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Im Cannabis Corp (TSE:IMCC)
:IMCC
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IM Cannabis Corp
(NASDAQ:IMCC)
41Neutral
IM Cannabis Corp (IMCC) vs. S&P 500 (SPY)
Market Cap
C$7.59M
Dividend YieldN/A
Average Volume (3M)224.00
Price to Earnings (P/E)―
Beta (1Y)1.43
Revenue Growth-3.41%
EPS Growth79.82%
CountryCA
Employees95
SectorHealthcare
Sector Strength72
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-5.76
Shares Outstanding3,085,452
10 Day Avg. Volume518
30 Day Avg. Volume224
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.10
Price to Cash Flow (P/CF)2.50
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
IM Cannabis Corp Business Overview & Revenue Model
Company DescriptionIM Cannabis Corp (IMCC) is a prominent player in the medical cannabis sector, focusing on the cultivation, production, and distribution of pharmaceutical-grade cannabis products. The company operates in several international markets, providing a range of cannabis-based products designed to meet the therapeutic needs of patients. IM Cannabis is committed to maintaining high standards of quality and compliance, leveraging its advanced production facilities and extensive research capabilities to ensure the efficacy and safety of its offerings.
How the Company Makes MoneyIM Cannabis Corp generates revenue through the sale of its medical cannabis products to patients and healthcare providers across various countries. The company's revenue streams primarily include direct sales of dried flower, oils, and other cannabis-derived products to medical patients. Additionally, IMCC engages in partnerships and supply agreements with pharmacies, healthcare institutions, and other distribution channels to expand its reach and market share. The company's earnings are further bolstered by strategic investments in research and development, facilitating the introduction of innovative products that cater to evolving patient needs and regulatory requirements.
IM Cannabis Corp Financial Statement Overview
Summary
IM Cannabis Corp faces significant financial challenges with persistent losses, declining equity, and increased leverage. While there is a slight improvement in operating cash flow, overall financial health is concerning due to high debt levels and negative profit margins.Income Statement
IM Cannabis Corp has experienced fluctuating revenue with a recent decline. The gross profit margin has decreased in the TTM period to 12.87% from 20.17% in 2023. Net profit margin remains negative, reflecting ongoing losses. Although there was a slight revenue increase in the TTM period, operating losses continue to be significant.35
Negative
Balance Sheet
The company's debt-to-equity ratio has worsened, now standing at 2.63 in TTM, indicating increased leverage. Stockholders' equity has significantly decreased, reducing the equity ratio to 13.34%. The company faces high financial risk due to increased liabilities and declining equity.40
Negative
Cash Flow
Cash flow from operations has improved slightly but remains weak. The operating cash flow to net income ratio is positive; however, free cash flow remains low. The company shows a heavy reliance on financing to support operations, indicating financial instability.30
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 51.39M | 48.80M | 54.34M | 54.30M | 15.89M | 9.07M | Gross Profit |
| 6.61M | 9.85M | 9.16M | 10.30M | 10.47M | 3.93M | EBIT |
| -12.73M | -12.18M | -26.41M | -38.39M | -8.24M | -6.64M | EBITDA |
| -9.78M | -2.79M | -16.76M | 6.24M | -7.52M | -6.02M | Net Income Common Stockholders |
| -12.86M | -9.50M | -24.92M | -18.52M | -28.73M | -7.42M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.53M | 1.81M | 2.45M | 17.03M | 8.88M | 13.93M | Total Assets |
| 9.27M | 48.81M | 60.68M | 287.39M | 38.12M | 30.89M | Total Debt |
| 0.00 | 13.78M | 11.53M | 29.27M | 990.00K | 1.05M | Net Debt |
| -2.53M | 11.97M | 9.09M | 15.37M | -7.89M | -12.88M | Total Liabilities |
| 248.93K | 35.11M | 36.88M | 82.44M | 25.51M | 4.79M | Stockholders Equity |
| 9.02M | 14.47M | 22.65M | 201.24M | 11.10M | 24.66M |
| Cash Flow | Free Cash Flow | ||||
| 195.00K | -8.66M | -14.20M | -38.97M | -10.63M | -7.51M | Operating Cash Flow |
| 349.00K | -8.07M | -12.64M | -34.37M | -7.92M | -5.96M | Investing Cash Flow |
| -1.10M | -1.18M | -1.41M | -9.01M | -4.08M | -3.77M | Financing Cash Flow |
| 2.50M | 9.42M | 4.76M | 48.73M | 6.74M | 17.05M |
IM Cannabis Corp Technical Analysis
Negative
2.46
Price Trends
2.89
Negative
3.22
Negative
3.31
Negative
Market Momentum
-0.14
Negative
28.74
Positive
8.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IMCC, the sentiment is Negative. The current price of 2.46 is below the 20-day moving average (MA) of 2.59, below the 50-day MA of 2.89, and below the 200-day MA of 3.31, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 28.74 is Positive, neither overbought nor oversold. The STOCH value of 8.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:IMCC.
IM Cannabis Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $1.08B | ― | -23.33% | ― | 0.67% | 19.14% | |
49 Neutral | $6.85B | 0.81 | -52.91% | 2.50% | 17.48% | 1.17% | |
47 Neutral | $347.96M | 27.27 | 4.78% | ― | 16.39% | -98.10% | |
41 Neutral | C$7.59M | ― | -101.96% | ― | -3.41% | 79.82% | |
32 Underperform | $257.15M | ― | -84.50% | ― | -16.27% | 76.17% |
* Healthcare Sector Average
Performance Comparison
TSE:IMCC
IM Cannabis Corp
2.46
-3.72
-60.19%
TSE:WEED
Canopy Growth
1.33
-8.87
-86.96%
TSE:ACB
Aurora Cannabis
6.30
0.49
8.43%
TSE:CURA
Curaleaf Holdings
1.43
-5.97
-80.68%
IM Cannabis Corp Earnings Call Summary
Earnings Call Date: Nov 14, 2024 | % Change Since: -40.72% | Next Earnings Date: Mar 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth and operational efficiencies in the German market, offsetting challenges faced in Israel and the impact of the Oranim agreement cancellation. Despite a decrease in gross profit and an increase in net loss, the improvements in Germany and operational efficiencies suggest a strong foundation for future growth.Highlights
German Market Growth
Sales in Germany increased by 200% from Q1 to Q2 and by 66% from Q2 to Q3, reaching $5.8 million. The company is positioned among the top cannabis companies in Germany.
Overall Revenue Increase
Q3 2024 revenues increased by 12.2% versus Q3 2023, driven mainly by a 278% increase in the German revenue.
Operational Efficiency
Operating expenses decreased from $4.9 million in Q3 2023 to $4.1 million in Q3 2024, with an operating expenses ratio improvement from 40% to 30%, a 25% increase in efficiency.
Selling and Marketing Expense Reduction
Selling and marketing expenses for Q3 2024 were reduced by 41% compared to Q3 2023.
Improved EBITDA Loss
Non-IFRS adjustment EBITDA loss in Q3 2024 was $0.2 million compared to a loss of $1.3 million in Q3 2023, representing an 82% improvement.
Lowlights
Israeli Market Challenges
The ongoing war has impacted the supply chain in Israel, causing delays in shipments and a 10% decline in the number of medical cannabis patients from July to October.
Gross Profit Decrease
Gross profit for the nine months ended September 30, 2024, decreased by $3.2 million or 36% compared to the same period in 2023.
Net Loss Increase
Net loss for the nine months ended September 2024 was $10.6 million compared to $6.7 million in the same period in 2023.
Oranim Agreement Cancellation Impact
The cancellation of the Oranim agreement led to a decrease in revenue and expenses, significantly impacting the financial results.
Company Guidance
During the third quarter of 2024, IM Cannabis focused on establishing a strong foundation for future growth, particularly in the German market. The company's revenue increased by 12.2% compared to Q3 2023, driven by a remarkable 278% growth in German sales, reaching $5.8 million. This growth was facilitated by a strategic focus on Germany, where the market has expanded rapidly since partial legalization on April 1, 2024. The average selling price per gram of dried flower rose by 42% to $6.2 per gram, while operating expenses decreased by 16%, enhancing operational efficiency by 25%. The integration between the German and Israeli teams was pivotal, resulting in a 66% sales increase from Q2 to Q3 2024. Despite the challenges in the Israeli market, including a 10% decline in medical cannabis patients, the company achieved an overall revenue of $13.9 million for the quarter, demonstrating its ability to navigate a complex market landscape and lay the groundwork for sustainable growth in 2025.IM Cannabis Corp Corporate Events
IM Cannabis Reports Revenue Growth and Efficiency Gains
Nov 14, 2024
IM Cannabis Corp reported a 12% increase in revenue and a 16% reduction in operating expenses for the third quarter of 2024, highlighting improved financial efficiency. The company is focused on building a strong supply chain and effective resource management as it aims for continued growth in 2025.
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.