NOVA CANNABIS INC (NOVC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NOVC - CA66980W1041 - Common Stock
1.75 CAD
0 (0%)
Overall NOVC gets a fundamental rating of 4 out of 10. We evaluated NOVC against 18 industry peers in the Specialty Retail industry. While NOVC seems to be doing ok healthwise, there are quite some concerns on its profitability. NOVC is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
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.
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.
- NOVC has a better Return On Invested Capital (7.21%) than 75.00% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
- Looking at the Profit Margin, with a value of 1.14%, NOVC is in line with its industry, outperforming 43.75% of the companies in the same industry.
- NOVC has a Operating Margin of 4.17%. This is comparable to the rest of the industry: NOVC outperforms 56.25% of its industry peers.
- NOVC's Operating Margin has improved in the last couple of years.
- 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.
- In the last couple of years the Gross Margin of NOVC has declined.
| Industry Rank | Sector 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
2. Health
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.
- The debt/assets ratio for NOVC has been reduced compared to a year ago.
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.
- Looking at the Altman-Z score, with a value of 2.85, NOVC is in line with its industry, outperforming 50.00% of the companies in the same 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.
- Looking at the Debt to FCF ratio, with a value of 5.15, NOVC is in line with its industry, 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 5.15 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.92
WACC7.88%
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.
- NOVC's Quick ratio of 1.07 is fine compared to the rest of the industry. NOVC outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
- NOVC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 155.95%, which is quite impressive.
- The Revenue has grown by 9.84% in the past year. This is quite good.
- The Revenue has been growing by 60.01% on average over the past years. This is a very strong growth!
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
- NOVC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.10% yearly.
- Based on estimates for the next years, NOVC will show a quite strong growth in Revenue. The Revenue will grow by 14.38% on average per year.
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.
4. Valuation
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's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
- The Price/Forward Earnings ratio is 8.58, which indicates a very decent 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 24.04. NOVC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.17 | ||
| Fwd PE | 8.58 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NOVC is valued a bit cheaper than 62.50% of the companies 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.23 | ||
| EV/EBITDA | 7.02 |
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
5. Dividend
5.1 Amount
- No dividends for NOVC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:NOVC (10/22/2024, 7:00:00 PM)
1.75
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)08-01 2024-08-01/amc
Earnings (Next)11-06 2024-11-06
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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.