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.


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

5.2%

CA Pharmaceuticals

0.1%

CA Market


1 Year Return

27.9%

EMC

-54.5%

CA Pharmaceuticals

1.6%

CA Market


Shareholder returns

EMCIndustryMarket
7 Day3.9%5.2%0.1%
30 Day23.7%-21.8%-2.9%
90 Day97.9%-32.1%-1.4%
1 Year27.9%27.9%-54.5%-54.5%5.2%1.6%
3 Yearn/a85.2%83.8%13.8%3.7%
5 Yearn/a300.0%300.0%25.3%7.2%

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 compared to its fair value and its price relative to the market?

2.82x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate EMC's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate EMC's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

PE vs Market: EMC is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate EMC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EMC is good value based on its PB Ratio (2.8x) compared to the CA Pharmaceuticals industry average (1.9x).


Next Steps

Future Growth

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

87.6%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if EMC's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if EMC's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if EMC's revenue is forecast to grow faster than the Canadian market.

High Growth Revenue: Insufficient data to determine if EMC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


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

Earnings Trend: EMC is unprofitable, and losses have increased over the past 5 years at a rate of -32.8% per year.

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

Earnings vs Industry: EMC is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (15.6%).


Return on Equity

High ROE: EMC has a negative Return on Equity (-28.48%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: EMC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: EMC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Emblem's financial position?


Financial Position Analysis

Short Term Liabilities: EMC's short term assets (CA$67.9M) exceeds its short term liabilities (CA$18.8M)

Long Term Liabilities: EMC's short term assets (67.9M) exceeds its long term liabilities (24.6M)


Debt to Equity History and Analysis

Debt Level: EMC's debt to equity ratio (30%) is considered satisfactory

Reducing Debt: Insufficient data to determine if EMC's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Information is not available.

Information is not available.


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: EMC has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: EMC has sufficient cash runway for 1.268515 years if free cash flow continues to reduce at historical rates of -51.9% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if EMC'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 EMC's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


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

Information is not available.

Compensation vs Earnings: Insufficient data to compare Nick's compensation with company performance.


Management Age and Tenure

0.8yrs

Average Tenure

45yo

Average Age

Experienced Management: EMC's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

Experienced Board: EMC's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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.