OTCPK:KSHB

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate 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


Market Performance


7 Day Return

-14.8%

KSHB

5.2%

US Trade Distributors

1.0%

US Market


1 Year Return

-76.3%

KSHB

-0.002%

US Trade Distributors

6.7%

US Market

Return vs Industry: KSHB underperformed the US Trade Distributors industry which returned -0% over the past year.

Return vs Market: KSHB underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

KSHBIndustryMarket
7 Day-14.8%5.2%1.0%
30 Day-59.1%-2.0%-1.8%
90 Day-71.4%1.8%-1.8%
1 Year-76.3%-76.3%1.8%-0.002%9.1%6.7%
3 Year-66.7%-66.7%42.1%36.0%46.1%36.6%
5 Yearn/a34.5%24.8%66.9%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

1 year ago | Simply Wall St

February Best Growth Stocks

1 year ago | Simply Wall St

December Top Growth Stocks

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

Undervalued: KSHB ($1.44) is trading below our estimate of fair value ($5.91)

Significantly Undervalued: 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

Low 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 (1.2x) compared to the US Trade Distributors industry average (1.5x).


Next Steps

Future Growth

How is KushCo Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

88.9%

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 (39.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: KSHB's revenue (39.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-84.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KSHB is unprofitable, and losses have increased over the past 5 years at a rate of -84.7% 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 (0.9%).


Return on Equity

High ROE: KSHB has a negative Return on Equity (-30.19%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: KSHB is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: KSHB is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is KushCo Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: KSHB's short term assets ($92.8M) exceeds its short term liabilities ($29.8M)

Long Term Liabilities: KSHB's short term assets (92.8M) exceeds its long term liabilities (27.3M)


Debt to Equity History and Analysis

Debt Level: KSHB's debt to equity ratio (19.1%) is considered satisfactory

Reducing Debt: KSHB's debt to equity ratio has reduced from 40.9% to 19.1% 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 4.694160x 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: Insufficient data to determine if KSHB has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

0.9yrs

Average management tenure


CEO

Nick Kovacevich (33yo)

5.1yrs

Tenure

US$260,976

Compensation

Mr. Nicholas Kovacevich, also known as Nick, co-founded Kush Bottles, Inc. in 2010, has been its Chief Executive Officer since September 15, 2014. Mr. Kovacevich has been a Director of Kush Bottles, Inc. s ...


CEO Compensation Analysis

Compensation vs. Market: Nick's total compensation ($USD260.98K) is about average for companies of similar size in the US market ($USD1.17M).

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


Management Age and Tenure

0.9yrs

Average Tenure

33yo

Average Age

Experienced Management: KSHB's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

1.7yrs

Average Tenure

42yo

Average Age

Experienced Board: KSHB's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Nick Kovacevich (33yo)

    Co-Founder

    • Tenure: 5.1yrs
    • Compensation: US$260.98k
  • Ryan Selewicz

    Executive Vice President of Technology

    • Tenure: 0yrs
  • Edd Pratt

    Executive Vice President

    • Tenure: 0yrs
  • Jason Vegotsky (32yo)

    Chief Revenue Officer & President

    • Tenure: 0.2yrs
  • Rodrigo de Oliveira

    Chief Operating Officer

    • Tenure: 0.6yrs
  • Chris Tedford (46yo)

    Chief Financial Officer

    • Tenure: 0.9yrs
  • Stephen Christoffersen

    Executive Vice President of Corporate Development

    • Tenure: 1.8yrs
  • Arun Kurichety

    Executive VP & General Counsel

    • Tenure: 0.8yrs

Board Members

  • Don Hunter (62yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: US$390.70k
  • Barbara Goodstein (58yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$115.12k
  • Danny Moses

    Member of Advisory Board

    • Tenure: 0.6yrs
  • Tim Seymour

    Member of the Advisory Board

    • Tenure: 0.6yrs
  • Dallas Imbimbo (33yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$115.12k
  • Nick Kovacevich (33yo)

    Co-Founder

    • Tenure: 5.1yrs
    • Compensation: US$260.98k
  • Ali Jahangiri

    Member of Advisory Board

    • Tenure: 0.9yrs
  • Eric Baum (42yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$115.12k
  • Matthew Morgan

    Member of Advisory Board

    • Tenure: 0.9yrs

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$154.453m
  • Shares outstanding: 107.26m
  • 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 in the United States, Canada, Europe, and internationally. The company offers pop-top bottles; child resistant exit, paper  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 03:11
End of Day Share Price2019/10/11 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.