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OGI

OrganiGram Holdings NasdaqGS:OGI Stock Report

Last Price

US$0.89

Market Cap

US$282.9m

7D

-6.9%

1Y

-62.4%

Updated

27 Sep, 2022

Data

Company Financials +
OGI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health5/6
Dividends0/6

OGI Stock Overview

Organigram Holdings Inc., through its subsidiaries, produces and sells cannabis and cannabis-derived products in Canada.

OrganiGram Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for OrganiGram Holdings
Historical stock prices
Current Share PriceCA$0.89
52 Week HighCA$2.55
52 Week LowCA$0.87
Beta1.29
1 Month Change-17.90%
3 Month Change-7.74%
1 Year Change-62.40%
3 Year Change-74.72%
5 Year Change-61.76%
Change since IPO-58.41%

Recent News & Updates

Aug 02

Don't Rule Out A Bull Market (Podcast Transcript)

Happy to have Alan Brochstein back! Thoughts on the recent rally (less about Bulls buying than Bears covering), political doubts and overall optimism. Valuations are low, but there's good news across the US. These stocks are really cheap. Mistake to assume margins will go down. Analyzing Canopy Growth, Curaleaf, AYR Wellness, Ascend and more. Editors' Note: This is the transcript version of the podcast we posted last Wednesday. Please note that due to time and audio constraints, transcription may not be perfect. We encourage you to listen to the podcast embedded below, if you need any clarification. Enjoy! Listen on the go! Subscribe to The Cannabis Investing Podcast on Apple Podcasts, Spotify, and Stitcher. Rena Sherbill: Hi, again everybody. Welcome back to the show. It's great to have you listening with us. As always, super, super happy and grateful that today's guest is Alan Brochstein, who followers of this podcast and the cannabis industry know as a stalwart of the industry one of the founding members of the cannabis investing community at 420 Investor, at New Cannabis Ventures. Alan has been on the podcast many times before. He unfortunately had an accident a few months ago that he talks about today. I know that this audience joins me in wishing Alan the absolute very best. His kindness and generosity, both as a human, but also as a purveyor of really strong cannabis investing insights, I know that we all appreciate him. I know I certainly do and I'm always really happy to talk to him and that he shares his time so generously with us and he has always been a really beloved member of the Seeking Alpha family as well. So really happy to have Alan on today and I hope you share in my wishes to him to continue getting well. Hope everyone enjoys this conversation. So Alan, welcome back to the Cannabis Investing Podcast. I know a lot of people, including myself, we're really happy to see you back just as a human being Alan Brochstein back in our, cameras back in our podcast, back in our email inboxes, but just nice to see you as a human being. I know that you survived a pretty horrific event. So it's just great to have you back on the show, but it's great to see you just doing well again. Alan Brochstein: Well, thank you. I really appreciate the opportunity to talk to the audience today and to you, and I'm wearing a mask only because my bike accident knocked out my teeth and I don't -- it's very distracting in looking. So, I know, this is a little distract, a little distracting as well, but it's better than looking at my empty mouth and that, so thank you. RS: Thank you. And ultimately I think the best, the best scenario is the fact that you're able to join us again and talk and, you know, share your insights. And I know that when we heard of your bike accent, I'll speak for the community of cannabis investors. You know, I think a lot of people were worried and concerned and I, and so I know that a lot of people are happy to see you back and getting stronger every day. So we're all -- we continue to root for you and continue to appreciate your place in our community. I know I do and it's always, it's always a pleasure and a joy getting to talk to you over the years. So, thanks for making the time and in a crazy time I imagine. AB: Yes, it's less crazy for me now than it was right when it happened, but I appreciate the cannabis community. There a lot of people who reached out to us and wanted to help financially and my son and my business partner, Joel set up a GoFundMe and it was very generously contributed to, and so I'm very grateful for that. And more, perhaps more importantly, I received a lot of communication, very positive and I know that tragedies like mine scare people that it could happen to them. And so everybody wants me to get better for maybe a selfish reason, but I felt like a lot of it was really because they care about me and my subscribers at 420 Investors, our clients and kind of interest too, everybody's been very supportive and I appreciate that. RS: Yes, absolutely. Yes, I think these things have a way of clarifying things for our own lives, but also, you know, what an impression people can make in our lives, like we know each other mostly through work, but obviously it's a big shock when you hear something happens to somebody that you even care about in a professional setting. So I'm happy to hear that good news continues to roll in about that, and you know the power of community. It's always inspiring to hear about and be a part of. So it's nice to hear. AB: Yes, it's really helped me recover. And so I want to tell the audience basically what happened to me if they don't know, but it was April 15th Good Friday and also my 32nd anniversary and we had plans for dinner that night, and I went for a bike ride and didn't come home. And what happened to me was, a lady claims she was having a diabetic attack, hit me on my bike while I was in the bike lane. And I had no idea and my brain was pretty dead for about a month. And so, right now, I am still recovering. I go to therapy pretty extensively and I'm learning to walk, for example, relearning to walk, and but I'm much better and my brain seems to be just back to where it was and we're going to find out soon exactly. But that's really the story and you know it almost killed me, but it left me feeling happier than I've ever been. RS: Well, it's amazing to hear. It's amazing to hear and really glad to hear that such a horrific thing is turning better and you're improving. So has this affected kind of how you approach work, about how you approach investing? Has this kind of changed anything in terms of how you approach those kinds of things just from kind of like a bigger picture? AB: No, not really, and I think if anything I'm almost back to a 100% of what I was doing before and thank you to my partner, Joel, and to the other workers at New Cannabis Ventures, that place ran fine without me for, literally for two months. And so I'm back to doing almost everything I was doing there. The good news is, I thought they needed all my blood and oxygen to exist. In fact, they did well without any of it. And even my subscribers, we're in a bear market and as a matter of fact, the Global Cannabis Stock Index on June 30th, it closed at an all-time low. And this is a scenario that's usually not good for my 420 Investor membership number, but I didn't lose that many members. A lot of people, they don't want to quit if I'm about to die, but they seemed to be appreciating my recovery. And I can tell you, you can look at my trading journal and my model portfolios were up. All of them were up 10% last week or more, 10% to 11%. And I think off the top of my head, I think I'm at 30, I forgot the exact number, but 27%, maybe month-to-date, the index was up 9%, and up like three times as much. And so I think that, you asked about my changes and no I'm not changing my investment outlook or anything, but I think what happened was the market went into a complete meltdown and it was still melting down. But when I got my brain back and I wanted to be really aggressive, I wrote a New Cannabis Ventures about it. We don't always say if we're bullish and we never say we're bearish. But we wrote a couple of times about how we may be near the end of the bear market, which I believe we are. And I would say that the -- this not my dime, but I had the time to really think thoroughly and wait for the right timing. It's showing up in my model portfolios of 420 Investors. RS: Yes, it's not an easy, I would say the past like a year plus has not been an easy time to run a cannabis service because there's just so much bearishness happening and investors are so pessimistic I think, or definitely not that optimistic on things. And it's hard to keep telling them why to be bullish when it's just -- the sector is just doing some times. AB: Yes, obviously stupid right? RS: Right? Like what are you trying to sell me? But, talk about kind of like what you're feeling about, I mean, I know last time you were on, you were talking about the importance of the catalyst that was New Jersey, New York coming online. AB: Yes, I saw that. RS: Yes. AB: And I still think that that's important and that people, what I think has happened, and if you look at the ancillary, which is down the most and the numbers there have been gone from sky high to looking like death. And we're talking about a big sector that happens, it's actually 41% of the index now. And all these stocks that are in the index trade on the NASDAQ and New York [ph] stock exchange, their investors tend to be people that can't buy OTC stocks and so they're, and the problem for the ancillary is that the numbers looked bad. And I think more importantly, these people that want to sell, because, no cannabis isn't going be great in their minds, they don't have anybody to sell to, they're all trying to sell and there's no new people showing up. In fact, one of the things that was positive last year was we were seeing new institutional buyers. Remember when the Democrats won, people thought that we were going move towards legalization, which proved to be incorrect. And I think, if you look at the market right now, there is a lot of pessimism. And my view is that this contraction in the number of buyers can, you know, with the increased pressure on the stocks has left people in a really bad position and they just want to sell, they don't care any longer about the price. And I think things like we said, with New York, New Jersey, Illinois, just got some dispensaries after being too short for a long time, these are really going to move the needle. The news in California about temporarily the cultivation tax could help that market, which is the biggest legal market, but it's still very heavily illegal there as well, you know, the illicit market. And there are other things going on. We have New Mexico which legalized. It's not that big of a deal, but Virginia, we have Connecticut coming. It's -- things are really good. And I think, you know, what I've written about, what I believe is going to happen is the future is going to look brighter and these stocks are really cheap. And, you know, is it all going to happen right away, like it's been in July? I don't think so and the July move seems to be the CAOA related, I don't think that thing is going to pass, but we can talk more about that later. RS: Yes. I mean, my sense on that kind of like rally of the last week, based on the promise of this bill, it seems to me like another fleeting catalyst based on just kind of temporary headlines. AB: Let me step back from that a little bit, because I've been following this market for now almost for nine years. And I think, you know, this is how rallies do start and I think that a lot of people thought that bulls were buying. I don't argue, we wrote about this today. It was less about bulls buying than bears covering. And there's been a large community of people that have been short the market, they see what's going on in Canada. They see... they think it's smart and shorted. I say well, maybe it was [indiscernible] market, but is it smart? I doubt it. And I think that -- I try to keep in my mind how volatile the sector can be and it seems like we're way down right now. And, you know, how do you get started doesn't necessarily matter. It's these things that we were just talking about, these new states legalizing and California's tax alleviating, that could be enough to really drive a good long-term. And so, nobody really thinks that CAOA is going to pass. I don't think. Maybe the people submitting it do, I don't know. But I don't -- I've seen a lot of money made with cannabis being federally legal, and I think it's going to remain federally legal, and I don't think that many people are going to sell when they find out. And so that's my view on that. RS: So it's interesting. So you feel like a rally can be stitched together, even if the news that it's based off of is not exactly what's being promised or even if it's like a short term, what's the word I'm looking for? Intermittent catalyst, right? That it's not long lasting. So you -- even notwithstanding that they can be stitched together to form like a long lasting rally. Is that because, is that because the underlying sector is strong, you think, and they just need… AB: I think the prices are so low and we, you know, we've been seeing some problems. You and I talked about this in January, some of the slow downs and delays and all that, but that's not a permanent problem. And the COVID effect, I mean, the 2020 numbers now look like they were boosted by the stay at home scenario that was going on. And so I think a bright future is ahead and I think the prices are very low. And I think that a lot of people think that the market is up because people think we're about to legalize. I don't think that's really what's going on. I think that helped get it started, but I don't think there's really that many people that are betting their life that we're about to legalize. That would be stupid. And if they're right, well, it would be great. Now I will tell you something good that can happen. In our piece today and New Cannabis Ventures our newsletter, we wrote about plan which allow the MSOs to be on a major US Exchange. We talked about safe banking, which I don't think that thing's that big, but passage would be good, but not great in my opinion. And we talked about the other bill, which is forget it, but there are some bills that could be passed when they start talking. And by the way, the Senate has never spoken on cannabis. It's been illegal since about the thirties and you know they just don't talk about it. Well, now they're going talk about it. They're not in the pass legalization in my opinion, but we may get one of these other bills passing, which would allow the exchanges to trade with these guys, that's a game changer for our industry. Because just really struggle people like cannabis companies, but oh, they're on the OTC Center in Canada, never mind. And I think I can talk about this now. I've been tracking since my brain came back, I've been tracking for about, I think 10, let's see 11 or 12 MSOs, the top ones. Plus I have role in there as well. And when I look at these MSOs, I look at the 2023 numbers, I'm looking at the EBITDA margins as they're trading at just to keep track, you know, projected EBITDA margin, I'm looking at the 2023 sales growth and 2023 EBIT growth. And the numbers are very big still, even though they've been coming down and the valuations are what I really look at. And the median of these dozen companies is just 1.6 times 2023 sales on an enterprise value basis. That's low. And you know, we were talking about nine times, 10 times a while ago. It's way down. And compared to EBITDA, now I think there is potentially some pressure on certain names, but there's also some names that seem pretty low. They tend be retail focused, but we're talking about just five and a half times 2023 EBITDA. RS: That's way down. AB: When we look at it it's way down. So when you're at a quarter of the valuations on these two, the ratio, now not all companies are the same when I look at this. And you know, I know I said last time it surely seemed expensive. It still seems expensive. It's probably gone down less since January and yes year-to-date it's down at least 10. It's right near its 150 day moving average. So I want to just tell you, I don't get it. I'm not going to say it's wrong, but I don't understand why it's happened. And so I'm working on trying to understand why it's happening. Sure these trades at, let's see if I can do that math, a 60% premium to the group. It's the highest. That's on enterprise value to sales and it's the same thing about 60% higher adjusted EBITDA margin. Not margin, but EBITDA. And so, I'm avoiding it still. I'll just share that with your listeners and so far avoiding it hasn't helped me, I don't think. But I will say this, I have positions in AYR (AYRWF) and they trade at the low end very low. And I just want to share what I'm looking at. And I think I can, if you want, I can tell you why I think they're trading mix, but both of them, they're not top tier, they're both tier 2, I consider. And I think that's part of the problem and they trade at 0.9 times sales, EV sales, and that's including all their debt and that AYR and they trade at three times adjusted EBITDA, so a huge discount. I'm just a believer that those companies can do well over time and should not trade at that big a discount. I also think Columbia Care (CCHWF) is cheap and your listeners are probably aware that Columbia Care is being acquired by Cresco (CRLBF), and that deal is supposed to close from what I can tell late Q4, maybe 2023. Also, I would, so that I don't include this one, but Goodness Growth is being acquired by Verano. I have no position of Verano (VRNOF), and I'll talk about that more in a moment, but I'm - I like Verano and in the past I've told you last time why I sold it. There were a lot of things going on and I'm watching that one, but both those stocks got out to like 15% discount to the price implied by the deal, which is way low and the Goodness Growth one, especially because that deal is supposed to close very soon, like this month or September, and Columbia Care was out there too. I bought Columbia Care when it was that cheap to Cresco. I had a lot of Cresco. I did the swap and I just sold the Cresco. I like Cresco and I love the merger, but I own Cresco. And at this -- it's inside of 10%, I think. The other thing to look out for, in my opinion, like I said a few minutes ago is be careful with the margins. And so, overall for this group of 12, the adjusted EBITDA margin on a medium basis is just below 30%, which I can live with that, but I'm aware that over time we may see more and more competition because we already have. And so I'm looking at the ones that are high and I want to pull those out truly at 37%, that's a pretty big premium. The highest is Verano at 41%. I just talked to management about their margins and they have a good reason. Like I know they're big in Florida and Florida is vertically innovate with higher gross margins and higher adjusted EBITDA margins. But as these two companies spread, that's going to go down. So I think the world is too high on Verano on the - that's the analyst assumption, 41% margin in 2023, that's 35% higher than the median. And it makes little sense to me, I've talked to them about it, and they didn't say this to be really clear, but I get the idea that they may provide guidance to bring it down. And if that happens, they're going to kill the stock. Now the good news for their investors I think is that the stock trades, it seems the way the stock is priced seems to factor in a lower margin. It only trades at 4.7 times and just, you just said, it's a 20% discount basically to the median. And I think for such a high margin, just saying the margin is too high, we're not going to pay that margin. I like truly even Verano. So I want to be very clear about that, but I'm looking at their multiples as their margins as being so high and I'm a little worried about that. And their valuations on a sales basis are still above average. I like -- the only name that I don't like right now, like I would say don't buy it, is Purely and it's just because the valuation is just way out a whack. And so a little higher valuation didn't stopped me from investing in GTI (GTBIF), which I didn't own that when we talked in January, but unfortunately I bought it in June at around 11. Well, that doesn't seem so bad right now, but when it was below eight, it felt pretty stupid. And I was like, wow, that part hurt me. But it was really for full company, which I think it is, it was beaten down and it's still. If you look at it now, I've long said that Cresco looks like a better deal than GTI. Well, now I have to say Cresco with Columbia Care looks like a better deal than GTI, but you do a merger there's always risk and I think GTI looks fine now. RS: So you're bullish on that merger, the proposed merger between Columbia Care and Cresco? AB: Yes. Let me say it in plain English. So Columbia Care, you had a management inferiority problem, and I'm not saying that like their, the way they are personally, I'm just saying the way they came across was inferior. They were all selling or certainly Nick and his partner that established the place, they were selling like every week and it looked bad and their operations have suffered. I think that the company, if I had to guess, just tried to expand too quickly and they weren't really focused on margins as well as others. And so, I do think that Cresco's management can take their excellent assets at Columbia Care and do better with them than Columbia Care did. And maybe it's just being you know the top tier versus second tier. I don't know. I have a lot of respect for Cresco and I think they're getting some great assets and a great job in Illinois and Pennsylvania. And I think they're going to do the New York thing. There's a shuffle going on there, because they can only keep one of those licenses and they get to New Jersey, they get Virginia. And Dallas, Virginia was one of the reasons I used to like Columbia Care. I still think it's a good thing. They have two of the licenses there. And so Virginia's kind of slow right now, but it's going to go legal and it's going to be a great state, I think. And so, yes I do like that merger. RS: And what are your thoughts? I know you write about this a little bit about your positions in the Canadian stocks. And we had Alan Sumler on a couple of weeks ago talking about how he likes Canadian stocks and why he likes them. What are your -- and I know you talked a little bit about the ancillary and I'm wondering if that comes into play, some of that reasoning comes into play with the Canadian stocks? AB: So I looked at a chart for you, for you and your audience today. I feel like the LPs have been slaughtered. Now this is coming -- you're hearing this from a guy who thought they were too expensive, so it's yes, I was right. But I want to make sure I don't keep saying bad things about them. So, number one, I came out when I had no position on Canopy Growth (CGC) and told the world that this was a good opportunity. And then I actually added it to all my model portfolios. And it kept dropping every day until Thursday, a week ago. And that was when it bottomed and it ran up a lot. I've sold some, but I still have a position there. And, right now the only name, that I'm telling subscribers that I just can't get behind is Tilray (TLRY), but I don't want them to be shortened or anything. I just -- I don't feel very good about Tilray and, but I have felt good wrongly about some of the smaller LPs that I thought were on the right path and their stocks don't trade much volume and they just go down. And what I prepared for you, let me share this, was I don't know if I can, oh, sorry. I'm looking in the wrong place. There we go. I've got to make it bigger. So I ran a chart from February 9th, 2021, so about 18 months ago, not quite, and I have on it the leading LPs in either sales or market cap. I hope that this is a complete universe. I don't want to be right off, I assume, but looking at Aurora, after that the Aurora (ACB), Canopy Growth, Cronos (CRON), [[HEXO]], OrganiGram (OGI), which I really like, Tilray, Village Farms (VFF), Pure Sunfarms. Looking at those seven companies, the returns over the last almost 18-months, the best one is OrganiGram, which I like. It's down 76%. That's the best one. The worst one is HEXO. It is down 98%. I'm like, wow! Now I think, let me just give a shout out to Tilray. I appreciate what they're trying to do with HEXO and I think if they can get away with this, which maybe they'll be able to do, it's a regulatory issue, I think. To buy HEXO because they took -- they got in a convertible stake at a discount and they own half of it now, a little less than half, can they actually buy the whole thing? And I know they have plans to integrate a little bit, but if they buy the whole thing, I think that's a smart move. And I've told my subscribers that I think HEXO has been a problem company as has Tilray, but the two of them together they're going to do well in Canada and maybe beyond. And so, and then the other name that's down a lot is Canopy, that's 95% in those less than 18-months. And then next is Aurora, which I added recently to, that was another stupid cannabis trader situation I think. Now, I'm not a big fan of Aurora. I don't care for their CEO necessarily. And I don't think the company has achieved what it should have achieved, but they have a great international medical and Canadian medical product. I think, what I don't like now is, they have a big facility that they're using for craft growing, actually this makes no sense to me. But with that said, the reason the stock plunged and gave us a buy opportunity and it's not up that much yet, it just hasn't gone down anymore, is that they raised equity, through equity they raised capital and the stock plunged on that deal. And I think people don't realize that having that cash net of debt and a lower cash burn than others is actually a good thing. And I'm waiting to -- I don't have a huge position, but I'm waiting to see if the company kind of changes their strategy at all. I haven't seen anything yet. Maybe that's because I was out for a while, but I'll be listening to their, I guess, their year end in August it should be. And so to answer your question about Canada, I think there's a long time bear on Canada for a lot of reasons, but mainly the valuations were too high. Some other things happened that kind of surprised me with; I knew that there were problems in Canada, but wow! Did they hurt? And so they still haven't fixed some of them like there's still 10 milligram cap on THC and edibles and that's just dumb, but it is what it is. And so, I think there's things they can do to improve Canada. I used to say that I like the retailers. I quit saying that, I don't own any. And I thought that was a good idea and it actually was relatively because they're not down that much, but I think now if I were, I am trying to pick the best stocks out there, I think there are some good opportunities in Canada. And what I can tell you right now, I'm at 21% versus they're at 19% of the index roughly, so I'm not making a big bet. I'm making more of a name bet, my four names that I can own -- necessarily which I own. RS: What's your beef or why the bearishness on Tilray? And I just want to follow up on the point about the Aurora growing Craft cannabis, you feel like that's just not their kind of area of focus? AB: It's not economical thing to use a big factory like that. So when I heard about that, I was like shocked. I mean, it's okay to be a craft grower, but to use a, one of the largest facilities in the world for craft growing and, I'm saying this, they are not going to make money. But Tilray, well so I've never spoken to Irwin Simon, so when I say, I don't like him, what I mean is that's not, I don't know him personally, but in a former job I have had to assess him and he eventually, got kicked out of me. But I think that the guy was greedy and I don't want to upset him or anybody else, but that was my view of his work again. At Tilray, well so I watched a [indiscernible] then he waited and waited to become a member, an employee there and this whole thing with Tilray, I was not a fan of that deal. And I thought that he was making a mistake buying Tilray. So these are kind of in the past and now, right now I will say that the company they're overly diversified and I don't think in a smart way, but I could be wrong, but this Breckenridge after the other beer, I don't think that's what cannabis investors want. Is it going to maybe make a better business, but I don't know. The hemp food that came with Tilray and they bought into that. And there's also the [indiscernible] and I don't really see how that -- deal. It's just a no growth business with low margins. So people that look at Tilray, they see a big revenue number, but it's very little cannabis, $55 million out of $152 million, that's all they did last quarter. Now, Tilray could work. I don't want to mislead, I actually set a target for year out last night for my subscribers at 40% higher, it's 3.50 now and I think it can get to five bucks basically. So should I be bullish on that? No, I don't think so, because I also set targets on Organigram and they're double this year, triple next year. And from now not triple from the doubling. And so I just don't see the returns as being that great. And the guy Simon, he's out there with that 4 billion BS and it's got the analysts some worrying, if he's going to do stupid acquisitions in the U.S. And I don't like what they and Canopy do, which is try to get people excited over the U.S. It's probably not happening. And if you look deeper, both of those companies have challenges in growth. And so if that doesn't happen, this whole idea of $4 billion in 2024 isn't going to happen. And they're a billion right now not even, so I don't think anybody believes them and it's kind of, so we can talk like that. RS: And so do you think that they got, you think they're mistaken getting in merging Aphria and Tilray was just getting focused on too many things and not focus on what kind of could really make them stand out in the sector? AB: Let me say that I followed Tilray from day one and I've been negative always until right now. And when they announced the acquisition of Tilray, they were saying things like, we're going to be a 20% combined market share. Well, no, it fell though. So Tilray was a very good company. I thought that there were some management issues there. And so I thought that they fell for the Tilray pitch and I was very unhappy. I liked Aphria and I liked what they were doing, but I saw some risk to the business and I think they were trying to get around it. They bought an indoor grower in British Columbia, but then they closed it. And so, now they're, they got the, the big out, semi outdoor, it's a greenhouse facility and they also have, it's a broken post, I forget, but they have a small facility, but the big facility, they closed it. And so I was never a fan of Tilray and I listened to whole talk about it. And I was like, and it's going down, but now I got to tell you, I'm the biggest bear on some of these large cap Canadian names and I own Canopy Growth now and I'm telling you Tilray is spiking and be 40% higher within the year and I know that I could be wrong, it could be 140%, I don't know. RS: You think it's going to be 40% higher than where it is now, not 40% higher than? AB: I do. I think that's based so just so your listeners understand, that's based on the Street consensus for adjusted EBITDA has come down and using a 20 times EV probably which could it be 15 maybe. And so that's going to kind of wipe that out, but it could also be 25, I guess. And I don't want to rule out a bull market and in a bull market, people think more bullishly and the valuation ratios can go up a lot. I think Tilray is starting off at too high a evaluation though. RS: So I think like the consensus we're, that you're telling investors to look for is margin pressure and kind of the valuation around the stocks. And that's really like the most important thing right now to be looking at. Would you agree with that? AB: Let me say, I think it's a mistake to assume margins are going to go down. I mean, they might, but to actually plan on it, because the reason is a lot of these states have limited competition and it's not going to be like California, which is also limited, but not by the speed by the locals. And am I betting on lower margins? No. Am I saying they could happen? Yes. And so I'm trying to look out for the margins that seem to be too high and trying to understand why and what their sustainability is, but I will tell you, in general, the valuations are low right now. People are overly afraid about margins, about growth and things like that. And I just think it could go the other way and yes, I'm very bullish right now. RS: It's good stuff Alan. Anything that you want to share that you think we left out before I let you go? AB: I'm just looking at my list. I think I covered almost everything. Let's go over Canopy Growth. I wrote about it and I think the company is a big failure. And I think that what I've written about is in the past was that I didn't like that the investment in Wana Brands, they're giving way too much money and they may never be able to close it. And then they did another one in California and not as big a deal. So I think that they also are beverage first company on technology and beverages, they are getting better. And they're just, until we get the ability to drink beverages socially, which is not -- it's not going to be at a dispensary, like nobody is going to go in and especially sit there and drink. That's just not fun. It's a regular bar. When regular bars start selling these kind of drinks, it's going to be good for Canopy Growth and for the others. But so, I have some problems with them, but the main problem from my perspective is they had $4 billion in cash with Constellation. Now they have net debt and I predicted that they were going to have to convert this and wow, was that ugly, but it created pressure on the stock. I mean, they took it down to the lower view or below actually 250 U.S. And I just thought that was a no brainer that the people wanting to buy it, they're happy it's coming at the most shares they can get from the deal and they're actually taking stock. And so getting rid of this debt is a good thing for, they still have debt. So I don't want to make it sound like it's great. They still have some expensive debt, but it covers their U.S. operations as well. And, but I do think that that the market was just overly negative about this transitional move and I predicted it was going to happen. It took longer and it's at a lower price, but it's over. And I think that the, the chances of Constellation (STZ) buying them, so I'm on the record for saying that I think Aphria will buy Cronos, because I still think that I have no position with Cronos with right now, it's going down less. And I think that their cash is why it's going down less and their cash burn it's gone down too. But so, come up with a cheaper stock than Cronos and if Aphria buys into the big premium of [indiscernible], but I think Constellation is on the path to buy Canopy Growth. And now it's at a much lower dollar price than they've invested, like they could buy the rest of it for a lot less. RS: And you think Constellation is going to buy Canopy Growth? AB: I do, I think that, they just stepped up. Then there's a lot of people out there that are telling me that the reason why Canopy Growth was dropping is because Constellation is going to try to buy them even lower. I'm like, no, how can they do that? They would be sued by investors for doing that. I think, I don't know for sure, but I'm not a lawyer, but they could pay 50% above where it's trading right now and it would make that conversion look smart because they got a lot of shares lower and people might be happy for all I know. And Constellation is bleeding right now on Canopy Growth, but I think things are going to get better for Canopy, especially if they can close these U.S. assets, but probably not. Right? RS: That would definitely be interesting. It's interesting what happens in Canada like after these past few years kind of some missteps in what ends up happening with some of these companies, it's interesting. Not certainly, what I thought I'll speak for myself a few years ago. AB: Yes. Well, I got to tell you, the only company that I really, really liked among the LPs and like, I'm telling you, I like the price on Canopy Growth, I'm not a big fan of the company and Aurora, I said the same thing. These are more technical or maybe sort of short-term valuation related. I have two other names and one of them is OrganiGram. That's my favorite company. I've written about it a lot.

Jul 27

Don't Rule Out A Bull Market

Happy to have Alan Brochstein back! Thoughts on the recent rally (less about Bulls buying than Bears covering), political doubts and overall optimism. Valuations are low, but there's good news across the US. These stocks are really cheap. Mistake to assume margins will go down. Analyzing Canopy Growth, Curaleaf, AYR Wellness, Ascend and more. Listen on the go! Subscribe to The Cannabis Investing Podcast on Apple Podcasts, Spotify, and Stitcher. Happy to have Alan Brochstein back! Thoughts on the recent rally (less about Bulls buying than Bears covering), political doubts and overall optimism. Valuations are low, but there's good news across the States. These stocks are really cheap. Mistake to assume margins will go down. Analyzing Canopy Growth (CGC), Curaleaf (CURLF), AYR Wellness (AYRWF), Ascend (AAWH) and more.

Shareholder Returns

OGIUS PharmaceuticalsUS Market
7D-6.9%-1.7%-6.9%
1Y-62.4%3.0%-23.7%

Return vs Industry: OGI underperformed the US Pharmaceuticals industry which returned 3% over the past year.

Return vs Market: OGI underperformed the US Market which returned -23.7% over the past year.

Price Volatility

Is OGI's price volatile compared to industry and market?
OGI volatility
OGI Average Weekly Movement8.5%
Pharmaceuticals Industry Average Movement11.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: OGI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: OGI's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2013865Beena Goldenberghttps://www.organigram.ca

Organigram Holdings Inc., through its subsidiaries, produces and sells cannabis and cannabis-derived products in Canada. It offers medical cannabis products, including cannabis flowers, cannabis oils, and vaporizers for civilian patients and veterans; adult use recreational cannabis under the Edison Cannabis Co., Trail Blazer, SHRED, SHRED'ems, Big Bag O' Buds, and Monjour brands; and cannabis edibles products and concentrates. The company also engages in the wholesale shipping of cannabis plant cuttings, dried flowers, blends, pre-rolls, and cannabis derivative based products to retailers and wholesalers for adult-use recreational cannabis.

OrganiGram Holdings Fundamentals Summary

How do OrganiGram Holdings's earnings and revenue compare to its market cap?
OGI fundamental statistics
Market CapUS$282.88m
Earnings (TTM)-US$24.80m
Revenue (TTM)US$91.04m

3.1x

P/S Ratio

-11.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OGI income statement (TTM)
RevenueCA$125.19m
Cost of RevenueCA$104.52m
Gross ProfitCA$20.67m
Other ExpensesCA$54.78m
Earnings-CA$34.11m

Last Reported Earnings

May 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.11
Gross Margin16.51%
Net Profit Margin-27.25%
Debt/Equity Ratio0.05%

How did OGI perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is OGI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for OGI?

Other financial metrics that can be useful for relative valuation.

OGI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.2x
Enterprise Value/EBITDA-21.4x
PEG Ration/a

Price to Sales Ratio vs Peers

How does OGI's PS Ratio compare to its peers?

OGI PS Ratio vs Peers
The above table shows the PS ratio for OGI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average9x
BTMD biote
1.9x13.7%US$281.9m
HROW Harrow Health
3.1x19.3%US$263.4m
EYPT EyePoint Pharmaceuticals
5.8x27.0%US$238.5m
LQDA Liquidia
25.5x59.2%US$351.4m
OGI OrganiGram Holdings
3.1x26.4%US$389.0m

Price-To-Sales vs Peers: OGI is good value based on its Price-To-Sales Ratio (3.1x) compared to the peer average (9x).


Price to Earnings Ratio vs Industry

How does OGI's PE Ratio compare vs other companies in the US Pharmaceuticals Industry?

Price-To-Sales vs Industry: OGI is expensive based on its Price-To-Sales Ratio (3.1x) compared to the US Pharmaceuticals industry average (2.8x)


Price to Sales Ratio vs Fair Ratio

What is OGI's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OGI PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.1x
Fair PS Ratio3.4x

Price-To-Sales vs Fair Ratio: OGI is good value based on its Price-To-Sales Ratio (3.1x) compared to the estimated Fair Price-To-Sales Ratio (3.4x).


Share Price vs Fair Value

What is the Fair Price of OGI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate OGI's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate OGI's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is OrganiGram Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


56.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OGI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: OGI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: OGI is expected to become profitable in the next 3 years.

Revenue vs Market: OGI's revenue (26.4% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: OGI's revenue (26.4% 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 OGI's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has OrganiGram Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-47.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: OGI is currently unprofitable.

Growing Profit Margin: OGI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OGI is unprofitable, and losses have increased over the past 5 years at a rate of 47.3% per year.

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

Earnings vs Industry: OGI is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (5%).


Return on Equity

High ROE: OGI has a negative Return on Equity (-6.67%), as it is currently unprofitable.


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Financial Health

How is OrganiGram Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: OGI's short term assets (CA$227.8M) exceed its short term liabilities (CA$54.6M).

Long Term Liabilities: OGI's short term assets (CA$227.8M) exceed its long term liabilities (CA$17.6M).


Debt to Equity History and Analysis

Debt Level: OGI has more cash than its total debt.

Reducing Debt: OGI's debt to equity ratio has reduced from 4.3% to 0.05% 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: OGI has sufficient cash runway for more than a year based on its current free cash flow.

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


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

OrganiGram Holdings Dividend Yield vs Market
How does OrganiGram Holdings dividend yield compare to the market?
SegmentDividend Yield
Company (OrganiGram Holdings)n/a
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Pharmaceuticals)2.6%
Analyst forecast in 3 Years (OrganiGram Holdings)n/a

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

High Dividend: Unable to evaluate OGI'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 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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as OGI has not reported any payouts.


Discover strong dividend paying companies

Management

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

1.4yrs

Average management tenure


CEO

Beena Goldenberg (59 yo)

1yr

Tenure

Ms. Beena G. Goldenberg, ICD D, has been Chief Executive Officer of OrganiGram Holdings Inc. since September 9, 2021 and as its Director since November 19, 2021. Ms. Goldenberg has been Independent Directo...


Leadership Team

Experienced Management: OGI's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: OGI's board of directors are not considered experienced ( 2.6 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

NasdaqGS:OGI Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
31 May 22BuyUS$11,692Paolo De LucaIndividual10,000US$1.17
25 May 22BuyUS$5,689Beena GoldenbergIndividual5,000US$1.14
24 May 22BuyUS$4,581Derrick WestIndividual4,035US$1.14
28 Feb 22BuyUS$5,016,828British American Tobacco p.l.c.Company2,659,716US$1.89

Ownership Breakdown

What is the ownership structure of OGI?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders279,7690.09%
Institutions38,692,60412.3%
Public Companies60,996,10819.4%
General Public213,739,28668.1%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.6%.


Top Shareholders

Top 25 shareholders own 30.65% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
19.44%
British American Tobacco p.l.c.
60,996,108CA$54.6m0%no data
4.75%
ETF Managers Group LLC
14,912,888CA$13.3m-22.13%0.38%
1.24%
Mirae Asset Global Investments Co., Ltd
3,896,615CA$3.5m-12.98%0.01%
0.71%
D. E. Shaw & Co., L.P.
2,226,900CA$2.0m24.76%no data
0.67%
Merlin Capital LLC
2,101,071CA$1.9m4.9%3.81%
0.6%
BMO Asset Management Corp.
1,870,063CA$1.7m-18.21%no data
0.34%
Renaissance Technologies LLC
1,072,951CA$960.2k362.48%no data
0.32%
Dimensional Fund Advisors LP
1,017,303CA$910.4k6.56%no data
0.27%
Intact Investment Management Inc.
851,100CA$761.6k0%0.03%
0.21%
Penserra Capital Management LLC
652,878CA$584.3k5.08%0.02%
0.2%
Swiss National Bank, Asset Management Arm
626,900CA$561.0k3.79%no data
0.2%
Two Sigma Advisers, LP
618,673CA$553.7k-46.48%no data
0.19%
Susquehanna International Group, LLP, Asset Management Arm
590,174CA$528.1k-22.2%no data
0.18%
Connor, Clark & Lunn Investment Management Ltd.
557,500CA$498.9k-11.59%no data
0.17%
Vontobel Asset Management, Inc.
538,474CA$481.9k0%no data
0.17%
Cambria Investment Management, L.P.
518,510CA$464.0k57.51%0.05%
0.15%
Millennium Management LLC
461,291CA$412.8k569.37%no data
0.13%
Goldman Sachs Asset Management, L.P.
413,700CA$370.2k-23.56%no data
0.13%
AdvisorShares Investments, LLC
406,342CA$363.6k0%0.1%
0.12%
Baader Bank AG, Asset Management Arm
389,804CA$348.8k0%0.03%
0.1%
State Street Global Advisors, Inc.
327,766CA$293.3k0.61%no data
0.097%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
305,448CA$273.3k0%no data
0.092%
Goldman Sachs Group, Investment Banking and Securities Investments
287,418CA$257.2k-16.3%no data
0.089%
Qube Research And Technologies Ltd
278,964CA$249.6k0%no data
0.078%
Morgan Stanley, Investment Banking and Brokerage Investments
243,748CA$218.1k-28.29%no data

Company Information

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


Key Information

  • Name: OrganiGram Holdings Inc.
  • Ticker: OGI
  • Exchange: NasdaqGS
  • Founded: 2013
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: CA$388.998m
  • Listing Market Cap: CA$282.879m
  • Shares outstanding: 313.71m
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/27 00:00
End of Day Share Price2022/09/27 00:00
Earnings2022/05/31
Annual Earnings2021/08/31


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.