OTCPK:MCTC

Stock Analysis Report

Executive Summary

MCTC Holdings, Inc. focuses on cannabinoid research.

Risk Analysis

Earnings have declined by -40.69% per year over past 5 years

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap ($6M)

+ 2 more risks


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.3%

MCTC

0.7%

US Professional Services

1.1%

US Market


1 Year Return

-42.0%

MCTC

26.3%

US Professional Services

17.8%

US Market

Return vs Industry: MCTC underperformed the US Professional Services industry which returned 26.3% over the past year.

Return vs Market: MCTC underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

MCTCIndustryMarket
7 Day-3.3%0.7%1.1%
30 Day-54.2%3.9%1.4%
90 Day-55.4%0.4%3.9%
1 Year-42.0%-42.0%27.4%26.3%20.3%17.8%
3 Year5700.0%5700.0%55.3%50.3%44.8%35.4%
5 Year383.3%383.3%82.5%72.6%71.3%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is MCTC Holdings undervalued compared to its fair value and its price relative to the market?

88.72x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: MCTC is overvalued based on its PB Ratio (88.7x) compared to the US Professional Services industry average (2.7x).


Next Steps

Future Growth

How is MCTC Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

32.4%

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 MCTC Holdings 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 MCTC Holdings performed over the past 5 years?

-40.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCTC is currently unprofitable.

Growing Profit Margin: MCTC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MCTC is unprofitable, and losses have increased over the past 5 years at a rate of -40.7% per year.

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

Earnings vs Industry: MCTC is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (23.5%).


Return on Equity

High ROE: MCTC has a negative Return on Equity (-634.37%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MCTC Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MCTC's short term assets ($154.4K) exceed its short term liabilities ($153.4K).

Long Term Liabilities: MCTC has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: MCTC's debt to equity ratio (77.1%) is considered high.

Reducing Debt: MCTC had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

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

Debt Coverage by Assets: MCTC's debt is covered by short term assets (assets are 3.3x 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: MCTC has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: MCTC has less than a year of cash runway if free cash flow continues to reduce at historical rates of -115.6% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if MCTC'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 MCTC'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 MCTC Holdings's salary, the management and board of directors tenure and is there insider trading?

0.5yrs

Average board tenure


CEO

Arman Tabatabaei (37yo)

0.5yrs

Tenure

0

Mr. Arman Tabatabaei serves as President, Chief Executive Officer, Chief Financial Officer, Treasurer, Secretary, Chairman and Director of MCTC Holdings, Inc. since June 19, 2019. Mr. Tabatabaei served as  ...


Board Age and Tenure

0.5yrs

Average Tenure

41yo

Average Age

Experienced Board: MCTC's board of directors are not considered experienced ( 0.5 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.


Recent Insider Transactions

SellUS$325,00010 Jun 19
Lauderdale Holdings, LLC
EntityCompany
Shares8,666,658
Max PriceUS$0.037

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 63.3%.


Management Team

  • Arman Tabatabaei (37yo)

    Chairman

    • Tenure: 0.5yrs

Board Members

  • Robert Hymers (36yo)

    Director

    • Tenure: 0.5yrs
  • Eddie Manolos (45yo)

    Director

    • Tenure: 0.5yrs
  • Arman Tabatabaei (37yo)

    Chairman

    • Tenure: 0.5yrs
  • Dan Van Nguyen (46yo)

    Director

    • Tenure: 0.5yrs

Company Information

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


Key Information

  • Name: MCTC Holdings, Inc.
  • Ticker: MCTC
  • Exchange: OTCPK
  • Founded: 2018
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$6.364m
  • Shares outstanding: 14.63m
  • Website: https://www.cannabisglobalinc.com

Location

  • MCTC Holdings, Inc.
  • 520 South Grand Avenue
  • Suite 320
  • Los Angeles
  • California
  • 90071
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCTCOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJun 2008

Biography

MCTC Holdings, Inc. focuses on cannabinoid research. It plans to develop and commercialize hemp extracts and cannabinoids, and other consumer products. The company was incorporated in 2018 and is headquart ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 01:19
End of Day Share Price2019/12/10 00:00
Earnings2019/08/31
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.