Education
About Us
Working with TipRanks
Follow Us
22nd Century (XXII)
NASDAQ:XXII
Top Page
22nd Century
(NASDAQ:XXII)
41Neutral
22nd Century (XXII) vs. S&P 500 (SPY)
Market Cap
$3.45M
Dividend YieldN/A
Average Volume (3M)136.24K
Price to Earnings (P/E)―
Beta (1Y)1.90
Revenue Growth-66.36%
EPS Growth83.15%
CountryUS
Employees64
SectorConsumer Defensive
Sector Strength77
IndustryTobacco
Share Statistics
EPS (TTM)-2978.08
Shares Outstanding1,717,089
10 Day Avg. Volume96,329
30 Day Avg. Volume136,244
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.03
Price to Cash Flow (P/CF)-0.10
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
22nd Century Business Overview & Revenue Model
Company Description22nd Century Group, Inc. (XXII) is a plant biotechnology company focused on developing and commercializing reduced nicotine tobacco, hemp/cannabis, and other innovative plant-based solutions. The company leverages its proprietary genetic engineering technology to create products with modified alkaloid profiles and other desirable traits. Operating primarily in the biotechnology and consumer products sectors, 22nd Century Group aims to improve public health through its unique tobacco solutions and to capitalize on the growing demand for cannabis and hemp-based products.
How the Company Makes Money22nd Century Group makes money through the sale of its proprietary reduced nicotine tobacco products, which it markets under various brand names. Additionally, the company generates revenue by licensing its genetic engineering technology to third parties, enabling them to produce tobacco and cannabis products with specific traits. The company also engages in partnerships and collaborations to accelerate product development and commercialization in its target markets. Key revenue streams include direct product sales, licensing agreements, and potentially, strategic partnerships with larger tobacco and cannabis companies looking to incorporate 22nd Century's technology into their own offerings.
22nd Century Financial Statement Overview
Summary
22nd Century's financial statements reveal significant challenges. Declining revenues, consistent net losses, high leverage, and negative cash flows indicate operational inefficiencies and financial instability. The company's financial position appears precarious and in need of strategic restructuring.Income Statement
The income statement shows a challenging financial performance with declining revenues and consistent net losses. The TTM data indicates a gross profit margin of -33.17% and a net profit margin of -144.06%, reflecting significant operational inefficiencies and a lack of profitability. Additionally, revenue has declined sharply from the previous year, indicating a negative growth trajectory. Overall, the company is struggling to generate positive returns from its operations.38
Negative
Balance Sheet
The balance sheet reveals a precarious financial position with a debt-to-equity ratio of 2.69, indicating high leverage and potential financial risk. The equity ratio stands at 13.27%, reflecting a relatively weak equity base compared to total assets. Additionally, the company's stockholders' equity has diminished significantly over the years, pointing to potential sustainability issues. The overall financial health of the company appears fragile.25
Negative
Cash Flow
The cash flow statement highlights ongoing cash flow challenges with negative operating and free cash flows. The free cash flow growth rate remains negative, further stressing liquidity concerns. The operating cash flow to net income ratio is negative, showing that operations are not generating sufficient cash to cover losses. The company's inability to generate positive cash flows suggests persistent liquidity issues.30
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 27.72M | 32.20M | 62.11M | 30.95M | 28.11M | 25.83M | Gross Profit |
| -9.20M | -8.70M | 1.17M | 2.07M | 1.44M | 14.46K | EBIT |
| -42.05M | -44.93M | -57.11M | -28.33M | -19.01M | -22.42M | EBITDA |
| -23.27M | -40.41M | -32.89M | -31.00M | -18.07M | -24.86M | Net Income Common Stockholders |
| -39.94M | -140.78M | -59.80M | -32.61M | -19.71M | -24.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.52M | 2.06M | 21.21M | 48.74M | 22.34M | 38.96M | Total Assets |
| 24.62M | 27.50M | 114.65M | 75.95M | 51.69M | 68.95M | Total Debt |
| 16.59M | 16.38M | 6.73M | 2.34M | 786.00K | 1.47M | Net Debt |
| 15.07M | 14.32M | 3.71M | 1.00M | -243.00K | 989.75K | Total Liabilities |
| 36.24M | 35.91M | 18.68M | 9.88M | 7.58M | 6.90M | Stockholders Equity |
| -11.62M | -8.41M | 95.97M | 66.07M | 44.11M | 62.05M |
| Cash Flow | Free Cash Flow | ||||
| -16.12M | -60.60M | -56.14M | -23.91M | -16.14M | -15.68M | Operating Cash Flow |
| -14.75M | -54.99M | -51.71M | -22.84M | -15.62M | -14.59M | Investing Cash Flow |
| -655.00K | 16.82M | 22.58M | -27.73M | 16.47M | 4.55M | Financing Cash Flow |
| 10.40M | 37.21M | 30.82M | 50.88M | -304.00K | 9.92M |
22nd Century Technical Analysis
Negative
1.92
Price Trends
4.15
Negative
8.35
Negative
44.49
Negative
Market Momentum
-0.72
Negative
30.91
Neutral
33.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XXII, the sentiment is Negative. The current price of 1.92 is below the 20-day moving average (MA) of 2.62, below the 50-day MA of 4.15, and below the 200-day MA of 44.49, indicating a bearish trend. The MACD of -0.72 indicates Negative momentum. The RSI at 30.91 is Neutral, neither overbought nor oversold. The STOCH value of 33.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XXII.
22nd Century Risk Analysis
22nd Century disclosed 39 risk factors in its most recent earnings report. 22nd Century 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
22nd Century Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $29.45B | 9.43 | 45.38% | 5.29% | 5.61% | 23.39% | |
72 Outperform | $98.31B | 9.02 | -503.31% | 6.78% | -0.28% | 43.51% | |
67 Neutral | $236.49B | 33.31 | -37142.11% | 3.52% | 7.75% | -9.85% | |
63 Neutral | $20.76B | 13.76 | -10.60% | 7.37% | 1.45% | 9.35% | |
61 Neutral | $89.63B | 23.22 | 5.87% | 7.25% | -2.51% | ― | |
61 Neutral | $1.04B | 28.66 | 27.80% | 0.48% | -0.13% | 2.92% | |
41 Neutral | $3.45M | ― | -385.90% | ― | -66.36% | 83.15% |
* Consumer Defensive Sector Average
Performance Comparison
XXII
22nd Century
1.92
-276.72
-99.31%
MO
Altria Group
58.15
18.51
46.70%
BTI
British American Tobacco
41.00
13.05
46.69%
PM
Philip Morris
152.10
61.95
68.72%
IMBBY
Imperial Brands
35.90
14.82
70.30%
TPB
Turning Point Brands
59.07
31.82
116.77%
22nd Century Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -6.34% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strategic improvements and financial restructuring leading to a stronger foundation for future growth. However, the current challenges in revenue decline and VLN product performance indicate areas needing attention. The company is optimistic about achieving profitability and growth in 2025.Highlights
Improved Business Model and Strategy
The company has restructured into a simpler business model with a focus on contract manufacturing and VLN low nicotine cigarette products, providing a clear path forward.
CMO Business as Revenue Driver
The CMO business is the primary revenue source, with strong customer relationships and opportunities for growth in both domestic and export markets.
Cost Reduction and Improved Financial Health
Operating expenses decreased significantly from $8.3 million in the prior year to $2.8 million, with a strong balance sheet and reduced net debt from $13.3 million to $3 million.
Debt Amortization Reduction
The company amended its senior secured credit facility to reduce monthly debt payments by 50% through August 2025, improving liquidity.
Positive Cash Flow and Profitability Target
The company is targeting breakeven in Q1 of 2025, with a focus on generating profits and positive cash flow.
Lowlights
Decline in Net Revenue
Net revenue decreased from $7.9 million in Q2 2024 to $5.9 million in Q3 2024, primarily due to lower carton volumes.
VLN Revenue Challenges
VLN revenues were negligible in Q3 2024, with the company working on brand reactivation and addressing a supply air pocket issue.
Filtered Cigar Volume Decline
Significant decline in filtered cigar revenues due to exiting mispriced contracts, impacting overall volume.
Company Guidance
During the earnings call for 22nd Century's third quarter of 2024, the company provided guidance highlighting several key metrics and strategies. Net revenue for the quarter was reported at $5.9 million, a decrease from $7.9 million in the previous quarter, primarily due to a reduction in shipped volume from 719,000 to 439,000 cartons. Additionally, operating expenses were reduced to $2.8 million from $8.3 million in the same quarter last year, following significant cost-cutting measures. The company anticipates stable revenue in the fourth quarter, with increased export volumes counterbalancing a decline in filtered cigar shipments. Looking ahead, 22nd Century plans to enhance its VLN product lineup and expand distribution, especially within its CMO customers' product lines, aiming for significant growth in 2025. The balance sheet showed improvement with net debt reduced from $13.3 million at the start of the year to $3 million by quarter's end, and cash reserves bolstered by an additional $5 million raised in October. The company targets breakeven in the first quarter of 2025, supported by ongoing strategic initiatives and amendments to their credit facility, which reduce debt service obligations and provide financial flexibility.22nd Century Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
22nd Century Expands Market Reach with New Agreement
Positive
Jan 7, 2025
22nd Century Group, Inc. entered a five-year exclusive licensing and manufacturing agreement with Smoker Friendly International, LLC, covering 11 existing and eight new cigarette brands. This agreement strengthens their decade-long partnership and expands their market reach with premium and reduced nicotine content products, enhancing both companies’ growth opportunities and product offerings in the tobacco 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.