General Cannabis (CANN) AI Stock Analysis

• Market Cap: $2.05M
• Dividend Yield: N/A
• Average Volume (3M): 83.91K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.22
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 91
• Sector: Healthcare
• Sector Strength: 47
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 108,746,520
• 10 Day Avg. Volume: 108,693
• 30 Day Avg. Volume: 83,910
• PEG Ratio: 0.04
• Price to Book (P/B): 3.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.87
• Enterprise Value/Market Cap: 19.88
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 7.26
• Enterprise Value/Ebitda: -24.64
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 37 Underperform
• Price Target: ―

General Cannabis's stock is rated at the lowest end of the scale at 37 due to severe financial challenges, including negative profitability and cash flows, compounded by technical indicators pointing to a continued bearish trend. The lack of profitability or dividend yield further diminishes the stock's valuation appeal. The neutral earnings call impact does not offset these negative factors.

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 Corp makes money through a diversified revenue model primarily centered around the cannabis industry. The company generates revenue by providing consulting services that help cannabis businesses navigate complex regulatory landscapes and optimize their operations. Another significant revenue stream is security services, which include offering specialized protection and surveillance solutions tailored to the unique needs of cannabis enterprises. Additionally, General Cannabis earns income through its real estate division, which involves leasing and selling properties designed for cannabis cultivation, processing, and retail distribution. The company also benefits from strategic partnerships and acquisitions that enhance its service offerings and expand its market reach.

General Cannabis Financial Statement Overview

Summary

General Cannabis faces significant financial challenges, as seen in declining revenues, negative profitability margins, and a precarious financial position with negative equity. The high reliance on debt and negative cash flows highlight liquidity and solvency risks. Improvement efforts should focus on cost control and revenue enhancement to stabilize the financial trajectory.

Income Statement

The company has shown a declining revenue trend with a negative revenue growth rate from the previous year to TTM. Gross profit margin for TTM is approximately 38.7%, which indicates a reasonable ability to cover direct costs. However, the net profit margin remains negative due to substantial net losses, reflecting ongoing challenges in achieving profitability. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet indicates a concerning financial position with negative stockholders' equity in the TTM, suggesting insolvency risk. The debt-to-equity ratio is not meaningful due to negative equity, and ROE is negative, indicating unprofitable equity deployment. The equity ratio is also negative, underscoring a heavy reliance on debt financing, which could pose significant financial risks.

Cash Flow

The operating cash flow is negative, and free cash flow remains negative, showing a challenging cash flow situation. The free cash flow growth rate has improved from the previous year, yet remains negative. The ratios of operating and free cash flow to net income are not favorable, indicating difficulties in converting income to cash.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	14.50M	18.14M	13.44M	5.93M	7.12M	3.67M
Gross Profit	5.62M	6.57M	4.87M	1.49M	1.65M	1.20M
EBITDA	567.92K	-1.64M	-5.37M	-6.12M	-6.19M	-11.33M
Net Income	-6.05M	-7.08M	-9.48M	-10.31M	-8.53M	-14.83M
Balance Sheet
Total Assets	21.16M	23.25M	31.69M	22.02M	8.52M	3.50M
Cash, Cash Equivalents and Short-Term Investments	245.37K	969.68K	2.58M	2.05M	750.22K	122.39K
Total Debt	17.42M	17.88M	22.54M	10.15M	4.76M	2.33M
Total Liabilities	23.78M	23.10M	25.29M	12.42M	7.52M	6.25M
Stockholders Equity	-2.62M	148.16K	6.41M	9.61M	1.00M	-2.74M
Cash Flow
Free Cash Flow	-544.18K	-1.43M	-2.11M	-2.98M	-5.32M	-5.65M
Operating Cash Flow	-459.99K	-1.13M	-2.05M	-2.65M	-5.00M	-5.33M
Investing Cash Flow	-84.19K	-304.42K	-1.95M	-978.74K	1.11M	-753.64K
Financing Cash Flow	537.86K	-184.25K	4.53M	4.93M	4.42M	-1.65M

General Cannabis Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CANN, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.09 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CANN.

General Cannabis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AYTU	60 Neutral	$13.94M	―	3.29%	―	-26.17%	―
ORGO	56 Neutral	$479.51M	928.57	-4.92%	―	5.35%	-432.51%
Sector *	46 Neutral	C$192.85M	-4.28	-8.56%	2.83%	13.52%	-1.74%
DRRX	45 Neutral	$19.87M	―	-203.11%	―	-41.45%	40.69%
CANN	37 Underperform	$2.05M	―	230.64%	―	―	―
KALA	31 Underperform	$31.23M	―	-576.46%	―	―	38.50%
SXTC		$222.77M	0.09	57.63%	―	―	―