Cannabist Company Holdings (CBST) AI Stock Analysis

• Market Cap: $227.80M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.17
• Revenue Growth: -9.05%
• EPS Growth: 45.26%
• Country: CA
• Employees: 1,681
• Sector: Healthcare
• Sector Strength: 74
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.32
• Shares Outstanding: 465,638,300
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: N/A
• 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: C$0.10
• Price Target Upside: -82.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Cannabist Company Holdings is grappling with significant financial difficulties, including declining revenues and negative cash flows. Despite strategic efforts to restructure and improve financial health, the stock remains unattractive due to its weak financial position and valuation metrics. Technical indicators show limited momentum, further weighing down the stock’s appeal. The company's strategic divestitures and transformation efforts provide some optimism but are overshadowed by ongoing financial and operational challenges.

Positive Factors

Expansion and Acquisitions

Verano set to expand operations in Arizona and enter Virginia via acquisitions with The Cannabist Co.

Financial Benefit

The transaction terms indicate potential financial benefit for CBST through cash and voting shares.

Negative Factors

Asset Dispositions

CBST progresses on previously announced planned asset dispositions.

Cannabist Company Holdings Business Overview & Revenue Model

Company Description

The Cannabist Company Holdings Inc. engages in the cultivation, manufacture, and provision of cannabis products and related services in the United States and internationally. The company offers spanning flower, edibles, oils, and tablets under the Seed & Strain, Triple Seven, Hedy, gLeaf, Classix, Press, and Amber brand names. It holds licenses in 17 jurisdictions in the United States. The company was formerly known as Columbia Care Inc. and changed its name to The Cannabist Company Holdings Inc. in September 2023. The company was founded in 2012 and is headquartered in New York, New York.

How the Company Makes Money

Cannabist Company Holdings generates revenue through a multi-faceted approach encompassing cultivation, production, and retail sales. The company's primary revenue streams include the sale of cannabis products through its own branded retail stores and wholesale distribution to other dispensaries. Additionally, Cannabist Company Holdings capitalizes on its proprietary brands and product lines, enhancing its market presence and consumer loyalty. Partnerships with local growers and strategic acquisitions also contribute to its revenue by expanding its product offerings and geographic footprint. The company's focus on both medical and recreational markets allows it to tap into diverse customer bases and regulatory environments, further stabilizing and growing its income.

Cannabist Company Holdings Financial Statement Overview

Summary

Cannabist Company Holdings faces significant financial challenges. The income statement reflects declining revenue and persistent losses, while the balance sheet shows high leverage and low equity, posing risks to financial stability. Cash flow constraints further exacerbate the company's financial position. Strategic restructuring and improved operational efficiency are needed to drive financial recovery and growth.

Income Statement

Cannabist Company Holdings has experienced declining revenue in the TTM compared to the previous year, with a negative revenue growth rate of -3.41%. The gross profit margin for TTM is 33.60%, which is relatively stable, but the net profit margin remains negative at -25.49%, indicating persistent losses. EBIT and EBITDA margins are also negative, reflecting operational challenges. The company needs to address its profitability issues to improve its financial health.

Balance Sheet

The company's balance sheet shows significant leverage, with a debt-to-equity ratio of 19.25 in the TTM, indicating high financial risk. The equity ratio is low at 3.22%, suggesting limited buffer against liabilities. Return on equity is negative, pointing to ongoing unprofitability. The company must focus on reducing debt and improving equity to enhance stability.

Cash Flow

Cannabist's cash flow position is concerning, with a negative free cash flow of -23.99 million in the TTM, and no meaningful free cash flow growth. The operating cash flow to net income ratio is negative, reflecting cash flow issues. These indicate challenges in generating sufficient cash to cover operations and investments, necessitating strategic adjustments to improve liquidity.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
493.92M	511.33M	491.31M	456.03M	188.99M	79.26M
	Gross Profit
165.97M	179.97M	136.13M	146.92M	52.68M	13.47M
	EBIT
-88.15M	-105.24M	-73.10M	-37.70M	-84.45M	-96.30M
	EBITDA
1.65M	-51.30M	-282.36M	-63.14M	-115.66M	-95.21M
	Net Income Common Stockholders
-125.91M	-175.71M	-399.52M	-141.84M	-100.85M	-104.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
44.43M	36.91M	48.13M	82.09M	61.11M	47.46M
	Total Assets
811.99M	823.11M	994.28M	1.37B	727.53M	402.28M
	Total Debt
548.39M	546.32M	566.97M	420.75M	295.21M	83.64M
	Net Debt
503.96M	510.56M	518.84M	338.66M	234.10M	36.18M
	Total Liabilities
769.13M	757.76M	787.47M	824.57M	440.58M	135.34M
	Stockholders Equity
43.88M	66.53M	213.19M	570.62M	306.82M	268.27M
Cash Flow		Free Cash Flow
-24.00M	-2.50M	-179.70M	-132.64M	-97.42M	-140.38M
	Operating Cash Flow
-18.10M	7.47M	-106.99M	-518.40K	-52.27M	-61.13M
	Investing Cash Flow
4.42M	-3.50M	-72.34M	-189.67M	-24.02M	-93.38M
	Financing Cash Flow
-15.29M	-14.12M	147.59M	200.66M	90.00M	155.76M

Cannabist Company Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.36B	1.24	-44.94%	2.70%	18.33%	1.49%
CBST	41 Neutral	$227.80M	―	-554.70%	―	-9.05%	45.26%

Cannabist Company Holdings Corporate Events

Cannabist Company Holdings Announces Strategic Initiative to Boost Market Presence

Cannabist Company Holdings has announced a strategic initiative aimed at enhancing its market presence and operational efficiency. This move is expected to strengthen the company’s position in the cannabis industry by optimizing its resources and expanding its market reach, potentially benefiting stakeholders through improved performance and growth prospects.

Spark’s Take on TSE:CBST Stock

According to Spark, TipRanks’ AI Analyst, TSE:CBST is a Underperform.

Cannabist Company Holdings is grappling with significant financial difficulties, including declining revenues and negative cash flows. Despite strategic efforts to restructure and improve financial health, the stock remains unattractive due to its weak financial position and valuation metrics. Technical indicators show limited momentum, further weighing down the stock’s appeal.

To see Spark’s full report on TSE:CBST stock, click here.

Cannabist Company Secures Interim Court Order for Strategic Arrangement

The Cannabist Company announced that the Ontario Superior Court of Justice has granted an interim order for its plan of arrangement under the Canada Business Corporations Act. This plan involves the company and its subsidiaries, with a special meeting scheduled for Senior Noteholders to vote on the transaction. The transaction requires a two-thirds majority vote from Senior Noteholders and a final court order for approval. The outcome of this arrangement could significantly impact the company’s financial structure and market positioning.

The Cannabist Company Reports 2024 Financial Results Amid Strategic Transformation

The Cannabist Company reported a challenging financial performance for the fourth quarter and full year of 2024, with a decline in revenue and net income. Despite these results, the company is undergoing a transformation, implementing structural changes, and extending debt maturities to focus on optimizing operations and reducing costs. The company aims to simplify its business and improve financial performance in 2025, with plans to expand in Delaware, Virginia, and Ohio.

Cannabist Company Extends Senior Secured Notes Maturity to 2028

The Cannabist Company Holdings Inc. announced an agreement to extend the maturity date of its senior secured notes to December 2028, with options to extend through 2029. This strategic move is part of the company’s ongoing efforts to optimize its operations and financial structure, providing it with the flexibility to pursue growth opportunities and operational improvements. The transaction, which involves exchanging existing notes for new ones with extended maturity dates, is subject to court approval and reflects the company’s proactive approach to managing its financial obligations and strengthening its market position.

The Cannabist Company to Announce 2024 Financial Results on March 13, 2025

The Cannabist Company announced it will release its financial results for Q4 and the full year 2024 on March 13, 2025, followed by a management conference call. This announcement is a significant event for stakeholders, providing insights into the company’s fiscal health and potential strategic directions in the competitive cannabis industry.