General Cannabis (CANN) AI Stock Analysis

• Market Cap: $4.13M
• Dividend Yield: N/A
• Average Volume (3M): 152.58K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.25
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 91
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• 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: 5.14
• Enterprise Value/Revenue: 1.55
• Enterprise Value/Gross Profit: 3.65
• Enterprise Value/Ebitda: 24.98
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: $0.03 ▼(-25.00% Downside)
• Action: Downgraded Date: 02/04/26
• Date: Action: Downgraded 02/04/26

The score is driven primarily by very weak financial performance (declining revenues, negative profitability, high leverage/negative equity, and negative cash flows). Technical indicators also remain bearish with the price below key moving averages and negative MACD, while valuation is hindered by losses (negative P/E) and no dividend support.

Positive Factors

Recurring revenue model

The company's business model generates recurring rental income and facility management fees tied to operating properties. Those recurring cash streams are structurally durable, supporting predictable revenue cadence and tenant relationships that can stabilize cash flow across multi‑quarter cycles if occupancy and contracts are maintained.

Specialized market position

A focused service offering for regulated cannabis real estate creates a specialized competitive position. Regulatory and compliance barriers raise switching costs and limit entrants, giving the company potential long‑term advantages in leasing, permitting, and facility know‑how as legalization and industry maturation sustain demand.

Improving free cash flow trend

Notwithstanding negative cash flows, reported improvement in free cash flow growth signals initial operational stabilization. If sustained, this trend can enhance liquidity, reduce reliance on external financing, and provide runway for rent roll optimization or targeted capex over the next several quarters.

Negative Factors

High leverage and negative equity

Material leverage and negative shareholders' equity materially constrain financial flexibility. High debt increases refinancing risk and interest burden, limiting ability to invest in asset upkeep or growth, and elevates the chance of covenant breaches or needing dilutive capital to shore up the balance sheet.

Negative operating cash flows

Persistent negative operating and free cash flows undermine long‑term sustainability by necessitating external funding to service operations and debt. Without durable cash generation, the firm may face constrained investment, higher financing costs, or forced asset sales to cover shortfalls over the coming quarters.

Declining revenue and negative margins

Revenue decline combined with negative EBIT/EBITDA margins points to structural profitability weaknesses and operational inefficiencies. Sustained margin pressure limits cash available for debt reduction and reinvestment, making it harder to scale the leasing and management model profitably without meaningful cost or revenue improvements.

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

Very weak fundamentals: declining revenues, negative EBIT/EBITDA margins, high leverage with negative stockholders’ equity, and negative operating/free cash flow indicate significant financial instability and profitability challenges.

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	Mar 2022	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: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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, above the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.24 is Neutral, neither overbought nor oversold. The STOCH value of 113.33 is Negative, 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%
YCBD	48 Neutral	$9.80M	-0.44	-44.42%	―	-1.50%	80.17%
IXHL	46 Neutral	$98.18M	-0.21	-114.52%	―	-86.05%	24.17%
AQST	44 Neutral	$498.99M	-5.89	―	―	-26.32%	-56.54%
IMCC	40 Underperform	$4.20M	-1.00	-93.87%	―	-0.74%	81.49%
CANN	38 Underperform	$4.13M	-1.18	―	―	―	―