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

TSX:NOVC • CA66980W1041

1.75 CAD
0 (0%)
Last: Oct 22, 2024, 07:00 PM
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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.

Fundamental Rating

4

Taking everything into account, NOVC scores 4 out of 10 in our fundamental rating. NOVC was compared to 18 industry peers in the Specialty Retail industry. The financial health of NOVC is average, but there are quite some concerns on its profitability. NOVC is not overvalued while it is showing excellent growth. This is an interesting combination.


Dividend Valuation Growth Profitability Health

3

1. NOVC.CA Profitability Analysis

1.1 Basic Checks

  • In the past year NOVC was profitable.
  • NOVC had a positive operating cash flow in the past year.
  • NOVC had negative earnings in 4 of the past 5 years.
  • 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.
  • NOVC's Return On Equity of 5.32% is in line compared to the rest of the industry. NOVC outperforms 56.25% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 7.21%, NOVC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
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

  • The Profit Margin of NOVC (1.14%) is comparable to the rest of the industry.
  • NOVC has a Operating Margin (4.17%) which is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of NOVC has grown nicely.
  • NOVC's Gross Margin of 24.83% is on the low side compared to the rest of the industry. NOVC is outperformed by 75.00% of its industry peers.
  • In the last couple of years the Gross Margin of NOVC has declined.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • Compared to 1 year ago, NOVC has an improved debt to assets ratio.
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

  • NOVC has an Altman-Z score of 2.85. This is not the best score and indicates that NOVC is in the grey zone with still only limited risk for bankruptcy at the moment.
  • NOVC has a Altman-Z score (2.85) which is comparable to the rest of the industry.
  • NOVC has a debt to FCF ratio of 5.15. This is a neutral value as NOVC would need 5.15 years to pay back of 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

  • A Current Ratio of 1.96 indicates that NOVC should not have too much problems paying 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.
  • Looking at the Quick ratio, with a value of 1.07, NOVC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
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.
  • Looking at the last year, NOVC shows a quite strong growth in Revenue. The Revenue has grown by 9.84% in the last year.
  • 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

  • The Earnings Per Share is expected to grow by 45.10% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 14.38% on average over the next years. This is quite good.
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

  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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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Find the best growth stocksShow best growing peers

5

4. NOVC.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • NOVC is valuated quite expensively with a Price/Earnings ratio of 29.17.
  • The rest of the industry has a similar Price/Earnings ratio as NOVC.
  • The average S&P500 Price/Earnings ratio is at 26.29. NOVC is around the same levels.
  • A Price/Forward Earnings ratio of 8.58 indicates a reasonable valuation of NOVC.
  • Based on the Price/Forward Earnings ratio, NOVC is valued cheaper than 81.25% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 24.57. 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

  • Based on the Enterprise Value to EBITDA ratio, NOVC is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of NOVC indicates a somewhat cheap valuation: NOVC is cheaper than 68.75% of the companies listed in the same industry.
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

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

More info and screens

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

More info and screens

Find the best dividend stocksShow peers with best dividend

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 NumberN/A
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 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.


How profitable is NOVA CANNABIS INC (NOVC.CA) stock?

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


What is the financial health of NOVA CANNABIS INC (NOVC.CA) stock?

The financial health rating of NOVA CANNABIS INC (NOVC.CA) is 5 / 10.