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Charlotte's Web Holdings (TSE:CWEB)
TSX:CWEB
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Charlotte's Web Holdings
(TSX:CWEB)
48Neutral
Charlotte's Web Holdings (CWEB) vs. S&P 500 (SPY)
Market Cap
$21.33M
Dividend YieldN/A
Average Volume (3M)42.14K
Price to Earnings (P/E)―
Beta (1Y)0.65
Revenue Growth-19.46%
EPS Growth36.70%
CountryCA
Employees164
SectorHealthcare
Sector Strength77
IndustryPharmaceuticals
Share Statistics
EPS (TTM)-0.30
Shares Outstanding158,009,540
10 Day Avg. Volume31,999
30 Day Avg. Volume42,143
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.27
Price to Cash Flow (P/CF)-1.00
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Charlotte's Web Holdings Business Overview & Revenue Model
Company DescriptionCharlotte's Web Holdings, Inc. (CWEB) is a leading company in the cannabidiol (CBD) wellness industry. The company specializes in the production and distribution of high-quality hemp-derived CBD products. Its core product offerings include CBD oils, gummies, capsules, and topicals, designed to promote overall health and wellness. Charlotte's Web is well-regarded for its commitment to quality and transparency, utilizing proprietary hemp genetics and rigorous testing standards to ensure the consistency and purity of its products.
How the Company Makes MoneyCharlotte's Web Holdings generates revenue primarily through the sale of its CBD products across various channels. The company's revenue streams include direct-to-consumer sales via its e-commerce platform, wholesale distribution to retailers, and partnerships with various health and wellness outlets. Charlotte's Web also benefits from its strong brand reputation and consumer trust, which contribute to its market presence and sales. Key factors influencing its earnings include product innovation, expansion into new markets, and strategic partnerships that enhance distribution capabilities and brand visibility.
Charlotte's Web Holdings Financial Statement Overview
Summary
Charlotte's Web Holdings faces financial challenges with declining revenues, persistent losses, and high leverage. The company's operational inefficiencies and liquidity issues are apparent from negative margins and cash flows. While gross profit margin remains reasonable, the overall financial health is concerning, requiring strategic adjustments to improve profitability and financial stability.Income Statement
The income statement reflects a decline in revenue with a negative growth rate from the previous year. Gross profit margin for TTM is approximately 47.24%, indicating reasonable cost management relative to revenue. However, consistent net losses and negative profit margins indicate ongoing profitability challenges. The company has negative EBIT and EBITDA margins, pointing to operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet shows a high debt-to-equity ratio of about 2.03 in TTM, indicating significant leverage. Stockholders' equity has decreased over the period, reflecting financial instability. The equity ratio is around 25.29%, suggesting moderate reliance on equity for financing. Return on equity is negative due to net losses, highlighting profitability issues.55
Neutral
Cash Flow
Cash flow analysis reveals negative operating cash flow and free cash flow in TTM, which is concerning for liquidity. The free cash flow to net income ratio reflects consistent cash outflows relative to net losses. The company has not shown improvement in free cash flow generation, impacting its ability to fund operations without external financing.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 52.84M | 63.16M | 74.14M | 96.09M | 95.23M | 94.59M | Gross Profit |
| 24.97M | 35.57M | 19.41M | 48.59M | 52.26M | 50.60M | EBIT |
| -36.88M | -40.61M | -50.65M | 39.52M | -52.47M | -24.80M | EBITDA |
| -25.18M | -24.90M | -41.68M | -38.03M | -42.53M | -16.92M | Net Income Common Stockholders |
| -35.06M | -23.80M | -59.31M | -137.72M | -47.19M | -15.57M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 47.82M | 47.82M | 66.96M | 19.49M | 52.80M | 68.55M | Total Assets |
| 152.55M | 152.55M | 187.64M | 171.51M | 310.88M | 222.94M | Total Debt |
| 60.44M | 60.44M | 57.63M | 22.60M | 23.36M | 24.07M | Net Debt |
| 12.62M | 12.62M | -9.33M | 3.11M | -29.45M | -44.48M | Total Liabilities |
| 96.99M | 96.99M | 110.14M | 41.07M | 56.65M | 69.24M | Stockholders Equity |
| 55.56M | 55.56M | 77.50M | 130.45M | 254.23M | 153.70M |
| Cash Flow | Free Cash Flow | ||||
| -26.31M | -19.08M | -5.58M | -34.48M | -76.85M | -48.53M | Operating Cash Flow |
| -22.01M | -15.39M | -5.32M | -29.56M | -48.59M | -33.48M | Investing Cash Flow |
| -4.21M | -3.51M | 395.00K | -11.79M | -19.44M | -17.71M | Financing Cash Flow |
| -182.00K | -251.00K | 52.39M | 8.04M | 52.28M | 46.34M |
Charlotte's Web Holdings Technical Analysis
Negative
0.14
Price Trends
0.15
Negative
0.16
Negative
0.19
Negative
Market Momentum
>-0.01
Positive
44.91
Neutral
20.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CWEB, the sentiment is Negative. The current price of 0.14 is above the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.15, and below the 200-day MA of 0.19, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.91 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CWEB.
Charlotte's Web Holdings Risk Analysis
Charlotte's Web Holdings disclosed 84 risk factors in its most recent earnings report. Charlotte's Web Holdings 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
Charlotte's Web Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
53 Neutral | $349.61M | 26.67 | 4.78% | ― | 16.39% | -98.10% | |
49 Neutral | $6.88B | 0.03 | -54.83% | 2.50% | 24.65% | -2.79% | |
48 Neutral | $21.33M | ― | -74.62% | ― | -19.46% | 36.70% | |
47 Neutral | $183.01M | ― | -18.27% | ― | 7.33% | 84.41% | |
44 Neutral | $599.72M | ― | -7.28% | ― | 18.38% | 86.59% | |
32 Underperform | $293.77M | ― | -84.50% | ― | -16.27% | 76.17% |
* Healthcare Sector Average
Performance Comparison
TSE:CWEB
Charlotte's Web Holdings
0.13
-0.07
-36.59%
TLRY
Tilray
0.61
-1.12
-64.74%
TSE:WEED
Canopy Growth
1.57
-2.61
-62.44%
TSE:ACB
Aurora Cannabis
6.34
2.00
46.08%
TSE:OGI
OrganiGram Holdings
1.43
-1.37
-48.93%
Charlotte's Web Holdings Earnings Call Summary
Earnings Call Date: Nov 14, 2024 | % Change Since: -30.00% | Next Earnings Date: Mar 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted improvements in the B2B segment, successful e-commerce platform migration, and new product launches in Walmart, but also faced challenges with year-over-year revenue decline, gross margin impacts from inventory provisions, and a net loss for the quarter.Highlights
B2B Retail Business Segment Growth
B2B retail business segment improved by 8.8% over Q1, supported by increased distribution, new products, and retail partnerships.
Successful E-Commerce Platform Migration
Completed migration to a new e-commerce platform in June, resulting in improved performance and encouraging results in July.
New Product Launch in Walmart
Introduced affordable CBD isolate topical products in over 800 Walmart stores, showing positive sales performance and significant growth potential.
SG&A Expense Reductions
Implemented SG&A reductions expected to save more than $20 million for the year compared to 2023, aiming for cash flow breakeven.
Lowlights
Year-Over-Year Revenue Decline
Net revenue for Q2 2024 was $12.3 million, down from $16 million in the prior year, despite a slight increase over Q1.
Gross Margin Impacted by Inventory Provision
Reported Q2 gross margin was 21% due to a noncash inventory provision of $3.8 million, affecting normal business operations.
Net Loss for the Quarter
Net loss for the quarter was $11 million, or $0.07 per share, compared to a net income of $2.8 million in Q2 of last year.
Company Guidance
During the Q2 2024 earnings call for Charlotte's Web Holdings, the executives discussed multiple key metrics and strategic initiatives. The company reported Q2 revenues of $12.3 million, a decline from $16 million in the previous year, but a slight increase from Q1's $12.1 million. In the B2B segment, retail business improved by 8.8% over Q1, driven by new products and increased distribution, including a successful launch of CBD isolate topical products in 827 Walmart stores. Meanwhile, the direct-to-consumer (DTC) segment experienced a temporary dip due to an e-commerce platform migration, but the new system is already showing positive results. Gross margin was significantly impacted by a noncash inventory provision, but excluding this, it stood at 52.2%. The company also emphasized a strategic reduction in SG&A expenses, projecting over $20 million in savings for 2024, aligning with a breakeven target of $65 million in annual net revenue. With substantial cash reserves of $32.5 million, Charlotte's Web is optimistic about returning to growth through strategic initiatives, including expanded B2B and DTC efforts, and ongoing regulatory engagement.Charlotte's Web Holdings Corporate Events
Charlotte’s Web Highlights Promising Trial Results
Dec 12, 2024
Charlotte’s Web Holdings shares promising Phase 1 trial results for AJA001, a botanical drug developed for autism spectrum disorder, showcasing its safety and potential efficacy. The trial leverages a proprietary hemp extract, underscoring the company’s commitment to innovative therapies for underserved conditions.
Charlotte’s Web Holdings Drives Growth with New Innovations
Nov 14, 2024
Charlotte’s Web Holdings has experienced a return to quarterly growth in 2024, with new product innovations driving their expansion across various retail channels, including a significant partnership with Walmart. The company has introduced new Soft Gel Capsules and a line of Functional Mushroom Gummies aimed at diversifying its product offerings and capturing a broader wellness-focused consumer base.
Charlotte’s Web Sees Growth with New Innovations
Nov 14, 2024
Charlotte’s Web Holdings has reported a return to quarter-over-quarter growth in 2024, driven by e-commerce enhancements, new product launches, and a significant partnership with Walmart. The company introduced new Soft Gel Capsules and expanded its product range with Functional Mushroom Gummies, targeting wellness-focused consumers and aiming to tap into the growing mushroom wellness market.
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.