Christina Lake Cannabis (CLC) AI Stock Analysis

• Market Cap: C$9.92M
• Dividend Yield: N/A
• Average Volume (3M): 109.60K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.92
• Revenue Growth: 16.22%
• EPS Growth: -285.37%
• Country: CA
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.01
• Shares Outstanding: 248,093,570
• 10 Day Avg. Volume: 50,398
• 30 Day Avg. Volume: 109,600
• PEG Ratio: -0.04
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -0.95
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: C$0.04 ▼(-2.50% Downside)

The overall stock score of 45 reflects significant challenges in financial performance, particularly in revenue growth and profitability. Technical analysis indicates a bearish trend, and valuation metrics are unattractive with a negative P/E ratio and no dividend yield. These factors collectively contribute to a lower stock score.

Positive Factors

Improved Leverage Management

Improved leverage management suggests better financial discipline, enhancing long-term stability and reducing financial risk.

Cash Flow Strength

Strong cash flow relative to earnings indicates effective cash generation, supporting operational needs and potential growth investments.

Stable Capital Structure

A stable capital structure with a reasonable proportion of equity financing provides financial resilience and flexibility for future growth.

Negative Factors

Declining Revenue Growth

Negative revenue growth indicates challenges in market penetration and sales momentum, potentially impacting long-term business viability.

Profitability Concerns

Significant drop in net profit margin reflects profitability challenges, potentially affecting reinvestment capacity and shareholder returns.

Declining Margins

Decreased margins suggest cost management issues or pricing pressures, which can erode competitive advantage and financial performance.

Christina Lake Cannabis Business Overview & Revenue Model

Company Description

Christina Lake Cannabis Corp. engages in growing, harvesting, processing, and selling cannabis products in the British Columbia, Canada. It offers cannabis oil, hemp oil, and other hemp and cannabis derived products, as well as distillate oils. The company was formerly known as Cervantes Capital Corp. and changed its name to Christina Lake Cannabis Corp. in December 2018. Christina Lake Cannabis Corp. was incorporated in 2014 and is headquartered in Vancouver, Canada.

How the Company Makes Money

CLC generates revenue primarily through the sale of its cannabis products to provincial distributors and retailers across Canada. The company's key revenue streams include direct sales of dried flower, oils, and pre-rolls, as well as potential wholesale opportunities. By establishing partnerships with various provincial governments and retail outlets, CLC ensures a steady distribution channel for its products. Additionally, the company may engage in collaborations with other cannabis brands or businesses, further enhancing its market presence and profitability.

Christina Lake Cannabis Financial Statement Overview

Summary

Christina Lake Cannabis shows mixed financial performance. Revenue growth is positive, but profitability margins are under pressure. The balance sheet is stable, but cash flow management needs improvement.

Income Statement

Christina Lake Cannabis shows a mixed performance in its income statement. The company has achieved a positive revenue growth rate of 6.89% in the TTM, indicating a growth trajectory. However, the gross profit margin has decreased significantly from 68.41% in 2024 to 34.22% in the TTM, reflecting increased cost pressures. The net profit margin remains low at 6.36%, suggesting limited profitability. The EBIT margin is negative, indicating operational challenges, although the EBITDA margin is positive, showing some operational efficiency.

Balance Sheet

The balance sheet of Christina Lake Cannabis reveals a moderate financial position. The debt-to-equity ratio is stable at 0.95, indicating a balanced leverage. The return on equity has improved to 10.65% in the TTM, showing better utilization of equity. However, the equity ratio is not explicitly provided, but the total assets and equity suggest a moderate equity base. The company should focus on maintaining its leverage and improving equity returns.

Cash Flow

The cash flow statement indicates a positive trend with a 12.92% growth in free cash flow in the TTM. The operating cash flow to net income ratio is low, suggesting that cash generation from operations is not fully aligned with net income. The free cash flow to net income ratio is negative, indicating potential cash flow challenges despite improvements. The company needs to enhance its cash flow management to support growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.15M	13.61M	11.78M	10.07M	3.63M	0.00
Gross Profit	9.13M	9.31M	3.61M	2.98M	56.72K	4.77M
EBITDA	2.09M	3.25M	-2.62M	-938.92K	-5.97M	-2.14M
Net Income	47.72K	865.00K	-4.13M	-1.74M	-6.78M	-5.32M
Balance Sheet
Total Assets	22.08M	23.37M	15.96M	18.79M	18.97M	17.80M
Cash, Cash Equivalents and Short-Term Investments	3.39M	1.85M	1.47M	1.84M	1.08M	1.84M
Total Debt	8.22M	10.27M	6.15M	6.45M	3.81M	4.06M
Total Liabilities	10.02M	12.57M	8.50M	7.66M	9.23M	8.35M
Stockholders Equity	12.06M	10.79M	7.46M	11.14M	9.74M	9.46M
Cash Flow
Free Cash Flow	6.66M	-4.13M	781.46K	394.55K	-5.85M	-8.10M
Operating Cash Flow	3.96M	221.02K	1.38M	1.18M	-4.62M	-3.32M
Investing Cash Flow	2.68M	-4.47M	-571.37K	-790.41K	-1.20M	-4.78M
Financing Cash Flow	-4.73M	4.59M	-1.15M	369.17K	5.06M	9.20M

Christina Lake Cannabis Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CLC, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and below the 200-day MA of 0.05, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.67 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CLC.

Christina Lake Cannabis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPH	54 Neutral	C$12.73M	-3.71	-18.39%	―	24.30%	-68.60%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AVNT	51 Neutral	C$11.18M	-0.50	-53.71%	―	26.36%	-8.21%
PWR	47 Neutral	C$10.52M	-58.33	116.45%	―	-100.00%	97.20%
RVV	46 Neutral	C$4.19M	-0.39	-664.21%	―	―	-80.42%
CLC	45 Neutral	C$9.92M	-5.26	-4.55%	―	16.22%	-285.37%
TRIP	40 Underperform	C$10.56M	-2.40	-23.76%	―	-28.00%	38.46%

Christina Lake Cannabis Corporate Events

Christina Lake Cannabis Secures Credit Facility and Lease Agreement

Christina Lake Cannabis Corp. has secured a $1.5 million revolving line of credit from a company director, Mervin Boychuk, with a two-year term and 15% interest, secured by a second mortgage on its property. Additionally, the company entered an 18-month equipment lease agreement with Boychuk, with an option to purchase the equipment post-lease, highlighting strategic financial maneuvers to bolster its operations.