TSXV:NRTH

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 93.8% below its fair value

Revenue is forecast to grow 58.6% per year

Revenue grew by 293.2% over the past year

Risk Analysis

Shareholders have been substantially diluted in the past year

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Does not have meaningful revenue (CA$5M)

+ 1 more risk


Snowflake Analysis

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

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


Market Performance


7 Day Return

1.5%

NRTH

5.6%

CA Pharmaceuticals

0.6%

CA Market


1 Year Return

-58.2%

NRTH

-57.9%

CA Pharmaceuticals

5.8%

CA Market

Return vs Industry: NRTH matched the Canadian Pharmaceuticals industry which returned -57.9% over the past year.

Return vs Market: NRTH underperformed the Canadian Market which returned 5.8% over the past year.


Shareholder returns

NRTHIndustryMarket
7 Day1.5%5.6%0.6%
30 Day-5.7%-14.1%0.5%
90 Day-16.5%0.6%3.6%
1 Year-58.2%-58.2%-57.9%-57.9%9.1%5.8%
3 Yearn/a14.5%13.7%15.4%5.0%
5 Yearn/a317.1%317.1%33.6%14.0%

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

Below Fair Value: NRTH (CA$0.33) is trading below our estimate of fair value (CA$5.36)

Significantly Below Fair Value: 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

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 (1.4x).


Next Steps

Future Growth

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

58.6%

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 (1.4%).

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 (58.6% per year) is forecast to grow faster than the Canadian market (4.9% per year).

High Growth Revenue: NRTH's revenue (58.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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?

58.6%

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

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 (-11.3%).


Return on Equity

High ROE: NRTH has a negative Return on Equity (-5.36%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is 48North Cannabis's financial position?


Financial Position Analysis

Short Term Liabilities: NRTH's short term assets (CA$62.6M) exceed its short term liabilities (CA$4.9M).

Long Term Liabilities: NRTH's short term assets (CA$62.6M) exceed its long term liabilities (CA$3.4M).


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 a year 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%1.9%markettop25%5.3%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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.


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?

0.5yrs

Average management tenure


CEO

Alison Gordon 0

0.4yrs

Tenure

CA$2,527,339

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: Alison's total compensation ($USD1.91M) is above average for companies of similar size in the Canadian market ($USD155.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alison Gordon
CEO & Director0.4yrsCA$2.53m0.43% CA$252.6k
David Hackett
Chief Financial Officer1.8yrsCA$1.06m0.31% CA$181.5k
Kevin Helfand
Chief Operating Officer2.4yrsCA$971.36kno data
Kirsten Gauthier
Chief Marketing Officer0.5yrsno data0.19% CA$110.9k
Charles Vennat
Chief Corporate Officer0.5yrsno datano data

0.5yrs

Average Tenure

Experienced Management: NRTH's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Alison Gordon
CEO & Director0.4yrsCA$2.53m0.43% CA$252.6k
Martin Cauchon
Independent Chairman1.7yrsno data0.36% CA$209.5k
William Assini
Independent Director1.7yrsno data0.072% CA$42.2k
James Gervais
Independent Director1.7yrsno data0.11% CA$64.7k
Anne Darche
Independent Director1.7yrsno data0.094% CA$55.0k
Alan Gertner
Independent Director0.3yrsno datano data
Alain Dubuc
Independent Director1.7yrsno data0.25% CA$145.5k

1.7yrs

Average Tenure

65yo

Average Age

Experienced Board: NRTH's board of directors are not considered experienced ( 1.7 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 substantially diluted in the past year, with total shares outstanding growing by 108.3%.


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$58.593m
  • Shares outstanding: 177.55m
  • Website: https://www.48nrth.com

Number of Employees


Location

  • 48North Cannabis Corp.
  • 243 Queen Street West
  • Suite 200
  • 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 health and wellness market in Canada. The company produces, processes, and sells cannabis. 48North Cannabis Corp. 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 Analysis2020/02/17 01:44
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
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.