IM Cannabis Corp (IMCC) AI Stock Analysis

• Market Cap: $6.72M
• Dividend Yield: N/A
• Average Volume (3M): 72.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -0.74%
• EPS Growth: 81.49%
• Country: US
• Employees: 95
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.54
• Shares Outstanding: 5,246,812
• 10 Day Avg. Volume: 74,089
• 30 Day Avg. Volume: 72,265
• PEG Ratio: -0.55
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.15
• P/FCF Ratio: -6.38
• Enterprise Value/Market Cap: 2.88
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 1.57
• Enterprise Value/Ebitda: -8.90
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $1.50 ▼(-14.77% Downside)

IM Cannabis Corp's overall stock score is primarily impacted by its poor financial performance, characterized by ongoing losses and negative cash flows. Technical indicators suggest a bearish trend with potential overbought conditions. Valuation metrics are weak due to a negative P/E ratio and lack of dividend yield, further impacting the stock's attractiveness.

Positive Factors

Strategic Expansion Plans

The board restructuring and strategic expansion plans indicate a proactive approach to explore new business opportunities, potentially enhancing long-term growth and shareholder value.

Market Position

Regaining Nasdaq compliance secures IM Cannabis's market position, ensuring continued access to capital markets and investor confidence, which is crucial for long-term growth.

Revenue Growth Potential

Acquiring a stake in a quantum computing bio data firm could diversify revenue streams and enhance technological capabilities, supporting long-term revenue growth.

Negative Factors

Financial Performance

Ongoing financial challenges, including losses and negative cash flows, threaten the company's ability to sustain operations without strategic changes or external financing.

CFO Departure

The departure of the CFO during a transition period may impact operational stability and stakeholder confidence, affecting strategic execution and financial oversight.

Profitability Challenges

Persistent profitability issues, such as negative net income and declining margins, highlight challenges in cost control and market competitiveness, affecting long-term viability.

IM Cannabis Corp Business Overview & Revenue Model

Company Description

IM Cannabis Corp (IMCC) is a publicly traded company engaged in the cultivation, distribution, and sale of medical and recreational cannabis products. Operating primarily in Canada and Europe, IMCC focuses on developing high-quality cannabis strains and innovative consumer products. The company aims to leverage its expertise in the cannabis market to create a diversified portfolio of brands and offerings that cater to the evolving preferences of consumers across different regions.

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	52.38M	54.03M	48.80M	54.34M	34.05M	15.89M
Gross Profit	12.28M	8.45M	9.85M	9.16M	6.33M	10.47M
EBITDA	-2.17M	-6.14M	-2.79M	-16.76M	6.24M	-7.04M
Net Income	-4.70M	-10.59M	-9.50M	-188.89M	-17.76M	-28.70M
Balance Sheet
Total Assets	44.33M	39.19M	48.81M	60.68M	287.39M	38.12M
Cash, Cash Equivalents and Short-Term Investments	1.18M	863.00K	1.81M	2.45M	13.90M	8.88M
Total Debt	17.56M	18.01M	13.78M	11.53M	29.27M	990.00K
Total Liabilities	40.03M	36.04M	35.11M	36.88M	82.44M	25.51M
Stockholders Equity	3.96M	5.24M	14.47M	22.65M	201.24M	11.10M
Cash Flow
Free Cash Flow	-3.75M	-1.23M	-8.66M	-14.20M	-38.97M	-10.63M
Operating Cash Flow	-3.71M	-1.08M	-8.07M	-12.64M	-34.37M	-7.92M
Investing Cash Flow	-1.08M	-470.00K	-1.18M	-1.41M	-9.01M	-4.08M
Financing Cash Flow	7.12M	3.83M	9.42M	4.76M	48.73M	6.74M

IM Cannabis Corp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.76
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IMCC, the sentiment is Neutral. The current price of 1.76 is above the 20-day moving average (MA) of 1.38, above the 50-day MA of 1.67, and below the 200-day MA of 2.10, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 60.27 is Neutral, neither overbought nor oversold. The STOCH value of 91.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IMCC.

IM Cannabis Corp 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%
IMCC	42 Neutral	$6.72M	-2.36	-93.87%	―	-0.74%	81.49%
CANB	41 Neutral	C$5.53M	80.00	-11.42%	―	-5.87%	-239.53%
PCLO	24 Underperform	$6.92M	-1.02	―	―	132.09%	52.94%

IM Cannabis Corp Corporate Events

IM Cannabis Corp. Cancels December 2025 Special Meeting

IM Cannabis Corp. announced the cancellation of a Special Meeting of Security Holders that was initially scheduled for December 29, 2025. The cancellation notice, dated November 14, 2025, affects various record dates related to the meeting, including the notice of meeting, voting, and beneficial ownership determination, all of which were set for November 12, 2025. This cancellation may impact stakeholders’ expectations and the company’s planned corporate actions.

IM Cannabis Corp. to Announce Q3 2025 Financial Results

On November 6, 2025, IM Cannabis Corp. announced it will report its third quarter 2025 financial results on November 13, 2025. The company, which operates in Israel and Germany, aims to provide insights into its operational and financial performance for the quarter ended September 30, 2025. This announcement is significant as it reflects the company’s ongoing commitment to transparency and its strategic focus on growth in high-value markets, potentially impacting its market positioning and stakeholder interests.

IM Cannabis Corp. Announces CFO Departure Amid Transition Plans

On October 29, 2025, IM Cannabis Corp. announced that its Chief Financial Officer, Uri Birenberg, will be stepping down for personal reasons. He will continue in his role until January 5, 2026, or an earlier date determined by the company, assisting in a structured transition process. This change is not due to any disagreement with the company, and Birenberg expressed confidence in IM Cannabis’s future. The company is actively searching for a new CFO, which may impact its operations and stakeholder confidence during the transition.

IM Cannabis Corp. Announces Special Meeting for December 2025

IM Cannabis Corp. has announced a Special Meeting of Security Holders scheduled for December 29, 2025, in Toronto, Ontario. The meeting’s record date for notice and voting is set for November 12, 2025. This meeting is significant for stakeholders as it may influence the company’s strategic decisions and future direction, impacting its market positioning and operational strategies.

IM Cannabis Corp. Announces Board Restructuring and Strategic Expansion Plans

On September 15, 2025, IM Cannabis Corp. announced significant changes to its Board of Directors, with the resignation of Shmulik Arbel and Brian Schinderle, and the appointment of Asaf Yitzhaik and Eli Zamir as their replacements. The company also appointed Oz Adler as the new Chairman of the Board. These changes are part of a strategic review aimed at exploring additional business opportunities to enhance long-term growth and shareholder value.