OTCPK:KSHB

Stock Analysis Report

Executive Summary

KushCo Holdings, Inc. engages in the wholesale distribution of packaging supplies and customized branding solutions in the United States, Canada, and Europe.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KSHB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-30.0%

KSHB

-2.4%

US Trade Distributors

-2.0%

US Market


1 Year Return

-90.7%

KSHB

-29.8%

US Trade Distributors

-15.1%

US Market

Return vs Industry: KSHB underperformed the US Trade Distributors industry which returned -29.8% over the past year.

Return vs Market: KSHB underperformed the US Market which returned -15.1% over the past year.


Shareholder returns

KSHBIndustryMarket
7 Day-30.0%-2.4%-2.0%
30 Day-43.4%-27.7%-19.7%
90 Day-65.9%-37.3%-23.2%
1 Year-90.7%-90.7%-28.4%-29.8%-13.4%-15.1%
3 Year-78.5%-78.5%-19.6%-23.4%10.9%3.7%
5 Yearn/a-5.0%-12.1%28.4%14.4%

Price Volatility Vs. Market

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


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2 years ago | Simply Wall St

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Valuation

Is KushCo 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: KSHB ($0.56) is trading below our estimate of fair value ($3.4)

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


Price To Earnings Ratio

PE vs Industry: KSHB is unprofitable, so we can't compare its PE Ratio to the Trade Distributors industry average.

PE vs Market: KSHB is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KSHB is good value based on its PB Ratio (0.5x) compared to the US Trade Distributors industry average (0.9x).


Next Steps

Future Growth

How is KushCo Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

98.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KSHB is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: KSHB is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: KSHB is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: KSHB's revenue (36.2% per year) is forecast to grow faster than the US market (7.1% per year).

High Growth Revenue: KSHB's revenue (36.2% 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 KSHB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has KushCo Holdings performed over the past 5 years?

-76.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KSHB is currently unprofitable.

Growing Profit Margin: KSHB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KSHB is unprofitable, and losses have increased over the past 5 years at a rate of -76.5% per year.

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

Earnings vs Industry: KSHB is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (5.1%).


Return on Equity

High ROE: KSHB has a negative Return on Equity (-36.48%), as it is currently unprofitable.


Next Steps

Financial Health

How is KushCo Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: KSHB's short term assets ($99.5M) exceed its short term liabilities ($31.5M).

Long Term Liabilities: KSHB's short term assets ($99.5M) exceed its long term liabilities ($27.7M).


Debt to Equity History and Analysis

Debt Level: KSHB's debt to equity ratio (21.5%) is considered satisfactory.

Reducing Debt: KSHB's debt to equity ratio has reduced from 24% to 21.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: KSHB's debt is covered by short term assets (assets are 3.9x 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: KSHB has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: KSHB has sufficient cash runway for 1.2 years if free cash flow continues to reduce at historical rates of -78.6% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KSHB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KSHB'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 KSHB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Nick Kovacevich (33yo)

5.58s

Tenure

US$870,183

Compensation

Mr. Nicholas Kovacevich, also known as Nick, co-founded KushCo Holdings, Inc. (Formerly known as Kush Bottles, Inc.) in 2010, has been its Chief Executive Officer since September 15, 2014. Mr. Kovacevich h ...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD870.18K) is above average for companies of similar size in the US market ($USD618.59K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Kovacevich
Co-Founder5.58yrsUS$870.18k7.29% $4.9m
Jason Vegotsky
Chief Revenue Officer & President0.67yrUS$1.76m0.50% $334.6k
Christopher Tedford
Chief Financial Officer1.42yrsUS$2.39m0.013% $8.8k
Rodrigo de Oliveira
Chief Operating Officer1.17yrsno data0.028% $18.6k
Ryan Selewicz
Executive Vice President of Technologyno datano datano data
Najim Mostamand
Director of Investor Relationsno datano datano data
Arun Kurichety
Executive VP & General Counsel1.33yrsno datano data
Stephen Christoffersen
Chief Financial Officer2.25yrsno datano data
Rhiana Barr
Chief People Officer0.42yrno datano data
Edd Pratt
Executive Vice Presidentno datano datano data

1.3yrs

Average Tenure

34yo

Average Age

Experienced Management: KSHB's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Nicholas Kovacevich
Co-Founder5.58yrsUS$870.18k7.29% $4.9m
Donald Hunter
Independent Director2.17yrsUS$470.10k0.025% $16.8k
Barbara Goodstein
Independent Director2.42yrsUS$465.10k0.025% $16.8k
Paul Penney
Member of Advisory Board0.25yrno datano data
Peter Kadens
Member of Advisory Board0.25yrno datano data
Timothy Seymour
Member of the Advisory Board1.08yrsno datano data
Dallas Imbimbo
Independent Director9.33yrsUS$447.60k8.37% $5.6m
Ali Jahangiri
Member of Advisory Board1.42yrsno datano data
Eric Baum
Independent Director3.33yrsUS$465.10k0.55% $367.1k
Matthew Morgan
Member of Advisory Board1.42yrsno datano data

1.8yrs

Average Tenure

37.5yo

Average Age

Experienced Board: KSHB's board of directors are not considered experienced ( 1.8 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 29.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: KushCo Holdings, Inc.
  • Ticker: KSHB
  • Exchange: OTCPK
  • Founded: 2010
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$66.706m
  • Shares outstanding: 119.12m
  • Website: https://www.kushco.com

Number of Employees


Location

  • KushCo Holdings, Inc.
  • 6261 Katella Avenue
  • Suite 250
  • Cypress
  • California
  • 90630
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KSHBOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 2015

Biography

KushCo Holdings, Inc. engages in the wholesale distribution of packaging supplies and customized branding solutions in the United States, Canada, and Europe. It offers pop-top bottles; child resistant exit, paper exit, and foil barrier bags; tubes; and polystyrene, silicone-lined polystyrene, and glass containers. The company also provides vaporizer cartridges and accessories, heating technologies, batteries, and disposable units; and hydrocarbon gases, including isobutene, n-butane, propane, ethanol, pre-mixes, custom blends, and other solvents. Its products are used by urban farmers, green house growers, processors, brand owners, and medical and recreational cannabis dispensaries. In addition, the company operates a creative design agency for cannabis and non-cannabis clients that provide brand strategy, design and marketing, Web application development, and e-commerce solutions. It sells its products directly, as well as through Website and re-distributors. The company was formerly known as Kush Bottles, Inc. and changed its name to KushCo Holdings, Inc. in September 2018. KushCo Holdings, Inc. was founded in 2010 and is headquartered in Cypress, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 03:24
End of Day Share Price2020/04/03 00:00
Earnings2019/11/30
Annual Earnings2019/08/31


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.