Cannapharmarx (CPMD) AI Stock Analysis

• Market Cap: $2.58M
• Dividend Yield: N/A
• Average Volume (3M): 217.46K
• Price to Earnings (P/E): 5.9
• Beta (1Y): -4497.52
• Revenue Growth: N/A
• EPS Growth: -797.73%
• Country: US
• Employees: 26
• Sector: Healthcare
• Sector Strength: 44
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.03
• Shares Outstanding: 662,501,400
• 10 Day Avg. Volume: 406,105
• 30 Day Avg. Volume: 217,458
• PEG Ratio: >-0.01
• Price to Book (P/B): 8.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.22
• Enterprise Value/Market Cap: 18.79
• Enterprise Value/Revenue: 40.14
• Enterprise Value/Gross Profit: -18.89
• Enterprise Value/Ebitda: -5.86
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 17 Underperform
• Price Target: ―

Cannapharmarx presents a high-risk investment due to severe financial instability, reflected in negative equity and cash flow issues. The absence of technical analysis indicators further adds uncertainty. Without any positive valuation metrics or corporate events to offset the risks, the stock score is significantly low.

Cannapharmarx Business Overview & Revenue Model

Company Description

CannaPharmaRx, Inc. (CPMD) is a company engaged in the cannabis industry, focusing on the development and management of cannabis cultivation facilities. The company operates primarily in sectors related to the production and sale of medical and recreational cannabis. Its core services include the acquisition and development of state-of-the-art cultivation facilities to produce high-quality cannabis products.

How the Company Makes Money

CannaPharmaRx makes money through the cultivation and sale of cannabis products. The company's revenue model is based on the production of cannabis in its owned and managed facilities, which is then sold in both medical and recreational cannabis markets. Key revenue streams include wholesale distribution to licensed dispensaries and partnerships with other cannabis brands for product development and distribution. The company may also generate income through strategic partnerships and joint ventures that expand its market reach and optimize its production capabilities.

Cannapharmarx Financial Statement Overview

Summary

Cannapharmarx is facing severe financial challenges with negative profitability, high leverage, and poor cash flow generation. Despite some revenue improvement, the financial distress is significant, as indicated by negative stockholders' equity and cash flow issues.

Income Statement

Cannapharmarx has shown an improvement in revenue with total revenue reaching $820,137 in 2024. However, the gross profit margin is exceptionally high at 99.46% due to minimal revenue, which does not translate into profitability as the net profit margin remains negative, indicating significant losses. The company has struggled to achieve positive EBIT or EBITDA margins, reflecting operational challenges.

Balance Sheet

The balance sheet indicates financial instability with a negative stockholders' equity of -$19,809,637, indicating that liabilities exceed assets. The debt-to-equity ratio is not calculable due to negative equity, suggesting high leverage and financial risk. The equity ratio is also negative, further underscoring the financial distress.

Cash Flow

Cannapharmarx's cash flow is concerning, with no positive free cash flow and an operating cash flow of $0 in 2024. The company has consistently reported negative free cash flow, reflecting cash burn and liquidity challenges. The inability to generate positive operating cash flow relative to net income signals inefficient cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	820.14K	0.00	0.00	0.00	0.00
Gross Profit	-2.94M	-65.56K	-295.00K	-14.36K	-129.00K
EBITDA	-7.64M	-1.45M	-4.91M	-2.61M	-17.47M
Net Income	-9.91M	3.69M	-8.53M	-8.83M	-19.89M
Balance Sheet
Total Assets	10.84M	11.75M	5.41M	114.33K	8.75M
Cash, Cash Equivalents and Short-Term Investments	2.16K	650.00	2.32K	27.77K	334.97K
Total Debt	14.06M	12.94M	14.52M	9.02M	10.00M
Total Liabilities	30.65M	23.90M	22.76M	13.04M	17.55M
Stockholders Equity	-19.81M	-12.15M	-17.34M	-12.93M	-8.80M
Cash Flow
Free Cash Flow	-1.70M	-2.36M	-1.56M	-2.42M	-563.57K
Operating Cash Flow	-1.70M	-2.27M	-1.45M	-2.41M	-563.57K
Investing Cash Flow	0.00	-80.63K	-116.00K	493.62K	0.00
Financing Cash Flow	1.70M	2.35M	1.40M	1.30M	824.57K

Cannapharmarx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.44B	0.40	-61.90%	2.33%	17.14%	1.55%
APDN	42 Neutral	$2.51M	―	-141.39%	―	-58.46%	47.98%
SHPH	32 Underperform	$3.67M	―	-346.19%	―	―	-7.18%
BJDX	29 Underperform	$2.42M	―	-200.56%	―	―	81.35%
HCTI	27 Underperform	$9.44M	―	-143.99%	―	-64.77%	43.53%
CPMD	17 Underperform	$2.58M	5.88	-8.32%	―	―	-797.73%

Cannapharmarx Corporate Events

Cannapharmarx Appoints Constantine Nkafu as Interim CEO

Cannapharmarx has appointed Constantine Nkafu as the interim CEO, who has been managing the company’s operations for several months. Nkafu, who also serves as the CEO of a subsidiary, brings extensive experience in the pharmaceutical, cannabis, and medical device industries, and has been instrumental in setting up and running complex operations. In addition, the company has appointed Amir Tal, Constantine Nkafu, and Elliot Zemel to its Board of Directors as part of an agreement with LTB Management, LLC. Nkafu and Zemel, both authorized by Health Canada to serve as directors, bring significant expertise and networks in the cannabis industry, which could enhance the company’s strategic positioning.