OTCPK:AMMJ

Stock Analysis Report

Executive Summary

American Cannabis Company, Inc., together with its subsidiary, Hollister & Blacksmith, Inc., doing business as American Cannabis Consulting, provides solutions for businesses operating in the regulated cannabis industry in the United States and Canada.


Snowflake Analysis

Flawless balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has American Cannabis Company's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

5.1%

AMMJ

5.0%

US Professional Services

5.3%

US Market


1 Year Return

-75.3%

AMMJ

-7.0%

US Professional Services

-10.7%

US Market

Return vs Industry: AMMJ underperformed the US Professional Services industry which returned -6.2% over the past year.

Return vs Market: AMMJ underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

AMMJIndustryMarket
7 Day5.1%5.0%5.3%
30 Day6.3%-16.6%-13.6%
90 Day6.4%-17.6%-19.8%
1 Year-75.3%-75.3%-6.2%-7.0%-8.9%-10.7%
3 Year-85.1%-85.1%22.3%18.5%15.5%8.0%
5 Year-76.4%-76.4%38.5%31.0%35.2%20.4%

Price Volatility Vs. Market

How volatile is American Cannabis Company's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is American Cannabis Company undervalued compared to its fair value and its price relative to the market?

5.04x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AMMJ's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AMMJ's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AMMJ is unprofitable, so we can't compare its PE Ratio to the Professional Services industry average.

PE vs Market: AMMJ 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 AMMJ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AMMJ is overvalued based on its PB Ratio (5.1x) compared to the US Professional Services industry average (1.7x).


Next Steps

Future Growth

How is American Cannabis Company forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.3%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as American Cannabis Company has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has American Cannabis Company performed over the past 5 years?

23.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMMJ is currently unprofitable.

Growing Profit Margin: AMMJ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AMMJ is unprofitable, but has reduced losses over the past 5 years at a rate of 23.1% per year.

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

Earnings vs Industry: AMMJ is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (13.9%).


Return on Equity

High ROE: AMMJ has a negative Return on Equity (-31.06%), as it is currently unprofitable.


Next Steps

Financial Health

How is American Cannabis Company's financial position?


Financial Position Analysis

Short Term Liabilities: AMMJ's short term assets ($1.3M) exceed its short term liabilities ($222.0K).

Long Term Liabilities: AMMJ has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: AMMJ is debt free.

Reducing Debt: AMMJ has no debt compared to 5 years ago when its debt to equity ratio was 207.7%.


Balance Sheet

Inventory Level: AMMJ has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if AMMJ's debt is covered by short term assets.


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: AMMJ has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: AMMJ has sufficient cash runway for 1.3 years if free cash flow continues to reduce at historical rates of -32.4% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if AMMJ'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 AMMJ'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?

1.2yrs

Average management tenure


CEO

Terry Buffalo (54yo)

4.17s

Tenure

US$173,550

Compensation

Mr. Terry Lynn Buffalo serves as Chief Executive Officer at American Cannabis Company, Inc. since 2016. He was Chief Financial Officer of American Cannabis Company, Inc. since August 26, 2019 and served as ...


CEO Compensation Analysis

Compensation vs Market: Terry's total compensation ($USD173.55K) is below average for companies of similar size in the US market ($USD602.37K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ellis Smith
Founder2.83yrsUS$109.85k22.68% $1.3m
Terry Buffalo
CEO & Director4.17yrsUS$173.55k1.38% $79.5k
Tyler Schloesser
Chief Operations Officer1.17yrsUS$97.65k0.33% $18.8k
David Godfrey
CFO & Principal Accounting Officer0.25yrno data0.12% $6.7k
Jared Lerner
Vice President of Sales & Marketing0.42yrno datano data
Vincent Keber
Chief Executive Officer of Dixie Brandsno dataUS$30.00kno data

1.2yrs

Average Tenure

50yo

Average Age

Experienced Management: AMMJ's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ellis Smith
Founder2.83yrsUS$109.85k22.68% $1.3m
Terry Buffalo
CEO & Director4.17yrsUS$173.55k1.38% $79.5k
Tad Mailander
Independent Director2yrsno data0.28% $16.3k

2.8yrs

Average Tenure

54yo

Average Age

Experienced Board: AMMJ's board of directors are not considered experienced ( 2.8 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: AMMJ insiders have only sold shares 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

American Cannabis Company, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Cannabis Company, Inc.
  • Ticker: AMMJ
  • Exchange: OTCPK
  • Founded:
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$5.769m
  • Shares outstanding: 52.98m
  • Website: https://www.americancannabisconsulting.com

Number of Employees


Location

  • American Cannabis Company, Inc.
  • 5690 Logan Street
  • Unit A
  • Denver
  • Colorado
  • 80216
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMMJOTCPK (Pink Sheets LLC)YesNew Common StockUSUSDSep 2014

Biography

American Cannabis Company, Inc., together with its subsidiary, Hollister & Blacksmith, Inc., doing business as American Cannabis Consulting, provides solutions for businesses operating in the regulated cannabis industry in the United States and Canada. The company offers consulting services for companies associated with the cannabis and hemp industries in various stages of development, such as cannabis and hemp business planning, cannabis and hemp business license applications cultivation build-out oversight services, cannabis regulatory compliance, compliance audit services, cannabis and hemp business growth strategies, and cannabis and hemp business monitoring. It also sells products and equipment used in the cultivation, processing, transportation, or retail sale of cannabis, such as The Satchel, a pouch-like case designed as a child-proof exit package solution for the regulated cannabis industry; SoHum Living Soil, a just-add-water soil; High Density Racking System, which ensures that space is used in an efficient manner; The Cultivation Cube, a self-contained and scalable cultivation system; and other products for cultivation operations, medicinal and recreational cannabis dispensary operations, and infused-products. In addition, the company designs industry-specific products; and offers exclusive and non-exclusive customer products. American Cannabis Company, Inc. is headquartered in Denver, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 00:48
End of Day Share Price2020/03/31 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.