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

  • In the past year NOVC was profitable.
  • In the past year NOVC had a positive cash flow from operations.
  • In the past 5 years NOVC reported 4 times negative net income.
  • In multiple years NOVC reported negative operating cash flow during the last 5 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 (2.32%) which is in line with its industry peers.
  • NOVC has a Return On Equity (5.32%) which is in line with its industry peers.
  • NOVC has a Return On Invested Capital of 7.21%. This is in the better half of the industry: NOVC outperforms 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

  • The Profit Margin of NOVC (1.14%) is comparable to the rest of the industry.
  • The Operating Margin of NOVC (4.17%) is comparable to the rest of the 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NOVC is destroying value.
  • The number of shares outstanding for NOVC remains at a similar level compared to 1 year ago.
  • NOVC has a better debt/assets ratio than last year.
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.
  • 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.
  • With a Debt to FCF ratio value of 5.15, NOVC perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
  • NOVC has a Debt/Equity ratio of 0.94. This is a neutral value indicating 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 has a Current ratio of 1.96. This is in the better half 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 Quick ratio of 1.07. This is in the better half of the industry: NOVC outperforms 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.
  • The Revenue has grown by 9.84% in the past year. This is quite good.
  • NOVC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 60.01% yearly.
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
  • 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

  • Based on the Price/Earnings ratio of 29.17, the valuation of NOVC can be described as expensive.
  • NOVC's Price/Earnings ratio is in line with the industry average.
  • NOVC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 8.58, the valuation of NOVC can be described as very reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of NOVC indicates a rather cheap valuation: NOVC is cheaper than 81.25% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 21.41. 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.
  • Based on the Price/Free Cash Flow ratio, NOVC is valued a bit cheaper than 68.75% of the companies 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

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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
Industry Strength64.06
Industry Growth84.33
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.