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IM Cannabis Corp (IMCC)
NASDAQ:IMCC
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IM Cannabis Corp
(NASDAQ:IMCC)
Rating:47Neutral
Price Target:
$2.50
▲(21.95% Upside)
IM Cannabis Corp (IMCC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.76M
Dividend YieldN/A
Average Volume (3M)43.35K
Price to Earnings (P/E)―
Beta (1Y)0.98
Revenue Growth2.17%
EPS Growth88.34%
CountryUS
Employees95
SectorHealthcare
Sector Strength49
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.07
Shares Outstanding5,246,812
10 Day Avg. Volume35,734
30 Day Avg. Volume43,347
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.33
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit1.97
Enterprise Value/Ebitda23.64
Forecast
1Y Price Target
$2.50Price Target Upside21.95% Upside
Rating ConsensusHold
Number of Analyst Covering0
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: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Positive
The earnings call for IM Cannabis reflected a positive sentiment, with the company achieving net profitability and substantial growth in the German market, despite a decline in Israeli revenue and increased liabilities.Q1-2025 Updates
Positive Updates
Net Profit Achieved in Q1 2025
IM Cannabis achieved a net profit of approximately $0.2 million in Q1 2025, marking a significant turnaround from a loss of $6 million in Q1 2024.
Substantial Growth in German Market
Revenue in the German market grew by 569% compared to Q1 2024, significantly contributing to the company's financial turnaround.
Improvement in Gross Margin
The gross margin improved by 87% compared to Q1 2024, indicating increased operational efficiency.
Increase in Gross Profit
Gross profit increased by 94%, from $1.8 million in Q1 2024 to $3.4 million in Q1 2025.
Reduction in Operating Expenses
Operating expenses decreased by 56% in Q1 2025 compared to Q1 2024, demonstrating cost control and efficiency.
Positive Adjusted EBITDA
The company reported a positive adjusted EBITDA of $0.6 million, an improvement from a loss of $2.2 million in Q1 2024.
Negative Updates
Decline in Israeli Revenue
Revenue in Israel declined by 56% compared to Q1 2024, primarily due to the cancellation of the Oranim deal.
Increased Liabilities
Total liabilities increased by 16% from December 31, 2024, to March 31, 2025.
Company Guidance
During the Q1 2025 earnings call, IM Cannabis reported a significant turnaround with a net profit of $0.2 million, contrasting with a $6 million loss in Q1 2024. The company achieved an adjusted EBITDA profit of $0.6 million, representing an improvement of almost $3 million compared to the previous year's loss of $2.2 million. Revenues increased by 4% to $12.5 million, driven by a remarkable 569% growth in the German market, which now represents 62% of total revenue. This growth in Germany offset a 56% decline in Israeli revenue. The gross margin improved by 87%, and gross profit surged 94% to $3.4 million, aided by strategic cost-cutting measures that reduced operating expenses by 56%. Total assets grew by 15%, reflecting increased trade receivables, inventory, and advances to suppliers. The company plans to continue financing operations through existing resources and available credit facilities while exploring additional capital sources.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 | 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
Negative
2.05
Price Trends
2.72
Negative
2.44
Negative
2.33
Negative
Market Momentum
-0.16
Positive
36.41
Neutral
19.00
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 2.05 is below the 20-day moving average (MA) of 2.42, below the 50-day MA of 2.72, and below the 200-day MA of 2.33, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 36.41 is Neutral, neither overbought nor oversold. The STOCH value of 19.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $7.91B | -0.36 | -41.71% | 2.23% | 23.45% | -1.86% | |
47 Neutral | $10.76M | ― | -36.94% | ― | 2.17% | 88.34% | |
| ― | $5.23M | ― | ― | ― | ― | ||
| ― | $5.01M | ― | ― | ― | ― | ||
| ― | $5.30M | ― | ― | ― | ― | ||
| ― | $6.37M | ― | ― | ― | ― | ||
41 Neutral | C$5.53M | 80.00 | 0.83% | ― | -8.84% | -96.82% |
* Healthcare Sector Average
Performance Comparison
IMCC
IM Cannabis Corp
2.05
-0.26
-11.26%
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―
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PCLOF
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0.04
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SRUTF
Sproutly Canada
―
―
―
LVRLF
CordovaCann
0.06
-0.03
-33.33%
TSE:CANB
CanadaBis Capital
0.04
-0.02
-33.33%
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.