Cannapharmarx (CPMD) AI Stock Analysis

• Market Cap: $2.39M
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): 0.05
• Revenue Growth: 404.63%
• EPS Growth: -46.05%
• Country: US
• Employees: 26
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): >-0.01
• Shares Outstanding: 662,501,400
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: <0.01
• Price to Book (P/B): -0.26
• Price to Sales (P/S): 6.18
• P/FCF Ratio: -2.98
• Enterprise Value/Market Cap: 11.48
• Enterprise Value/Revenue: 16.05
• Enterprise Value/Gross Profit: -8.41
• Enterprise Value/Ebitda: -8.47
• 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: 43 Neutral
• Price Target: $0.01 ▲(0.00% Upside)
• Action: Upgraded Date: 12/30/25
• Date: Action: Upgraded 12/30/25

The score is primarily constrained by very weak financial performance (large losses, negative gross profitability, ongoing cash burn, and negative equity). A negative corporate update emphasizing going-concern and restructuring needs adds risk. Technical and valuation inputs are mostly missing, limiting evidence of near-term momentum or attractive valuation to offset the fundamentals.

Positive Factors

Revenue Growth

Substantial revenue growth indicates strong demand and potential market expansion, suggesting the company is capturing a larger share of the cannabis market.

Leadership Change

The appointment of a new CEO with extensive industry experience could drive strategic improvements and operational efficiency, enhancing long-term business prospects.

Board Expertise

The addition of experienced board members could strengthen strategic decision-making and expand industry networks, supporting sustainable growth.

Negative Factors

Negative Equity

Negative equity indicates financial distress, as liabilities exceed assets, posing a risk to long-term viability and limiting financial flexibility.

Cash Flow Issues

Lack of positive cash flow suggests liquidity challenges and inefficient cash management, which could hinder operational sustainability and growth.

High Leverage

High leverage increases financial risk, potentially leading to difficulties in meeting obligations and limiting the ability to invest in growth opportunities.

Cannapharmarx Business Overview & Revenue Model

Company Description

CannaPharmaRX, Inc. operates in the cannabis industry in Canada. It negotiates, acquires, and develops various cannabis cultivation projects. The company was incorporated in 1998 and is based in Calgary, Canada.

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

Financials remain very weak despite a 2024 revenue uptick (~$0.82M). Gross profit is deeply negative, losses are large (about -$9.9M net loss), cash flow is still burning (operating and free cash flow around -$1.7M), and the balance sheet shows high stress with negative shareholder equity and sizable debt—implying elevated funding and dilution/refinancing risk.

Income Statement

Revenue only appears meaningfully in 2024 (annual) at ~$0.82M after effectively zero revenue in prior years, showing a sharp rebound in sales activity. However, profitability remains very weak: 2024 gross profit is deeply negative (roughly -358% gross margin) and losses are substantial (net loss of ~$9.9M, about -1,208% net margin), indicating the cost structure is far ahead of the current revenue base. Earnings volatility is also high (e.g., a profitable 2023 net income figure alongside negative operating results), reducing confidence in earnings quality and repeatability.

Balance Sheet

The balance sheet is highly stressed due to consistently negative shareholder equity (about -$19.8M in 2024; negative in most recent years), which signals accumulated losses and weak financial flexibility. Total debt is sizable (~$14.1M in 2024) relative to the company’s asset base (~$10.8M), and negative equity makes leverage metrics difficult to interpret but clearly elevated in economic terms. Overall, the capital structure suggests higher refinancing/dilution risk and limited balance-sheet resilience.

Cash Flow

Cash generation remains negative, with 2024 operating cash flow and free cash flow both around -$1.7M, continuing multiple years of cash burn. Free cash flow deteriorated versus the prior year (materially negative growth in 2024), indicating funding needs are not easing despite the revenue uptick. While cash burn is lower than some prior years, the company still appears dependent on external financing to sustain operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.71M	820.14K	0.00	0.00	0.00	0.00
Gross Profit	-3.26M	-2.94M	-65.56K	-295.00K	-14.36K	-129.00K
EBITDA	-3.23M	-7.64M	-1.45M	-4.91M	-2.61M	-17.47M
Net Income	-7.32M	-9.91M	3.69M	-8.53M	-8.83M	-19.89M
Balance Sheet
Total Assets	11.62M	10.84M	11.75M	5.41M	114.33K	8.75M
Cash, Cash Equivalents and Short-Term Investments	927.00	2.16K	650.00	2.32K	27.77K	334.97K
Total Debt	24.99M	14.06M	12.94M	14.52M	9.02M	10.00M
Total Liabilities	34.13M	30.65M	23.90M	22.76M	13.04M	17.55M
Stockholders Equity	-22.52M	-19.81M	-12.15M	-17.34M	-12.93M	-8.80M
Cash Flow
Free Cash Flow	-2.03M	-1.70M	-2.36M	-1.56M	-2.42M	-563.57K
Operating Cash Flow	-2.03M	-1.70M	-2.27M	-1.45M	-2.41M	-563.57K
Investing Cash Flow	0.00	0.00	-80.63K	-116.00K	493.62K	0.00
Financing Cash Flow	2.02M	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	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TLRY	49 Neutral	$883.12M	-0.36	-83.42%	―	2.31%	-726.28%
IXHL	47 Neutral	$93.17M	-0.37	-114.52%	―	-86.05%	24.17%
CPMD	43 Neutral	$2.39M	―	―	―	404.63%	-46.05%
IMCC	40 Underperform	$5.30M	-1.21	-93.87%	―	-0.74%	81.49%

Cannapharmarx Corporate Events

CannaPharmaRX Has Cease Trade Order Revoked, Plans Restructuring

On December 12, 2025, CannaPharmaRX announced that the British Columbia Securities Commission revoked the failure-to-file cease trade order imposed on May 11, 2023, after the company completed its previously delinquent 2022 annual filings with Canadian and U.S. regulators by October 19, 2023. Despite the lifting of the trading restriction, the company reported substantial going-concern risks, including a working capital deficit of $27.0 million and significant related-party debt of $10.8 million plus accrued interest as of September 30, 2025, and outlined a strategic plan centered on debt restructuring, securing working capital, ramping up production capacity at its Alberta facility, and expanding into European markets to strengthen its financial position and long-term viability.