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Planet 13 Holdings (TSE:PLTH)
:PLTH
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Planet 13 Holdings
(OTC:PLTH)
41Neutral
Planet 13 Holdings (PLTH) vs. S&P 500 (SPY)
Market Cap
$126.85M
Dividend YieldN/A
Average Volume (3M)47.93K
Price to Earnings (P/E)―
Beta (1Y)2.12
Revenue Growth20.07%
EPS Growth51.21%
CountryCA
Employees1,000
SectorHealthcare
Sector Strength72
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.22
Shares Outstanding325,263,800
10 Day Avg. Volume34,434
30 Day Avg. Volume47,926
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.95
Price to Cash Flow (P/CF)9.00
P/FCF Ratio62.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$0.74Price Target Upside90.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Planet 13 Holdings Business Overview & Revenue Model
Company DescriptionPlanet 13 Holdings Inc., an integrated cannabis company, engages in the cultivation, production, distribution, and marketing of cannabis and cannabis-infused products for medical and retail cannabis markets in Nevada, the United States. It also operates licensed cannabis dispensaries; non-cannabis retail merchandise store and event space; and owns and operates Trece Eatery + Spirits, coffee shop and pizzeria. In addition, the company provides consultation, education, and convenience services. It owns and manufactures chocolates, gummies, sparkling beverages, vapes and concentrates, and flowers under the TRENDI, Leaf & Vine, Dreamland, and HaHa, and Medizin brands. The company is headquartered in Las Vegas, Nevada.
How the Company Makes MoneyPlanet 13 Holdings generates revenue primarily through the sale of cannabis products at its dispensaries. The company operates one of the largest cannabis retail spaces in the world, which not only draws significant foot traffic but also enhances customer engagement through its unique entertainment offerings. Key revenue streams include the sale of flower, edibles, concentrates, and branded merchandise. Additionally, Planet 13 benefits from its in-house production capabilities, allowing it to maintain higher margins by controlling the supply chain from cultivation to retail. The company also engages in wholesale operations, distributing its products to third-party retailers. Strategic partnerships and collaborations further bolster its market presence and drive additional revenue.
Planet 13 Holdings Financial Statement Overview
Summary
Planet 13 Holdings faces ongoing financial challenges with persistent net losses, negative operating margins, and cash flow issues. Despite improvements in revenue growth and cash management, profitability and efficiency are concerns, requiring focus on operational efficiencies and cost management.Income Statement
Planet 13 Holdings has faced challenges with declining revenue and profitability. The revenue growth rate from 2023 to 2024 was 18.2%, but the company continues to report significant net losses with a net profit margin of -41.1% in 2024. Gross profit margin decreased to 48.2%, indicating pressures on cost management. EBIT and EBITDA margins are negative, reflecting operational inefficiencies.40
Negative
Balance Sheet
The balance sheet shows moderate stability with a debt-to-equity ratio of 0.51, which is within a manageable range. However, the equity ratio dropped to 54.5%, reflecting a decrease in equity relative to assets. Return on equity (ROE) is negative due to the net losses, highlighting challenges in generating returns for shareholders.50
Neutral
Cash Flow
Cash flow analysis reveals a negative free cash flow, although it improved from the previous year, indicating better cash management. The operating cash flow to net income ratio is -0.11, which is a concern, implying that the company is not efficiently converting income into cash flow. Despite improvements, free cash flow remains negative, indicating ongoing cash management challenges.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 116.41M | 98.51M | 104.57M | 119.49M | 70.49M | Gross Profit |
| 56.11M | 44.82M | 47.97M | 66.01M | 35.37M | EBIT |
| -35.52M | -61.10M | 9.08M | -7.83M | 730.52K | EBITDA |
| -825.39K | -4.11M | -14.68M | -2.29M | 3.86M | Net Income Common Stockholders |
| -47.80M | -73.61M | -48.98M | -19.46M | -7.94M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 23.38M | 11.83M | 52.36M | 61.59M | 79.00M | Total Assets |
| 206.73M | 151.75M | 233.63M | 216.81M | 150.00M | Total Debt |
| 56.95M | 26.83M | 27.20M | 24.44M | 23.21M | Net Debt |
| 33.56M | 15.00M | -25.16M | -37.15M | -55.79M | Total Liabilities |
| 94.02M | 44.11M | 42.74M | 43.10M | 29.30M | Stockholders Equity |
| 112.71M | 107.64M | 190.89M | 173.71M | 120.70M |
| Cash Flow | Free Cash Flow | |||
| -6.83M | -21.31M | -12.90M | -82.14M | -8.95M | Operating Cash Flow |
| 5.21M | -12.05M | 3.80M | -379.88K | -914.97K | Investing Cash Flow |
| -3.79M | -9.19M | -14.18M | -81.76M | -8.03M | Financing Cash Flow |
| 6.73M | -267.53K | 1.14M | 64.54M | 75.00M |
Planet 13 Holdings Technical Analysis
Negative
0.39
Price Trends
0.49
Negative
0.53
Negative
0.64
Negative
Market Momentum
-0.02
Positive
34.16
Neutral
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PLTH, the sentiment is Negative. The current price of 0.39 is below the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.49, and below the 200-day MA of 0.64, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 34.16 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:PLTH.
Planet 13 Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Performance Comparison
TSE:PLTH
Planet 13 Holdings
0.39
-0.50
-56.18%
CGC
Canopy Growth
0.98
-6.55
-86.99%
OGI
OrganiGram Holdings
1.03
-1.03
-50.00%
ACB
Aurora Cannabis
4.43
0.12
2.78%
CRON
Cronos Group
1.79
-0.85
-32.20%
Planet 13 Holdings Earnings Call Summary
Earnings Call Date: Mar 26, 2025 | % Change Since: -6.02% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Neutral
Planet 13 demonstrated strong revenue growth and expansion efforts, particularly in Florida, and improved EBITDA. However, the company faced challenges from pricing pressures, especially in Florida, and experienced a sequential revenue decline. The balance sheet remains strong, but there are ongoing legal and tax uncertainties.Highlights
Revenue Growth
Planet 13 generated $30.3 million in revenue for Q4 2024, up from $23 million a year ago. For the full year, revenue grew 18% year-over-year to $116.4 million.
Expansion into Florida
The company expanded its retail footprint to include Florida, adding 30 new dispensaries in 2024, bringing the total to 34.
Wholesale and Brand Strength
Generated $3.4 million from wholesale, lifestyles, and other revenue in Q4, up from $3.2 million in Q3. Ranked as the fourth highest branded sales in Nevada during the quarter.
Strong Balance Sheet
As of December 31, 2024, the company had an unrestricted cash balance of $23.4 million and paid off $3.3 million in bank debt.
Adjusted EBITDA Improvement
Adjusted EBITDA increased 49% year-over-year to $3.5 million for the full year.
Lowlights
Sequential Revenue Decline
Revenue decreased from $32.2 million in Q3 2024 to $30.3 million in Q4 2024 due to expected seasonal trends and pricing compressions.
Pricing and Margin Pressure
Gross margin declined from 51.9% in Q3 2024 to 43.2% in Q4 due to industry-wide price compression and discounting in Florida.
Challenges in Florida
Faced short-term challenges in Florida due to failure of adult-use amendment and subsequent market price compression.
Legal and Tax Uncertainties
Uncertain tax balances as of December 31, 2024, stood at $19.3 million, and the company is seeking a recovery of excess taxes paid.
Company Guidance
During the Planet 13 Fourth Quarter 2024 Earnings Conference Call, various metrics and guidance were discussed. The company reported Q4 2024 revenue of $30.3 million, down from $32.2 million in Q3 2024, but up from $23 million in Q4 2023. The full-year revenue for 2024 reached $116.4 million, reflecting an 18% increase year-over-year, largely due to the acquisition of VidaCann in Florida. Gross profit in Q4 2024 was $13.1 million, translating to a gross margin of 43.2%, down from 51.9% in the previous quarter, attributed to industry-wide price compression and the sale of lower-quality flower. The company reported breakeven adjusted EBITDA in Q4 2024, compared to $1.3 million in positive EBITDA in Q3 2024, but for the full year, adjusted EBITDA increased 49% to $3.5 million. Planet 13 maintained a strong balance sheet with $23.4 million in unrestricted cash as of December 31, 2024, and used $1.4 million in operating cash flow in Q4 but generated $5.2 million for the full year. The company plans to spend $3 million to $5 million in CapEx over the next 12 months, focusing on manufacturing upgrades in Florida and additional store openings.Planet 13 Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Planet 13 Holdings Reports Q4 2024 Financial Results with Revenue Growth Amidst Challenges
Neutral
Mar 26, 2025
Planet 13 Holdings reported a Q4 2024 revenue of $30.3 million, marking a 31.8% increase from the previous year, driven by expansion into Florida. Despite this growth, the company faced a net loss of $26.4 million due to a significant non-cash impairment loss. The company remains focused on maximizing productivity and efficiency to enhance margins and create a more resilient business. The full-year 2024 results showed a revenue increase to $116.4 million, with improved gross margins, although the net loss was $47.8 million. The company’s strategic expansion in Florida and operational adjustments aim to strengthen its market position amidst industry-wide price compression.
Financial Disclosures
Planet 13 Sets Date for Q4 2024 Financial Results Release
Neutral
Mar 19, 2025
Planet 13 Holdings Inc., a leading multi-state cannabis company, announced the release date for its fourth quarter and full-year 2024 financial results, scheduled for March 26, 2025. The announcement includes a conference call to discuss the results and provide business highlights and outlook, which could impact the company’s operations and market positioning.
Legal Proceedings
Planet 13 Recovers $10.5 Million in Funds Amid Ongoing Legal Battle
Neutral
Mar 3, 2025
Planet 13 Holdings Inc. announced a significant recovery of funds totaling approximately $10.5 million, including $5.5 million held at BridgeBank and real estate valued at $5 million, as part of a settlement related to ongoing litigation with Casa Verde Capital and El Capitan Advisors. Despite this recovery, the company continues its lawsuit against El Capitan and its CEO, Andrew Nash, seeking an additional $10.3 million in compensatory damages, as they pursue further legal actions to reclaim misappropriated funds.
Legal Proceedings
Planet 13 Recovers $10.5 Million in Settlement Amid Ongoing Litigation
Neutral
Mar 3, 2025
Planet 13 Holdings Inc. has announced a significant recovery of funds totaling approximately $10.5 million, including $5.5 million held at BridgeBank and real estate valued at $5 million, as part of a settlement related to misappropriated funds by El Capitan Advisors, Inc. The company continues its lawsuit against El Capitan and its CEO, Andrew Nash, seeking further compensatory damages. This recovery and ongoing litigation highlight Planet 13’s efforts to reclaim its misappropriated funds and may impact its financial stability and stakeholder confidence.
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.