TSX:FAF

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Fire & Flower Holdings

Executive Summary

Fire & Flower Holdings Corp., through its subsidiary, Fire & Flower Inc., operates as an independent retailer that offers cannabis products and accessories to the adult-use market in Alberta and Saskatchewan. More Details


Snowflake Analysis

Slightly overvalued with limited growth.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FAF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

FAF

2.7%

CA Specialty Retail

-0.4%

CA Market


1 Year Return

-30.0%

FAF

7.1%

CA Specialty Retail

-4.0%

CA Market

Return vs Industry: FAF underperformed the Canadian Specialty Retail industry which returned 7.2% over the past year.

Return vs Market: FAF underperformed the Canadian Market which returned -3.9% over the past year.


Shareholder returns

FAFIndustryMarket
7 Day-1.2%2.7%-0.4%
30 Day12.0%9.7%2.3%
90 Day-20.0%23.8%1.7%
1 Year-30.0%-30.0%10.0%7.1%-0.5%-4.0%
3 Yearn/a-24.2%-29.9%6.5%-3.9%
5 Yearn/a11.9%-2.4%35.4%14.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Fire & Flower Holdings 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: FAF (CA$0.84) is trading below our estimate of fair value (CA$2.15)

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


Price To Earnings Ratio

PE vs Industry: FAF is unprofitable, so we can't compare its PE Ratio to the XN Specialty Retail industry average.

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


Price to Book Ratio

PB vs Industry: FAF is overvalued based on its PB Ratio (5.6x) compared to the CA Specialty Retail industry average (1.4x).


Next Steps

Future Growth

How is Fire & Flower Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

51.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if FAF's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if FAF'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: FAF's revenue (51.7% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: FAF's revenue (51.7% 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 FAF's Return on Equity is forecast to be high in 3 years time


Next Steps

  • Explore growth companies in the Retail industry.

Past Performance

How has Fire & Flower Holdings performed over the past 5 years?

-4.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: FAF is currently unprofitable.

Growing Profit Margin: FAF is currently unprofitable.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: FAF is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (3%).


Return on Equity

High ROE: FAF has a negative Return on Equity (-220.49%), as it is currently unprofitable.


Next Steps

Financial Health

How is Fire & Flower Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: FAF's short term assets (CA$39.1M) do not cover its short term liabilities (CA$84.5M).

Long Term Liabilities: FAF's short term assets (CA$39.1M) exceed its long term liabilities (CA$36.5M).


Debt to Equity History and Analysis

Debt Level: FAF's debt to equity ratio (143.6%) is considered high.

Reducing Debt: Insufficient data to determine if FAF's debt to equity ratio has reduced 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: FAF has sufficient cash runway for more than a year based on its current free cash flow.

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


Next Steps

Dividend

What is Fire & Flower Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

1.7yrs

Average management tenure


CEO

Trevor Fencott (50 yo)

1.67yrs

Tenure

CA$1,085,298

Compensation

Mr. Trevor Fencott has been Director of Canadian Chamber Of Commerce since September 2019. Mr. Fencott has been President and Chief Executive Officer of Fire & Flower Holdings Corp. since February 13, 2019 ...


CEO Compensation Analysis

Compensation vs Market: Trevor's total compensation ($USD825.60K) is above average for companies of similar size in the Canadian market ($USD171.35K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Harvey Shapiro
Executive Chairmanno dataCA$724.95k5.24%
CA$ 7.8m
Trevor Fencott
President1.67yrsCA$1.09m7.19%
CA$ 10.7m
Nadia Vattovaz
CFO & Executive VP of Operations1.67yrsCA$1.27m0.012%
CA$ 18.6k
Mike Vioncek
COO and Senior VP of Real Estate1.67yrsCA$346.60kno data
Matthew Hollingshead
President & CEO of Hifyre Inc.no dataCA$492.75k1.04%
CA$ 1.6m
Ken Doige
Vice President of Compliance & Risk Management1.92yrsno datano data
Matthew Anderson
VP of Business & Legal Affairs and Corporate Secretaryno datano data0.0017%
CA$ 2.5k
Chris Bolivar
Vice President of Brand & Marketing2.5yrsno datano data
Jesse Cheetham
Vice President of Human Resources1.5yrsno datano data

1.7yrs

Average Tenure

Experienced Management: FAF's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Harvey Shapiro
Executive Chairmanno dataCA$724.95k5.24%
CA$ 7.8m
Trevor Fencott
President1.67yrsCA$1.09m7.19%
CA$ 10.7m
Avininder Grewal
Non-Executive Director2.83yrsCA$84.78k0.18%
CA$ 274.1k
Donald Wright
Lead Independent Directorno dataCA$93.94k0.70%
CA$ 1.1m
Jason Pincock
Member of Alberta Advisory Board2.58yrsno datano data
Stéphane Trudel
Director0.33yrno data0.035%
CA$ 52.4k
Carman McNary
Chair of Alberta Advisory Boardno datano datano data
Norman Inkster
Independent Non-Executive Director1.67yrsCA$93.28k0.037%
CA$ 56.0k
Sharon Ranson
Independent Non-Executive Director1.67yrsCA$93.94k0.084%
CA$ 126.0k

1.7yrs

Average Tenure

61yo

Average Age

Experienced Board: FAF'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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 44.8%.


Top Shareholders

Company Information

Fire & Flower Holdings Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fire & Flower Holdings Corp.
  • Ticker: FAF
  • Exchange: TSX
  • Founded:
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: CA$149.425m
  • Shares outstanding: 177.89m
  • Website: https://www.fireandflower.com

Number of Employees


Location

  • Fire & Flower Holdings Corp.
  • 150 King Street West
  • Suite 308
  • Toronto
  • Ontario
  • M5H 1J9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FAFTSX (The Toronto Stock Exchange)YesCommon SharesCACADFeb 2019
FFLW.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 2019

Biography

Fire & Flower Holdings Corp., through its subsidiary, Fire & Flower Inc., operates as an independent retailer that offers cannabis products and accessories to the adult-use market in Alberta and Saskatchew ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 01:13
End of Day Share Price2020/10/23 00:00
Earnings2020/08/01
Annual Earnings2020/02/01


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.