NOVA CANNABIS INC (NOVC.CA) Stock Fundamental Analysis
Canada - 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 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 not overvalued while it is showing excellent growth. This is an interesting 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.
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
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.
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.
The Return On Invested Capital of NOVC (7.21%) is better 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's Profit Margin of 1.14% is in line compared to the rest of the industry. NOVC outperforms 43.75% of its industry peers.
With a Operating Margin value of 4.17%, NOVC perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
NOVC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 24.83%, NOVC is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
NOVC's Gross Margin has declined in the last couple of years.
| 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.
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
NOVC has a better debt/assets ratio than last year.
2.2 Solvency
NOVC has an Altman-Z score of 2.85. This is not the best score and indicates that NOVC is in the grey zone with still 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.
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
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.
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
The Earnings Per Share has grown by an impressive 155.95% over the past year.
NOVC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.84%.
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.
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
A Price/Earnings ratio of 29.17 indicates a quite expensive valuation of NOVC.
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 27.41, which is the current average of the S&P500 Index.
NOVC is valuated reasonably with a Price/Forward Earnings ratio of 8.58.
81.25% of the companies in the same industry are more expensive than NOVC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NOVC to the average of the S&P500 Index (22.88), we can say 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 62.50% of the companies 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
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
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
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
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
ROICexcg growth 3Y75.18%
ROICexcg 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