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IM Cannabis Corp (IMCC)
NASDAQ:IMCC
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IM Cannabis Corp
(NASDAQ:IMCC)
Rating:46Neutral
Price Target:
$2.50
▼(-6.02% Downside)
IM Cannabis Corp (IMCC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.21M
Dividend YieldN/A
Average Volume (3M)61.13K
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth2.17%
EPS Growth88.34%
CountryUS
Employees95
SectorHealthcare
Sector Strength41
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.07
Shares Outstanding3,085,452
10 Day Avg. Volume51,745
30 Day Avg. Volume61,131
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap3.05
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit2.47
Enterprise Value/Ebitda-7.44
Forecast
1Y Price Target
$2.50Price Target Upside-6.02% Downside
Rating ConsensusHold
Number of Analyst Covering1
IM Cannabis Corp Business Overview & Revenue Model
Company DescriptionIM 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 MoneyIM Cannabis Corp generates revenue primarily through the sale of medical cannabis and cannabis-related products. The company cultivates cannabis plants, processes them into various forms such as dried flowers, oils, and other derivatives, and distributes these products to patients, pharmacies, and healthcare providers. In Israel, IMCC benefits from a well-established medical cannabis market and its own cultivation and distribution network. In Germany, the company operates through partnerships and collaborations to access the growing demand for medical cannabis. Additionally, the company's presence in Canada allows it to leverage North America's robust cannabis market. Revenue streams are supported by IMCC's strategic partnerships with local producers and distributors, enabling the company to maintain a strong supply chain and meet regulatory requirements efficiently.
IM Cannabis Corp Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q1-2025)
| % Change Since: -9.22%|
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Positive
The earnings call for Q1 2025 highlighted significant financial improvements, particularly in the German market, and successful cost-cutting measures that led to profitability. However, challenges in the Israeli market and specific deal cancellations were notable concerns.Q1-2025 Updates
Positive Updates
Net Profit Achievement
IM Cannabis reached net profit in Q1 2025, with significant improvements in financial metrics, including an 87% improvement in gross margin compared to Q1 2024.
German Market Growth
The German business grew by 569% versus Q1 2024, significantly offsetting the revenue decline in Israel. Germany's share of total revenue increased to 62%.
Cost Reduction Success
Total operating expenses decreased by 56% compared to Q1 2024, with significant reductions in G&A and selling and marketing expenses.
Positive EBITDA Turnaround
The adjusted EBITDA for Q1 2025 was a profit of $0.6 million compared to a loss of $2.2 million in Q1 2024, marking an improvement of nearly $3 million.
Negative Updates
Decline in Israeli Revenue
Revenue in Israel declined by 56% versus Q1 2024, primarily due to supply delays and the shifting focus towards the German market.
Oranim Deal Cancellation
The cancellation of the Oranim deal resulted in a decrease in revenue of approximately $3.5 million compared to Q1 2024.
Company Guidance
During the first quarter of 2025 earnings call, IM Cannabis reported significant improvements in their financial metrics, highlighting a net profit achievement. The company's gross margin improved by 87% compared to Q1 2024, while their German business saw an extraordinary revenue increase of 569%, effectively offsetting a 56% decline in Israeli revenue. IMC launched 12 new strains in Germany, contributing to EUR 3 million or 39% of cannabis FLOWR sales. The adjusted EBITDA swung from a loss of $2.2 million in Q1 2024 to a profit of $0.6 million, marking an improvement of approximately $3 million. The net profit for Q1 2025 was $0.2 million compared to a $6 million loss in the previous year. The company also reported a 4% increase in overall revenue to $12.5 million, driven by a $6.6 million revenue increase in Germany, despite a $6.1 million decline in Israel. Operating expenses decreased by 56%, reflecting enhanced efficiency, and the EBITDA improved by $5.6 million. IM Cannabis emphasized their strategic focus on the German market and cost-cutting measures, which resulted in a 94% increase in gross profit and a reduction in G&A expenses by 14%.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.35
Negative
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.40
Negative
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.45
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 54.03M | 48.80M | 54.34M | 34.05M | 15.89M |
| Gross Profit | 8.45M | 9.85M | 9.16M | 6.33M | 10.47M |
| EBITDA | -6.14M | -2.79M | -16.76M | 6.24M | -7.04M |
| Net Income | -10.59M | -9.50M | -188.89M | -17.76M | -28.70M |
Balance Sheet | |||||
| Total Assets | 39.19M | 48.81M | 60.68M | 287.39M | 38.12M |
| Cash, Cash Equivalents and Short-Term Investments | 863.00K | 1.81M | 2.45M | 13.90M | 8.88M |
| Total Debt | 18.01M | 13.78M | 11.53M | 29.27M | 990.00K |
| Total Liabilities | 36.04M | 35.11M | 36.88M | 82.44M | 25.51M |
| Stockholders Equity | 5.24M | 14.47M | 22.65M | 201.24M | 11.10M |
Cash Flow | |||||
| Free Cash Flow | -1.23M | -8.66M | -14.20M | -38.97M | -10.63M |
| Operating Cash Flow | -1.08M | -8.07M | -12.64M | -34.37M | -7.92M |
| Investing Cash Flow | -470.00K | -1.18M | -1.41M | -9.01M | -4.08M |
| Financing Cash Flow | 3.83M | 9.42M | 4.76M | 48.73M | 6.74M |
IM Cannabis Corp Technical Analysis
Neutral
2.66
Price Trends
2.83
Negative
2.34
Positive
2.32
Positive
Market Momentum
-0.07
Positive
47.41
Neutral
34.21
Neutral
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 2.66 is below the 20-day moving average (MA) of 2.72, below the 50-day MA of 2.83, and above the 200-day MA of 2.32, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 47.41 is Neutral, neither overbought nor oversold. The STOCH value of 34.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IMCC.
IM Cannabis Corp Risk Analysis
IM Cannabis Corp disclosed 1 risk factors in its most recent earnings report. IM Cannabis Corp reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
IM Cannabis Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.46B | -0.16 | -46.00% | 2.25% | 22.82% | -2.28% | |
46 Neutral | $8.21M | ― | -36.94% | ― | 2.17% | 88.34% | |
| ― | $5.23M | ― | ― | ― | ― | ||
| ― | $5.01M | ― | ― | ― | ― | ||
| ― | $5.30M | ― | ― | ― | ― | ||
| ― | $5.16M | ― | ― | ― | ― | ||
45 Neutral | C$6.64M | 96.00 | 0.83% | ― | -8.84% | -96.82% |
* Healthcare Sector Average
Performance Comparison
IMCC
IM Cannabis Corp
2.66
-0.29
-9.83%
KHRNF
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―
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PCLOF
PharmaCielo
0.03
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SRUTF
Sproutly Canada
―
―
―
LVRLF
CordovaCann
0.05
-0.02
-28.57%
TSE:CANB
CanadaBis Capital
0.05
>-0.01
-16.67%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.