Christina Lake Cannabis (CLC) AI Stock Analysis

• Market Cap: C$8.68M
• Dividend Yield: N/A
• Average Volume (3M): 125.65K
• Price to Earnings (P/E): 14.6
• Beta (1Y): -0.63
• 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: 88,258
• 30 Day Avg. Volume: 125,650
• 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: 61 Neutral
• Price Target: C$0.04 ▼(-7.50% Downside)

The score is supported primarily by improving financial performance (return to profitability, strong current cash generation, and healthier leverage), but is held back by very weak technicals (price below key moving averages with negative MACD) and operational volatility indicated by the sharp TTM revenue decline and margin compression. Valuation is moderate (P/E ~14.6) without dividend support.

Positive Factors

Free cash flow generation

TTM free cash flow exceeding net income shows the business converts reported earnings into real cash, supporting reinvestment, working capital and debt reduction. Durable cash generation improves funding optionality for growth and reduces reliance on external financing over months.

Improving leverage

Leverage falling to roughly 0.52 from ~0.95 indicates a materially stronger capital structure, lowering interest burden and bankruptcy risk. A healthier balance sheet increases resilience to industry cyclicality and gives management flexibility for capex or M&A in the medium term.

Return to profitability

A shift from multi-year losses to TTM operating profit and net income signals the underlying business model can be profitable. Sustained operating profitability allows for reinvestment in cultivation, product quality and distribution, improving long-term competitiveness if maintained.

Negative Factors

Sharp revenue decline

A ~57% TTM revenue drop is a structural red flag: it suggests deteriorating demand, lost distribution or adverse mix that can persist. Revenue base erosion undermines scalability, increases per-unit fixed costs, and makes forecasting cash flows and margins less reliable.

Gross margin compression

Significant margin compression versus the prior year points to pricing pressure, worsening product mix, or rising cultivation costs. Weaker gross margins reduce the durability of profits and leave less room to absorb SG&A, making earnings vulnerable in a competitive market.

Volatile cash flow history

Despite recent positive FCF, the prior-year deeply negative free cash flow indicates execution volatility. Inconsistent cash conversion makes multi-period planning, capital investment and debt paydown riskier, increasing the likelihood of future financing needs under adverse conditions.

Christina Lake Cannabis Business Overview & Revenue Model

Company Description

Christina Lake Cannabis (CLC) is a Canadian licensed producer and supplier of cannabis products, focusing on high-quality, sustainably grown marijuana. The company operates in the cannabis sector, catering to both recreational and medicinal markets. CLC offers a diverse range of products including dried flower, oils, and pre-rolls, utilizing advanced cultivation techniques and a commitment to environmental stewardship.

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

Turnaround is evident with TTM profitability and positive operating profit/net income, plus solid cash conversion (FCF exceeding net income) and improving leverage (debt-to-equity ~0.52 vs ~0.95 in 2024). Offsetting this, TTM revenue contracted sharply (~57%) and gross margin compressed versus 2024, signaling elevated volatility and questions around demand/mix and cost discipline.

Income Statement

Profitability has materially improved versus the loss-making years (2021–2023), with TTM (Trailing-Twelve-Months) showing positive operating profit and net income and healthy operating margins. However, the top line contracted sharply in TTM (Trailing-Twelve-Months) (revenue down ~57%), and gross margin compressed dramatically versus 2024, indicating pressure from pricing, mix, or costs. Overall: returning profitability, but with elevated volatility and weakening revenue quality.

Balance Sheet

Leverage appears manageable with debt below equity in TTM (Trailing-Twelve-Months) (debt-to-equity ~0.52), improving from 2024 (~0.95), alongside a larger equity base. That said, returns to shareholders are still inconsistent (TTM return on equity is negative), reflecting that recent profitability has not yet translated into durable balance-sheet returns. Overall: improving capital structure, but earnings stability remains the key risk.

Cash Flow

Cash generation is a clear bright spot in TTM (Trailing-Twelve-Months): operating cash flow is positive and free cash flow exceeds net income, suggesting cash earnings are currently strong. The main concern is volatility—prior-year free cash flow was deeply negative (2024), and TTM (Trailing-Twelve-Months) free cash flow growth is sharply lower versus the prior period, implying sustainability is not yet proven. Overall: strong current cash conversion, but uneven year-to-year execution.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.08M	13.61M	11.78M	10.07M	3.63M	0.00
Gross Profit	1.94M	9.31M	3.61M	2.98M	56.72K	4.77M
EBITDA	2.92M	3.25M	-2.62M	-938.92K	-5.97M	-2.14M
Net Income	1.10M	865.00K	-4.13M	-1.74M	-6.78M	-5.32M
Balance Sheet
Total Assets	28.02M	23.37M	15.96M	18.79M	18.97M	17.80M
Cash, Cash Equivalents and Short-Term Investments	1.67M	1.85M	1.47M	1.84M	1.08M	1.84M
Total Debt	8.74M	10.27M	6.15M	6.45M	3.81M	4.06M
Total Liabilities	11.18M	12.57M	8.50M	7.66M	9.23M	8.35M
Stockholders Equity	16.84M	10.79M	7.46M	11.14M	9.74M	9.46M
Cash Flow
Free Cash Flow	4.68M	-4.13M	781.46K	394.55K	-5.85M	-8.10M
Operating Cash Flow	2.68M	221.02K	1.38M	1.18M	-4.62M	-3.32M
Investing Cash Flow	2.19M	-4.47M	-571.37K	-790.41K	-1.20M	-4.78M
Financing Cash Flow	-5.06M	4.59M	-1.15M	369.17K	5.06M	9.20M

Christina Lake Cannabis Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CLC, the sentiment is Negative. 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 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.11 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CLC.

Christina Lake Cannabis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLC	61 Neutral	C$8.68M	14.58	-4.55%	―	16.22%	-285.37%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AVNT	51 Neutral	C$9.70M	-0.43	-53.71%	―	26.36%	-8.21%
TGIF	50 Neutral	C$4.96M	9.09	―	―	-2.30%	―
BBM	49 Neutral	C$7.43M	-4.05	-150.44%	―	55.74%	-27.59%
OILS	49 Neutral	C$8.41M	-55.56	11.57%	―	-1.14%	―

Christina Lake Cannabis Corporate Events

Christina Lake Cannabis Sells Non-Core 99-Acre Parcel to Bolster Liquidity

Christina Lake Cannabis Corp. has sold a 99-acre parcel of non-core, unserviced land in Christina Lake, British Columbia, to an arm’s length third party for gross proceeds of $551,000. The land, deemed surplus to requirements following the company’s 2024 Midway acquisition, is not needed for current or planned operations, and its divestiture is intended to strengthen Christina Lake Cannabis’s balance sheet, enhance liquidity, and allow management to concentrate capital and attention on core operating assets, with proceeds earmarked for general working capital.

The most recent analyst rating on (TSE:CLC) stock is a Hold with a C$0.04 price target. To see the full list of analyst forecasts on Christina Lake Cannabis stock, see the TSE:CLC Stock Forecast page.