OTCPK:MMNF.F

Stock Analysis Report

Executive Summary

MedMen Enterprises Inc., together with its subsidiaries, operates as a cannabis company in the United States.

Rewards

Trading at 24.1% below its fair value

Revenue is forecast to grow 29.72% per year

Revenue grew by 158.4% over the past 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 limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-19.5%

MMNF.F

-1.9%

US Pharmaceuticals

1.5%

US Market


1 Year Return

-89.7%

MMNF.F

6.7%

US Pharmaceuticals

20.1%

US Market

Return vs Industry: MMNF.F underperformed the US Pharmaceuticals industry which returned 6.7% over the past year.

Return vs Market: MMNF.F underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

MMNF.FIndustryMarket
7 Day-19.5%-1.9%1.5%
30 Day-49.0%-2.8%1.4%
90 Day-54.6%8.1%8.7%
1 Year-89.7%-89.7%9.4%6.7%22.7%20.1%
3 Yearn/a28.6%19.4%50.1%40.5%
5 Yearn/a24.6%11.8%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MMNF.F ($0.3) is trading below our estimate of fair value ($0.39)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: MMNF.F is good value based on its PB Ratio (0.2x) compared to the US Pharmaceuticals industry average (3x).


Next Steps

Future Growth

How is MedMen Enterprises forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

51.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: MMNF.F's revenue (29.7% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: MMNF.F's revenue (29.7% 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 MMNF.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has MedMen Enterprises performed over the past 5 years?

-31.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: MMNF.F is currently unprofitable.

Growing Profit Margin: MMNF.F is currently unprofitable.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: MMNF.F is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (2.4%).


Return on Equity

High ROE: MMNF.F has a negative Return on Equity (-164.34%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MedMen Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: MMNF.F's short term assets ($139.3M) exceed its short term liabilities ($129.9M).

Long Term Liabilities: MMNF.F's short term assets ($139.3M) do not cover its long term liabilities ($541.1M).


Debt to Equity History and Analysis

Debt Level: MMNF.F's debt to equity ratio (114.2%) is considered high.

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


Balance Sheet

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

Debt Coverage by Assets: MMNF.F's debt is not covered by short term assets (assets are 0.7x 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: MMNF.F has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: MMNF.F has less than a year of cash runway if free cash flow continues to reduce at historical rates of -94.1% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if MMNF.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 MMNF.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Ryan Lissack (40yo)

0

Mr. Ryan Lissack is a Chief Executive Officer of MedMen Enterprises Inc., since 2020. He served as an Interim Chief Executive Officer of MedMen Enterprises Inc., since February 1, 2020 until 2020 and serve ...


Leadership Team

NamePositionTenureCompensationOwnership
Benjamin Rose
Executive Chairman1.5yrsno datano data
Adam Bierman
Co-Founder & Director1.8yrsUS$7.35m0.61% $980.2k
Andrew Modlin
Co-founder1.8yrsUS$6.20m0.68% $1.1m
Ryan Lissack
Chief Executive Officer0yrsno datano data
Zeeshan Hyder
Chief Financial Officer0.3yrsno datano data
Stéphanie Van Hassel
Vice President of Investor Relations0yrsno datano data
Dan Edwards
Senior Vice President of Legal Affairs0yrsno datano data
Christian Langbein
Vice President of Communications0yrsno datano data
Esther Song
Senior VP of Marketing & Communications1.1yrsno datano data
Christopher Ganan
Chief Strategy Officer1.8yrsno data0.82% $1.3m

0.9yrs

Average Tenure

37yo

Average Age

Experienced Management: MMNF.F's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Benjamin Rose
Executive Chairman1.5yrsno datano data
Adam Bierman
Co-Founder & Director1.8yrsUS$7.35m0.61% $980.2k
Andrew Modlin
Co-founder1.8yrsUS$6.20m0.68% $1.1m
Antonio Villaraigosa
Director1.5yrsUS$279.17kno data
Andrew Rayburn
Independent Director1.8yrsUS$56.25kno data
Mark Hutchison
Independent Director1.8yrsUS$56.25kno data
Jay Brown
Director1.6yrsUS$56.25k0.053% $85.0k

1.8yrs

Average Tenure

44yo

Average Age

Experienced Board: MMNF.F's board of directors are not considered experienced ( 1.8 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: MMNF.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 77.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: MedMen Enterprises Inc.
  • Ticker: MMNF.F
  • Exchange: OTCPK
  • Founded: 2010
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: CA$212.238m
  • Market Cap: CA$91.022m
  • Listing Market Cap: CA$160.154m
  • Shares outstanding: 620.10m
  • Website: https://www.medmen.com

Number of Employees


Location

  • MedMen Enterprises Inc.
  • 10115 Jefferson Boulevard
  • Culver City
  • California
  • 90232
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MMENCNSX (Canadian National Stock Exchange)YesClass B Subordinate Voting SharesCACADMay 2018
0JSBST (Boerse-Stuttgart)YesClass B Subordinate Voting SharesDEEURMay 2018
MMNF.FOTCPK (Pink Sheets LLC)YesClass B Subordinate Voting SharesUSUSDMay 2018
0JSDB (Deutsche Boerse AG)YesClass B Subordinate Voting SharesDEEURMay 2018

Biography

MedMen Enterprises Inc., together with its subsidiaries, operates as a cannabis company in the United States. The company cultivates, produces, and distributes, and retails recreational and medicinal cannabis under the [statemade], LuxLyte, and MedMen Red brand names. As of November 11, 2019, it operated 34 retail stores. The company was founded in 2010 and is headquartered in Culver City, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 01:13
End of Day Share Price2020/02/14 00:00
Earnings2019/09/28
Annual Earnings2019/06/29


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.