TSXV:NRTH

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

48North Cannabis Corp. operates as a cannabis company in the health and wellness market in Canada. More Details


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

How has 48North Cannabis's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NRTH is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: NRTH's weekly volatility has decreased from 16% to 8% over the past year.


Market Performance


7 Day Return

9.7%

NRTH

6.2%

CA Pharmaceuticals

0.04%

CA Market


1 Year Return

-50.0%

NRTH

29.3%

CA Pharmaceuticals

1.3%

CA Market

Return vs Industry: NRTH underperformed the Canadian Pharmaceuticals industry which returned 18.9% over the past year.

Return vs Market: NRTH underperformed the Canadian Market which returned 0.7% over the past year.


Shareholder returns

NRTHIndustryMarket
7 Day9.7%6.2%0.04%
30 Day6.3%27.6%10.9%
90 Day9.7%48.3%7.2%
1 Year-50.0%-50.0%29.3%29.3%5.0%1.3%
3 Yearn/a-27.2%-28.2%13.5%2.4%
5 Yearn/a274.2%271.5%54.2%30.5%

Long-Term Price Volatility Vs. Market

How volatile is 48North Cannabis's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 48North Cannabis undervalued compared to its fair value and its price relative to the market?

0.59x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NRTH's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate NRTH's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NRTH is good value based on its PB Ratio (0.6x) compared to the CA Pharmaceuticals industry average (1.7x).


Next Steps

Future Growth

How is 48North Cannabis forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

61.0%

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 48North Cannabis 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 48North Cannabis performed over the past 5 years?

-62.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NRTH is currently unprofitable.

Growing Profit Margin: NRTH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NRTH is unprofitable, and losses have increased over the past 5 years at a rate of 62.8% per year.

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

Earnings vs Industry: NRTH is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-45%).


Return on Equity

High ROE: NRTH has a negative Return on Equity (-83.32%), as it is currently unprofitable.


Next Steps

Financial Health

How is 48North Cannabis's financial position?


Financial Position Analysis

Short Term Liabilities: NRTH's short term assets (CA$24.0M) exceed its short term liabilities (CA$8.7M).

Long Term Liabilities: NRTH's short term assets (CA$24.0M) exceed its long term liabilities (CA$755.0K).


Debt to Equity History and Analysis

Debt Level: NRTH is debt free.

Reducing Debt: NRTH had no debt 5 years ago.


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: NRTH has sufficient cash runway for 1 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: NRTH is forecast to have sufficient cash runway for 0 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

What is 48North Cannabis's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

0.9yrs

Average management tenure


CEO

Charles Vennat

0.75

Tenure

CA$686,833

Compensation

Mr. Charles Vennat has been a Director at 48North Cannabis Corp. since May 09, 2020. He is the Chief Executive Officer at 48North Cannabis Corp. since March 09, 2020 and served as its Chief Corporate Offic...


CEO Compensation Analysis

Compensation vs Market: Charles's total compensation ($USD530.88K) is above average for companies of similar size in the Canadian market ($USD166.28K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Charles Vennat
CEO & Director0.75yrCA$686.83k0.42%
CA$ 141.3k
David Hackett
Chief Financial Officer2.67yrsCA$385.99k0.29%
CA$ 99.6k
Kirsten Gauthier
Chief Marketing Officer1.33yrsCA$363.98k0.24%
CA$ 81.4k
Geoff Owen
Vice President of Operationsno datano datano data
Michael Highdale
Chief Operating Officer0.42yrno datano data
Connor Whitworth
Senior Director of Corporate Affairsno datano datano data
Richard Meloff
Senior Vice President of Sales & Commercializationno datano datano data
Steven Lacroce
Vice President of Corporate Development0.92yrno datano data
Beth Feyerer
Vice President of Human Resourcesno datano datano data

0.9yrs

Average Tenure

Experienced Management: NRTH's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Charles Vennat
CEO & Director0.75yrCA$686.83k0.42%
CA$ 141.3k
Martin Cauchon
Independent Chairman2.5yrsno data0.48%
CA$ 160.9k
William Assini
Independent Director2.5yrsno data0.11%
CA$ 38.2k
James Gervais
Independent Director2.5yrsno data0.14%
CA$ 47.6k
Anne Darche
Independent Director2.5yrsno data0.18%
CA$ 60.4k
Susan Nickle
Director0.58yrno datano data
Alain Dubuc
Independent Director2.5yrsno data0.24%
CA$ 79.9k

2.5yrs

Average Tenure

66yo

Average Age

Experienced Board: NRTH's board of directors are not considered experienced ( 2.5 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: NRTH 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 12.5%.


Top Shareholders

Company Information

48North Cannabis Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 48North Cannabis Corp.
  • Ticker: NRTH
  • Exchange: TSXV
  • Founded:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$33.796m
  • Shares outstanding: 198.80m
  • Website: https://www.48nrth.com

Number of Employees


Location

  • 48North Cannabis Corp.
  • 257 Adelaide Street West
  • Suite 500
  • Toronto
  • Ontario
  • M5H 1X9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NRTHTSXV (TSX Venture Exchange)YesCommon SharesCACADJun 2018
NCNN.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2018

Biography

48North Cannabis Corp. operates as a cannabis company in the health and wellness market in Canada. The company offers bath salts, intimacy oils, flowers, pre-rolls, body cream and oil, vapes, pressed hash,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 00:46
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2020/06/30


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.