TSX:OGI

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet with high growth potential.


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 is more volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: OGI's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of Canadian stocks.


Market Performance


7 Day Return

7.0%

OGI

13.7%

CA Pharmaceuticals

-0.5%

CA Market


1 Year Return

-46.0%

OGI

47.2%

CA Pharmaceuticals

1.7%

CA Market

Return vs Industry: OGI underperformed the Canadian Pharmaceuticals industry which returned 47.2% over the past year.

Return vs Market: OGI underperformed the Canadian Market which returned 1.7% over the past year.


Shareholder returns

OGIIndustryMarket
7 Day7.0%13.7%-0.5%
30 Day26.4%30.2%3.4%
90 Day48.4%81.5%12.3%
1 Year-46.0%-46.0%47.2%47.2%5.3%1.7%
3 Year-52.5%-52.5%-50.4%-51.1%13.0%2.3%
5 Year187.5%187.5%414.4%410.9%66.2%40.7%

Long-Term 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$2.3) is trading below our estimate of fair value (CA$9.06)

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 CA 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 good value based on its PB Ratio (1.7x) compared to the CA Pharmaceuticals industry average (2.7x).


Next Steps

Future Growth

How is OrganiGram Holdings forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

62.1%

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 (1.5%).

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 (27.1% per year) is forecast to grow faster than the Canadian market (7.9% per year).

High Growth Revenue: OGI's revenue (27.1% 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?

-60.6%

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, and losses have increased over the past 5 years at a rate of 60.6% 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 (-61.1%).


Return on Equity

High ROE: OGI has a negative Return on Equity (-53.23%), as it is currently unprofitable.


Next Steps

Financial Health

How is OrganiGram Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: OGI's short term assets (CA$208.4M) exceed its short term liabilities (CA$78.3M).

Long Term Liabilities: OGI's short term assets (CA$208.4M) exceed its long term liabilities (CA$76.5M).


Debt to Equity History and Analysis

Debt Level: OGI's debt to equity ratio (36.2%) is considered satisfactory.

Reducing Debt: OGI's debt to equity ratio has reduced from 68.6% to 36.2% 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: OGI has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if OGI has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate OGI'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 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?

2.5yrs

Average management tenure


CEO

Greg Engel (55 yo)

3.83yrs

Tenure

CA$1,074,643

Compensation

Mr. Gregory Engel, also known as Greg, has been Director of Canadian Chamber Of Commerce since October 2020. Mr. Engel has been Chief Executive Officer of OrganiGram Holdings Inc. since March 13, 2017. Mr....


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD843.82K) is about average for companies of similar size in the Canadian market ($USD785.01K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Engel
CEO & Director3.83yrsCA$1.07m0.032%
CA$ 172.5k
Derrick West
Chief Financial Officerno dataCA$469.00k0.0041%
CA$ 21.8k
Timothy Emberg
Senior Vice President of Sales & Commercial Operations3.25yrsCA$563.50kno data
Paolo De Luca
Chief Strategy Officer0.83yrCA$852.71k0.020%
CA$ 105.7k
Matt Rogers
Senior Vice President of Operationsno datano data0.0096%
CA$ 51.3k
Amy Schwalm
Vice President of Investor Relations2yrsno datano data
Helen Martin
Senior VP of Strategic & Legal Affairs and Company Secretary1.75yrsno datano data
James Cavanagh
Chief of Staffno datano datano data
Larry Rogers
Vice President of International Business Development3.25yrsCA$222.73kno data
Peter Hanson
Director of Finance3.08yrsCA$143.13kno data

2.5yrs

Average Tenure

50yo

Average Age

Experienced Management: OGI's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory Engel
CEO & Director3.83yrsCA$1.07m0.032%
CA$ 172.5k
Derrick West
Chief Financial Officerno dataCA$469.00k0.0041%
CA$ 21.8k
Marjorie Wieshofer
Directorno datano datano data
Peter Amirault
Independent Chairman & Lead Director2.83yrsCA$502.60k0.069%
CA$ 368.0k
Stephen Smith
Independent Director0.92yrno data0.0044%
CA$ 23.7k
Dexter D. John
Independent Director2.08yrsCA$283.45k0.0026%
CA$ 14.1k
Kenneth James Manget
Independent Director0.92yrno datano data
Geoffrey Machum
Independent Director0.92yrno data0.0019%
CA$ 10.4k
Sherry Porter
Independent Director2.08yrsCA$280.71k0.0030%
CA$ 16.1k

2.1yrs

Average Tenure

59yo

Average Age

Experienced Board: OGI's board of directors are not considered experienced ( 2.1 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 41.9%.


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$533.851m
  • Shares outstanding: 232.11m
  • 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, extracts, edibles and oils, beverages, and other cannabi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 23:12
End of Day Share Price2021/01/15 00:00
Earnings2020/11/30
Annual Earnings2020/08/31


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.