TSXV:FLWR

Stock Analysis Report

Executive Summary

The Flowr Corporation cultivates, produces, and sells cannabis in Canada.


Snowflake Analysis

High growth potential and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

31.3%

FLWR

5.9%

CA Pharmaceuticals

3.7%

CA Market


1 Year Return

-89.5%

FLWR

-74.8%

CA Pharmaceuticals

-23.7%

CA Market

Return vs Industry: FLWR underperformed the Canadian Pharmaceuticals industry which returned -74.3% over the past year.

Return vs Market: FLWR underperformed the Canadian Market which returned -24.5% over the past year.


Shareholder returns

FLWRIndustryMarket
7 Day31.3%5.9%3.7%
30 Day-10.0%-19.2%-19.7%
90 Day-68.2%-35.1%-24.3%
1 Year-89.5%-89.5%-74.8%-74.8%-21.2%-23.7%
3 Yearn/a-16.8%-17.4%-13.3%-21.4%
5 Yearn/a195.5%195.5%-0.8%-15.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Flowr 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: FLWR (CA$0.63) is trading below our estimate of fair value (CA$10.83)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: FLWR is good value based on its PB Ratio (0.5x) compared to the CA Pharmaceuticals industry average (0.9x).


Next Steps

Future Growth

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

78.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: FLWR's revenue (121.2% per year) is forecast to grow faster than the Canadian market (3.8% per year).

High Growth Revenue: FLWR's revenue (121.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FLWR's Return on Equity is forecast to be low in 3 years time (4.9%).


Next Steps

Past Performance

How has Flowr performed over the past 5 years?

-23.7%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: FLWR is currently unprofitable.

Growing Profit Margin: FLWR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if FLWR's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: FLWR is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-9.9%).


Return on Equity

High ROE: FLWR has a negative Return on Equity (-9.14%), as it is currently unprofitable.


Next Steps

Financial Health

How is Flowr's financial position?


Financial Position Analysis

Short Term Liabilities: FLWR's short term assets (CA$39.9M) exceed its short term liabilities (CA$21.6M).

Long Term Liabilities: FLWR's short term assets (CA$39.9M) exceed its long term liabilities (CA$33.1M).


Debt to Equity History and Analysis

Debt Level: FLWR's debt to equity ratio (8.3%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: FLWR's 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.

Stable Cash Runway: FLWR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: FLWR has less than a year of cash runway if free cash flow continues to reduce at historical rates of -78.3% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate FLWR'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 FLWR's dividends per share have been stable in the past.

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

1.0yrs

Average management tenure


CEO

Vinay Tolia (40yo)

1.58s

Tenure

CA$237,625

Compensation

Mr. Vinay Tolia has been the Chief Executive Officer of The Flowr Corporation since August 15, 2018 and served as its Co-Chief Executive Officer since June 2018. Mr. Tolia has served as the Chief Executive ...


CEO Compensation Analysis

Compensation vs Market: Vinay's total compensation ($USD168.06K) is about average for companies of similar size in the Canadian market ($USD159.13K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Steven Klein
Co-Founderno datano datano data
Vinay Tolia
CEO & Executive Director1.58yrsCA$237.63k0.55% CA$412.7k
Alexander Dann
Chief Financial Officer2.25yrsCA$201.38k0.025% CA$19.1k
Lance Emanuel
President1.25yrsno data0.0017% CA$1.3k
Ivan Latysh
Chief Technology Officer0.42yrno datano data
Francesco Tallarico
Chief Legal Officer1.42yrsno data0.062% CA$47.2k
Sean Griffin
Vice President of Communications & Public Relationsno datano datano data
David Aronowitz
Chief of Staff0.67yrno data0.045% CA$33.9k
Thierry Elmaleh
Head of Capital Markets0.83yrno datano data
Ashley Thomson
Chief People Officer0.83yrno datano data

1.0yrs

Average Tenure

53yo

Average Age

Experienced Management: FLWR's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Steven Klein
Co-Founderno datano datano data
Vinay Tolia
CEO & Executive Director1.58yrsCA$237.63k0.55% CA$412.7k
Karen Basian
Lead Independent Director0.83yrno data0.041% CA$30.7k
Maurice Levesque
Independent Director1.25yrsno datano data
Lyle Oberg
Executive Director1.42yrsCA$177.80k1.25% CA$948.9k
David Miller
Director1.42yrsno data1.83% CA$1.4m
Donald Duet
Independent Director0.83yrno data0.30% CA$224.7k
J. André de Teixeira
Independent Director1.25yrsno datano data
Pauric Duffy
Director0.58yrno data13.21% CA$10.0m

1.3yrs

Average Tenure

55.5yo

Average Age

Experienced Board: FLWR's board of directors are not considered experienced ( 1.3 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 substantially diluted in the past year, with total shares outstanding growing by 57.6%.


Top Shareholders

Company Information

The Flowr Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Flowr Corporation
  • Ticker: FLWR
  • Exchange: TSXV
  • Founded:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$75.682m
  • Shares outstanding: 120.13m
  • Website: https://www.flowr.ca

Number of Employees


Location

  • The Flowr Corporation
  • 461 King Street West
  • Suite 200
  • Toronto
  • Ontario
  • M5V 1K4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FLWRTSXV (TSX Venture Exchange)YesCommon SharesCACADSep 2018
FLWP.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 2018

Biography

The Flowr Corporation cultivates, produces, and sells cannabis in Canada. The company is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 03:53
End of Day Share Price2020/03/30 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.