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

Fundamentals

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

-17.5%

XXII

4.6%

US Tobacco

-0.2%

US Market


1 Year Return

-58.5%

XXII

-10.6%

US Tobacco

16.1%

US Market

Return vs Industry: XXII underperformed the US Tobacco industry which returned -10.6% over the past year.

Return vs Market: XXII underperformed the US Market which returned 16.1% over the past year.


Shareholder returns

XXIIIndustryMarket
7 Day-17.5%4.6%-0.2%
30 Day-47.3%5.1%3.7%
90 Day-40.7%4.7%8.5%
1 Year-58.5%-58.5%-4.7%-10.6%18.7%16.1%
3 Year15.7%15.7%-11.3%-23.3%46.9%37.4%
5 Year-39.8%-39.8%23.0%-1.6%61.8%44.0%

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?

2.68x

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 (2.7x) compared to the US Tobacco industry average (3.8x).


Next Steps

Future Growth

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

-11.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if XXII's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if XXII'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: XXII's revenue is expected to decline over the next 3 years (-11.1% per year).

High Growth Revenue: XXII's revenue is forecast to decline over the next 3 years (-11.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if XXII's Return on Equity is forecast to be high in 3 years time


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 has large one-off items impacting its financial results.

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 (-7.3%).


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) exceeds its short term liabilities ($5.0M)

Long Term Liabilities: XXII's short term assets ($47.7M) exceeds 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 2.170520 years if free cash flow continues to reduce at historical rates of -23.7% 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%industryaverage6.2%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

What is the CEO of 22nd Century Group's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Cliff Fleet (48yo)

0.3yrs

Tenure

0

Mr. Clifford B. Fleet, also known as Cliff, has been Chief Executive Officer, President and Director of 22nd Century Group, Inc. since August 3, 2019. Mr. Fleet served as the Chief Executive Officer and Pr ...


Management Age and Tenure

3.0yrs

Average Tenure

55.5yo

Average Age

Experienced Management: XXII's management team is considered experienced (3 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

62yo

Average Age

Experienced Board: XXII's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: XXII insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$190,04828 Aug 19
Clifford Fleet
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares100,000
Max PriceUS$1.97
SellUS$101,19819 Jun 19
Thomas James
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares48,000
Max PriceUS$2.11

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Mike Zercher

    Chief Operating Officer

    • Tenure: 0.4yrs
  • Cliff Fleet (48yo)

    CEO, President & Director

    • Tenure: 0.3yrs
  • Henry Sicignano (51yo)

    Consultant

    • Tenure: 0.3yrs
    • Compensation: US$949.45k
  • Jim Morrison

    Technical Advisor & Regulatory Affairs Consultant

    • Tenure: 12.8yrs
  • John Brodfuehrer (61yo)

    CFO & Treasurer

    • Tenure: 6.7yrs
    • Compensation: US$548.36k
  • Thomas James (60yo)

    VP, General Counsel & Secretary

    • Tenure: 5.5yrs
    • Compensation: US$523.86k
  • James Vail

    Director of Communications

    • Tenure: 0yrs

Board Members

  • Nora Sullivan (61yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$140.05k
  • Rick Sanders (66yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$140.05k
  • Jim Cornell (62yo)

    Chairman

    • Tenure: 5.1yrs
    • Compensation: US$180.55k
  • Cliff Fleet (48yo)

    CEO, President & Director

    • Tenure: 0.3yrs
  • Joseph Dunn (65yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: US$137.05k

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$148.412m
  • Shares outstanding: 125.77m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 00:03
End of Day Share Price2019/11/21 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.