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Fire and Flower Holdings Corporation (FAF.CA) Stock Fundamental Analysis

TSX:FAF - Toronto Stock Exchange - CA3181083054 - Common Stock - Currency: CAD

0.29  +0.01 (+3.57%)

Fundamental Rating

2

Taking everything into account, FAF scores 2 out of 10 in our fundamental rating. FAF was compared to 16 industry peers in the Specialty Retail industry. Both the profitability and financial health of FAF have multiple concerns. FAF is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

FAF had negative earnings in the past year.
FAF had a negative operating cash flow in the past year.
FAF had negative earnings in each of the past 5 years.
FAF had negative operating cash flow in 4 of the past 5 years.
FAF.CA Yearly Net Income VS EBIT VS OCF VS FCFFAF.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 0 -20M -40M -60M

1.2 Ratios

The profitability ratios for FAF are negative, so there is not much use analyzing them.
Industry RankSector Rank
ROA N/A
ROE N/A
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
FAF.CA Yearly ROA, ROE, ROICFAF.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 -50 -100 -150 -200

1.3 Margins

With a Gross Margin value of 26.18%, FAF is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of FAF has declined.
FAF does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 26.18%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.74%
GM growth 5YN/A
FAF.CA Yearly Profit, Operating, Gross MarginsFAF.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 0 -100 -200

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2. Health

2.1 Basic Checks

FAF does not have a ROIC to compare to the WACC, probably because it is not profitable.
FAF has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
FAF.CA Yearly Shares OutstandingFAF.CA Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 50M 100M 150M 200M
FAF.CA Yearly Total Debt VS Total AssetsFAF.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 50M 100M 150M 200M

2.2 Solvency

Based on the Altman-Z score of -1.65, we must say that FAF is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FAF (-1.65) is worse than 78.95% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that FAF is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.53, FAF is doing good in the industry, outperforming 73.68% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF N/A
Altman-Z -1.65
ROIC/WACCN/A
WACC2.21%
FAF.CA Yearly LT Debt VS Equity VS FCFFAF.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 0 50M -50M 100M

2.3 Liquidity

FAF has a Current Ratio of 1.34. This is a normal value and indicates that FAF is financially healthy and should not expect problems in meeting its short term obligations.
FAF's Current ratio of 1.34 is fine compared to the rest of the industry. FAF outperforms 63.16% of its industry peers.
FAF has a Quick Ratio of 1.01. This is a normal value and indicates that FAF is financially healthy and should not expect problems in meeting its short term obligations.
FAF's Quick ratio of 1.01 is amongst the best of the industry. FAF outperforms 89.47% of its industry peers.
Industry RankSector Rank
Current Ratio 1.34
Quick Ratio 1.01
FAF.CA Yearly Current Assets VS Current LiabilitesFAF.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 10M 20M 30M 40M 50M

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3. Growth

3.1 Past

FAF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -332.65%.
The Revenue has decreased by -7.22% in the past year.
The Revenue has been growing by 138.11% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-332.65%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-47.62%
Revenue 1Y (TTM)-7.22%
Revenue growth 3Y138.11%
Revenue growth 5YN/A
Sales Q2Q%0%

3.2 Future

FAF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.45% yearly.
The Revenue is expected to grow by 9.29% on average over the next years. This is quite good.
EPS Next Y-38.03%
EPS Next 2Y24.99%
EPS Next 3Y20.45%
EPS Next 5YN/A
Revenue Next Year-13.2%
Revenue Next 2Y4.98%
Revenue Next 3Y9.29%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
FAF.CA Yearly Revenue VS EstimatesFAF.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
FAF.CA Yearly EPS VS EstimatesFAF.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 -0.5 -1 -1.5 -2

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for FAF. In the last year negative earnings were reported.
Also next year FAF is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
FAF.CA Price Earnings VS Forward Price EarningsFAF.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60 80

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
FAF.CA Per share dataFAF.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1 2 -2 3

4.3 Compensation for Growth

A more expensive valuation may be justified as FAF's earnings are expected to grow with 20.45% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y24.99%
EPS Next 3Y20.45%

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5. Dividend

5.1 Amount

FAF does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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Fire and Flower Holdings Corporation

TSX:FAF (6/5/2023, 7:00:00 PM)

0.29

+0.01 (+3.57%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)N/A N/A
Earnings (Next)12-14 2021-12-14
Inst Owners3.33%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap13.09M
Analysts77.78
Price Target3.57 (1131.03%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-152.95%
Min EPS beat(2)-155.78%
Max EPS beat(2)-150.13%
EPS beat(4)0
Avg EPS beat(4)-261.8%
Min EPS beat(4)-725.08%
Max EPS beat(4)-16.23%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.95%
Min Revenue beat(2)-5.36%
Max Revenue beat(2)1.46%
Revenue beat(4)1
Avg Revenue beat(4)-9.94%
Min Revenue beat(4)-34.94%
Max Revenue beat(4)1.46%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-9.68%
PT rev (3m)-3.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.08
P/FCF N/A
P/OCF N/A
P/B 0.13
P/tB 0.32
EV/EBITDA N/A
EPS(TTM)-2.12
EYN/A
EPS(NY)-0.53
Fwd EYN/A
FCF(TTM)-0.45
FCFYN/A
OCF(TTM)-0.37
OCFYN/A
SpS3.5
BVpS2.17
TBVpS0.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA N/A
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 26.18%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.74%
GM growth 5YN/A
F-Score3
Asset Turnover0.83
Health
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 18.16%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.34
Quick Ratio 1.01
Altman-Z -1.65
F-Score3
WACC2.21%
ROIC/WACCN/A
Cap/Depr(3y)170.29%
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-332.65%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-47.62%
EPS Next Y-38.03%
EPS Next 2Y24.99%
EPS Next 3Y20.45%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.22%
Revenue growth 3Y138.11%
Revenue growth 5YN/A
Sales Q2Q%0%
Revenue Next Year-13.2%
Revenue Next 2Y4.98%
Revenue Next 3Y9.29%
Revenue Next 5YN/A
EBIT growth 1Y-3.18%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year39.97%
EBIT Next 3Y32.02%
EBIT Next 5YN/A
FCF growth 1Y73.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y48.56%
OCF growth 3YN/A
OCF growth 5YN/A