OTCPK:LQSI.F

Stock Analysis Report

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Executive Summary

Alcanna Inc. engages in the retail of wines, spirits, coolers, liqueurs, beers, cannabis, and specialty products in Canada and the United States.


Snowflake Analysis

Fair value with concerning outlook.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

13.3%

LQSI.F

1.1%

US Consumer Retailing

2.7%

US Market


1 Year Return

-53.5%

LQSI.F

16.4%

US Consumer Retailing

9.1%

US Market

Return vs Industry: LQSI.F underperformed the US Consumer Retailing industry which returned 16.4% over the past year.

Return vs Market: LQSI.F underperformed the US Market which returned 9.1% over the past year.


Shareholder returns

LQSI.FIndustryMarket
7 Day13.3%1.1%2.7%
30 Day15.3%-0.2%4.5%
90 Day-17.4%8.7%2.3%
1 Year-53.5%-53.5%18.5%16.4%11.5%9.1%
3 Year-72.3%-73.6%38.0%30.2%30.6%22.0%
5 Year-79.3%-82.6%59.1%42.7%57.2%39.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Alcanna 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: LQSI.F ($2.03) is trading below our estimate of fair value ($5.92)

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


Price To Earnings Ratio

PE vs Industry: LQSI.F is unprofitable, so we can't compare its PE Ratio to the Consumer Retailing industry average.

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


Price to Book Ratio

PB vs Industry: LQSI.F is good value based on its PB Ratio (1.4x) compared to the US Consumer Retailing industry average (1.5x).


Next Steps

Future Growth

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

10.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if LQSI.F's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if LQSI.F's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LQSI.F's revenue (10.1% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: LQSI.F's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LQSI.F is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Alcanna performed over the past 5 years?

-37.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LQSI.F is currently unprofitable.

Growing Profit Margin: LQSI.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LQSI.F is unprofitable, and losses have increased over the past 5 years at a rate of -37.3% per year.

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

Earnings vs Industry: LQSI.F is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (7.4%).


Return on Equity

High ROE: LQSI.F has a negative Return on Equity (-43.6%), as it is currently unprofitable.


Next Steps

Financial Health

How is Alcanna's financial position?


Financial Position Analysis

Short Term Liabilities: LQSI.F's short term assets (CA$132.9M) exceed its short term liabilities (CA$63.3M).

Long Term Liabilities: LQSI.F's short term assets (CA$132.9M) do not cover its long term liabilities (CA$371.9M).


Debt to Equity History and Analysis

Debt Level: LQSI.F's debt to equity ratio (113.7%) is considered high.

Reducing Debt: LQSI.F's debt to equity ratio has increased from 25.3% to 113.7% over the past 5 years.


Balance Sheet


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: LQSI.F has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if LQSI.F has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if LQSI.F's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: LQSI.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LQSI.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

  • Explore strong dividend paying companies in the Consumer Retailing industry.

Management

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

2.2yrs

Average management tenure


CEO

James Franklin Burns (63yo)

2.42yrs

Tenure

CA$1,266,739

Compensation

Mr. James Franklin Charles Burns serves as Chief Executive Officer at Alcanna Inc. (also known as Liquor Stores N.A. Ltd.) since December 15, 2017 and served as its Vice Chair from December 08, 2017 to Jan ...


CEO Compensation Analysis

Compensation vs Market: James Franklin's total compensation ($USD917.56K) is above average for companies of similar size in the US market ($USD589.04K).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Franklin Burns
Chief Executive Officer2.42yrsCA$1.27m0.84% CA$677.7k
David Gordey
Executive VP of Corporate Services & CFO2.08yrsCA$932.03k0.16% CA$126.6k
Kerry Rempel
Senior Vice President of Real Estateno dataCA$490.84k0.0035% CA$2.8k
Marcie Kiziak
President of Cannabis0.33yrCA$677.10k0.00096% CA$774.2
David Crapper
Senior Vice President of Communications & Investor Relationsno dataCA$422.26kno data
Matthew Hewson
General Counsel and Senior VP of Regulatory Affairs & Human Resources4.08yrsno data0.0068% CA$5.5k
Jerry Dhaliwal
Vice President of Marketing & Purchasing0.33yrno datano data
James Yaworski
Senior Vice President of Construction and Design5.83yrsno data0.024% CA$19.6k
Ray Welshman
Senior Vice President of Business Technology & Enterprise Risk Management2.33yrsno datano data
Donald Bobey
Chief Operating Officer of Liquor0.33yrno datano data

2.2yrs

Average Tenure

Experienced Management: LQSI.F's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Lynch
Independent Director6yrsCA$86.00k0.025% CA$20.1k
John Barnett
Chairman of Board1yrCA$101.99k0.32% CA$261.8k
Karen Prentice
Independent Director2.92yrsCA$99.59k0.025% CA$20.1k
Denis Ryan
Independent Director2.75yrsCA$84.63k0.075% CA$60.4k
Darren Karasiuk
Independent Director1yrno datano data

2.8yrs

Average Tenure

67yo

Average Age

Experienced Board: LQSI.F'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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Alcanna Inc.
  • Ticker: LQSI.F
  • Exchange: OTCPK
  • Founded: 2004
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: CA$111.336m
  • Listing Market Cap: CA$80.646m
  • Shares outstanding: 40.05m
  • Website: https://www.alcanna.com

Number of Employees


Location

  • Alcanna Inc.
  • 17220 Stony Plain Road
  • Suite 101
  • Edmonton
  • Alberta
  • T5S 1K6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLIQTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 2004
LQSI.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 2004

Biography

Alcanna Inc. engages in the retail of wines, spirits, coolers, liqueurs, beers, cannabis, and specialty products in Canada and the United States. The company operates in two segments, Liquor Operations and Cannabis Operations. As of December 31, 2019, it operated 255 stores in Alberta, British Columbia, Alaska, and Connecticut under the Liquor Depot, Ace Liquor, Wine and Beyond, and Brown Jug brand names; and 22 cannabis retail locations under the Nova Cannabis brand in Alberta and Ontario. The company was formerly known as Liquor Stores N.A. Ltd. and changed its name to Alcanna Inc. in May 2018. Alcanna Inc. was founded in 2004 and is headquartered in Edmonton, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 05:16
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.