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HEXO

DB:74H
Snowflake Description

High growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
74H
DB
CA$2B
Market Cap
  1. Home
  2. DE
  3. Pharmaceuticals & Biotech
Company description

HEXO Corp., through its subsidiary, HEXO Operations Inc., produces, markets, and sells cannabis in Canada. The last earnings update was 37 days ago. More info.


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  • HEXO has significant price volatility in the past 3 months.
74H Share Price and Events
7 Day Returns
-3.4%
DB:74H
0.3%
DE Pharmaceuticals
-1.1%
DE Market
1 Year Returns
61.6%
DB:74H
-21%
DE Pharmaceuticals
-8.5%
DE Market
74H Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HEXO (74H) -3.4% -11.1% -23.9% 61.6% - -
DE Pharmaceuticals 0.3% 5% -2.3% -21% -22.3% 9.2%
DE Market -1.1% -0.4% -4% -8.5% 8.1% 9.4%
1 Year Return vs Industry and Market
  • 74H outperformed the Pharmaceuticals industry which returned -21% over the past year.
  • 74H outperformed the Market in Germany which returned -8.5% over the past year.
Price Volatility
74H
Industry
5yr Volatility vs Market

74H Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of HEXO to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for HEXO.

DB:74H Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:74H
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.732 (1 + (1- 26.5%) (2.02%))
0.828
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.83
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.828 * 5.96%)
5.16%

Discounted Cash Flow Calculation for DB:74H using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for HEXO is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:74H DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 5.16%)
2020 -3.60 Analyst x4 -3.42
2021 104.00 Analyst x2 94.04
2022 188.29 Est @ 81.05% 161.91
2023 295.23 Est @ 56.8% 241.41
2024 412.82 Est @ 39.83% 321.00
2025 528.20 Est @ 27.95% 390.56
2026 631.89 Est @ 19.63% 444.31
2027 719.16 Est @ 13.81% 480.85
2028 789.18 Est @ 9.74% 501.78
2029 843.51 Est @ 6.88% 510.00
Present value of next 10 years cash flows CA$3,142.44
DB:74H DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$843.51 × (1 + 0.23%) ÷ (5.16% – 0.23%)
CA$17,140.71
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$17,140.71 ÷ (1 + 5.16%)10
CA$10,363.60
DB:74H Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$3,142.44 + CA$10,363.60
CA$13,506.04
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$13,506.04 / 256.90
CA$52.57
DB:74H Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:74H represents 0.69429x of TSX:HEXO
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.69429x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (CAD) x Listing Adjustment Factor
= CA$ 52.57 x 0.69429
€36.50
Value per share (EUR) From above. €36.50
Current discount Discount to share price of €4.44
= -1 x (€4.44 - €36.50) / €36.50
87.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price HEXO is available for.
Intrinsic value
>50%
Share price is €4.44 vs Future cash flow value of €36.5
Current Discount Checks
For HEXO to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • HEXO's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • HEXO's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for HEXO's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HEXO's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:74H PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-04-30) in CAD CA$-0.18
TSX:HEXO Share Price ** TSX (2019-07-19) in CAD CA$6.4
Germany Pharmaceuticals Industry PE Ratio Median Figure of 6 Publicly-Listed Pharmaceuticals Companies 27.25x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 19.67x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of HEXO.

DB:74H PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:HEXO Share Price ÷ EPS (both in CAD)

= 6.4 ÷ -0.18

-35.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HEXO is loss making, we can't compare its value to the DE Pharmaceuticals industry average.
  • HEXO is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does HEXO's expected growth come at a high price?
Raw Data
DB:74H PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -35.86x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
120.9%per year
Europe Pharmaceuticals Industry PEG Ratio Median Figure of 35 Publicly-Listed Pharmaceuticals Companies 2.04x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for HEXO, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on HEXO's assets?
Raw Data
DB:74H PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-04-30) in CAD CA$2.05
TSX:HEXO Share Price * TSX (2019-07-19) in CAD CA$6.4
Germany Pharmaceuticals Industry PB Ratio Median Figure of 7 Publicly-Listed Pharmaceuticals Companies 2.35x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.73x
DB:74H PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:HEXO Share Price ÷ Book Value per Share (both in CAD)

= 6.4 ÷ 2.05

3.13x

* Primary Listing of HEXO.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HEXO is overvalued based on assets compared to the DE Pharmaceuticals industry average.
X
Value checks
We assess HEXO's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. HEXO has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

74H Future Performance

 How is HEXO expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
120.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HEXO expected to grow at an attractive rate?
  • HEXO's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • HEXO's earnings growth is expected to exceed the Germany market average.
  • HEXO's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:74H Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:74H Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 120.9%
DB:74H Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 52.4%
Germany Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 17.7%
Germany Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:74H Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:74H Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-07-31 849 191 1
2022-07-31 727 145 1
2021-07-31 536 114 90 10
2020-07-31 345 73 46 15
2019-07-31 60 -42 -35 15
DB:74H Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-04-30 34 -55 -35
2019-01-31 22 -54 -30
2018-10-31 9 -44 -34
2018-07-31 5 -22 -23
2018-04-30 4 -13 -12
2018-01-31 4 -10 -22
2017-10-31 4 -6 -14
2017-07-31 4 -5 -12
2017-04-30 4 -4 -15
2017-01-31 4 -4 -3
2016-10-31 3 -3 -3
2016-07-31 2 -3 -3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HEXO's earnings are expected to grow significantly at over 20% yearly.
  • HEXO's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:74H Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from HEXO Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:74H Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-07-31 0.91 0.91 0.91 1.00
2022-07-31 0.62 0.62 0.62 1.00
2021-07-31 0.36 0.50 0.24 5.00
2020-07-31 0.13 0.24 0.05 8.00
2019-07-31 -0.18 -0.12 -0.28 10.00
DB:74H Past Financials Data
Date (Data in CAD Millions) EPS *
2019-04-30 -0.18
2019-01-31 -0.16
2018-10-31 -0.21
2018-07-31 -0.17
2018-04-30 -0.11
2018-01-31 -0.28
2017-10-31 -0.21
2017-07-31 -0.21
2017-04-30 -0.30
2017-01-31 -0.06
2016-10-31 -0.07
2016-07-31 -0.11

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • HEXO is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess HEXO's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
HEXO has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

74H Past Performance

  How has HEXO performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare HEXO's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • HEXO does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare HEXO's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare HEXO's 1-year growth to the DE Pharmaceuticals industry average as it is not currently profitable.
Earnings and Revenue History
HEXO's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from HEXO Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:74H Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-04-30 33.53 -35.39 73.09
2019-01-31 21.75 -29.61 54.23
2018-10-31 9.50 -34.23 41.42 -0.06
2018-07-31 4.93 -23.35 22.71
2018-04-30 4.38 -11.91 14.81
2018-01-31 4.33 -21.74 12.12
2017-10-31 4.06 -13.91 8.56 0.04
2017-07-31 4.10 -12.42 7.34
2017-04-30 4.29 -14.72 6.56 0.02
2017-01-31 3.72 -3.32 5.19 0.03
2016-10-31 2.99 -2.88 4.19 0.09
2016-07-31 1.87 -3.35 3.53 0.11
2015-07-31 0.00 -2.71 2.42 0.12

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if HEXO has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if HEXO has efficiently used its assets last year compared to the DE Pharmaceuticals industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if HEXO improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess HEXO's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
HEXO has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

74H Health

 How is HEXO's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up HEXO's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • HEXO is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • HEXO's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of HEXO's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 7.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from HEXO Company Filings, last reported 2 months ago.

DB:74H Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-04-30 432.69 33.75 173.60
2019-01-31 423.20 0.00 165.57
2018-10-31 365.87 0.00 182.42
2018-07-31 322.87 0.00 251.67
2018-04-30 291.81 0.00 248.95
2018-01-31 288.46 0.00 264.66
2017-10-31 31.43 21.15 35.25
2017-07-31 32.44 20.64 41.32
2017-04-30 27.29 0.02 19.31
2017-01-31 21.35 3.02 17.12
2016-10-31 7.71 0.34 1.15
2016-07-31 7.79 0.31 1.93
2015-07-31 3.60 1.67 0.42
  • HEXO's level of debt (7.8%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if HEXO's debt level has increased without past 5-year debt data.
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.

  • HEXO has less than a year of cash runway based on current free cash flow.
  • HEXO has less than a year of cash runway if free cash flow continues to grow at historical rates of 120.3% each year.
X
Financial health checks
We assess HEXO's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. HEXO has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

74H Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from HEXO dividends. Estimated to be 0% next year.
If you bought €2,000 of HEXO shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate HEXO's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate HEXO's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:74H Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
Germany Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 3.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:74H Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-07-31
2022-07-31
2021-07-31
2020-07-31 0.00 1.00
2019-07-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as HEXO has not reported any payouts.
  • Unable to verify if HEXO's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of HEXO's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as HEXO has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of HEXO's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess HEXO's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can HEXO afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HEXO has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

74H Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sebastien St-Louis
COMPENSATION CA$1,538,253
AGE 35
TENURE AS CEO 5.9 years
CEO Bio

Mr. Sebastien G. St-Louis is the Co-Founder of The Hydropothecary Corporation and has been its Chief Executive Officer, President and Director since August 13, 2013. Mr. St-Louis also founded Shield Real Estate Investments Inc. in 2012 and serves as its President. He served as a Senior Account Manager at the Business Development Bank of Canada from 2008 to 2011 and as Chief Financial officer of Wholesale Autoparts Warehouses from 2011 to 2012. Mr. St-Louis holds an MBA, DESS, finance from the Université du Québec à Montréal and a Bachelor of Arts from the University of Ottawa.

CEO Compensation
  • Sebastien's compensation has increased whilst company is loss making.
  • Sebastien's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the HEXO management team in years:

1.6
Average Tenure
47
Average Age
  • The average tenure for the HEXO management team is less than 2 years, this suggests a new team.
Management Team

Sebastien St-Louis

TITLE
Co-Founder
COMPENSATION
CA$2M
AGE
35
TENURE
5.9 yrs

Adam Miron

TITLE
Co-Founder & Director
COMPENSATION
CA$539K
AGE
35
TENURE
5.9 yrs

Ed Chaplin

TITLE
Executive Officer
COMPENSATION
CA$601K
AGE
49
TENURE
0.3 yrs

Jay McMillan

TITLE
Vice President of Business Development
COMPENSATION
CA$407K
AGE
51
TENURE
4 yrs

Terry Lake

TITLE
Vice-President of Corporate & Social Responsibility
COMPENSATION
CA$460K
TENURE
1.8 yrs

Michael Monahan

TITLE
Chief Financial Officer
AGE
47
TENURE
0.2 yrs

Don Courtney

TITLE
Chief Operating Officer
TENURE
0.2 yrs

Jennifer Smith

TITLE
Manager of Financial Reporting & Investor Relations

Max Cyr

TITLE
Director of Customer Experience & Compliance

Roch Vaillancourt

TITLE
General Counsel
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the HEXO board of directors in years:

4.7
Average Tenure
46
Average Age
  • The tenure for the HEXO board of directors is about average.
Board of Directors

Michael Munzar

TITLE
Chairman of the Board
COMPENSATION
CA$313K
AGE
65

Sebastien St-Louis

TITLE
Co-Founder
COMPENSATION
CA$2M
AGE
35
TENURE
5.9 yrs

Adam Miron

TITLE
Co-Founder & Director
COMPENSATION
CA$539K
AGE
35
TENURE
5.9 yrs

Jason Ewart

TITLE
Director
COMPENSATION
CA$222K
AGE
46
TENURE
4.7 yrs

Vincent Chiara

TITLE
Director
COMPENSATION
CA$245K
AGE
57
TENURE
2.7 yrs

Nathalie Bourque

TITLE
Director
COMPENSATION
CA$265K
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • HEXO individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
13. May 19 Buy Terence Lake Individual 13. May 19 13. May 19 2,000 €5.95 €11,909
10. May 19 Buy Terence Lake Individual 10. May 19 10. May 19 3,000 €6.34 €19,015
08. May 19 Sell Adam Miron Individual 07. May 19 08. May 19 -354,916 €6.68 €-2,371,313
05. May 19 Sell Sebastien St-Louis Individual 01. May 19 03. May 19 -717,084 €7.11 €-4,956,506
05. May 19 Buy Sebastien St-Louis Individual 01. May 19 01. May 19 93,750 €0.50 €46,621
02. May 19 Sell Adam Miron Individual 01. May 19 01. May 19 -150,000 €7.08 €-1,061,515
02. May 19 Buy Adam Miron Individual 01. May 19 01. May 19 150,000 €0.11 €15,913
02. May 19 Buy Terence Lake Individual 02. May 19 02. May 19 2,000 €6.61 €13,227
01. May 19 Sell Devan Pennell Individual 01. May 19 01. May 19 -5,000 €6.97 €-34,843
01. May 19 Sell Jim Bursey Individual 01. May 19 01. May 19 -25,000 €7.05 €-175,911
01. May 19 Sell Jason Ewart Individual 01. May 19 01. May 19 -15,000 €7.14 €-105,326
23. Apr 19 Sell Devan Pennell Individual 10. Apr 19 10. Apr 19 -20,000 €5.67 €-113,304
22. Mar 19 Sell Terence Lake Individual 18. Mar 19 18. Mar 19 -10,100 €6.18 €-62,392
15. Mar 19 Sell Terence Lake Individual 15. Mar 19 15. Mar 19 -10,000 €5.36 €-53,534
21. Jan 19 Sell Terence Lake Individual 18. Jan 19 18. Jan 19 -5,000 €4.54 €-22,718
08. Jan 19 Sell Terence Lake Individual 07. Jan 19 07. Jan 19 -24,000 €4.02 €-96,410
07. Jan 19 Sell Pierre Killeen Individual 04. Jan 19 04. Jan 19 -27,056 €3.12 €-84,290
20. Dec 18 Buy Vincent Chiara Individual 17. Dec 18 17. Dec 18 40,000 €3.25 €130,153
22. Nov 18 Sell Jason Ewart Individual 22. Nov 18 22. Nov 18 -15,000 €3.84 €-57,535
07. Nov 18 Sell Ed Chaplin Individual 02. Nov 18 02. Nov 18 -35,000 €4.19 €-146,528
02. Oct 18 Buy Vincent Chiara Individual 28. Sep 18 28. Sep 18 6,700 €5.85 €39,213
25. Sep 18 Sell Michael Munzar Individual 20. Sep 18 20. Sep 18 -126,000 €5.41 €-681,401
14. Sep 18 Sell Michael Munzar Individual 12. Sep 18 12. Sep 18 -10,000 €5.84 €-58,381
13. Sep 18 Sell Terence Lake Individual 07. Sep 18 07. Sep 18 -1,500 €5.02 €-7,529
13. Sep 18 Sell Michael Munzar Individual 07. Sep 18 07. Sep 18 -162,000 €5.08 €-823,331
27. Aug 18 Sell Jason Ewart Individual 21. Aug 18 21. Aug 18 -15,000 €3.25 €-48,761
20. Aug 18 Sell Ed Chaplin Individual 15. Aug 18 15. Aug 18 -30,000 €3.03 €-90,724
X
Management checks
We assess HEXO's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. HEXO has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

74H News

Simply Wall St News

74H Company Info

Description

HEXO Corp., through its subsidiary, HEXO Operations Inc., produces, markets, and sells cannabis in Canada. The company offers dried cannabis under the Time of Day and H2 lines; Elixir, a cannabis oil sublingual mist product line; and Decarb, an activated fine-milled cannabis powder product. It provides its products under the HEXO and Hydropothecary brand names. The company serves medical and adult-use markets. The company was formerly known as The Hydropothecary Corporation and changed its name to HEXO Corp. in August 2018. HEXO Corp. is headquartered in Gatineau, Canada.

Details
Name: HEXO Corp.
74H
Exchange: DB
Founded:
CA$1,136,315,593
256,899,919
Website: http://www.hexocorp.com
Address: HEXO Corp.
490 Boulevard St-Joseph,
Suite 204,
Gatineau,
Quebec, J8Y 3Y7,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX HEXO Common Shares The Toronto Stock Exchange CA CAD 21. Mar 2017
NYSE HEXO Common Shares New York Stock Exchange US USD 21. Mar 2017
DB 74H Common Shares Deutsche Boerse AG DE EUR 21. Mar 2017
BST 74H Common Shares Boerse-Stuttgart DE EUR 21. Mar 2017
Number of employees
Current staff
Staff numbers
822
HEXO employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 22:17
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/06/12
Last earnings reported: 2019/04/30
Last annual earnings reported: 2018/07/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.