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NOVC

Nova Cannabis TSX:NOVC Stock Report

Last Price

CA$0.73

Market Cap

CA$41.7m

7D

12.3%

1Y

-74.8%

Updated

04 Jul, 2022

Data

Company Financials +
NOVC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance0/6
Financial Health2/6
Dividends0/6

NOVC Stock Overview

Nova Cannabis Inc. engages in the operation of retail cannabis stores with a focus on the recreational-use cannabis market in Canada.

Nova Cannabis Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nova Cannabis
Historical stock prices
Current Share PriceCA$0.73
52 Week HighCA$4.42
52 Week LowCA$0.65
Beta0
1 Month Change-34.82%
3 Month Change-67.12%
1 Year Change-74.83%
3 Year Changen/a
5 Year Changen/a
Change since IPO-75.91%

Recent News & Updates

Shareholder Returns

NOVCCA Specialty RetailCA Market
7D12.3%-2.1%-1.2%
1Y-74.8%-22.1%-4.5%

Return vs Industry: NOVC underperformed the Canadian Specialty Retail industry which returned -23.2% over the past year.

Return vs Market: NOVC underperformed the Canadian Market which returned -5% over the past year.

Price Volatility

Is NOVC's price volatile compared to industry and market?
NOVC volatility
NOVC Average Weekly Movement14.8%
Specialty Retail Industry Average Movement6.2%
Market Average Movement10.1%
10% most volatile stocks in CA Market17.5%
10% least volatile stocks in CA Market4.4%

Stable Share Price: NOVC is more volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: NOVC's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of Canadian stocks.

About the Company

FoundedEmployeesCEOWebsite
n/a548Marcie Kiziakhttps://www.novacannabis.ca

Nova Cannabis Inc. engages in the operation of retail cannabis stores with a focus on the recreational-use cannabis market in Canada. As of March 31, 2022, the company operated 78 cannabis stores in Alberta, Ontario, and Saskatchewan. The company is headquartered in Edmonton, Canada.

Nova Cannabis Fundamentals Summary

How do Nova Cannabis's earnings and revenue compare to its market cap?
NOVC fundamental statistics
Market CapCA$41.72m
Earnings (TTM)-CA$21.92m
Revenue (TTM)CA$165.80m

0.3x

P/S Ratio

-1.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NOVC income statement (TTM)
RevenueCA$165.80m
Cost of RevenueCA$136.34m
Gross ProfitCA$29.46m
Other ExpensesCA$51.38m
Earnings-CA$21.92m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.38
Gross Margin17.77%
Net Profit Margin-13.22%
Debt/Equity Ratio8.2%

How did NOVC perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is NOVC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NOVC?

Other financial metrics that can be useful for relative valuation.

NOVC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA-10.5x
PEG Ration/a

Price to Sales Ratio vs Peers

How does NOVC's PS Ratio compare to its peers?

NOVC PS Ratio vs Peers
The above table shows the PS ratio for NOVC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.8x
SNYB ShinyBud
0.8xn/aCA$19.7m
PESO PesoRama
1.6xn/aCA$15.8m
IDG Indigo Books & Music
0.09x1.1%CA$99.8m
FAF Fire & Flower Holdings
0.6x18.4%CA$109.2m
NOVC Nova Cannabis
0.3x57.1%CA$41.7m

Price-To-Sales vs Peers: NOVC is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.8x).


Price to Earnings Ratio vs Industry

How does NOVC's PE Ratio compare vs other companies in the North American Specialty Retail Industry?

Price-To-Sales vs Industry: NOVC is good value based on its Price-To-Sales Ratio (0.3x) compared to the Canadian Specialty Retail industry average (0.6x)


Price to Sales Ratio vs Fair Ratio

What is NOVC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NOVC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio3.1x

Price-To-Sales vs Fair Ratio: NOVC is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (3.1x).


Share Price vs Fair Value

What is the Fair Price of NOVC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate NOVC's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate NOVC's fair value for valuation analysis.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NOVC's PEG Ratio to determine if it is good value.


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


57.1%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if NOVC's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if NOVC's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if NOVC's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NOVC's revenue (57.1% per year) is forecast to grow faster than the Canadian market (6.5% per year).

High Growth Revenue: NOVC's revenue (57.1% 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 NOVC's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Nova Cannabis performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-32.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NOVC is currently unprofitable.

Growing Profit Margin: NOVC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NOVC is unprofitable, and losses have increased over the past 5 years at a rate of 32.2% per year.

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

Earnings vs Industry: NOVC is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (47.3%).


Return on Equity

High ROE: NOVC has a negative Return on Equity (-39.69%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Nova Cannabis's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: NOVC's short term assets (CA$19.4M) exceed its short term liabilities (CA$15.2M).

Long Term Liabilities: NOVC's short term assets (CA$19.4M) do not cover its long term liabilities (CA$46.3M).


Debt to Equity History and Analysis

Debt Level: NOVC has more cash than its total debt.

Reducing Debt: Insufficient data to determine if NOVC'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: NOVC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: NOVC has less than a year of cash runway if free cash flow continues to reduce at historical rates of 93.7% each year


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Dividend

What is Nova Cannabis's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if NOVC's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NOVC has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.3yrs

Average board tenure


CEO

Marcie Kiziak (42 yo)

0.33

Tenure

CA$417,568

Compensation

Ms. Marcie Catherine Kiziak served as Chief Operating Officer at Nova Cannabis Inc. since March 22, 2021 until March 2022 and serves as its President and Chief Executive Officer since March 31, 2022. She a...


CEO Compensation Analysis

Compensation vs Market: Marcie's total compensation ($USD324.04K) is above average for companies of similar size in the Canadian market ($USD191.19K).

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


Board Members

Experienced Board: NOVC's board of directors are not considered experienced ( 0.3 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: NOVC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nova Cannabis Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Nova Cannabis Inc.
  • Ticker: NOVC
  • Exchange: TSX
  • Founded: NaN
  • Industry: Specialty Stores
  • Sector: Retail
  • Implied Market Cap: CA$41.723m
  • Shares outstanding: 57.15m
  • Website: https://www.novacannabis.ca

Number of Employees


Location

  • Nova Cannabis Inc.
  • 17220 Stony Plain Road
  • Suite 101
  • Edmonton
  • Alberta
  • T5S1K6
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/04 00:00
End of Day Share Price2022/07/04 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.