OTCPK:ACAN

Stock Analysis Report

Executive Summary

AmeriCann, Inc. identifies, designs, permits, acquires, develops, and operates scalable infrastructures to cultivate and dispense medical cannabis in regulated markets in the United States.

Risk Analysis

Earnings have declined by -23.24% per year over past 5 years

Has less than 1 year of cash runway

Makes less than USD$1m in revenue ($12K)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 2 more risks


Snowflake Analysis

Overvalued with worrying balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ACAN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

9.2%

ACAN

2.5%

US Pharmaceuticals

2.0%

US Market


1 Year Return

-62.8%

ACAN

12.9%

US Pharmaceuticals

23.6%

US Market

Return vs Industry: ACAN underperformed the US Pharmaceuticals industry which returned 12.6% over the past year.

Return vs Market: ACAN underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

ACANIndustryMarket
7 Day9.2%2.5%2.0%
30 Day12.7%3.7%3.9%
90 Day2.9%16.0%12.0%
1 Year-62.8%-62.8%15.7%12.9%26.2%23.6%
3 Year-77.8%-77.8%40.9%30.8%53.2%43.3%
5 Year-29.0%-29.0%29.7%16.0%75.7%56.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

2.73x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ACAN is good value based on its PB Ratio (2.1x) compared to the US Pharmaceuticals industry average (3.3x).


Next Steps

Future Growth

How is AmeriCann forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.5%

Forecasted Pharmaceuticals & Biotech 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 AmeriCann 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 AmeriCann performed over the past 5 years?

-23.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACAN is currently unprofitable.

Growing Profit Margin: ACAN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ACAN is unprofitable, and losses have increased over the past 5 years at a rate of -23.2% per year.

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

Earnings vs Industry: ACAN is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (36.8%).


Return on Equity

High ROE: ACAN has a negative Return on Equity (-35.51%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AmeriCann's financial position?


Financial Position Analysis

Short Term Liabilities: ACAN's short term assets ($1.4M) exceed its short term liabilities ($781.3K).

Long Term Liabilities: ACAN's short term assets ($1.4M) do not cover its long term liabilities ($4.9M).


Debt to Equity History and Analysis

Debt Level: ACAN's debt to equity ratio (86.1%) is considered high.

Reducing Debt: ACAN's debt to equity ratio has increased from 2.9% to 33.8% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ACAN's debt is not covered by short term assets (assets are 0x 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: ACAN has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ACAN has less than a year of cash runway if free cash flow continues to reduce at historical rates of -64% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

5.0yrs

Average board tenure


CEO

Tim Keogh (39yo)

5.8yrs

Tenure

US$454,397

Compensation

Mr. Timothy Ryan Keogh, also known as Tim, has been the Chief Executive Officer of Americann, Inc. since March 25, 2014 and serves as its President. Prior to joining AmeriCann, Mr. Keogh was the Chief Exec ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD454.40K) is about average for companies of similar size in the US market ($USD518.52K).

Compensation vs Earnings: Tim's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

5.0yrs

Average Tenure

39yo

Average Age

Experienced Board: ACAN's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.9%.


Management Team

  • Ben Barton (54yo)

    Founder

    • Tenure: 6yrs
    • Compensation: US$274.40k
  • Tim Keogh (39yo)

    CEO, President & Director

    • Tenure: 5.8yrs
    • Compensation: US$454.40k
  • Rien Havens

    Extraction & Infused Product Advisor and Member of Advisory Board

    • Tenure: 4.2yrs
  • Eric Forington

    Genetics & Breeding Advisor and Member of Advisory Board

    • D. Anderson

      Medical Advisor & Member of Advisory Board

      • Nick Brait

        Licensing & Compliance Advisor and Member of Advisory Board

        • Doug Carr (58yo)

          Vice President of Sales & Business Development

          • Tenure: 0.8yrs
          • Compensation: US$416.82k

        Board Members

        • Ben Barton (54yo)

          Founder

          • Tenure: 6yrs
          • Compensation: US$274.40k
        • Tim Keogh (39yo)

          CEO, President & Director

          • Tenure: 5.8yrs
          • Compensation: US$454.40k
        • Rien Havens

          Extraction & Infused Product Advisor and Member of Advisory Board

          • Tenure: 4.2yrs
        • Eric Forington

          Genetics & Breeding Advisor and Member of Advisory Board

          • D. Anderson

            Medical Advisor & Member of Advisory Board

            • Nick Brait

              Licensing & Compliance Advisor and Member of Advisory Board

              • J. Opel (30yo)

                Independent Director

                • Tenure: 1yrs
                • Compensation: US$270.60k

              Company Information

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


              Key Information

              • Name: AmeriCann, Inc.
              • Ticker: ACAN
              • Exchange: OTCPK
              • Founded: 2010
              • Industry: Pharmaceuticals
              • Sector: Pharmaceuticals & Biotech
              • Market Cap: US$16.688m
              • Shares outstanding: 23.50m
              • Website: https://www.americann.co

              Number of Employees


              Location

              • AmeriCann, Inc.
              • 1550 Wewatta Street
              • Denver
              • Colorado
              • 80202
              • United States

              Listings

              TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
              ACANOTCPK (Pink Sheets LLC)YesCommon StockUSUSDSep 2013

              Biography

              AmeriCann, Inc. identifies, designs, permits, acquires, develops, and operates scalable infrastructures to cultivate and dispense medical cannabis in regulated markets in the United States. The company was formerly known as Nevada Health Scan, Inc. and changed its name to AmeriCann, Inc. in 2014. AmeriCann, Inc. was founded in 2010 and is based in Denver, Colorado. 


              Company Analysis and Financial Data Status

              All financial data provided by Standard & Poor's Capital IQ.
              DataLast Updated (UTC time)
              Company Analysis2020/01/19 00:17
              End of Day Share Price2020/01/17 00:00
              Earnings2019/09/30
              Annual Earnings2019/09/30


              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.