NOVA CANNABIS INC (NOVC.CA) Fundamental Analysis & Valuation

TSX:NOVC • CA66980W1041

Current stock price

1.75 CAD
0 (0%)
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This NOVC.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. NOVC.CA Profitability Analysis

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.
NOVC.CA Yearly Net Income VS EBIT VS OCF VS FCFNOVC.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 10M -10M -20M

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.
  • 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's Return On Invested Capital of 7.21% is fine compared to the rest of the industry. NOVC outperforms 75.00% of its industry peers.
Industry RankSector 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
NOVC.CA Yearly ROA, ROE, ROICNOVC.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 -100 -200

1.3 Margins

  • The Profit Margin of NOVC (1.14%) is comparable to the rest of the industry.
  • NOVC's Operating Margin of 4.17% is in line compared 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.
  • NOVC has a Gross Margin of 24.83%. This is in the lower half of the industry: NOVC underperforms 75.00% of its industry peers.
  • In the last couple of years the Gross Margin of NOVC has declined.
Industry RankSector 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
NOVC.CA Yearly Profit, Operating, Gross MarginsNOVC.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40

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4

2. NOVC.CA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NOVC is destroying value.
  • NOVC has about the same amout of shares outstanding than it did 1 year ago.
  • NOVC has a better debt/assets ratio than last year.
NOVC.CA Yearly Shares OutstandingNOVC.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M
NOVC.CA Yearly Total Debt VS Total AssetsNOVC.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

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.
  • 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 comparable to the rest of the industry.
  • 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 RankSector Rank
Debt/Equity 0.94
Debt/FCF 5.15
Altman-Z 2.85
ROIC/WACC0.92
WACC7.88%
NOVC.CA Yearly LT Debt VS Equity VS FCFNOVC.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 20M -20M 40M

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.
  • 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 RankSector Rank
Current Ratio 1.96
Quick Ratio 1.07
NOVC.CA Yearly Current Assets VS Current LiabilitesNOVC.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. NOVC.CA Growth Analysis

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.
  • NOVC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.84%.
  • 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

  • The Earnings Per Share is expected to grow by 45.10% on average over the next years. This is a very strong growth
  • 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.
NOVC.CA Yearly Revenue VS EstimatesNOVC.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 200M 400M 600M
NOVC.CA Yearly EPS VS EstimatesNOVC.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 0 0.1 -0.1 0.2

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5

4. NOVC.CA Valuation Analysis

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.
  • The average S&P500 Price/Earnings ratio is at 26.64. NOVC is around the same levels.
  • NOVC is valuated reasonably with a Price/Forward Earnings ratio of 8.58.
  • Based on the Price/Forward Earnings ratio, NOVC is valued cheaper than 81.25% of the companies in the same industry.
  • NOVC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.36.
Industry RankSector Rank
PE 29.17
Fwd PE 8.58
NOVC.CA Price Earnings VS Forward Price EarningsNOVC.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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.
  • 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 RankSector Rank
P/FCF 9.23
EV/EBITDA 7.02
NOVC.CA Per share dataNOVC.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

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

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. NOVC.CA Dividend Analysis

5.1 Amount

  • NOVC does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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NOVC.CA Fundamentals: All Metrics, Ratios and Statistics

NOVA CANNABIS INC

TSX:NOVC (10/22/2024, 7:00:00 PM)

1.75

0 (0%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Industry Strength62.99
Industry Growth85.07
Earnings (Last)08-01
Earnings (Next)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 RankSector 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 RankSector 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 Number0 (-100%)
Profitability
Industry RankSector 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 RankSector 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 Fundamental Analysis 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.


Can you provide the profitability details for NOVA CANNABIS INC?

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.