OTCPK:FLWP.F

Stock Analysis Report

Executive Summary

The Flowr Corporation cultivates, produces, and sells cannabis in Canada.

Rewards

Trading at 59.8% below its fair value

Revenue is forecast to grow 71.15% per year

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

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

Highly volatile share price over past 3 months



Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FLWP.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.0%

FLWP.F

2.5%

US Pharmaceuticals

2.0%

US Market


1 Year Return

-49.7%

FLWP.F

12.9%

US Pharmaceuticals

23.6%

US Market

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

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


Shareholder returns

FLWP.FIndustryMarket
7 Day2.0%2.5%2.0%
30 Day0.7%3.7%3.9%
90 Day-15.6%16.0%12.0%
1 Year-49.7%-49.7%15.7%12.9%26.2%23.6%
3 Yearn/a40.9%30.8%53.2%43.3%
5 Yearn/a29.7%16.0%75.7%56.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Flowr 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: FLWP.F ($1.44) is trading below our estimate of fair value ($3.58)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: FLWP.F is good value based on its PB Ratio (1.3x) compared to the US Pharmaceuticals industry average (3.3x).


Next Steps

Future Growth

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

63.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLWP.F is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: FLWP.F is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: FLWP.F is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: FLWP.F's revenue (71.2% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: FLWP.F's revenue (71.2% 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 FLWP.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Flowr performed over the past 5 years?

-23.7%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: FLWP.F is currently unprofitable.

Growing Profit Margin: FLWP.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if FLWP.F's year-on-year earnings growth rate was positive over the past 5 years.

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

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


Return on Equity

High ROE: FLWP.F has a negative Return on Equity (-9.14%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Flowr's financial position?


Financial Position Analysis

Short Term Liabilities: FLWP.F's short term assets (CA$39.9M) exceed its short term liabilities (CA$21.6M).

Long Term Liabilities: FLWP.F's short term assets (CA$39.9M) exceed its long term liabilities (CA$33.1M).


Debt to Equity History and Analysis

Debt Level: FLWP.F's debt to equity ratio (8.3%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: FLWP.F's debt is covered by short term assets (assets are 2.8x 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: FLWP.F has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: FLWP.F has less than a year of cash runway if free cash flow continues to reduce at historical rates of -78.3% each year


Next Steps

Dividend

What is Flowr'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 FLWP.F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

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

1.1yrs

Average management tenure


CEO

Vinay Tolia (40yo)

1.4yrs

Tenure

CA$237,625

Compensation

Mr. Vinay Tolia has been the Chief Executive Officer of The Flowr Corporation since August 15, 2018 and served as its Co-Chief Executive Officer since June 2018. Mr. Tolia has served as the Chief Executive ...


CEO Compensation Analysis

Compensation vs Market: Vinay's total compensation ($USD181.88K) is below average for companies of similar size in the US market ($USD1.08M).

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


Management Age and Tenure

1.1yrs

Average Tenure

47yo

Average Age

Experienced Management: FLWP.F's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

1.1yrs

Average Tenure

55.5yo

Average Age

Experienced Board: FLWP.F's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: FLWP.F insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$10,42024 Dec 19
Alexander Dann
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares6,800
Max PriceUS$1.56
SellUS$13,49018 Dec 19
Alexander Dann
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares8,400
Max PriceUS$1.61
SellUS$8,46402 Dec 19
Alexander Dann
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares5,000
Max PriceUS$1.69
BuyUS$522,67604 Oct 19
Donald Duet
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares250,000
Max PriceUS$2.11
SellUS$56,77230 Sep 19
Ernest Broome
EntityIndividual
Role
Head of Research
Chief Research & Innovation Officer
Shares27,200
Max PriceUS$2.12
SellUS$80116 Sep 19
Ernest Broome
EntityIndividual
Role
Head of Research
Chief Research & Innovation Officer
Shares300
Max PriceUS$2.67
SellUS$24,99416 Sep 19
Alexander Dann
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares10,000
Max PriceUS$2.50
SellUS$12,27013 Sep 19
Lyle Oberg
EntityIndividual
Role
Member of the Board of Directors
Chief Policy & Medical Officer and Executive Director
Shares5,000
Max PriceUS$2.45
SellUS$12,45913 Sep 19
Ernest Broome
EntityIndividual
Role
Head of Research
Chief Research & Innovation Officer
Shares5,000
Max PriceUS$2.49
SellUS$25,86312 Sep 19
Lyle Oberg
EntityIndividual
Role
Member of the Board of Directors
Chief Policy & Medical Officer and Executive Director
Shares10,000
Max PriceUS$2.62
SellUS$12,93212 Sep 19
Ernest Broome
EntityIndividual
Role
Head of Research
Chief Research & Innovation Officer
Shares5,000
Max PriceUS$2.59
BuyUS$150,85812 Aug 19
Karen Basian
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares48,780
Max PriceUS$3.09
BuyUS$496,16715 May 19
Donald Duet
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares106,618
Max PriceUS$4.65
BuyUS$2,010,39515 May 19
Core Flow Canada Holdings Inc
EntityCompany
Shares432,000
Max PriceUS$4.65
BuyUS$186,14815 May 19
Vinay Tolia
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares40,000
Max PriceUS$4.65

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 57.6%.


Management Team

  • Vinay Tolia (40yo)

    CEO & Executive Director

    • Tenure: 1.4yrs
    • Compensation: CA$237.63k
  • Alex Dann (53yo)

    Chief Financial Officer

    • Tenure: 2.2yrs
    • Compensation: CA$201.38k
  • Lyle Oberg (59yo)

    Chief Policy & Medical Officer and Executive Director

    • Tenure: 1.3yrs
    • Compensation: CA$177.80k
  • Steve Klein (55yo)

    Co-Founder

    • Lance Emanuel

      President

      • Tenure: 1.1yrs
    • Francesco Tallarico (36yo)

      Chief Legal Officer

      • Tenure: 1.3yrs
    • Ivan Latysh

      Chief Technology Officer

      • Tenure: 0.3yrs
    • Tom Flow (41yo)

      Co-Founder & Managing Partner

      • Tenure: 0.8yrs
      • Compensation: CA$241.26k
    • Ernest Broome

      Chief Research & Innovation Officer

      • Tenure: 0.8yrs
    • Sean Griffin

      Vice President of Communications & Public Relations


      Board Members

      • Karen Basian (56yo)

        Lead Independent Director

        • Tenure: 0.8yrs
      • Maurice Levesque (60yo)

        Independent Director

        • Tenure: 1.1yrs
      • Vinay Tolia (40yo)

        CEO & Executive Director

        • Tenure: 1.4yrs
        • Compensation: CA$237.63k
      • Lyle Oberg (59yo)

        Chief Policy & Medical Officer and Executive Director

        • Tenure: 1.3yrs
        • Compensation: CA$177.80k
      • Steve Klein (55yo)

        Co-Founder

        • Dave Miller (55yo)

          Director

          • Tenure: 1.3yrs
        • Don Duet (53yo)

          Independent Director

          • Tenure: 0.8yrs
        • J. André de Teixeira (66yo)

          Independent Director

          • Tenure: 1.1yrs
        • Pauric Duffy

          Director

          • Tenure: 0.4yrs

        Company Information

        The Flowr Corporation's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: The Flowr Corporation
        • Ticker: FLWP.F
        • Exchange: OTCPK
        • Founded:
        • Industry: Pharmaceuticals
        • Sector: Pharmaceuticals & Biotech
        • Market Cap: CA$209.679m
        • Listing Market Cap: CA$160.396m
        • Shares outstanding: 106.98m
        • Website: https://www.flowr.ca

        Number of Employees


        Location

        • The Flowr Corporation
        • 461 King Street West
        • Suite 200
        • Toronto
        • Ontario
        • M5V 1K4
        • Canada

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        FLWRTSXV (TSX Venture Exchange)YesCommon SharesCACADSep 2018
        FLWP.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 2018

        Biography

        The Flowr Corporation cultivates, produces, and sells cannabis in Canada. The company is headquartered in Toronto, Canada. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/19 00:41
        End of Day Share Price2020/01/17 00:00
        Earnings2019/09/30
        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.