NasdaqGS:OGI

Stock Analysis Report

Executive Summary

OrganiGram Holdings Inc., through its subsidiaries, produces and sells dried cannabis and cannabis oil in Canada.

Snowflake

Fundamentals

High growth potential and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

18.0%

OGI

2.8%

US Pharmaceuticals

1.8%

US Market


1 Year Return

-27.6%

OGI

-6.5%

US Pharmaceuticals

7.3%

US Market

Return vs Industry: OGI underperformed the US Pharmaceuticals industry which returned -6.5% over the past year.

Return vs Market: OGI underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

OGIIndustryMarket
7 Day18.0%2.8%1.8%
30 Day-11.6%1.6%-0.7%
90 Day-41.1%0.01%0.06%
1 Year-27.6%-27.6%-4.3%-6.5%9.7%7.3%
3 Year69.3%69.3%19.4%11.0%46.3%36.9%
5 Year258.7%258.7%25.5%12.3%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: OGI ($3.73) is trading below our estimate of fair value ($15.28)

Significantly Undervalued: OGI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OGI is poor value based on its PE Ratio (21.1x) compared to the Pharmaceuticals industry average (16.2x).

PE vs Market: OGI is poor value based on its PE Ratio (21.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: OGI is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: OGI is good value based on its PB Ratio (2.2x) compared to the US Pharmaceuticals industry average (2.9x).


Next Steps

Future Growth

How is OrganiGram Holdings forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

34.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OGI's forecast earnings growth (34.7% per year) is above the savings rate (2.7%).

Earnings vs Market: OGI's earnings (34.7% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: OGI's revenue (31.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: OGI's revenue (31.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has OrganiGram Holdings performed over the past 5 years?

73.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OGI has become profitable over the past 5 years, growing earnings by 73.6% per year.

Accelerating Growth: OGI's earnings growth over the past year (1383%) exceeds its 5-year average (73.6% per year).

Earnings vs Industry: OGI earnings growth over the past year (1383%) exceeded the Pharmaceuticals industry 24.3%.


Return on Equity

High ROE: OGI's Return on Equity (9.2%) is considered low.


Return on Assets

ROA vs Industry: OGI's Return on Assets is below or equal to the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: OGI has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is OrganiGram Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: OGI's short term assets (CA$232.5M) exceeds its short term liabilities (CA$25.7M)

Long Term Liabilities: OGI's short term assets (232.5M) exceeds its long term liabilities (65.9M)


Debt to Equity History and Analysis

Debt Level: OGI's debt to equity ratio (14.7%) is considered satisfactory

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

Debt Coverage: OGI's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: OGI's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet

Inventory Level: OGI has a high level of physical assets or inventory.

Debt Coverage by Assets: OGI's debt is covered by short term assets (assets are 4.699320x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

1.8yrs

Average management tenure


CEO

Greg Engel (54yo)

2.6yrs

Tenure

CA$387,957

Compensation

Mr. Greg Engel has been Chief Executive Officer of OrganiGram Holdings Inc. since March 13, 2017. Mr. Engel has served in a number of senior-level and executive positions in related industries over the pas ...


CEO Compensation Analysis

Compensation vs. Market: Greg's total compensation ($USD295.42K) is below average for companies of similar size in the US market ($USD1.79M).

Compensation vs Earnings: Greg's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.8yrs

Average Tenure

46yo

Average Age

Experienced Management: OGI's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.7yrs

Average Tenure

Experienced Board: OGI's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyCA$22,82803 Oct 19
Paolo De Luca
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares6,495
Max PriceCA$3.51
BuyCA$14,60724 Sep 19
Sherry Porter
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceCA$4.17
BuyCA$4,50614 Sep 19
Derrick West
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares950
Max PriceCA$4.74
BuyCA$7,85127 Aug 19
Dexter D. John
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,740
Max PriceCA$4.51
BuyCA$7,64103 Jul 19
Dexter D. John
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,160
Max PriceCA$6.59
BuyCA$5,43327 Feb 19
Dexter D. John
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares865
Max PriceCA$6.28
BuyCA$33,72631 Jan 19
Paolo De Luca
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares6,000
Max PriceCA$5.62
SellCA$285,47931 Jan 19
Michel Bourque
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares83,057
Max PriceCA$5.64
BuyCA$8,61402 Jan 19
Dexter D. John
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,100
Max PriceCA$4.11
BuyCA$24,31403 Nov 18
Derrick West
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,620
Max PriceCA$4.45

Ownership Breakdown


Management Team

  • Helen Martin (41yo)

    Senior VP of Strategic & Legal Affairs and Company Secretary

    • Tenure: 0.5yrs
  • Paolo De Luca (46yo)

    Chief Financial Officer

    • Tenure: 1.8yrs
    • Compensation: CA$253.15k
  • Amy Schwalm

    Vice President of Investor Relations

    • Tenure: 0.8yrs
  • Jeff Purcell

    Vice President - Operations

    • Tenure: 2.3yrs
    • Compensation: CA$237.81k
  • Larry Rogers

    Vice President of International Business Development

    • Tenure: 2yrs
    • Compensation: CA$222.73k
  • Ray Gracewood

    Senior Vice President of Marketing & Communications

    • Tenure: 0.5yrs
    • Compensation: CA$177.11k
  • Peter Hanson

    Director of Finance

    • Tenure: 1.8yrs
    • Compensation: CA$143.13k
  • Greg Engel (54yo)

    CEO & Director

    • Tenure: 2.6yrs
    • Compensation: CA$387.96k
  • Tim Emberg

    Senior Vice President of Sales & Commercial Operations

    • Tenure: 2yrs
    • Compensation: CA$285.35k
  • James Cavanagh

    Chief of Staff

    • Tenure: 0.5yrs

Board Members

  • Peter Amirault

    Chairman & Lead Director

    • Tenure: 1.6yrs
    • Compensation: CA$72.67k
  • Derrick West

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: CA$41.74k
  • Dexter D. John (49yo)

    Independent Director

    • Tenure: 0.8yrs
  • Michel Bourque

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: CA$56.22k
  • Sherry Porter

    Independent Director

    • Tenure: 0.8yrs
  • Greg Engel (54yo)

    CEO & Director

    • Tenure: 2.6yrs
    • Compensation: CA$387.96k

Company Information

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


Key Information

  • Name: OrganiGram Holdings Inc.
  • Ticker: OGI
  • Exchange: NasdaqGS
  • Founded: 2013
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$757.469m
  • Listing Market Cap: CA$576.803m
  • Shares outstanding: 156.18m
  • Website: https://www.organigram.ca

Number of Employees


Location

  • OrganiGram Holdings Inc.
  • 35 English Drive
  • Moncton
  • New Brunswick
  • E1E 3X3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OGITSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2014
OGINasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDAug 2014
0OGDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2014
0VB6LSE (London Stock Exchange)YesCommon SharesGBCADAug 2014

Biography

OrganiGram Holdings Inc., through its subsidiaries, produces and sells dried cannabis and cannabis oil in Canada. It also offers wholesale shipping of cannabis plant cuttings, dried flowers, blends, pre-ro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:43
End of Day Share Price2019/10/17 00:00
Earnings2019/05/31
Annual Earnings2018/08/31


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.