DB:0OG

Stock Analysis Report

Executive Summary

OrganiGram Holdings Inc., through its subsidiaries, produces and sells dried cannabis and cannabis oil in Canada.

Snowflake

Fundamentals

Solid track record with high growth potential.

Risks

  • OrganiGram Holdings has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.5%

DB:0OG

-0.6%

DE Pharmaceuticals

-1.5%

DE Market


1 Year Return

29.5%

DB:0OG

-9.9%

DE Pharmaceuticals

-10.4%

DE Market

0OG outperformed the Pharmaceuticals industry which returned -9.9% over the past year.

0OG outperformed the Market in Germany which returned -10.4% over the past year.


Share holder returns

0OGIndustryMarket
7 Day-5.5%-0.6%-1.5%
30 Day-17.3%4.3%-4.6%
90 Day-34.6%9.1%-4.6%
1 Year29.5%29.5%-6.8%-9.9%-7.6%-10.4%
3 Year396.4%396.4%-13.4%-20.7%9.4%0.03%
5 Yearn/a33.5%11.6%25.6%8.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is OrganiGram Holdings undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

OrganiGram Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

OrganiGram Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

OrganiGram Holdings is overvalued based on earnings compared to the DE Pharmaceuticals industry average.

OrganiGram Holdings is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

OrganiGram Holdings is good value based on expected growth next year.


Price Based on Value of Assets

OrganiGram Holdings is overvalued based on assets compared to the DE Pharmaceuticals industry average.


Next Steps

Future Growth

How is OrganiGram Holdings expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

42.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

OrganiGram Holdings's revenue is expected to grow significantly at over 20% yearly.

OrganiGram Holdings's earnings are expected to grow significantly at over 20% yearly.

OrganiGram Holdings's revenue growth is expected to exceed the Germany market average.

OrganiGram Holdings's earnings growth is expected to exceed the Germany market average.

OrganiGram Holdings's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if OrganiGram Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has OrganiGram Holdings performed over the past 5 years?

73.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

OrganiGram Holdings has delivered over 20% year on year earnings growth in the past 5 years.

OrganiGram Holdings's 1-year earnings growth exceeds its 5-year average (1383% vs 73.6%)

OrganiGram Holdings's earnings growth has exceeded the DE Pharmaceuticals industry average in the past year (1383% vs 4.5%).


Return on Equity

OrganiGram Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

OrganiGram Holdings used its assets more efficiently than the DE Pharmaceuticals industry average last year based on Return on Assets.


Return on Capital Employed

OrganiGram Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is OrganiGram Holdings's financial position?


Financial Position Analysis

OrganiGram Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

OrganiGram Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

OrganiGram Holdings's level of debt (14.7%) compared to net worth is satisfactory (less than 40%).

Unable to establish if OrganiGram Holdings's debt level has increased without past 5-year debt data.

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 4.7x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate OrganiGram Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate OrganiGram Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as OrganiGram Holdings has not reported any payouts.

Unable to verify if OrganiGram Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as OrganiGram Holdings has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of OrganiGram Holdings's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Greg Engel (54yo)

2.4yrs

Tenure

CA$387,957

Compensation

Mr. Greg Engel has been Chief Executive Officer of OrganiGram Holdings Inc. since March 13, 2017. Mr. Engel has served in a number of senior-level and executive positions in related industries over the pas ...


CEO Compensation Analysis

Greg's remuneration is lower than average for companies of similar size in Germany.

Greg's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.7yrs

Average Tenure

46yo

Average Age

The average tenure for the OrganiGram Holdings management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

The average tenure for the OrganiGram Holdings board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by OrganiGram Holdings individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyCA$6,77403 Jul 19
Dexter D. John
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,160
Max PriceCA$5.84
BuyCA$4,77727 Feb 19
Dexter D. John
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares865
Max PriceCA$5.52
BuyCA$29,53031 Jan 19
Paolo De Luca
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares6,000
Max PriceCA$4.92
SellCA$249,96531 Jan 19
Michel Bourque
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares83,057
Max PriceCA$4.94
BuyCA$7,58602 Jan 19
Dexter D. John
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,100
Max PriceCA$3.62
BuyCA$21,35703 Nov 18
Derrick West
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,620
Max PriceCA$3.91
SellCA$462,25912 Sep 18
Kenneth Mitton
EntityIndividual
Shares100,000
Max PriceCA$4.71

Ownership Breakdown


Management Team

  • Helen Martin (41yo)

    Senior VP of Strategic & Legal Affairs and Company Secretary

    • Tenure: 0.3yrs
  • Paolo De Luca (46yo)

    Chief Financial Officer

    • Tenure: 1.7yrs
    • Compensation: CA$253.15k
  • Amy Schwalm

    Vice President of Investor Relations

    • Tenure: 0.6yrs
  • Jeff Purcell

    Vice President - Operations

    • Tenure: 2.2yrs
    • Compensation: CA$237.81k
  • Larry Rogers

    Vice President of International Business Development

    • Tenure: 1.8yrs
    • Compensation: CA$222.73k
  • Ray Gracewood

    Senior Vice President of Marketing & Communications

    • Tenure: 0.3yrs
    • Compensation: CA$177.11k
  • Peter Hanson

    Director of Finance

    • Tenure: 1.7yrs
    • Compensation: CA$143.13k
  • Greg Engel (54yo)

    CEO & Director

    • Tenure: 2.4yrs
    • Compensation: CA$387.96k
  • Tim Emberg

    Senior Vice President of Sales & Commercial Operations

    • Tenure: 1.8yrs
    • Compensation: CA$285.35k
  • James Cavanagh

    Chief of Staff

    • Tenure: 0.3yrs

Board Members

  • Peter Amirault

    Chairman & Lead Director

    • Tenure: 1.4yrs
    • Compensation: CA$72.67k
  • Derrick West

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: CA$41.74k
  • Dexter D. John (49yo)

    Independent Director

    • Tenure: 0.7yrs
  • Michel Bourque

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: CA$56.22k
  • Sherry Porter

    Independent Director

    • Tenure: 0.7yrs
  • Greg Engel (54yo)

    CEO & Director

    • Tenure: 2.4yrs
    • Compensation: CA$387.96k

Company Information

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


Key Information

  • Name: OrganiGram Holdings Inc.
  • Ticker: 0OG
  • Exchange: DB
  • Founded: 2013
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$1.065b
  • Listing Market Cap: CA$722.558m
  • Shares outstanding: 156.18m
  • Website: https://www.organigram.ca

Number of Employees


Location

  • OrganiGram Holdings Inc.
  • 35 English Drive
  • Moncton
  • New Brunswick
  • E1E 3X3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OGITSXV (TSX Venture Exchange)YesCommon SharesCACADAug 2014
OGINasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDAug 2014
0OGDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2014
0VB6LSE (London Stock Exchange)YesCommon SharesGBCADAug 2014

Biography

OrganiGram Holdings Inc., through its subsidiaries, produces and sells dried cannabis and cannabis oil in Canada. It also offers wholesale shipping of cannabis plant cuttings, dried flowers, blends, pre-ro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 21:53
End of Day Share Price2019/08/19 00:00
Earnings2019/05/31
Annual Earnings2018/08/31


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.