4Front Ventures (FFNT) AI Stock Analysis

• Market Cap: $4.58M
• Dividend Yield: N/A
• Average Volume (3M): 40.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.01
• Revenue Growth: -34.09%
• EPS Growth: 71.95%
• Country: CA
• Employees: 374
• Sector: Healthcare
• Sector Strength: 52
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 913,929,000
• 10 Day Avg. Volume: 40,000
• 30 Day Avg. Volume: 40,000
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 80.59
• Enterprise Value/Revenue: 4.88
• Enterprise Value/Gross Profit: 13.71
• Enterprise Value/Ebitda: -27.79
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: ―

4Front Ventures is currently facing significant financial hurdles, with declining revenues and high leverage contributing to a low financial performance score. Technical indicators suggest a bearish trend, and valuation metrics indicate unattractiveness due to negative earnings. While the earnings call provided some positive insights into wholesale growth and strategic initiatives, these are overshadowed by challenges in retail performance and increased costs. The company's overall score reflects these underlying issues, highlighting the need for strategic improvements and financial stability.

4Front Ventures Business Overview & Revenue Model

Company Description

4Front Ventures Corp. owns and manages licensed cannabis facilities in state-licensed markets in the United States. The company operates in two segments, THC Cannabis and Cannabidiol (CBD) Wellness. It produces, cultivates, sells, and distributes cannabis and CBD. As of December 31, 2021, it operated six dispensaries in Massachusetts, Illinois, and Michigan primarily under the MISSION brand name. In addition, the company sells equipment, supplies, and intellectual property to cannabis producers; imports and sale equipment and supplies; leases real estate properties to cannabis producers; offers consulting services; and operates cannabis dispensaries. 4Front Ventures Corp. was founded in 2011 and is based in Phoenix, Arizona.

How the Company Makes Money

4Front Ventures generates revenue through its vertically integrated operations in the cannabis industry. The company makes money primarily from the sale of its cannabis products, which are distributed through both its wholesale channels and its owned retail dispensaries. Key revenue streams include the cultivation and sale of cannabis flower, as well as the manufacturing and retailing of cannabis-derived products such as edibles, concentrates, and other consumer packaged goods. Additionally, 4Front Ventures benefits from strategic partnerships and licensing agreements, which allow it to expand its product offerings and market reach while leveraging its established infrastructure and expertise in the cannabis sector.

4Front Ventures Financial Statement Overview

Summary

4Front Ventures faces significant financial challenges with declining revenues, ongoing losses, and high leverage. Despite some improvements in operating cash flows, the company's financial health remains precarious due to negative equity and consistent cash flow deficits. Continued focus on improving profitability and reducing reliance on debt is crucial for stability.

Income Statement

The company shows a declining revenue trend with a decrease from $118.6M in 2022 to $75.6M in TTM, indicating challenges in maintaining sales growth. The gross profit margin is also down, reflecting reduced efficiency or increased costs. The company is operating at a loss with negative net and EBIT margins, highlighting ongoing profitability issues.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, indicating financial distress. The debt-to-equity ratio is undefined due to negative equity, but the company has a high level of debt compared to its assets, suggesting financial leverage risks. The equity ratio is negative, emphasizing the company's reliance on debt financing.

Cash Flow

The cash flow statement shows improvement in operating cash flows, moving from negative to positive in TTM. However, free cash flow remains negative, indicating ongoing cash burn. The operating cash flow to net income ratio is favorable, but the negative free cash flow to net income ratio highlights sustainability concerns.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	75.61M	97.44M	107.66M	104.57M	57.63M	19.03M
Gross Profit	26.90M	45.89M	51.42M	49.40M	36.51M	8.18M
EBITDA	-13.27M	-18.26M	6.51M	-4.02M	-20.60M	-168.30M
Net Income	-36.40M	-91.65M	-46.90M	-38.31M	-47.05M	-182.01M
Balance Sheet
Total Assets	278.08M	263.95M	344.73M	255.53M	204.76M	203.92M
Cash, Cash Equivalents and Short-Term Investments	1.25M	3.40M	15.19M	22.58M	18.93M	5.79M
Total Debt	214.15M	209.84M	224.83M	167.89M	120.47M	111.13M
Total Liabilities	326.54M	315.35M	316.38M	214.62M	162.55M	127.94M
Stockholders Equity	-48.56M	-51.50M	28.26M	40.83M	42.15M	76.18M
Cash Flow
Free Cash Flow	-474.00K	-5.20M	6.33M	-8.10M	-27.92M	-48.05M
Operating Cash Flow	4.54M	-1.84M	8.77M	5.78M	-14.04M	-25.02M
Investing Cash Flow	-4.57M	-3.44M	-26.87M	-13.01M	39.34M	-19.50M
Financing Cash Flow	-1.45M	-5.55M	10.71M	10.89M	-14.51M	48.88M

4Front Ventures Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FFNT, the sentiment is Negative. The current price of 0.01 is above the 20-day moving average (MA) of <0.01, above the 50-day MA of <0.01, and below the 200-day MA of 0.02, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 36.71 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:FFNT.

4Front Ventures Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.95B	-0.38	-43.43%	2.22%	22.30%	-1.83%
FFNT	39 Underperform	$4.58M	―	74.96%	―	-34.09%	71.95%
AYRWF	―	$13.11M	―	-74.75%	―	―	―
MEDIF	―	$22.86M	―	-19.58%	―	―	―
PLNH	―	$78.97M	―	-38.44%	―	―	―
DBCCF	―	$52.11M	4.87	22.76%	―	―	―
TSND	54 Neutral	C$439.98M	―	-45.36%	―	-12.25%	-47.36%

4Front Ventures Corporate Events

4Front Ventures Announces Q3 Financial Results Release

4Front Ventures, a leading multi-state cannabis operator, is set to release its third-quarter 2024 financial results on November 14, 2024. The company, known for its extensive cannabis brand portfolio and strategic market presence, will also host a conference call to discuss current business trends. Investors and stakeholders can anticipate insights into 4Front’s operational strategies and market performance.

4Front Ventures Expands with Illinois Facility Opening

4Front Ventures Corp. has officially opened its state-of-the-art 250,000 sq. ft. cannabis cultivation and production facility in Matteson, Illinois, marking a significant expansion in one of the fastest-growing cannabis markets. The facility, which will serve Mission Dispensaries and wholesale partners across the state, contributes to local job creation and aims to meet the increasing demand for high-quality cannabis products. This opening is a strategic move to strengthen 4Front’s presence and operational capacity in Illinois.