TSXV:EMC

Stock Analysis Report

Executive Summary

Emblem Corp. produces, distributes, and sells medical cannabis and cannabis derivatives in Canada.

Snowflake

Fundamentals

Excellent balance sheet and overvalued.

Risks

  • Emblem has significant price volatility in the past 3 months.
  • Emblem is not covered by any analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.9%

EMC

-4.3%

CA Pharmaceuticals

0.9%

CA Market


1 Year Return

27.9%

EMC

-46.3%

CA Pharmaceuticals

-0.2%

CA Market

EMC outperformed the Pharmaceuticals industry which returned 2.6% over the past year.

EMC outperformed the Market in Canada which returned 1.2% over the past year.


Share holder returns

EMCIndustryMarket
7 Day3.9%-4.3%0.9%
30 Day23.7%-1.4%5.7%
90 Day97.9%-23.2%1.8%
1 Year27.9%27.9%-46.3%-46.3%3.3%-0.2%
3 Yearn/a218.1%216.2%19.2%8.5%
5 Yearn/a307.1%307.1%23.3%5.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Emblem undervalued based on future cash flows and its price relative to the stock market?

2.82x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Emblem to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Emblem to establish if it is available at substantial discount.


Price Based on Earnings

Emblem is loss making, we can't compare its value to the CA Pharmaceuticals industry average.

Emblem is loss making, we can't compare the value of its earnings to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Emblem, we can't assess if its growth is good value.


Price Based on Value of Assets

Emblem is good value based on assets compared to the CA Pharmaceuticals industry average.


Next Steps

Future Growth

How is Emblem expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

97.4%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Emblem has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Emblem performed over the past 5 years?

-32.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Emblem does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Emblem's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Emblem's 1-year growth to the CA Pharmaceuticals industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Emblem has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Emblem has efficiently used its assets last year compared to the CA Pharmaceuticals industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Emblem improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Emblem's financial position?


Financial Position Analysis

Emblem is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Emblem's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Emblem's level of debt (30%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Emblem's debt level has increased without past 5-year debt data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.8x 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.

Emblem has sufficient cash runway for 1.3 years based on current free cash flow.

Emblem has sufficient cash runway for 1.3 years if free cash flow continues to grow at historical rates of 51.9% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Emblem's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Emblem's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Emblem has not reported any payouts.

Unable to verify if Emblem's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Emblem has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Emblem's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Nick Dean 0

1.3yrs

Tenure

CA$840,666

Compensation

Mr. Nicholas Dean also known as Nick has been Chief Executive Officer and President of Emblem Corp. since December 1, 2017. Mr. Dean has more than 12 years of consumer marketing and leadership experience i ...


CEO Compensation Analysis

Nick's remuneration is about average for companies of similar size in Canada.

Insufficient data for Nick to compare compensation growth.


Management Age and Tenure

0.8yrs

Average Tenure

45yo

Average Age

The average tenure for the Emblem management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

The average tenure for the Emblem board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month insider trading information.


Recent Insider Transactions

SellCA$227,20003 Nov 18
John Stewart
EntityIndividual
Role
Member of the Board of Directors
Director
Shares200,000
Max PriceCA$1.14

Ownership Breakdown


Management Team

  • Harvey Shapiro (73yo)

    Vice President

    • Tenure: 0yrs
    • Compensation: CA$175.00k
  • Wayne Kreppner (45yo)

    President of Medical

    • Tenure: 0.3yrs
  • Maxim Zavet (38yo)

    Vice President

    • Tenure: 2.3yrs
    • Compensation: CA$175.00k
  • Gordon Fox

    • Tenure: 1.1yrs
    • Compensation: CA$190.93k
  • Nick Dean

    CEO, President & Director

    • Tenure: 1.3yrs
    • Compensation: CA$840.67k
  • Alex Stojanovic

    Chief Financial Officer

    • Tenure: 1.2yrs
  • Adam Saperia

    Chief Strategy Officer

    • Tenure: 0.4yrs
  • Maria Guest

    Chief Marketing Officer

    • Tenure: 0.3yrs
  • Ethan Karayannopoulos

    Head of Investor Relations

    • Tenure: 0yrs
  • Karyn Sullivan

    General Counsel & Secretary

    • Tenure: 0.3yrs

Board Members

  • John Stewart

    Director

    • Tenure: 2.3yrs
    • Compensation: CA$90.00k
  • Jeff Fineberg

    Director

    • Tenure: 2.3yrs
    • Compensation: CA$513.13k
  • Terry Johnson

    Director

    • Tenure: 2.3yrs
    • Compensation: CA$513.13k
  • Connie Stefankiewicz

    Director

    • Tenure: 0.3yrs
  • Nick Dean

    CEO, President & Director

    • Tenure: 1.3yrs
    • Compensation: CA$840.67k

Company Information

Emblem Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Emblem Corp.
  • Ticker: EMC
  • Exchange: TSXV
  • Founded:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$248.333m
  • Shares outstanding: 132.09m
  • Website: https://emblemcorp.com

Number of Employees


Location

  • Emblem Corp.
  • 36 York Mills Road
  • Suite 500
  • Toronto
  • Ontario
  • M2P 2E9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EMCTSXV (TSX Venture Exchange)YesNew Common SharesCACADDec 2016
EMMB.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDDec 2016
E0MDB (Deutsche Boerse AG)YesNew Common SharesDEEURDec 2016

Biography

Emblem Corp. produces, distributes, and sells medical cannabis and cannabis derivatives in Canada. The company also operates medical cannabis education centers to provide education services for making info ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/03/20 00:42
End of Day Share Price2019/03/18 00:00
Earnings2018/09/30
Annual Earnings2017/12/31


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.