AMEX:XXII

Stock Analysis Report

Executive Summary

22nd Century Group, Inc., a plant biotechnology company, provides technology that allows increasing or decreasing the level of nicotine and other nicotinic alkaloids in tobacco plants, and cannabinoids in hemp/cannabis plants through genetic engineering and plant breeding.


Snowflake Analysis

Excellent balance sheet and overvalued.


Similar Companies

Share Price & News

How has 22nd Century Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.5%

XXII

-0.4%

US Tobacco

0.06%

US Market


1 Year Return

-57.8%

XXII

-11.0%

US Tobacco

19.4%

US Market

Return vs Industry: XXII underperformed the US Tobacco industry which returned -7.9% over the past year.

Return vs Market: XXII underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

XXIIIndustryMarket
7 Day-5.5%-0.4%0.06%
30 Day-9.6%-11.4%1.1%
90 Day-12.7%-7.4%8.9%
1 Year-57.8%-57.8%-5.1%-11.0%21.9%19.4%
3 Year-4.6%-4.6%-28.0%-38.2%48.9%39.3%
5 Year31.4%31.4%2.7%-18.4%71.9%53.1%

Price Volatility Vs. Market

How volatile is 22nd Century Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 22nd Century Group undervalued compared to its fair value and its price relative to the market?

2.34x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: XXII is good value based on its PB Ratio (2.5x) compared to the US Tobacco industry average (3.5x).


Next Steps

Future Growth

How is 22nd Century Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.4%

Forecasted Food, Beverage & Tobacco 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 22nd Century Group 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 22nd Century Group performed over the past 5 years?

1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XXII is currently unprofitable.

Growing Profit Margin: XXII is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: XXII is unprofitable, but has reduced losses over the past 5 years at a rate of 1.4% per year.

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

Earnings vs Industry: XXII is unprofitable, making it difficult to compare its past year earnings growth to the Tobacco industry (2.3%).


Return on Equity

High ROE: XXII has a negative Return on Equity (-52.94%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is 22nd Century Group's financial position?


Financial Position Analysis

Short Term Liabilities: XXII's short term assets ($47.7M) exceed its short term liabilities ($5.0M).

Long Term Liabilities: XXII's short term assets ($47.7M) exceed its long term liabilities ($1.5M).


Debt to Equity History and Analysis

Debt Level: XXII's debt to equity ratio (2.1%) is considered satisfactory.

Reducing Debt: XXII's debt to equity ratio has increased from 0.9% to 2.1% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: XXII's debt is covered by short term assets (assets are 40.9x 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: XXII has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: XXII has sufficient cash runway for 2.2 years if free cash flow continues to reduce at historical rates of -28.9% each year.


Next Steps

Dividend

What is 22nd Century Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage6.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

0.6yrs

Average management tenure


CEO

22nd Century Group has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
John Brodfuehrer
CFO & Treasurer6.9yrsUS$548.36k0.21% $294.0k
Henry Sicignano
Consultant0.6yrsUS$949.45k4.01% $5.7m
Michael Zercher
President & COO0.2yrsno data0.0021% $3.0k
Andrea Jentsch
Chief Financial Officer0.2yrsno data0.039% $56.0k
James Vail
Director of Communications0yrsno datano data
James Morrison
Technical Advisor & Regulatory Affairs Consultant13.1yrsno datano data

0.6yrs

Average Tenure

51yo

Average Age

Experienced Management: XXII's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Nora Sullivan
Independent Chairman0.08yrsUS$140.05k0.013% $18.3k
Richard Sanders
Independent Director6.2yrsUS$140.05k0.043% $61.6k
James Cornell
Independent Director8.9yrsUS$180.55k0.13% $188.1k
Clifford Fleet
Director0.5yrsno data0.079% $112.0k
Roger O'Brien
Director0.08yrsno datano data

0.5yrs

Average Tenure

61.5yo

Average Age

Experienced Board: XXII's board of directors are not considered experienced ( 0.5 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

22nd Century Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 22nd Century Group, Inc.
  • Ticker: XXII
  • Exchange: AMEX
  • Founded: 1998
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$142.318m
  • Shares outstanding: 127.07m
  • Website: https://www.xxiicentury.com

Number of Employees


Location

  • 22nd Century Group, Inc.
  • 8560 Main Street
  • Suite 4
  • Williamsville
  • New York
  • 14221
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
XXIIAMEX (NYSE MKT LLC)YesCommon StockUSUSDJan 2011
22NDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2011
0LHJLSE (London Stock Exchange)YesCommon StockGBUSDJan 2011

Biography

22nd Century Group, Inc., a plant biotechnology company, provides technology that allows increasing or decreasing the level of nicotine and other nicotinic alkaloids in tobacco plants, and cannabinoids in hemp/cannabis plants through genetic engineering and plant breeding. It offers premium cigarettes under the RED SUN and MAGIC brands; and SPECTRUM research cigarettes for use in independent clinical studies. The company’s products under development include BRAND A, a very low nicotine content cigarette; X-22, a tobacco-based botanical medical product for use as an aid to smoking cessation; and BRAND B, a low-tar-to-nicotine ratio cigarette. It is also involved in contract manufacturing business for third-party branded tobacco products. The company has a strategic research and development agreement with Keygene N.V. to develop hemp/cannabis plants for medical and therapeutic use, and other applications. 22nd Century Group, Inc. was founded in 1998 and is headquartered in Williamsville, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:12
End of Day Share Price2020/02/18 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.