IM Cannabis Corp (IMCC) AI Stock Analysis

• Market Cap: $5.30M
• Dividend Yield: N/A
• Average Volume (3M): 72.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• 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: 6.04
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 2.61
• Enterprise Value/Ebitda: -14.74
• 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: 40 Underperform
• Price Target: $1.00 ▼(-30.56% Downside)
• Action: Downgraded Date: 01/13/26
• Date: Action: Downgraded 01/13/26

The score is driven primarily by weak financial performance—ongoing losses, high leverage relative to equity, and continued cash burn. Technical signals also lean bearish with price below major moving averages and negative MACD, while valuation is difficult to support given a negative P/E and no dividend.

Positive Factors

Market Position (Israel & Germany)

IM Cannabis’s concentrated presence in regulated, higher‑barrier medical markets (Israel and Germany) creates durable demand from patients and healthcare channels. These markets favor licensed suppliers, support pricing stability versus commoditized markets, and underpin long‑term revenue potential if execution holds.

Access to Financing

The US$2.17M convertible note financing reduced near‑term creditor pressure and funded working capital, demonstrating the company can secure institutional capital. While potentially dilutive, this financing provides runway to stabilize operations and execute strategic initiatives over the next 12–18 months.

Management Strengthening

Hiring a CFO with ~15 years of finance and controlling experience should improve financial controls, budgeting and capital allocation. Stronger finance leadership can durably enhance cash management, refinancing efforts and operational efficiency during a multi‑quarter turnaround.

Negative Factors

High Leverage

TTM debt materially exceeding equity (debt/equity >3x) raises solvency and refinancing risk. High leverage limits strategic flexibility, increases interest burdens, and amplifies downside from operational setbacks, making sustained investment or acquisitions more difficult without deleterious dilution or restructuring.

Negative Cash Generation

Persistent negative operating and free cash flow indicates ongoing cash burn and reliance on external financing. Without a durable shift to positive cash generation, the company will remain dependent on dilutive or costly capital, constraining reinvestment and increasing execution risk over the medium term.

Weak Profitability & Thin Margins

Mid‑to‑high teens gross margins and continued operating losses suggest the business lacks margin resilience against input cost pressure and competitive pricing. This structural margin weakness slows the path to sustainable profitability and limits the company’s ability to self‑fund growth or cushion downturns.

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 primarily through the sale of medical cannabis products to patients and healthcare providers. The company's revenue model is built on the cultivation and processing of cannabis, which is then marketed and sold through its proprietary retail outlets and online platforms. Key revenue streams include direct sales of cannabis products, as well as wholesale distribution to licensed dispensaries. Additionally, IMCC has engaged in strategic partnerships and collaborations that enhance its market reach and product offerings, contributing to its overall earnings. The company's focus on quality and compliance with regulatory standards further strengthens its position in the competitive cannabis market.

IM Cannabis Corp Financial Statement Overview

Summary

Overall financial health is weak: profitability remains negative with thin gross margins, leverage is high versus a reduced equity base (debt-to-equity above 3x), and operating/free cash flow are consistently negative with recent free-cash-flow deterioration. Losses improved versus 2024, but the company has not shown sustainable positive earnings or cash generation.

Income Statement

IM Cannabis shows persistently weak profitability despite some top-line scale. Revenue in 2024 was up ~11% year over year, but TTM (Trailing-Twelve-Months) revenue slipped ~6%, signaling slowing momentum. Gross margin remains thin (mid-to-high teens in 2024 and TTM), and operating results are still negative (TTM operating loss and negative net margin), though net losses improved versus 2024. Overall, the trajectory is better than prior years on the bottom line, but the business has not yet demonstrated sustainable profitability.

Balance Sheet

Leverage and a reduced equity base are key balance-sheet constraints. TTM debt is meaningfully larger than equity (debt-to-equity above 3x), and return on equity is deeply negative, reflecting ongoing losses against a small capital cushion. While total assets are moderate, the combination of high leverage and negative returns increases financial risk and reduces flexibility compared with earlier years when leverage appeared lower.

Cash Flow

Cash generation remains a major weakness. Operating cash flow is negative in both 2024 and TTM (Trailing-Twelve-Months), and free cash flow is also negative, with TTM free cash flow deteriorating sharply versus the prior period. Although free cash flow is less negative than net income (suggesting meaningful non-cash charges), the company is still burning cash, implying continued reliance on financing or balance-sheet liquidity to fund operations.

Breakdown	TTM	Mar 2025	Dec 2023	Dec 2022	Mar 2022	Mar 2021
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: Negative
• Last Price: 1.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 1.44 is above the 20-day moving average (MA) of 1.19, above the 50-day MA of 1.37, and below the 200-day MA of 2.00, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 26.53 is Positive, neither overbought nor oversold. The STOCH value of 29.31 is Neutral, 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
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%
SNDL	49 Neutral	$388.82M	-6.12	-7.82%	―	1.76%	18.31%
YCBD	48 Neutral	$7.59M	-0.41	-44.42%	―	-1.50%	80.17%
IXHL	47 Neutral	$93.17M	-0.37	-114.52%	―	-86.05%	24.17%
IMCC	40 Underperform	$5.30M	-1.21	-93.87%	―	-0.74%	81.49%

IM Cannabis Corp Corporate Events

IM Cannabis Raises US$2.17 Million via Convertible Notes to Bolster Liquidity

On January 26, 2026, IM Cannabis Corp. announced it had raised US$2,171,660.40 in debt financings from an arm’s length institutional lender through two convertible note purchase agreements dated January 7 and January 20, 2026. The first note, issued at a discounted principal of US$1,538,749, and the second note, at US$632,911.50, both carry 8% annual interest (rising to 14% on default), 18‑month maturities with optional extensions, and are convertible into common shares at the lower of fixed prices (US$1.47 and US$1.38, respectively) or a 10% discount to the 20‑day VWAP, subject to floor prices of US$0.29 and US$0.275. In connection with the financings, IMC issued the lender a total of 321,821 common share purchase warrants exercisable at C$3.45 for five years, with all securities subject to a four‑month hold, and committed to register the resale of the underlying shares with the U.S. SEC. Roughly US$1 million of the proceeds were applied to repay existing creditors and the balance earmarked for working capital and corporate initiatives, a move that reduces short‑term liabilities, addresses immediate liquidity needs and, while potentially dilutive over time due to conversion features, provides the cash flexibility IMC needs to support operations in its core Israeli and German medical cannabis markets.

The most recent analyst rating on (IMCC) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on IM Cannabis Corp stock, see the IMCC Stock Forecast page.

IM Cannabis Appoints Tech and Security Executive Alon Dayan to Board of Directors

On January 5, 2026, IM Cannabis Corp. reported that it had appointed Alon Dayan to its board of directors, effective December 31, 2025, adding a seasoned technology and homeland security executive to its leadership. Dayan, currently CEO of KeepZone AI Inc. and founder-CEO of L1-Systems Ltd., brings more than 15 years of experience in systems integration, secure communications, international business development, and prior leadership roles in cybersecurity, defense electronics, and cryptocurrency technologies, potentially strengthening IM Cannabis’s strategic capabilities and international expansion efforts in its core medical cannabis markets of Israel and Germany.

The most recent analyst rating on (IMCC) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on IM Cannabis Corp stock, see the IMCC Stock Forecast page.

IM Cannabis Corp. Appoints New CFO Asi Levi

On December 11, 2025, IM Cannabis Corp. announced the appointment of Asi Levi as the new Chief Financial Officer, effective immediately, succeeding Uri Birenberg who resigned for personal reasons. Mr. Levi brings over 15 years of experience in finance and controlling roles, having worked with various companies in similar capacities. This leadership change is expected to support IM Cannabis Corp.’s strategic goals in its key markets of Israel and Germany, potentially enhancing its financial management and operational efficiency.

The most recent analyst rating on (IMCC) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on IM Cannabis Corp stock, see the IMCC Stock Forecast page.

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.

The most recent analyst rating on (IMCC) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on IM Cannabis Corp stock, see the IMCC Stock Forecast page.

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.

The most recent analyst rating on (IMCC) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on IM Cannabis Corp stock, see the IMCC Stock Forecast page.