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. The financial health of NOVC is average, but there are quite some concerns on its profitability. NOVC is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year NOVC was profitable.
NOVC had a positive operating cash flow in the past year.
In the past 5 years NOVC reported 4 times negative net income.
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
With a Return On Assets value of 2.32%, NOVC perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.32%, NOVC is in line with its industry, outperforming 56.25% of the companies in the same industry.
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 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 of 1.14%. This is comparable to the rest of the industry: NOVC outperforms 43.75% of its industry peers.
The Operating Margin of NOVC (4.17%) is comparable to the rest of the industry.
NOVC's Operating Margin has improved in the last couple of years.
The Gross Margin of NOVC (24.83%) is worse 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.
NOVC has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, NOVC has more shares outstanding
Compared to 1 year ago, NOVC has an improved debt to assets ratio.
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.
The Altman-Z score of NOVC (2.85) 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 in line with its industry peers.
A Debt/Equity ratio of 0.94 indicates that NOVC is somewhat dependend on debt financing.
NOVC has a worse Debt to Equity ratio (0.94) than 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.
Looking at the Current ratio, with a value of 1.96, NOVC is in the better half of 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.
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
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.
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
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
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
A Price/Earnings ratio of 29.17 indicates a quite expensive valuation of NOVC.
The rest of the industry has a similar Price/Earnings ratio as NOVC.
Compared to an average S&P500 Price/Earnings ratio of 26.15, NOVC is valued at the same level.
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.
NOVC is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.17 | ||
| Fwd PE | 8.58 |
4.2 Price Multiples
62.50% of the companies in the same industry are more expensive than NOVC, based on the Enterprise Value to EBITDA ratio.
68.75% of the companies in the same industry are more expensive than NOVC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.23 | ||
| EV/EBITDA | 7.02 |
4.3 Compensation for Growth
NOVC's earnings are expected to grow with 45.10% in the coming years. This may justify a more expensive valuation.
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 ChartMill fundamental rating of NOVA CANNABIS INC (NOVC.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to NOVC.CA.
Can you provide the valuation status for NOVA CANNABIS INC?
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.
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.