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Medicine Man Technologies, Inc. (SHWZ)
:SHWZ
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Medicine Man Technologies
(OTC:SHWZ)
45Neutral
Medicine Man Technologies (SHWZ) vs. S&P 500 (SPY)
Market Cap
$78.00
Dividend YieldN/A
Average Volume (3M)3.78K
Price to Earnings (P/E)―
Beta (1Y)-2413.62
Revenue Growth5.55%
EPS Growth-32.90%
CountryUS
Employees729
SectorHealthcare
Sector Strength77
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.91
Shares Outstanding78,248,390
10 Day Avg. Volume4,316
30 Day Avg. Volume3,783
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.00Price Target Upside19900.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Medicine Man Technologies Business Overview & Revenue Model
Company DescriptionMedicine Man Technologies, Inc. (SHWZ), operating under the brand name Schwazze, is a leading vertically integrated cannabis company based in Denver, Colorado. The company engages in the cultivation, manufacturing, distribution, and retail sale of cannabis products. It offers a diverse range of cannabis products, including flower, concentrates, edibles, and topicals, catering to both medical and recreational markets. Schwazze combines industry expertise with innovative practices to deliver high-quality cannabis products and services.
How the Company Makes MoneyMedicine Man Technologies generates revenue through multiple channels within the cannabis industry. Its primary revenue streams include the sale of cannabis products through its retail dispensaries and wholesale distribution. The company also earns income from its cultivation operations, which supply high-quality cannabis to its own retail outlets and third-party dispensaries. Additionally, Schwazze benefits from its manufacturing and processing capabilities, producing value-added products such as concentrates and edibles. The company has established strategic partnerships and acquisitions to expand its market presence and enhance its product offerings, further contributing to its revenue growth. Regulatory compliance and an emphasis on operational efficiency also play significant roles in its profitability.
Medicine Man Technologies Financial Statement Overview
Summary
Medicine Man Technologies is experiencing revenue growth but faces challenges with profitability and financial stability. While the company has positive operating cash flows and improvements in free cash flow, its high leverage and negative net profit margins are significant concerns.Income Statement
Medicine Man Technologies has shown revenue growth over the years, with a notable increase from 2020 to 2023. However, despite this growth, the company is struggling with profitability as indicated by the negative net income margins across the periods. The EBIT and EBITDA margins have shown some improvement, but the persistent negative net profit margin is a significant concern.45
Neutral
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio due to increasing debt levels over the years, which is a risk factor. The equity ratio is relatively stable, but the decreasing stockholder's equity from 2021 to 2023 indicates potential financial instability. The company needs to manage its liabilities more effectively to enhance financial health.50
Neutral
Cash Flow
The cash flow statements reveal positive operating cash flows in recent years, which is a positive sign. There is a noticeable improvement in free cash flow from negative to positive in 2023, indicating better cash management. However, the free cash flow growth has been inconsistent, and the reliance on financing activities in previous years could pose risks.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 174.91M | 172.45M | 159.38M | 108.42M | 24.00M | 10.62M | Gross Profit |
| 56.31M | 76.02M | 85.03M | 49.35M | 6.77M | 3.00M | EBIT |
| -10.85M | 3.29M | 20.89M | -5.11M | -22.90M | -13.46M | EBITDA |
| 16.49M | 37.52M | 38.12M | 3.47M | -19.80M | -13.55M | Net Income Common Stockholders |
| -59.68M | -34.55M | -18.47M | 14.52M | -19.42M | -16.98M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 9.08M | 19.71M | 39.40M | 106.40M | 1.23M | 11.85M | Total Assets |
| 30.03M | 358.14M | 322.92M | 285.03M | 70.68M | 32.23M | Total Debt |
| 75.84K | 191.87M | 148.23M | 106.33M | 21.55M | 66.80K | Net Debt |
| -9.00M | 172.62M | 109.28M | -67.77K | 20.32M | -11.79M | Total Liabilities |
| 3.58M | 238.85M | 190.76M | 151.46M | 28.91M | 5.65M | Stockholders Equity |
| 26.45M | 119.29M | 132.16M | 133.57M | 41.77M | 26.58M |
| Cash Flow | Free Cash Flow | ||||
| -1.47M | 1.59M | -3.42M | 51.67M | -10.57M | -7.75M | Operating Cash Flow |
| 6.59M | 12.20M | 11.39M | 57.33M | -9.80M | -7.55M | Investing Cash Flow |
| -8.06M | -26.44M | -79.18M | -81.16M | -33.22M | -1.12M | Financing Cash Flow |
| -6.14M | -5.46M | 337.38K | 129.00M | 31.90M | 20.20M |
Medicine Man Technologies Technical Analysis
Negative
0.02
Price Trends
0.03
Negative
0.08
Negative
0.20
Negative
Market Momentum
>-0.01
Negative
51.23
Neutral
43.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHWZ, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.03, and below the 200-day MA of 0.20, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.23 is Neutral, neither overbought nor oversold. The STOCH value of 43.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SHWZ.
Medicine Man Technologies Risk Analysis
Medicine Man Technologies disclosed 66 risk factors in its most recent earnings report. Medicine Man Technologies reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Medicine Man Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.68B | 17.18 | 4.19% | ― | 9.46% | 105.27% | |
51 Neutral | $807.54M | ― | -23.33% | ― | 0.67% | 19.14% | |
50 Neutral | C$368.09M | ― | -15.18% | ― | -4.65% | 59.09% | |
49 Neutral | C$869.08M | ― | -12.12% | ― | 6.27% | 67.62% | |
48 Neutral | $6.35B | 1.19 | -46.87% | 2.63% | 17.16% | 1.34% | |
45 Neutral | $78.00 | ― | -28.96% | ― | 5.55% | -32.90% | |
37 Underperform | $4.24M | ― | 230.64% | ― | ― | ― |
* Healthcare Sector Average
Performance Comparison
SHWZ
Medicine Man Technologies
0.02
-0.80
-97.56%
CANN
General Cannabis
0.05
-0.04
-44.44%
TSE:GTII
Green Thumb Industries
7.14
-12.43
-63.52%
TSE:TRUL
Trulieve Cannabis
4.60
-12.24
-72.68%
TSE:CURA
Curaleaf Holdings
1.02
-6.36
-86.18%
TSE:CL
Cresco Labs
0.79
-2.33
-74.68%
Medicine Man Technologies Earnings Call Summary
Earnings Call Date: Mar 26, 2025 | % Change Since: -81.82% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for Schwazze. While the company showed significant market share growth and successful wholesale business expansion, these positives were offset by a decline in gross margin, operational losses, challenges related to auditor transition, and store closures. The strategic debt restructuring offers some financial flexibility moving forward.Highlights
Market Share Growth
Schwazze has been gaining market share in Colorado and New Mexico. In Colorado, the company outperformed the market with 6% growth in a market that declined 11%. In New Mexico, revenue grew 9% sequentially compared to the state's 2%.
Wholesale Business Expansion
The wholesale business showed quarter-over-quarter growth, with penetration increasing to 34% in Colorado and 35% in New Mexico. New product offerings like Lowell Farms pre-rolls and Wana gummies contributed to this growth.
Debt Restructuring
Schwazze extended the maturities for their $15 million Altmore loan and $17 million Reynold Greenleaf & Associates promissory note from February to November 2025, providing financial flexibility for strategic growth.
Lowlights
Decline in Gross Margin and Operating Income
Gross profit for the quarter was $19 million or 44% of total revenue compared to $23 million or 54% last year. Loss from operations was $2.7 million compared to income of $5 million last year.
Challenges Due to Auditor Transition
The transition to a new auditing firm caused a delay in SEC filings, resulting in Schwazze's stock being moved to the OTC Expert Market, impacting liquidity and share price.
Store Closures
Three underperforming dispensaries in Colorado were closed as part of a restructuring initiative, impacting the company's retail footprint.
Company Guidance
In the recent Schwazze Q2 2024 earnings call, the company provided guidance on several key metrics, highlighting its strategic focus on growth and performance optimization. Total revenue for the quarter increased by 2% to $43.2 million, driven primarily by growth from new stores, though impacted by pricing pressures. Gross profit stood at $19 million, or 44% of total revenue, compared to $23 million, or 54% from the previous year, largely due to pricing adjustments and a mix of third-party purchases. Operating expenses rose to $21.8 million from $18.1 million, influenced by costs associated with five additional stores and nonrecurring fees. The company reported a loss from operations of $2.7 million compared to previous income of $5 million. Adjusted EBITDA was $9 million or 21% of revenue, down from $13.8 million or 33% of revenue the previous year. As of June 30, 2024, cash and cash equivalents were $12.3 million, with total debt at $163.4 million. Schwazze emphasized its commitment to refining its retail strategy and driving operational efficiencies, anticipating stronger growth and profitability in the latter half of 2024.Medicine Man Technologies Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Medicine Man Technologies Faces Leadership Change Amid Financial Challenges
Negative
Dec 12, 2024
Medicine Man Technologies, Inc. has announced a notice of default due to delays in filing quarterly reports, attributed to the suspension of its auditor, B.F. Borgers CPA PC, by the SEC. The company is undergoing a financial restatement process and seeking to rectify defaults, while also appointing Forrest Hoffmaster as the new CEO, effective December 9, 2024. Hoffmaster, with extensive executive experience, will continue as CFO until a successor is named, with strategic leadership expected to stabilize and potentially enhance the company’s position amid these challenges.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.