OTCPK:CNAB

Stock Analysis Report

Executive Summary

United Cannabis Corporation owns intellectual properties related to growth, production, manufacture, marketing, management, utilization, and distribution of medical and recreational marijuana, and marijuana infused products in the United States and the Cayman Islands.

Snowflake

Fundamentals

Worrying balance sheet with weak fundamentals.

Risks

  • United Cannabis has significant price volatility in the past 3 months.
  • United Cannabis is not covered by any analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.3%

OTCPK:CNAB

-1.8%

US Pharmaceuticals

-1.0%

US Market


1 Year Return

34.7%

OTCPK:CNAB

-6.6%

US Pharmaceuticals

-0.4%

US Market

CNAB outperformed the Pharmaceuticals industry which returned -6.6% over the past year.

CNAB outperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

CNABIndustryMarket
7 Day5.3%-1.8%-1.0%
30 Day-18.5%-3.5%-3.3%
90 Day48.5%-3.8%0.8%
1 Year34.7%34.7%-4.3%-6.6%1.9%-0.4%
3 Year204.7%204.7%7.9%0.6%39.4%30.4%
5 Year-73.7%-73.7%22.9%10.0%54.2%37.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is United Cannabis undervalued based on future cash flows and its price relative to the stock market?

8.92x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for United Cannabis to establish if it is available at moderate discount.

Unable to calculate intrinsic value for United Cannabis to establish if it is available at substantial discount.


Price Based on Earnings

United Cannabis is loss making, we can't compare its value to the US Pharmaceuticals industry average.

United Cannabis is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for United Cannabis, we can't assess if its growth is good value.


Price Based on Value of Assets

United Cannabis is overvalued based on assets compared to the US Pharmaceuticals industry average.


Next Steps

Future Growth

How is United Cannabis expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.0%

Forecasted Pharmaceuticals 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 United Cannabis 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 United Cannabis performed over the past 5 years?

-51.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

United Cannabis does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare United Cannabis's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare United Cannabis's 1-year growth to the US Pharmaceuticals industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if United Cannabis has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if United Cannabis has efficiently used its assets last year compared to the US Pharmaceuticals industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if United Cannabis improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is United Cannabis's financial position?


Financial Position Analysis

United Cannabis's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

United Cannabis's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

United Cannabis's level of debt (135.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (3.1% vs 135.9% today).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x 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.

United Cannabis has less than a year of cash runway based on current free cash flow.

United Cannabis has less than a year of cash runway if free cash flow continues to grow at historical rates of 91.1% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate United Cannabis's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate United Cannabis's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as United Cannabis has not reported any payouts.

Unable to verify if United Cannabis's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as United Cannabis has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of United Cannabis's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Ernie Blackmon (47yo)

5.2yrs

Tenure

US$2,012,294

Compensation

Mr. Earnest Blackmon, also known as Ernie, serves as the Chairman of the Board of United Cannabis Corporation. Mr. Blackmon has been President and Chief Executive Officer at United Cannabis Corporation sin ...


CEO Compensation Analysis

Ernie's remuneration is higher than average for companies of similar size in United States of America.

Ernie's compensation has increased whilst company is loss making.


Management Age and Tenure

2.0yrs

Average Tenure

47yo

Average Age

The tenure for the United Cannabis management team is about average.


Board Age and Tenure

2.0yrs

Average Tenure

The average tenure for the United Cannabis board of directors is less than 3 years, this suggests a new board.


Insider Trading

United Cannabis individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$181,36005 Aug 19
Tony Verzura
EntityIndividual
Shares406,000
Max PriceUS$0.49
SellUS$180,66331 Jul 19
Tony Verzura
EntityIndividual
Shares364,000
Max PriceUS$0.51
SellUS$700,00028 Jun 19
Tony Verzura
EntityIndividual
Shares2,800,000
Max PriceUS$0.25
SellUS$50,00017 May 19
Tony Verzura
EntityIndividual
Shares200,000
Max PriceUS$0.25
SellUS$116,11602 Apr 19
Tony Verzura
EntityIndividual
Shares340,556
Max PriceUS$0.35
SellUS$49,06301 Apr 19
Tony Verzura
EntityIndividual
Shares138,297
Max PriceUS$0.36
SellUS$105,64219 Mar 19
Tony Verzura
EntityIndividual
Shares265,254
Max PriceUS$0.41

Ownership Breakdown


Management Team

  • Jesús Vázquez

    VP & General Counsel

    • Tenure: 1.3yrs
  • Ernie Blackmon (47yo)

    Chairman

    • Tenure: 5.2yrs
    • Compensation: $2.01m
  • Chad Ruby (43yo)

    COO, Secretary & Director

    • Tenure: 5.4yrs
    • Compensation: $5.84m
  • John Walsh (73yo)

    Treasurer & Principal Financial Officer

    • Tenure: 2.0yrs
    • Compensation: $1.97m
  • Clifton Lambreth

    Chief Marketing Officer

    • Tenure: 0.1yrs

Board Members

  • Murray Jensen

    Member of Medical Advisory Board

    • Tenure: 1.9yrs
  • Ernie Blackmon (47yo)

    Chairman

    • Tenure: 1.6yrs
    • Compensation: $2.01m
  • Chad Ruby (43yo)

    COO, Secretary & Director

    • Tenure: 5.3yrs
    • Compensation: $5.84m
  • David Watson

    Member of Advisory Board

    • Tenure: 2.0yrs
  • Michel Rod

    Member of Advisory Board

    • Tenure: 1.8yrs
  • David Scott

    Member of Advisory Board & Director

    • Tenure: 2.5yrs

Company Information

United Cannabis Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United Cannabis Corporation
  • Ticker: CNAB
  • Exchange: OTCPK
  • Founded: 2007
  • Industry: pharmaceuticals
  • Sector: pharmaceuticals & biotech
  • Market Cap: US$49.234m
  • Shares outstanding: 85.03m
  • Website: Click here

Number of Employees


Location

  • United Cannabis Corporation
  • 301 Commercial Road
  • Unit D
  • Golden
  • Colorado
  • 80401
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNABOTCPK (Pink Sheets LLC)YesCommon StockUSUSDAug 2013

Biography

United Cannabis Corporation owns intellectual properties related to growth, production, manufacture, marketing, management, utilization, and distribution of medical and recreational marijuana, and marijuan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 00:49
End of Day Share Price2019/08/16 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.