TSXV:WMD

Stock Analysis Report

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Executive Summary

WeedMD Inc. produces, distributes, and sells medical-grade cannabis in Canada. More Details


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WMD is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: WMD's weekly volatility (11%) has been stable over the past year.


Market Performance


7 Day Return

3.5%

WMD

2.7%

CA Pharmaceuticals

1.7%

CA Market


1 Year Return

-72.7%

WMD

16.0%

CA Pharmaceuticals

0.2%

CA Market

Return vs Industry: WMD underperformed the Canadian Pharmaceuticals industry which returned 5.2% over the past year.

Return vs Market: WMD underperformed the Canadian Market which returned -1.5% over the past year.


Shareholder returns

WMDIndustryMarket
7 Day3.5%2.7%1.7%
30 Day13.5%20.2%7.0%
90 Day-13.2%31.0%5.1%
1 Year-72.7%-72.7%16.0%16.0%3.9%0.2%
3 Year-86.7%-86.7%-31.4%-32.4%13.1%2.1%
5 Yearn/a247.2%244.7%46.5%24.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is WeedMD 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: WMD (CA$0.3) is trading below our estimate of fair value (CA$4)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: WMD is good value based on its PB Ratio (0.4x) compared to the CA Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is WeedMD forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

138.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WMD is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: WMD is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: WMD is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: WMD's revenue (63.5% per year) is forecast to grow faster than the Canadian market (6.1% per year).

High Growth Revenue: WMD's revenue (63.5% 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 WMD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has WeedMD performed over the past 5 years?

-40.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WMD is currently unprofitable.

Growing Profit Margin: WMD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WMD is unprofitable, and losses have increased over the past 5 years at a rate of 40.1% per year.

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

Earnings vs Industry: WMD is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-19.7%).


Return on Equity

High ROE: WMD has a negative Return on Equity (-26.78%), as it is currently unprofitable.


Next Steps

  • Explore strong past performing companies in the Pharmaceuticals & Biotech industry.

Financial Health

How is WeedMD's financial position?


Financial Position Analysis

Short Term Liabilities: WMD's short term assets (CA$55.7M) exceed its short term liabilities (CA$15.2M).

Long Term Liabilities: WMD's short term assets (CA$55.7M) exceed its long term liabilities (CA$44.7M).


Debt to Equity History and Analysis

Debt Level: WMD's debt to equity ratio (31.2%) is considered satisfactory.

Reducing Debt: WMD's debt to equity ratio has increased from 0.8% to 31.2% over the past 5 years.


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: WMD has less than a year of cash runway based on its current free cash flow.

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


Next Steps

Dividend

What is WeedMD current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if WMD'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 WMD'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

Angelo Tsebelis

0.75

Tenure

CA$6,799

Compensation

Mr. Angelo Tsebelis has been Chief Executive Officer of WeedMD Inc since February 4, 2020. He serves as President and Director of WeedMD Inc., since December 2019, formerly President of Starseed. He has co...


Leadership Team

NamePositionTenureCompensationOwnership
George Scorsis
Executive Chair of the Board0.92yrCA$172.16k0.011%
CA$ 6.8k
Angelo Tsebelis
CEO, President & Director0.75yrCA$6.80k0.66%
CA$ 393.4k
Michael Kraft
Strategic Advisor to the board0.92yrCA$174.68kno data
Lincoln E. Greenidge
Chief Financial Officer0.58yrno datano data
Jeff Keyes
Vice President of Operations1.25yrsno datano data
Alexandre Sibilev
Vice-President of Quality Assurance & Global Regulatory Compliance1.67yrsno datano data
Jason Alexander
Chief Legal Officer0.67yrno data0.049%
CA$ 29.1k
Marianella delaBarrera
Vice President of Communications & Corporate Affairs2.08yrsno datano data
Deborah Sikkema
Chief People Officer0.83yrno datano data
Jonas Vanderzwan
Medical Director & Chair of Clinical Advisory Board2.67yrsno datano data
Stephen Ng
Chief Commercial Officer0.92yrno data0.66%
CA$ 393.4k
Peter Blecher
Chief Medical Officer0.92yrno data0.43%
CA$ 256.8k

0.9yrs

Average Tenure

50yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
George Scorsis
Executive Chair of the Board0.92yrCA$172.16k0.011%
CA$ 6.8k
Angelo Tsebelis
CEO, President & Director0.75yrCA$6.80k0.66%
CA$ 393.4k
Jonas Vanderzwan
Medical Director & Chair of Clinical Advisory Board2.67yrsno datano data
George King
Lead Independent Directorno datano data2.98%
CA$ 1.8m
Bruce Croxon
Independent Director0.33yrno datano data
Gail Paech
Independent Director3.58yrsCA$196.50k0.018%
CA$ 10.7k
Lu Cacioppo
Independent Director0.083yrno datano data

0.9yrs

Average Tenure

72yo

Average Age

Experienced Board: WMD's board of directors are not considered experienced ( 0.9 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 83.4%.


Top Shareholders

Company Information

WeedMD Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: WeedMD Inc.
  • Ticker: WMD
  • Exchange: TSXV
  • Founded:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$59.925m
  • Shares outstanding: 210.26m
  • Website: https://www.weedmd.com

Number of Employees


Location

  • WeedMD Inc.
  • 250 Elm Street
  • Aylmer
  • Ontario
  • N5H 2M8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WMDTSXV (TSX Venture Exchange)YesCommon SharesCACADApr 2017
4WEDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2017
WDDM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 2017

Biography

WeedMD Inc. produces, distributes, and sells medical-grade cannabis in Canada. It offers dried cannabis, cannabis plants and seeds, cannabis oil, edibles, extracts and topicals, and others, as well as cann...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 00:30
End of Day Share Price2020/11/24 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.