Avicanna (AVCN) AI Stock Analysis

• Market Cap: C$27.10M
• Dividend Yield: N/A
• Average Volume (3M): 55.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• Revenue Growth: 2.41%
• EPS Growth: 74.61%
• Country: CA
• Employees: 87
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.01
• Shares Outstanding: 117,807,260
• 10 Day Avg. Volume: 77,161
• 30 Day Avg. Volume: 55,794
• PEG Ratio: 0.13
• Price to Book (P/B): 13.19
• Price to Sales (P/S): 1.20
• P/FCF Ratio: -10.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 45 Neutral
• Price Target: C$0.22 ▼(-2.61% Downside)

Avicanna's overall stock score is primarily impacted by its financial performance, which is challenged by negative profitability and cash flow issues. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to negative earnings. However, recent corporate events provide some optimism for future growth, slightly offsetting the negative aspects.

Positive Factors

Revenue Growth

The company's revenue growth indicates expanding market presence and product acceptance, which is crucial for long-term sustainability and competitiveness.

Low Leverage

Low leverage provides financial flexibility and reduces risk, allowing the company to invest in growth opportunities without significant debt burden.

Gross Profit Margin

A strong gross profit margin reflects efficient cost management, which can help improve profitability as the company scales and expands its operations.

Negative Factors

Profitability Challenges

Persistent profitability challenges can hinder long-term growth and shareholder value, requiring strategic changes to improve financial performance.

Negative Cash Flows

Negative cash flows indicate potential liquidity issues, limiting the company's ability to invest in growth and meet financial obligations.

Negative Return on Equity

A negative return on equity suggests the company is not effectively generating returns for shareholders, which can impact investor confidence and capital raising.

Avicanna Business Overview & Revenue Model

Company Description

Avicanna Inc., a commercial-stage biopharmaceutical company, engages in the research and development of evidence-based products for consumer medical and pharmaceutical segments worldwide. The company collaborates with Canadian academic and medical institutions. Its scientific platform includes research and development, and clinical development that leads to the commercialization of approximately twenty products across four main market segments. The company provides medical and wellness products containing cannabidiol, cannabigerol, and tetrahydrocannabinol under the RHO Phyto brand; functional CBD consumer derma-cosmetic and topical products under the Pura H&W and Pura Earth brand names; and cannabis dried flowers, standardized seeds, full spectrum extracts, cannabinoid distillates, isolated cannabinoids, and bulk formulations derived from hemp and cannabis cultivars under the Aureus brand. It also develops pharmaceutical products for epidermolysis bullosa, dermatology, chronic pain, and various neurological disorders. The company has research collaboration with Dr. Christine Allen'sResearch Group for the development of a cannabinoid-based treatment for lung inflammation associated with COVID19. Avicanna Inc. was incorporated in 2016 and is headquartered in Toronto, Canada.

How the Company Makes Money

Avicanna generates revenue through multiple key streams, including the sale of its proprietary cannabinoid formulations and products to healthcare providers and retailers. The company's revenue model is bolstered by its partnerships with other organizations in the cannabis and pharmaceutical sectors, which facilitate product development and expansion into new markets. Additionally, Avicanna may benefit from licensing agreements for its technologies and formulations, providing a supplemental income source. The company also engages in research collaborations that can lead to financial support and shared revenue from product sales, further enhancing its revenue potential.

Avicanna Financial Statement Overview

Summary

Avicanna is experiencing revenue growth, but profitability remains a significant issue with negative margins across key metrics. The balance sheet shows low leverage, yet the negative return on equity and past negative equity are concerning. Cash flow challenges persist, with negative operating and free cash flows. The company needs to address profitability and cash flow issues to improve its financial health.

Income Statement

Avicanna's revenue has shown growth, with a 13.5% increase in the TTM period. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively healthy at 53.3% for TTM, indicating efficient cost management. Despite revenue growth, the persistent negative margins highlight ongoing challenges in achieving profitability.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio of 0.047, indicating low leverage, which is a positive sign. However, the company has a negative return on equity, reflecting losses and inefficiencies in generating returns for shareholders. The equity ratio is not provided, but the overall financial health is concerning due to negative equity in previous periods.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, with a significant decline in free cash flow growth by 62.6% in the TTM period. The free cash flow to net income ratio is positive, suggesting that cash flow is better than net income, but the overall negative cash flow indicates liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.50M	25.46M	16.79M	4.05M	3.27M	1.57M
Gross Profit	13.33M	12.90M	6.66M	1.11M	2.83M	-570.00K
EBITDA	-1.05M	-2.43M	-7.36M	-12.18M	-15.13M	-33.70M
Net Income	-1.88M	-3.62M	-8.74M	-14.73M	-16.77M	-32.86M
Balance Sheet
Total Assets	21.17M	20.12M	21.97M	17.62M	22.30M	30.16M
Cash, Cash Equivalents and Short-Term Investments	464.85K	448.03K	477.20K	1.19M	31.00K	2.52M
Total Debt	0.00	109.23K	1.80M	3.21M	1.66M	1.94M
Total Liabilities	9.47M	10.38M	14.00M	14.16M	15.39M	16.25M
Stockholders Equity	3.11M	2.31M	-112.50K	-383.56K	1.15M	6.02M
Cash Flow
Free Cash Flow	-1.79M	-2.95M	-1.96M	-7.50M	-12.45M	-15.43M
Operating Cash Flow	-1.23M	-2.55M	-1.40M	-7.44M	-11.66M	-13.97M
Investing Cash Flow	-554.06K	-402.57K	-3.05M	810.24K	760.83K	-2.71M
Financing Cash Flow	1.63M	3.41M	3.55M	9.90M	10.06M	17.39M

Avicanna Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.23
• 50DMA: Negative
• 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 TSE:AVCN, the sentiment is Neutral. The current price of 0.23 is above the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.25, and below the 200-day MA of 0.26, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.05 is Neutral, neither overbought nor oversold. The STOCH value of 80.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:AVCN.

Avicanna Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DB	64 Neutral	C$57.69M	3.98	21.77%	―	15.11%	―
VEXT	59 Neutral	C$69.35M	-2.46	-21.73%	―	43.56%	-349.41%
ROMJ	55 Neutral	C$32.92M	10.63	7.78%	―	28.55%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AVCN	45 Neutral	C$27.10M	-14.02	-77.67%	―	2.41%	74.61%
LABS	45 Neutral	C$31.56M	-3.89	-19.10%	―	18.06%	34.58%
GWAY	44 Neutral	C$22.48M	-29.82	-7.43%	―	19.66%	84.34%

Avicanna Corporate Events

Avicanna Advances Cannabinoid Delivery with Novel PwdRx Platform

Avicanna announced positive preclinical results and a provisional patent application for its novel Powder Drug Delivery System (PwdRx) platform, which enhances the bioavailability and absorption of cannabinoids. This advancement addresses formulation challenges associated with cannabinoids and offers potential new pharmaceutical and commercial opportunities, reinforcing Avicanna’s leadership in cannabinoid science and technology.

Avicanna Reports Q3 2025 Growth and Strategic Advances

Avicanna Inc. reported its Q3 2025 financial results, highlighting continued revenue growth in Canada and internationally, driven by medical affairs initiatives and commercial advancements. Despite facing short-term margin pressures, the company remains optimistic about achieving sustainable profitability. Key developments include a significant increase in Canadian sales, the issuance of a U.S. patent for a topical cannabinoid composition, and the first export of organic certified cannabis flower to Switzerland. Additionally, Avicanna launched the re+PLAY CBD wellness brand in the U.S., showcasing its proprietary formulations.

Avicanna Appoints New Interim CFO Amid Strategic Leadership Changes

Avicanna Inc. announced a change in its financial leadership with Nick Hilborn appointed as the Interim Chief Financial Officer, succeeding Phillip Cardella who transitions to a consultant role. This leadership change is part of Avicanna’s ongoing strategic initiatives to strengthen its operational framework and enhance its market positioning in the biopharmaceutical industry, particularly in the cannabinoid-based product segment.