TSXV:NRTH

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet and fair value.


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


Market Performance


7 Day Return

-7.3%

NRTH

-5.8%

CA Pharmaceuticals

0.3%

CA Market


1 Year Return

-21.5%

NRTH

-58.4%

CA Pharmaceuticals

0.1%

CA Market

Return vs Industry: NRTH exceeded the Canadian Pharmaceuticals industry which returned -58.4% over the past year.

Return vs Market: NRTH underperformed the Canadian Market which returned 0.1% over the past year.


Shareholder returns

NRTHIndustryMarket
7 Day-7.3%-5.8%0.3%
30 Day-36.3%-22.8%-2.5%
90 Day-37.8%-33.7%-1.4%
1 Year-21.5%-21.5%-58.4%-58.4%3.6%0.1%
3 Yearn/a85.8%84.4%14.3%4.1%
5 Yearn/a274.7%274.7%25.0%6.9%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NRTH (CA$0.51) is trading below our estimate of fair value (CA$4.37)

Significantly Undervalued: NRTH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NRTH is unprofitable, so we can't compare its PE Ratio to the 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

Low 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 (1x) compared to the CA Pharmaceuticals industry average (1.9x).


Next Steps

Future Growth

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

63.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if NRTH'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: NRTH's revenue (63.8% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: NRTH's revenue (63.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if NRTH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

34.6%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NRTH is unprofitable, and there is insufficient past data to establish if their past 5-year earnings growth rate was positive.

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 (15.6%).


Return on Equity

High ROE: NRTH has a negative Return on Equity (-9.47%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is 48North Cannabis's financial position?


Financial Position Analysis

Short Term Liabilities: NRTH's short term assets (CA$61.4M) exceeds its short term liabilities (CA$4.7M)

Long Term Liabilities: NRTH's short term assets (61.4M) exceeds its long term liabilities (520.1K)


Debt to Equity History and Analysis

Debt Level: NRTH is debt free.

Reducing Debt: NRTH had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if NRTH's debt is covered by short term assets.


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 more than 3 years based on its current free cash flow.

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


Next Steps

Dividend

What is 48North Cannabis'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 NRTH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NRTH'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 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

What is the CEO of 48North Cannabis's salary, the management and board of directors tenure and is there insider trading?

0.2yrs

Average management tenure


CEO

Alison Gordon 0

0.08yrs

Tenure

CA$777,505

Compensation

Ms. Alison Gordon is Chief Executive Officer at 48North Cannabis Corp. since September 10, 2019. Ms. Gordon served as Co- Chief Executive Officer since November 30, 2018 until September 10, 2019 and serves ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Alison's total compensation is reasonable compared to companies of similar size in the Canadian market.

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


Management Age and Tenure

0.2yrs

Average Tenure

Experienced Management: NRTH's management team is not considered experienced ( 0.2 years average tenure), which suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

65yo

Average Age

Experienced Board: NRTH's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: NRTH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$70,00030 Sep 19
Paul Caland
EntityIndividual
Shares100,000
Max PriceCA$0.70
BuyCA$80,58517 Sep 19
Paul Caland
EntityIndividual
Shares100,000
Max PriceCA$0.81
BuyCA$119,88930 Aug 19
Paul Caland
EntityIndividual
Shares150,500
Max PriceCA$0.81
BuyCA$41,00027 Aug 19
Paul Caland
EntityIndividual
Shares50,000
Max PriceCA$0.82
BuyCA$90,00012 Aug 19
Paul Caland
EntityIndividual
Shares100,000
Max PriceCA$0.90
BuyCA$16,00025 Jul 19
Paul Caland
EntityIndividual
Shares20,000
Max PriceCA$0.80
BuyCA$81,00022 Jul 19
Paul Caland
EntityIndividual
Shares100,000
Max PriceCA$0.81
BuyCA$82,81219 Jul 19
Paul Caland
EntityIndividual
Shares101,000
Max PriceCA$0.82
BuyCA$82,00011 Jul 19
Paul Caland
EntityIndividual
Shares100,000
Max PriceCA$0.82
BuyCA$81,00010 Jul 19
Paul Caland
EntityIndividual
Shares100,000
Max PriceCA$0.81
BuyCA$2,87009 Jul 19
Paul Caland
EntityIndividual
Shares3,500
Max PriceCA$0.82
BuyCA$47,79003 Jul 19
Paul Caland
EntityIndividual
Shares59,000
Max PriceCA$0.81
BuyCA$162,00002 Jul 19
Paul Caland
EntityIndividual
Shares200,000
Max PriceCA$0.81
SellCA$909,93222 May 19
Groupe Lune Rouge Inc.
EntityCompany
Shares865,700
Max PriceCA$1.19
BuyCA$19,80017 Apr 19
Alison Gordon
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares20,000
Max PriceCA$0.99
BuyCA$19,95506 Dec 18
Martin Cauchon
EntityIndividual
Role
Chairman of the Board
Chairman
Shares30,700
Max PriceCA$0.65

Ownership Breakdown


Management Team

  • David Hackett (54yo)

    Chief Financial Officer

    • Tenure: 1.5yrs
    • Compensation: CA$165.51k
  • Alison Gordon

    CEO & Director

    • Tenure: 0.08yrs
    • Compensation: CA$777.51k
  • Kevin Helfand

    Chief Operating Officer

    • Tenure: 2.1yrs
    • Compensation: CA$474.43k
  • Kirsten Gauthier

    Chief Marketing Officer

    • Tenure: 0.2yrs
  • Charles Vennat

    Chief Corporate Officer

    • Tenure: 0.2yrs

Board Members

  • Martin Cauchon

    Chairman

    • Tenure: 1.3yrs
  • Bill Assini (65yo)

    Director

    • Tenure: 1.3yrs
  • Jim Gervais (81yo)

    Director

    • Tenure: 1.3yrs
  • Anne Darche (63yo)

    Director

    • Tenure: 1.3yrs
  • Alison Gordon

    CEO & Director

    • Tenure: 0.08yrs
    • Compensation: CA$777.51k
  • Jeannette VanderMarel

    Director

    • Tenure: 0.9yrs
  • Alain Dubuc

    Director

    • Tenure: 1.3yrs

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$87.152m
  • Shares outstanding: 170.89m
  • Website: https://www.48nrth.com

Number of Employees


Location

  • 48North Cannabis Corp.
  • 243 Queen Street West
  • 2nd Floor
  • Toronto
  • Ontario
  • M5V 1Z4
  • 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 female health and wellness market in Canada. The company, through its subsidiary, DelShen Therapeutics Corp., grows genetics and owns 800-acres  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:53
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.