IM Cannabis Corp (IMCC) AI Stock Analysis

• Market Cap: $9.66M
• Dividend Yield: N/A
• Average Volume (3M): 55.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: 2.17%
• EPS Growth: 88.34%
• Country: US
• Employees: 95
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.07
• Shares Outstanding: 5,246,812
• 10 Day Avg. Volume: 23,972
• 30 Day Avg. Volume: 55,883
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.00
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 1.52
• Enterprise Value/Ebitda: 18.28
• 1Y Price Target: $1.50
• Price Target Upside: -18.48% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: $1.50 ▼(-18.48% Downside)

IM Cannabis Corp's overall stock score is primarily impacted by its poor financial performance, characterized by ongoing losses and negative cash flows. The technical analysis also indicates a bearish trend, further contributing to the low score. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield.

IM Cannabis Corp Business Overview & Revenue Model

Company Description

IM Cannabis Corp. engages in breeding, growing, and supply of medical cannabis products in Israel, Germany, and Canada. It offers cannabis flowers and strain specific cannabis extracts under the IMC brand; and dried flower, pre-rolls, and pressed hash offerings under the WAGNERS and Highland Grow brands. The company serves medical patients and adult-use recreational consumers. IM Cannabis Corp. is headquartered in Tel Aviv-Yafo, Israel.

How the Company Makes Money

IM Cannabis Corp generates revenue through multiple key streams. Primarily, the company earns money by cultivating and selling cannabis products, including dried flower, oils, and edibles, to both medical and recreational markets. In addition to direct sales, IMCC also engages in wholesale distribution to licensed retailers, which contributes significantly to its earnings. The company has formed strategic partnerships and collaborations to expand its market reach and enhance product offerings, which can lead to increased sales volumes. Furthermore, IMCC may benefit from licensing agreements and potential international expansion, allowing it to tap into emerging markets and diversify its revenue base.

IM Cannabis Corp Financial Statement Overview

Summary

IM Cannabis Corp faces significant financial challenges with ongoing losses, rising leverage, and negative cash flows. The company needs to address its cost structure and improve revenue generation to stabilize its financial position. Current trends reflect potential risks in sustaining operations without strategic changes or external financing.

Income Statement

The company has been struggling with profitability, demonstrated by consistent negative net income and declining gross profit margins. The net profit margin is significantly negative, indicating challenges in controlling costs and generating sustainable profits. Revenue growth is inconsistent, with recent declines, suggesting potential issues in market competitiveness or demand.

Balance Sheet

The debt-to-equity ratio has increased, reflecting a higher reliance on debt financing, which could limit financial flexibility. The return on equity is negative due to losses, which is concerning for long-term shareholder value. The equity ratio has decreased, indicating a lower proportion of equity financing, which might increase financial risk.

Cash Flow

The company has been experiencing negative operating and free cash flows, although there is some improvement in the operating cash flow to net income ratio. However, free cash flow remains negative, suggesting insufficient internal cash generation to cover capital needs, which could pressure liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	52.41M	54.03M	48.80M	54.34M	34.05M	15.89M
Gross Profit	12.70M	8.45M	9.85M	9.16M	6.33M	10.47M
EBITDA	1.06M	-6.14M	-2.79M	-16.76M	6.24M	-7.04M
Net Income	-1.97M	-10.59M	-9.50M	-188.89M	-17.76M	-28.70M
Balance Sheet
Total Assets	41.07M	39.19M	48.81M	60.68M	287.39M	38.12M
Cash, Cash Equivalents and Short-Term Investments	794.00K	863.00K	1.81M	2.45M	13.90M	8.88M
Total Debt	15.65M	18.01M	13.78M	11.53M	29.27M	990.00K
Total Liabilities	37.01M	36.04M	35.11M	36.88M	82.44M	25.51M
Stockholders Equity	3.52M	5.24M	14.47M	22.65M	201.24M	11.10M
Cash Flow
Free Cash Flow	2.44M	-1.23M	-8.66M	-14.20M	-38.97M	-10.63M
Operating Cash Flow	2.54M	-1.08M	-8.07M	-12.64M	-34.37M	-7.92M
Investing Cash Flow	-53.00K	-470.00K	-1.18M	-1.41M	-9.01M	-4.08M
Financing Cash Flow	355.00K	3.83M	9.42M	4.76M	48.73M	6.74M

IM Cannabis Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IMCC, the sentiment is Negative. The current price of 1.84 is below the 20-day moving average (MA) of 1.99, below the 50-day MA of 2.39, and below the 200-day MA of 2.25, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 34.25 is Neutral, neither overbought nor oversold. The STOCH value of 7.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IMCC.

IM Cannabis Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CANB	41 Neutral	6.22M	90.00	―	―	-8.84%	-96.82%
IMCC	39 Underperform	$9.66M	―	-36.94%	―	2.17%	88.34%
PCLO	24 Underperform	6.92M	-0.84	―	―	125.70%	47.09%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

IM Cannabis Corp Corporate Events

IM Cannabis Corp. to Announce Q2 2025 Financial Results

On August 4, 2025, IM Cannabis Corp. announced that it will release its second quarter 2025 financial results on August 12, 2025. The company, which operates in Israel and Germany, continues to focus on strengthening its position in the medical cannabis market. This announcement is significant as it highlights the company’s ongoing efforts to maintain transparency with stakeholders and its commitment to growth in key markets.

IM Cannabis Closes Private Placement Raising C$5.6 Million

On July 30, 2025, IM Cannabis Corp completed a private placement offering, raising approximately C$5.6 million through the sale of 2,050,000 units at C$2.74 per unit. Each unit includes one common share or a pre-funded warrant and a purchase warrant, with the proceeds intended for working capital and debt repayment. Additionally, on July 31, 2025, IM Cannabis entered into a consulting agreement with Pure Equity Ltd., issuing a warrant for 140,000 shares and a cash payment of $260,000 for consulting services related to the offering. This move is expected to bolster the company’s financial position and operational capabilities.

IM Cannabis Corp. Files $50 Million Shelf Registration Statement

On July 11, 2025, IM Cannabis Corp. announced the filing and effectiveness of a shelf registration statement on Form F-3 with the SEC. This registration allows the company to offer and sell up to $50 million of its securities, including common shares and warrants, subject to market conditions and capital needs. The announcement signifies IM Cannabis Corp.’s strategic move to potentially access capital markets and raise future financing, which could impact its operations and industry positioning.

IM Cannabis Corp. Granted Compliance Extension by Nasdaq

On July 1, 2025, IM Cannabis Corp. announced that it received a deficiency letter from Nasdaq on April 9, 2025, for not meeting the minimum stockholders’ equity requirement for continued listing. The company submitted a compliance plan on May 23, 2025, and was granted an extension until October 6, 2025, to meet the requirements. Failure to comply by the deadline may result in delisting, although the company’s shares will continue trading under the symbol ‘IMCC’. IM Cannabis is committed to taking all reasonable measures to regain compliance, but there is no assurance of success.