CNSX:STEM

Stock Analysis Report

Executive Summary

Stem Holdings, Inc. operates as a real estate holding company.

Snowflake

Fundamentals

Adequate balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.6%

STEM

0.1%

CA Real Estate

0.3%

CA Market


1 Year Return

-50.0%

STEM

16.2%

CA Real Estate

0.1%

CA Market

Return vs Industry: STEM underperformed the Canadian Real Estate industry which returned 16.2% over the past year.

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


Shareholder returns

STEMIndustryMarket
7 Day-2.6%0.1%0.3%
30 Day27.6%2.9%-2.5%
90 Day-1.3%4.4%-1.4%
1 Year-50.0%-50.0%18.4%16.2%3.6%0.1%
3 Yearn/a54.3%44.3%14.3%4.1%
5 Yearn/a79.5%43.4%25.0%6.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Stem Holdings undervalued compared to its fair value and its price relative to the market?

1.33x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate STEM's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate STEM's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: STEM is overvalued based on its PB Ratio (1.3x) compared to the CA Real Estate industry average (0.9x).


Next Steps

Future Growth

How is Stem Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

33.0%

Forecasted Real Estate 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 Stem Holdings 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

  • Examine Stem Holdings's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Stem Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.
  • Explore growth companies in the Real Estate industry.

Past Performance

How has Stem Holdings performed over the past 5 years?

-65.5%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: STEM 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 STEM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: STEM is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-29.6%).


Return on Equity

High ROE: STEM has a negative Return on Equity (-33.49%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Stem Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: STEM's short term assets ($10.2M) exceeds its short term liabilities ($5.4M)

Long Term Liabilities: STEM's short term assets (10.2M) exceeds its long term liabilities (321.1K)


Debt to Equity History and Analysis

Debt Level: STEM's debt to equity ratio (14.3%) is considered satisfactory

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


Balance Sheet

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

Debt Coverage by Assets: STEM's debt is covered by short term assets (assets are 2.042990x 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: STEM has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: STEM has sufficient cash runway for 1.336824 years if free cash flow continues to reduce at historical rates of -44.7% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Growing Dividend: Insufficient data to determine if STEM'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 STEM'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 Stem Holdings's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Adam Berk (41yo)

3.3yrs

Tenure

US$3,554,900

Compensation

Mr. Adam Berk has been the Chief Executive Officer, President and Director of Stem Holdings, Inc. since June 2016 and serves as its Chairman. Mr. Berk is the founder of HYD For Men and served as its Chief  ...


CEO Compensation Analysis

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

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


Management Age and Tenure

2.5yrs

Average Tenure

41yo

Average Age

Experienced Management: STEM's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

58yo

Average Age

Experienced Board: STEM's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Steve Hubbard (71yo)

    CFO, Secretary & Director

    • Tenure: 3.3yrs
    • Compensation: US$952.50k
  • Adam Berk (41yo)

    Chairman of the Board

    • Tenure: 3.3yrs
    • Compensation: US$3.55m
  • Jessica Feingold (36yo)

    General Counsel & Director

    • Tenure: 1.6yrs
    • Compensation: US$347.50k
  • Geoff Ostrove

    National Director of Business Development

    • Tenure: 0yrs
  • Mauria Betts

    Director of Branding & Public Relations

    • Tenure: 0yrs
  • Eugene Purtell

    Director of Sales

    • Tenure: 0.8yrs

Board Members

  • Dennis Suskind (76yo)

    • Tenure: 0.4yrs
  • Lindy Snider (58yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$117.35k
  • Charlie Gargano (84yo)

    • Tenure: 0.8yrs
  • Steve Hubbard (71yo)

    CFO, Secretary & Director

    • Tenure: 3.3yrs
    • Compensation: US$952.50k
  • Garrett Bender (58yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$117.35k
  • Adam Berk (41yo)

    Chairman of the Board

    • Tenure: 3.3yrs
    • Compensation: US$3.55m
  • Jessica Feingold (36yo)

    General Counsel & Director

    • Tenure: 1.6yrs
    • Compensation: US$347.50k

Company Information

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


Key Information

  • Name: Stem Holdings, Inc.
  • Ticker: STEM
  • Exchange: CNSX
  • Founded: 2016
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: US$56.062m
  • Listing Market Cap: US$74.186m
  • Shares outstanding: 50.05m
  • Website: https://www.stemholdings.com

Number of Employees


Location

  • Stem Holdings, Inc.
  • 7777 Glades Road
  • Suite 203
  • Boca Raton
  • Florida
  • 33434
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STMHOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMay 2018
STEMCNSX (Canadian National Stock Exchange)YesCommon StockCACADMay 2018

Biography

Stem Holdings, Inc. operates as a real estate holding company. It purchases, improves, and leases properties for use in the cannabis production, distribution, and sales industry, as well as a cultivator pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:42
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.