Entourage Health Corp (ENTG) AI Stock Analysis

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TSE:ENTG Dividends

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Entourage Health Corp

(ENTG)

39Underperform

The overall score reflects Entourage Health Corp's considerable financial struggles, including negative profitability and high leverage, which are the most significant factors. Technical analysis suggests bearish momentum, and the low valuation is due to negative earnings. While the earnings call shows some operational improvements, it is overshadowed by ongoing financial challenges.

Entourage Health Corp (ENTG) vs. S&P 500 (SPY)

Market Cap

$1.54M

Dividend YieldN/A

Average Volume (3M)147.06K

Price to Earnings (P/E)―

Beta (1Y)-0.57

Revenue Growth5.08%

EPS Growth64.12%

CountryCA

Employees211

SectorHealthcare

Sector Strength66

IndustryDrug Manufacturers - Specialty & Generic

Share Statistics

EPS (TTM)-0.14

Shares Outstanding96,232,530

10 Day Avg. Volume61,309

30 Day Avg. Volume147,065

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.04

Price to Cash Flow (P/CF)0.40

P/FCF Ratio0.10

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

Entourage Health Corp Business Overview & Revenue Model

Company DescriptionEntourage Health Corp (ENTG) is a Canadian-based company operating in the cannabis sector. It is engaged in the cultivation, production, and distribution of cannabis products for both the medical and adult-use markets. The company offers a wide range of products, including dried flower, oils, capsules, and topicals, with an emphasis on quality and innovation.

How the Company Makes MoneyEntourage Health Corp generates revenue primarily through the sale of its cannabis products across Canada. The company operates under various brands and leverages its distribution network to reach medical patients and adult-use consumers. Its revenue streams are diversified across wholesale and direct-to-consumer channels. Significant partnerships with other cannabis companies and distributors enhance its market reach and contribute to its earnings. Entourage Health Corp also engages in strategic agreements and joint ventures to expand its product offerings and market presence.

Entourage Health Corp Financial Statement Overview

Summary

Entourage Health Corp faces significant financial challenges, including declining revenue growth, negative profitability margins, high leverage, and negative cash flow. These issues indicate a precarious financial position that requires strategic improvements.

Income Statement

Negative

Entourage Health Corp has experienced declining revenue growth, with a slight increase in the most recent TTM period compared to the previous year. However, the company continues to face significant challenges in profitability, with persistent negative EBIT and net income margins. The gross profit margin shows some improvement but is still weak. Overall, the company's income statement reflects ongoing financial difficulties.

Balance Sheet

Very Negative

The balance sheet of Entourage Health Corp indicates high financial risk, with negative stockholders' equity and a high debt-to-equity ratio. The company is heavily leveraged, and the equity ratio is negative due to accumulated losses. This financial position suggests significant instability and potential solvency concerns.

Cash Flow

Negative

The cash flow statement reveals continued negative operating cash flow and free cash flow, although there is some improvement in the TTM period compared to the previous year. The company's ability to generate cash from operations remains weak, with negative free cash flow growth and low operating cash flow to net income ratio. This indicates ongoing liquidity challenges.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
41.46M	40.71M	40.89M	42.27M	29.43M	20.82M
	Gross Profit
5.62M	3.71M	-19.89M	-11.71M	-24.21M	14.87M
	EBIT
-11.93M	-21.38M	-52.24M	-35.89M	-47.41M	-6.43M
	EBITDA
-14.70M	-21.40M	-99.83M	-61.29M	-81.55M	-8.87M
	Net Income Common Stockholders
-42.16M	-46.17M	-123.15M	-78.94M	-89.61M	-10.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.82M	11.15M	9.08M	21.42M	22.55M	8.62M
	Total Assets
88.07M	31.39M	46.47M	144.22M	171.33M	209.80M
	Total Debt
0.00	161.58M	134.53M	105.36M	80.88M	47.80M
	Net Debt
-21.22M	150.43M	125.46M	83.94M	58.56M	39.62M
	Total Liabilities
10.98M	178.69M	147.71M	122.80M	97.24M	73.74M
	Stockholders Equity
77.09M	-147.29M	-101.24M	21.43M	74.09M	136.06M
Cash Flow		Free Cash Flow
-6.09M	-11.44M	-31.86M	-30.51M	-37.08M	-63.65M
	Operating Cash Flow
-5.45M	-10.24M	-30.17M	-30.01M	-35.54M	-7.16M
	Investing Cash Flow
-130.07K	7.66M	-1.32M	1.84M	-1.40M	-48.96M
	Financing Cash Flow
-221.19K	3.94M	21.14M	24.06M	51.26M	46.09M

Entourage Health Corp Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.01

Price Trends

50DMA

0.01

Negative

100DMA

0.01

Negative

200DMA

0.01

Negative

Market Momentum

MACD

>-0.01

Negative

RSI

45.03

Neutral

STOCH

50.00

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ENTG, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.01, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.03 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ENTG.

Entourage Health Corp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACB	54 Neutral	$325.46M	25.51	4.78%	―	16.39%	-98.10%
CURA	52 Neutral	$1.01B	―	-23.33%	―	0.67%	19.14%
TRUL	51 Neutral	C$1.02B	―	-12.12%	―	6.27%	67.62%
Sector *	51 Neutral	$5.19B	3.12	-41.08%	2.95%	17.98%	2.02%
OGI	50 Neutral	$186.86M	―	-18.27%	―	7.33%	84.41%
ENTG	39 Underperform	$1.54M	―	24.48%	―	5.08%	64.12%

* Healthcare Sector Average

Performance Comparison

TSE:ENTG

Entourage Health Corp

0.01

-0.01

-50.00%

TSE:ACB

Aurora Cannabis

6.14

-2.42

-28.27%

TSE:TRUL

Trulieve Cannabis

5.36

-9.20

-63.19%

TSE:OGI

OrganiGram Holdings

1.48

-1.12

-43.08%

TSE:CURA

Curaleaf Holdings

1.34

-5.28

-79.76%

Entourage Health Corp Earnings Call Summary

Earnings Call Date: Nov 29, 2024 | % Change Since: 0.00% | Next Earnings Date: May 5, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong revenue growth, significant improvements in EBITDA, and successful product launches. However, these positives are balanced by challenges such as declining medical revenue, reduced selling prices, increased production costs, and a decrease in cash reserves. Despite these challenges, the company maintains a focus on operational efficiency and strategic growth.

Highlights

Revenue Growth

The company achieved a total revenue of $13.6 million, reflecting an 11% year-over-year increase.

EBITDA Improvement

EBITDA increased by 70% this quarter and 65% year-over-year, demonstrating effective cost management and operational efficiency.

SG&A Expense Reduction

SG&A expenses decreased by 32% year-over-year, resulting in significant cost savings.

Successful Product Launches

The company launched 23 new SKUs across core brands, contributing to $2.5 million in incremental revenue and securing 2,000 new retail placements.

Operational Achievements in Pre-Roll Production

Production of over 2 million pre-rolls monthly, positioning the company to capitalize on growing demand.

Lowlights

Decline in Medical Revenue

Medical revenue decreased by $0.2 million, or 7%, due to lower patient renewal rates and reduced basket sizes.

Selling Price Decrease

Average selling price per gram after excise duty decreased by $0.81 or 32%, driven by market price compression and bulk sales.

Increased Cost of Goods Sold

Cost of goods sold increased by 20% due to higher biomass costs.

Cash and Cash Equivalents Reduction

Cash and cash equivalents reduced by $7.6 million compared to December 2023 due to operating losses.

Company Guidance

During the third quarter of 2024, Entourage Health Corp. reported a total revenue increase of 11% year-over-year, reaching $13.6 million, with an improvement in EBITDA by 70% for the quarter and 65% year-over-year. The company achieved significant operational efficiencies, including a 32% reduction in SG&A expenses, contributing to enhanced margins. The production capacity was notably increased, with over 2 million pre-rolls produced monthly. The company expanded its product portfolio with 23 new SKUs, including innovative cannabis products under brands like Color Cannabis, Dime Bag, and Saturday, which added $2.5 million in incremental revenue. Despite a decrease in medical revenue by 7%, the adult-use segment remained stable, while bulk sales contributed an additional $1.1 million. The company ended the quarter with $3.5 million in cash and cash equivalents, reflecting a strategic focus on cost management and operational efficiency.

Entourage Health Corp Corporate Events

Entourage Health Corp. to Go Private in New Deal

Dec 30, 2024

Entourage Health Corp. has announced a definitive agreement to go private, with 1001007762 Ontario Inc. acquiring all its common shares for cash. The transaction, approved by the board, offers immediate liquidity and value to shareholders amidst financial challenges. The decision was backed by a fairness opinion confirming the offer’s financial fairness to shareholders.

Entourage Health Corp Reports Strong Q3 2024 Results

Nov 29, 2024

Entourage Health Corp has reported robust financial results for Q3 2024, with total revenue of $13.6 million and a significant 70% improvement in EBITDA for the quarter. The company also achieved a notable 32% reduction in SG&A expenses, highlighting its progress towards profitability in the stabilizing cannabis industry.

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.