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Cannabist Company Holdings (TSE:CBST)
NEO-L:CBST
RESEARCH TOOLSreports
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Cannabist Company Holdings
(NEO-L:CBST)
40Underperform
Positive Factors
Expansion and Acquisitions
Verano set to expand operations in Arizona and enter Virginia via acquisitions with The Cannabist Co.
Financial Benefit
The transaction terms indicate potential financial benefit for CBST through cash and voting shares.
Negative Factors
Asset Dispositions
CBST progresses on previously announced planned asset dispositions.
Cannabist Company Holdings (CBST) vs. S&P 500 (SPY)
Market Cap
$227.80M
Dividend YieldN/A
Average Volume (3M)0.00
Price to Earnings (P/E)―
Beta (1Y)-0.28
Revenue Growth-9.05%
EPS Growth45.26%
CountryCA
Employees1,681
SectorHealthcare
Sector Strength72
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.32
Shares Outstanding465,638,300
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$0.10Price Target Upside-82.11% Downside
Rating ConsensusHold
Number of Analyst Covering2
Cannabist Company Holdings Business Overview & Revenue Model
Company DescriptionThe Cannabist Company Holdings Inc. engages in the cultivation, manufacture, and provision of cannabis products and related services in the United States and internationally. The company offers spanning flower, edibles, oils, and tablets under the Seed & Strain, Triple Seven, Hedy, gLeaf, Classix, Press, and Amber brand names. It holds licenses in 17 jurisdictions in the United States. The company was formerly known as Columbia Care Inc. and changed its name to The Cannabist Company Holdings Inc. in September 2023. The company was founded in 2012 and is headquartered in New York, New York.
How the Company Makes MoneyCannabist Company Holdings generates revenue through a multi-faceted approach encompassing cultivation, production, and retail sales. The company's primary revenue streams include the sale of cannabis products through its own branded retail stores and wholesale distribution to other dispensaries. Additionally, Cannabist Company Holdings capitalizes on its proprietary brands and product lines, enhancing its market presence and consumer loyalty. Partnerships with local growers and strategic acquisitions also contribute to its revenue by expanding its product offerings and geographic footprint. The company's focus on both medical and recreational markets allows it to tap into diverse customer bases and regulatory environments, further stabilizing and growing its income.
Cannabist Company Holdings Financial Statement Overview
Summary
Cannabist Company Holdings faces significant financial challenges. The income statement reflects declining revenue and persistent losses, while the balance sheet shows high leverage and low equity, posing risks to financial stability. Cash flow constraints further exacerbate the company's financial position. Strategic restructuring and improved operational efficiency are needed to drive financial recovery and growth.Income Statement
Cannabist Company Holdings has experienced declining revenue in the TTM compared to the previous year, with a negative revenue growth rate of -3.41%. The gross profit margin for TTM is 33.60%, which is relatively stable, but the net profit margin remains negative at -25.49%, indicating persistent losses. EBIT and EBITDA margins are also negative, reflecting operational challenges. The company needs to address its profitability issues to improve its financial health.40
Negative
Balance Sheet
The company's balance sheet shows significant leverage, with a debt-to-equity ratio of 19.25 in the TTM, indicating high financial risk. The equity ratio is low at 3.22%, suggesting limited buffer against liabilities. Return on equity is negative, pointing to ongoing unprofitability. The company must focus on reducing debt and improving equity to enhance stability.35
Negative
Cash Flow
Cannabist's cash flow position is concerning, with a negative free cash flow of -23.99 million in the TTM, and no meaningful free cash flow growth. The operating cash flow to net income ratio is negative, reflecting cash flow issues. These indicate challenges in generating sufficient cash to cover operations and investments, necessitating strategic adjustments to improve liquidity.30
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 493.92M | 511.33M | 491.31M | 456.03M | 188.99M | 79.26M |
| Gross Profit | |||||
| 165.97M | 179.97M | 136.13M | 146.92M | 52.68M | 13.47M |
| EBIT | |||||
| -88.15M | -105.24M | -73.10M | -37.70M | -84.45M | -96.30M |
| EBITDA | |||||
| 1.65M | -51.30M | -282.36M | -63.14M | -115.66M | -95.21M |
| Net Income Common Stockholders | |||||
| -125.91M | -175.71M | -399.52M | -141.84M | -100.85M | -104.97M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 44.43M | 36.91M | 48.13M | 82.09M | 61.11M | 47.46M |
| Total Assets | |||||
| 811.99M | 823.11M | 994.28M | 1.37B | 727.53M | 402.28M |
| Total Debt | |||||
| 548.39M | 546.32M | 566.97M | 420.75M | 295.21M | 83.64M |
| Net Debt | |||||
| 503.96M | 510.56M | 518.84M | 338.66M | 234.10M | 36.18M |
| Total Liabilities | |||||
| 769.13M | 757.76M | 787.47M | 824.57M | 440.58M | 135.34M |
| Stockholders Equity | |||||
| 43.88M | 66.53M | 213.19M | 570.62M | 306.82M | 268.27M |
| Cash Flow | Free Cash Flow | ||||
| -24.00M | -2.50M | -179.70M | -132.64M | -97.42M | -140.38M |
| Operating Cash Flow | |||||
| -18.10M | 7.47M | -106.99M | -518.40K | -52.27M | -61.13M |
| Investing Cash Flow | |||||
| 4.42M | -3.50M | -72.34M | -189.67M | -24.02M | -93.38M |
| Financing Cash Flow | |||||
| -15.29M | -14.12M | 147.59M | 200.66M | 90.00M | 155.76M |
Cannabist Company Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Performance Comparison
TSE:CBST
Cannabist Company Holdings
0.56
0.00
0.00%
CGC
Canopy Growth
0.91
-7.44
-89.10%
OGI
OrganiGram Holdings
1.01
-1.03
-50.49%
ACB
Aurora Cannabis
4.39
-0.61
-12.20%
CURLF
Curaleaf Holdings
0.91
-4.47
-83.09%
TCNNF
Trulieve Cannabis
3.86
-8.54
-68.87%
Cannabist Company Holdings Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: 0.00% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company in the midst of a significant transformation, with strategic divestitures aimed at addressing liquidity and debt challenges. While there is positive momentum in wholesale growth and market transitions, revenue and cash flow challenges remain. The sentiment is cautious as the company navigates through these structural changes.Highlights
Transformation Progress and Strategic Divestitures
The company made significant progress in its transformation plan, having completed the sale of assets and operations in Arizona and Eastern Virginia for $105 million. This strategic move helped solve near-term liquidity needs and set the stage for tackling future debt obligations.
Wholesale Revenue Growth
Sequential increase in wholesale revenue by 2% to $19.5 million, despite impactful divestitures in Virginia and Arizona.
Ohio Market Transition to Adult Use
The transition of the Ohio market to adult use resulted in volumes on average nearly doubling and a new customer rate nearly nine times greater than prior to the transition.
Cost-Cutting and Operational Improvements
Further operational improvements and additional cost-cutting initiatives implemented in Q4 to drive efficiencies, including a $10 million annualized cost savings from corporate restructuring actions.
Lowlights
Revenue Decline
Third-quarter revenue was $115 million, down 8% from the second quarter, primarily due to the sale of Eastern Virginia and Arizona businesses.
Negative Cash Flow from Operations
Cash from operations was negative $18 million in the third quarter, compared to negative $3 million in the second quarter, due to deferred payments, divestitures, and restructuring efforts.
Adjusted EBITDA Decline
Adjusted EBITDA fell to $14 million from $17.5 million in Q2, with the margin decreasing from 14% to 13%, impacted by the divestitures of high-margin businesses in Virginia and Arizona.
Company Guidance
In the third quarter of 2024, The Cannabist Company provided comprehensive guidance focusing on strategic divestitures and operational improvements to enhance profitability and sustainability. The company completed significant asset sales in Arizona and Virginia, generating $105 million to address liquidity needs and future debt obligations. Additionally, efforts to exit Florida and streamline operations in DC and Massachusetts were highlighted. Despite the temporary impact on bottom-line results due to these divestitures, the company achieved $115 million in revenue with a 38.2% gross margin. Wholesale revenue increased by 2% sequentially, reaching $19.5 million. The company set a target of a 20% adjusted EBITDA margin by 2025, reflecting a clear strategy to focus on high-potential markets like Ohio, which saw revenues nearly double with the transition to adult use. The company plans to continue rationalizing its geographic footprint, enhancing wholesale operations, and leveraging capital to deleverage the balance sheet while opening new retail locations in New Jersey, Maryland, Virginia, and Ohio.Cannabist Company Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
The Cannabist Company Reports 2024 Financial Results Amid Strategic Transformation
Negative
Mar 13, 2025
The Cannabist Company reported a challenging financial performance for the fourth quarter and full year of 2024, with a decline in revenue and net income. Despite these results, the company is undergoing a transformation, implementing structural changes, and extending debt maturities to focus on optimizing operations and reducing costs. The company aims to simplify its business and improve financial performance in 2025, with plans to expand in Delaware, Virginia, and Ohio.
Private Placements and FinancingBusiness Operations and Strategy
Cannabist Company Extends Senior Secured Notes Maturity to 2028
Positive
Feb 27, 2025
The Cannabist Company Holdings Inc. announced an agreement to extend the maturity date of its senior secured notes to December 2028, with options to extend through 2029. This strategic move is part of the company’s ongoing efforts to optimize its operations and financial structure, providing it with the flexibility to pursue growth opportunities and operational improvements. The transaction, which involves exchanging existing notes for new ones with extended maturity dates, is subject to court approval and reflects the company’s proactive approach to managing its financial obligations and strengthening its market position.
Financial Disclosures
The Cannabist Company to Announce 2024 Financial Results on March 13, 2025
Neutral
Jan 31, 2025
The Cannabist Company announced it will release its financial results for Q4 and the full year 2024 on March 13, 2025, followed by a management conference call. This announcement is a significant event for stakeholders, providing insights into the company’s fiscal health and potential strategic directions in the competitive cannabis industry.
The Cannabist Company Expands New Jersey Presence with New Dispensary
Jan 6, 2025
The Cannabist Company announced the opening of its third dispensary in Mays Landing, New Jersey, expanding its presence in the state. The new location currently serves medical cannabis patients and will introduce adult-use sales in early 2025 pending regulatory approval. This expansion, supported by significant cultivation and production capacity, strengthens the company’s market position in New Jersey and enhances its ability to meet increasing product demands, benefiting both medical and future adult-use customers.
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.