OTCPK:ALEA.F

Stock Analysis Report

Executive Summary

Aleafia Health Inc. operates as an integrated cannabis health and wellness company.

Snowflake

Fundamentals

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.9%

ALEA.F

3.9%

US Healthcare

0.07%

US Market


1 Year Return

-64.7%

ALEA.F

-6.7%

US Healthcare

8.9%

US Market

Return vs Industry: ALEA.F underperformed the US Healthcare industry which returned -6.7% over the past year.

Return vs Market: ALEA.F underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

ALEA.FIndustryMarket
7 Day-1.9%3.9%0.07%
30 Day-10.5%3.5%-0.3%
90 Day-29.7%-0.05%-1.6%
1 Year-64.7%-64.7%-5.1%-6.7%11.3%8.9%
3 Yearn/a37.0%30.6%46.3%36.8%
5 Yearn/a61.3%50.4%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Aleafia Health 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: ALEA.F ($0.6) is trading below our estimate of fair value ($12.79)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ALEA.F is good value based on its PB Ratio (0.6x) compared to the US Healthcare industry average (2.5x).


Next Steps

Future Growth

How is Aleafia Health forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

104.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if ALEA.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: ALEA.F's revenue (104.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: ALEA.F's revenue (104.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Aleafia Health performed over the past 5 years?

-787.2%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if ALEA.F's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

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

Earnings vs Industry: ALEA.F is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (5.6%).


Return on Equity

High ROE: ALEA.F has a negative Return on Equity (-12.19%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: ALEA.F is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: ALEA.F is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Aleafia Health's financial position?


Financial Position Analysis

Short Term Liabilities: ALEA.F's short term assets (CA$83.3M) exceeds its short term liabilities (CA$7.4M)

Long Term Liabilities: ALEA.F's short term assets (83.3M) exceeds its long term liabilities (54.8M)


Debt to Equity History and Analysis

Debt Level: ALEA.F's debt to equity ratio (13.5%) is considered satisfactory

Reducing Debt: Insufficient data to determine if ALEA.F's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ALEA.F's debt is covered by short term assets (assets are 1.6x 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: ALEA.F has sufficient cash runway for more than a year based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if ALEA.F'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 ALEA.F'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 Aleafia Health's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Geoff Benic 0

1.3yrs

Tenure

CA$191,783

Compensation

Mr. Geoffrey Benic, also known as Geoff, has been Chief Executive Officer of Aleafia Health Inc since June 28, 2018. Previously, Mr. Benic served as the Regional Director of United Parcel Service Canada Lt ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Geoff's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Geoff's compensation with company performance.


Management Age and Tenure

1.2yrs

Average Tenure

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


Board Age and Tenure

1.5yrs

Average Tenure

64yo

Average Age

Experienced Board: ALEA.F's board of directors are not considered experienced ( 1.5 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

BuyCA$6,55005 Jul 19
Nicholas Bergamini
EntityIndividual
Role
Head of Investor Relations
Vice President of Investor Relations
Shares6,660
Max PriceCA$0.98

Ownership Breakdown


Management Team

  • Trevor Newell

    Chief Marketing & Technology Officer

    • Tenure: 1.2yrs
  • Michael Verbora

    Chief Medical Officer

    • Tenure: 1.5yrs
    • Compensation: CA$111.22k
  • Geoff Benic

    Chief Executive Officer

    • Tenure: 1.3yrs
    • Compensation: CA$191.78k
  • Benjamin Ferdinand

    CFO & Corporate Secretary

    • Tenure: 1.2yrs
    • Compensation: CA$170.94k
  • Nick Bergamini

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Lucas Escott

    Head Horticulturist

    • Tenure: 0yrs
  • Keith White

    President of Clinic Operations

    • Tenure: 0.7yrs
  • Geoff Smith

    General Counsel

    • Tenure: 0.6yrs
  • Dave Shepherd

    Vice President of Human Resources

    • Tenure: 0.8yrs
  • Greg Rossi

    Chief Operating Officer

    • Tenure: 1.2yrs

Board Members

  • Don Milliard (71yo)

    Independent Director

    • Tenure: 0.6yrs
  • Lea Ray (53yo)

    Lead Independent Director

    • Tenure: 0yrs
  • Loreto Grimaldi (48yo)

    Independent Director

    • Tenure: 0.6yrs
  • Julian Fantino (76yo)

    Chairman of the Board

    • Tenure: 1.6yrs
    • Compensation: CA$847.29k
  • Raf Souccar (62yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: CA$729.70k
  • Bill Stewart (68yo)

    Independent Director

    • Tenure: 1.4yrs
  • Mark Sandler (64yo)

    Independent Director

    • Tenure: 1.5yrs

Company Information

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


Key Information

  • Name: Aleafia Health Inc.
  • Ticker: ALEA.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: CA$214.309m
  • Listing Market Cap: CA$163.774m
  • Shares outstanding: 274.76m
  • Website: https://www.aleafiahealth.com

Number of Employees


Location

  • Aleafia Health Inc.
  • 8810 Jane Street
  • 2nd Floor
  • Concord
  • Ontario
  • L4K 2M9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALEFTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2018
ALEA.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2018
ARAHDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2018

Biography

Aleafia Health Inc. operates as an integrated cannabis health and wellness company. It produces a portfolio of products, including oils, capsules, and sprays. The company also operates a network of 25 medi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:46
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.