NOVA CANNABIS INC (NOVC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NOVC - CA66980W1041 - Common Stock
1.75 CAD
0 (0%)
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.
1. Profitability
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.
In multiple years NOVC reported negative operating cash flow during the last 5 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.
With a Return On Equity value of 5.32%, NOVC perfoms like the industry average, outperforming 56.25% of the companies in the same 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
NOVC has a Profit Margin (1.14%) which is comparable to the rest of the 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.
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.
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
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.
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.
NOVC has a Debt to FCF ratio of 5.15. This is comparable to the rest of the industry: NOVC outperforms 56.25% of its industry peers.
NOVC has a Debt/Equity ratio of 0.94. This is a neutral value indicating NOVC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.94, NOVC is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| 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.
With a decent Current ratio value of 1.96, NOVC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
NOVC has a Quick Ratio of 1.07. This is a normal value and indicates that NOVC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NOVC (1.07) is better than 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.
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.
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
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
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.
When comparing the Price/Earnings ratio of NOVC to the average of the S&P500 Index (27.19), we can say NOVC is valued inline with the index average.
A Price/Forward Earnings ratio of 8.58 indicates a reasonable valuation of NOVC.
Based on the Price/Forward Earnings ratio, NOVC is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NOVC to the average of the S&P500 Index (23.92), we can say NOVC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.17 | ||
| Fwd PE | 8.58 |
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.
NOVC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NOVC is cheaper than 68.75% of the companies 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
NOVC does not give a dividend.
| 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.