NOVA CANNABIS INC (NOVC.CA) Fundamental Analysis & Valuation

TSX:NOVC • CA66980W1041

Current stock price

1.75 CAD
0 (0%)
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This NOVC.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. NOVC.CA Profitability Analysis

1.1 Basic Checks

  • NOVC had positive earnings in the past year.
  • NOVC had a positive operating cash flow in the past year.
  • In the past 5 years NOVC reported 4 times negative net income.
  • The reported operating cash flow has been mixed in the past 5 years: NOVC reported negative operating cash flow in multiple years.
NOVC.CA Yearly Net Income VS EBIT VS OCF VS FCFNOVC.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 10M -10M -20M

1.2 Ratios

  • NOVC has a Return On Assets of 2.32%. This is comparable to the rest of the industry: NOVC outperforms 56.25% of its industry peers.
  • The Return On Equity of NOVC (5.32%) is comparable to the rest of the industry.
  • NOVC has a better Return On Invested Capital (7.21%) than 75.00% of its industry peers.
Industry RankSector Rank
ROA 2.32%
ROE 5.32%
ROIC 7.21%
ROA(3y)-8.27%
ROA(5y)-6.93%
ROE(3y)-17.5%
ROE(5y)-14.76%
ROIC(3y)N/A
ROIC(5y)N/A
NOVC.CA Yearly ROA, ROE, ROICNOVC.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 -100 -200

1.3 Margins

  • NOVC has a Profit Margin (1.14%) which is comparable to the rest of the industry.
  • Looking at the Operating Margin, with a value of 4.17%, NOVC is in line with its industry, outperforming 56.25% of the companies in the same industry.
  • In the last couple of years the Operating Margin of NOVC has grown nicely.
  • Looking at the Gross Margin, with a value of 24.83%, NOVC is doing worse than 75.00% of the companies in the same industry.
  • NOVC's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 4.17%
PM (TTM) 1.14%
GM 24.83%
OM growth 3Y28.41%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-10.26%
GM growth 5YN/A
NOVC.CA Yearly Profit, Operating, Gross MarginsNOVC.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40

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4

2. NOVC.CA Health Analysis

2.1 Basic Checks

  • NOVC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, NOVC has about the same amount of shares outstanding.
  • The debt/assets ratio for NOVC has been reduced compared to a year ago.
NOVC.CA Yearly Shares OutstandingNOVC.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M
NOVC.CA Yearly Total Debt VS Total AssetsNOVC.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

2.2 Solvency

  • An Altman-Z score of 2.85 indicates that NOVC is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • NOVC has a Altman-Z score of 2.85. This is comparable to the rest of the industry: NOVC outperforms 50.00% of its industry peers.
  • The Debt to FCF ratio of NOVC is 5.15, which is a neutral value as it means it would take NOVC, 5.15 years of fcf income to pay off all of its debts.
  • NOVC has a Debt to FCF ratio (5.15) which is comparable to the rest of the industry.
  • A Debt/Equity ratio of 0.94 indicates that NOVC is somewhat dependend on debt financing.
  • NOVC's Debt to Equity ratio of 0.94 is on the low side compared to the rest of the industry. NOVC is outperformed by 62.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.94
Debt/FCF 5.15
Altman-Z 2.85
ROIC/WACC0.92
WACC7.88%
NOVC.CA Yearly LT Debt VS Equity VS FCFNOVC.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 20M -20M 40M

2.3 Liquidity

  • NOVC has a Current Ratio of 1.96. This is a normal value and indicates that NOVC is financially healthy and should not expect problems in meeting its short term obligations.
  • NOVC's Current ratio of 1.96 is fine compared to the rest of the industry. NOVC outperforms 75.00% of its industry peers.
  • A Quick Ratio of 1.07 indicates that NOVC should not have too much problems paying its short term obligations.
  • NOVC has a better Quick ratio (1.07) than 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.96
Quick Ratio 1.07
NOVC.CA Yearly Current Assets VS Current LiabilitesNOVC.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. NOVC.CA Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 155.95% over the past year.
  • NOVC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.84%.
  • Measured over the past years, NOVC shows a very strong growth in Revenue. The Revenue has been growing by 60.01% on average per year.
EPS 1Y (TTM)155.95%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-29.05%
Revenue 1Y (TTM)9.84%
Revenue growth 3Y60.01%
Revenue growth 5YN/A
Sales Q2Q%8.05%

3.2 Future

  • Based on estimates for the next years, NOVC will show a very strong growth in Earnings Per Share. The EPS will grow by 45.10% on average per year.
  • NOVC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.38% yearly.
EPS Next Y-26.32%
EPS Next 2Y45.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.23%
Revenue Next 2Y10.06%
Revenue Next 3Y13.72%
Revenue Next 5Y14.38%

3.3 Evolution

  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
NOVC.CA Yearly Revenue VS EstimatesNOVC.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 200M 400M 600M
NOVC.CA Yearly EPS VS EstimatesNOVC.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 0 0.1 -0.1 0.2

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5

4. NOVC.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 29.17, which means the current valuation is very expensive for NOVC.
  • The rest of the industry has a similar Price/Earnings ratio as NOVC.
  • NOVC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 8.58 indicates a reasonable valuation of NOVC.
  • NOVC's Price/Forward Earnings ratio is rather cheap when compared to the industry. NOVC is cheaper than 81.25% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 38.20. NOVC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 29.17
Fwd PE 8.58
NOVC.CA Price Earnings VS Forward Price EarningsNOVC.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NOVC indicates a somewhat cheap valuation: NOVC is cheaper than 62.50% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, NOVC is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 9.23
EV/EBITDA 7.02
NOVC.CA Per share dataNOVC.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

4.3 Compensation for Growth

  • NOVC's earnings are expected to grow with 45.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y45.1%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. NOVC.CA Dividend Analysis

5.1 Amount

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

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NOVC.CA Fundamentals: All Metrics, Ratios and Statistics

NOVA CANNABIS INC

TSX:NOVC (10/22/2024, 7:00:00 PM)

1.75

0 (0%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)08-01
Earnings (Next)11-06
Inst Owners8.38%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap108.64M
Revenue(TTM)268.56M
Net Income(TTM)3.06M
Analysts85
Price Target3.57 (104%)
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)-77.12%
Min EPS beat(2)-119.61%
Max EPS beat(2)-34.64%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)-4.08%
Min Revenue beat(2)-8.2%
Max Revenue beat(2)0.04%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)-3.45%
PT rev (3m)-3.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-60%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.79%
Valuation
Industry RankSector Rank
PE 29.17
Fwd PE 8.58
P/S 0.4
P/FCF 9.23
P/OCF 7.3
P/B 1.89
P/tB 3.26
EV/EBITDA 7.02
EPS(TTM)0.06
EY3.43%
EPS(NY)0.2
Fwd EY11.66%
FCF(TTM)0.19
FCFY10.84%
OCF(TTM)0.24
OCFY13.69%
SpS4.33
BVpS0.93
TBVpS0.54
PEG (NY)N/A
PEG (5Y)N/A
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA 2.32%
ROE 5.32%
ROCE 10.02%
ROIC 7.21%
ROICexc 8.01%
ROICexgc 10.56%
OM 4.17%
PM (TTM) 1.14%
GM 24.83%
FCFM 4.39%
ROA(3y)-8.27%
ROA(5y)-6.93%
ROE(3y)-17.5%
ROE(5y)-14.76%
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
ROICexgc growth 3Y75.18%
ROICexgc growth 5YN/A
ROICexc growth 3Y62.97%
ROICexc growth 5YN/A
OM growth 3Y28.41%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-10.26%
GM growth 5YN/A
F-Score6
Asset Turnover2.03
Health
Industry RankSector Rank
Debt/Equity 0.94
Debt/FCF 5.15
Debt/EBITDA 2.4
Cap/Depr 27.32%
Cap/Sales 1.15%
Interest Coverage 250
Cash Conversion 66.01%
Profit Quality 384.37%
Current Ratio 1.96
Quick Ratio 1.07
Altman-Z 2.85
F-Score6
WACC7.88%
ROIC/WACC0.92
Cap/Depr(3y)71.34%
Cap/Depr(5y)115.14%
Cap/Sales(3y)4.44%
Cap/Sales(5y)14.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)155.95%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-29.05%
EPS Next Y-26.32%
EPS Next 2Y45.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.84%
Revenue growth 3Y60.01%
Revenue growth 5YN/A
Sales Q2Q%8.05%
Revenue Next Year5.23%
Revenue Next 2Y10.06%
Revenue Next 3Y13.72%
Revenue Next 5Y14.38%
EBIT growth 1Y543.68%
EBIT growth 3Y105.47%
EBIT growth 5YN/A
EBIT Next Year96.36%
EBIT Next 3Y64.15%
EBIT Next 5Y46.65%
FCF growth 1Y153.12%
FCF growth 3Y38.04%
FCF growth 5YN/A
OCF growth 1Y302.91%
OCF growth 3Y1.14%
OCF growth 5YN/A

NOVA CANNABIS INC / NOVC.CA Fundamental Analysis FAQ

What is the fundamental rating for NOVC stock?

ChartMill assigns a fundamental rating of 5 / 10 to NOVC.CA.


What is the valuation status of NOVA CANNABIS INC (NOVC.CA) stock?

ChartMill assigns a valuation rating of 5 / 10 to NOVA CANNABIS INC (NOVC.CA). This can be considered as Fairly Valued.


Can you provide the profitability details for NOVA CANNABIS INC?

NOVA CANNABIS INC (NOVC.CA) has a profitability rating of 3 / 10.


Can you provide the expected EPS growth for NOVC stock?

The Earnings per Share (EPS) of NOVA CANNABIS INC (NOVC.CA) is expected to decline by -26.32% in the next year.