, Edison Cannabis Co., ANKR Organics, and Trail Blazer brand names; and medical cannabis products, including cannabis flowers, cannabis oils, and vaporizers for the medical market. The company also engages in the wholesale shipping of medical cannabis plant cuttings and dried flowers. It sells its products through online, as well as telephone channels. OrganiGram Holdings Inc. was founded in 2013 and is headquartered in Moncton, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:35
End of Day Share Price2020/02/18 00:00
Earnings2019/11/30
Annual Earnings2019/08/31


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.