General Cannabis (CANN) AI Stock Analysis

• Market Cap: $4.31M
• Dividend Yield: N/A
• Average Volume (3M): 152.58K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.61
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 91
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.01
• Shares Outstanding: 108,746,520
• 10 Day Avg. Volume: 152,002
• 30 Day Avg. Volume: 152,580
• PEG Ratio: 0.01
• Price to Book (P/B): -0.64
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -2.78
• Enterprise Value/Market Cap: 5.88
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 4.35
• Enterprise Value/Ebitda: 29.78
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $0.04 ▼(-2.50% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues and high leverage. Technical analysis provides a slightly more positive outlook with some support from moving averages, but bearish momentum persists. Valuation is weak due to the negative P/E ratio and lack of dividend yield.

Positive Factors

Diverse Revenue Streams

General Cannabis's diverse revenue streams from consulting, real estate, and branding services provide a robust foundation for growth, reducing reliance on any single market segment and enhancing resilience against industry volatility.

Strategic Partnerships

Strategic partnerships with cannabis operators strengthen market presence and create additional revenue opportunities, fostering long-term growth and competitive positioning in the evolving cannabis industry.

Industry Growth Potential

The expanding legal cannabis market offers significant growth potential for General Cannabis, supporting long-term revenue expansion and providing a favorable backdrop for its diverse service offerings.

Negative Factors

High Leverage

High leverage poses financial risk, limiting flexibility and increasing vulnerability to economic downturns, which can impact long-term financial stability and growth prospects.

Declining Revenue

Declining revenues and negative profitability highlight operational challenges, potentially hindering the company's ability to invest in growth initiatives and maintain competitive advantage.

Negative Cash Flow

Negative cash flow indicates cash generation challenges, which can constrain the company's ability to fund operations, service debt, and invest in future growth, impacting long-term sustainability.

General Cannabis Business Overview & Revenue Model

Company Description

Trees Corporation provides products and services to the regulated cannabis industry and non-cannabis customers in the United States. The company operates through Retail and Cultivation segments. It operates a licensed 17,000 square foot light deprivation greenhouse cultivation facility; and a retail dispensary store in Englewood, Colorado, as well as two retail stores in Portland, Oregon. The company was formerly known as General Cannabis Corp. and changed its name to Trees Corporation in June 2022. Trees Corporation was incorporated in 2013 and is headquartered in Denver, Colorado.

How the Company Makes Money

General Cannabis generates revenue through multiple channels. Its primary revenue streams include consulting services, where the company offers strategic guidance and operational support to cannabis businesses. Additionally, the company earns income from real estate services, leveraging its properties to cater to cannabis operations. The sale of cannabis-related products and branding services also contributes to its revenue. Strategic partnerships with various cannabis operators enhance its market presence and create additional revenue opportunities, while the overall growth in the legal cannabis market adds to its financial performance.

General Cannabis Financial Statement Overview

Summary

General Cannabis faces significant financial challenges, with declining revenues, high leverage, and negative profitability. The company needs to address operational inefficiencies and improve its financial stability to enhance its financial health.

Income Statement

General Cannabis has shown declining revenue growth with a negative trend in net profit margins, indicating challenges in profitability. The gross profit margin is moderate, but the EBIT and EBITDA margins are negative, reflecting operational inefficiencies.

Balance Sheet

The company has a high debt-to-equity ratio, indicating significant leverage, which poses financial risk. Negative stockholders' equity and poor return on equity further highlight financial instability.

Cash Flow

Operating and free cash flows are negative, although there is some improvement in free cash flow growth. The ratios of cash flow to net income suggest cash flow challenges relative to earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.66M	18.14M	13.44M	5.93M	7.12M
Gross Profit	5.45M	6.57M	4.87M	1.49M	1.65M
EBITDA	900.75K	-1.64M	-2.84M	-6.12M	-6.19M
Net Income	-3.48M	-7.08M	-9.48M	-8.87M	-7.68M
Balance Sheet
Total Assets	20.76M	23.25M	31.69M	22.02M	8.52M
Cash, Cash Equivalents and Short-Term Investments	214.33K	969.68K	2.58M	2.05M	750.22K
Total Debt	17.31M	17.88M	22.54M	10.15M	4.76M
Total Liabilities	23.84M	23.10M	25.29M	12.42M	7.52M
Stockholders Equity	-3.07M	148.16K	6.41M	9.61M	1.00M
Cash Flow
Free Cash Flow	-704.76K	-1.43M	-2.11M	-2.98M	-5.32M
Operating Cash Flow	-654.15K	-1.13M	-2.05M	-2.65M	-5.00M
Investing Cash Flow	-50.60K	-304.42K	-1.95M	-978.74K	1.11M
Financing Cash Flow	-50.59K	-184.25K	4.53M	4.93M	4.42M

General Cannabis Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CANN, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.07 is Neutral, neither overbought nor oversold. The STOCH value of 56.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CANN.

General Cannabis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CANN	45 Neutral	$4.31M	-1.21	―	―	―	―
IMCC	42 Neutral	$6.72M	-2.36	-93.87%	―	-0.74%	81.49%
AQST	41 Neutral	$723.48M	―	―	―	-26.32%	-56.54%
FLGC	40 Neutral	$6.77M	-0.23	-37.38%	―	-22.60%	53.82%
YCBD	40 Underperform	$7.21M	-0.13	-33.13%	―	-7.80%	90.17%
IXHL	39 Underperform	$122.46M	―	-114.52%	―	-86.05%	24.17%

General Cannabis Corporate Events

General Cannabis Completes Acquisition of Beddor Claude LLC

General Cannabis, through its subsidiary Trees Colorado LLC, completed the acquisition of Beddor Claude LLC, a cannabis dispensary and cultivation operation in Wheat Ridge, Colorado, on June 30, 2025. The acquisition involved a payment of $1,704,827.87 and a new lease agreement with favorable terms. Earlier, on June 20, 2025, the company entered into a restructuring arrangement with TCM Tactical Opportunities Fund II LP and other debt holders, resulting in a new refinancing agreement and the issuance of senior promissory notes. This restructuring aims to strengthen the company’s financial position and includes enhanced covenants and a new consulting agreement with its interim CEO, Adam Hershey.