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 16 industry peers in the Specialty Retail industry. NOVC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. NOVC is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
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.
1.2 Ratios
NOVC has a Return On Assets (2.32%) which is in line with 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 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
With a Profit Margin value of 1.14%, NOVC perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
NOVC has a Operating Margin (4.17%) which is in line with its industry peers.
NOVC's Operating Margin has improved in the last couple of years.
NOVC has a worse Gross Margin (24.83%) than 75.00% of its industry peers.
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.
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.
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's Altman-Z score of 2.85 is in line compared 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.
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 has a Debt to Equity ratio of 0.94. This is in the lower half of the industry: NOVC underperforms 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
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 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.07 |
3. Growth
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.
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
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
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
NOVC is valuated quite expensively with a Price/Earnings ratio of 29.17.
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 27.17, which is the current average of the S&P500 Index.
NOVC is valuated reasonably with a Price/Forward Earnings ratio of 8.58.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, NOVC is valued rather cheaply.
| 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 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 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)
Earnings (Next)
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.