Greenway Greenhouse Cannabis Corp. (GWAY) AI Stock Analysis

• Market Cap: C$21.16M
• Dividend Yield: N/A
• Average Volume (3M): 19.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: 19.66%
• EPS Growth: 84.34%
• Country: CA
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): >-0.01
• Shares Outstanding: 132,230,700
• 10 Day Avg. Volume: 16,837
• 30 Day Avg. Volume: 19,312
• PEG Ratio: 0.22
• Price to Book (P/B): 2.75
• Price to Sales (P/S): 3.09
• P/FCF Ratio: 17.14
• 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: 49 Neutral
• Price Target: C$0.16 ▼(-6.47% Downside)

The score is primarily held back by weaker financial fundamentals—continued net losses, elevated leverage, and negative TTM operating/free cash flow—despite clear operating improvements. Technicals are mildly constructive in the near term but remain weaker over longer timeframes, while valuation is pressured by negative earnings. A recent positive corporate update provides incremental support but does not outweigh balance-sheet and cash-flow risks.

Positive Factors

Improving operating margins

Sustained improvement in gross and EBIT margins indicates the core greenhouse cultivation and processing model is becoming more efficient. Higher margins provide durable operating leverage, improving resilience to cost swings and supporting a path to sustained profitability as scale increases.

Top-line momentum

Material revenue growth supports long-term scalability: growing sales help spread fixed greenhouse costs and improve unit economics. Durable top-line expansion underpins margin recovery and increases the chance that operating gains convert to lasting net profitability if growth persists.

Strategic UK supply agreement

A binding supply agreement into the UK represents structural market diversification and a new revenue channel beyond domestic provincial sales. This partnership can provide recurring demand, support scale, and reduce dependence on a single regional market over the medium term.

Negative Factors

Elevated financial leverage

High and rising leverage constrains financial flexibility and increases the burden of interest and covenant risk. With limited retained earnings, elevated debt makes funding capex or weathering downturns harder without refinancing or dilution, a structural constraint on strategic options.

Negative operating and free cash flow

Reversed cash generation undermines the durability of the turnaround: persistent negative operating and free cash flow forces reliance on external financing. Over months, weak cash conversion risks interrupting operations, capital maintenance, or investment in growth initiatives.

Continued net losses and negative ROE

Ongoing net losses and negative returns on equity limit the company’s ability to build shareholder value and retained capital. Without converting operating improvements into sustained net profitability, the business may remain reliant on financings and face dilution or constrained reinvestment.

Greenway Greenhouse Cannabis Corp. Business Overview & Revenue Model

Company Description

Greenway Greenhouse Cannabis Corporation engages in the cultivation, processing, and selling of dried cannabis flower and kief. The company was incorporated in 2018 and is based in Kingsville, Canada. Greenway Greenhouse Cannabis Corporation is a subsidiary of Sunrite Greenhouses Ltd.

How the Company Makes Money

Greenway Greenhouse Cannabis Corp. generates revenue primarily through the sale of its cannabis products to various markets, including medical dispensaries and recreational retailers. The company utilizes its state-of-the-art greenhouse facilities to produce cannabis efficiently and sustainably, reducing costs and enhancing product quality. Revenue streams include the sale of dried cannabis flowers, oils, and other derivative products. Key partnerships with distributors and retailers help expand the company's reach and market presence, contributing significantly to its earnings. Additionally, Greenway may engage in strategic collaborations or white-label agreements to further diversify its revenue sources.

Greenway Greenhouse Cannabis Corp. Financial Statement Overview

Summary

Operating performance is improving (strong revenue growth, gross margin up to ~38.5%, and positive EBIT margin ~4.7%), but the company is still net-loss making (net margin ~-8.9%), highly leveraged (debt-to-equity ~1.58x), and has turned back to negative operating and free cash flow in the TTM period—keeping overall financial quality below average.

Income Statement

TTM (Trailing-Twelve-Months) results show a meaningful profitability improvement versus recent annual periods: revenue is up strongly (revenue growth ~3.5x) and gross margin improved to ~38.5% (vs ~18.8% last year). The company is now modestly positive at the operating level (EBIT margin ~4.7%; EBITDA margin ~27.6%), signaling better cost control and underlying business momentum. The key weakness is that bottom-line profitability is still negative (net margin ~-8.9%), indicating interest, non-operating items, and/or other below-the-line costs continue to outweigh operating gains.

Balance Sheet

Leverage remains elevated: debt-to-equity is ~1.58x in TTM (Trailing-Twelve-Months) and has trended higher versus earlier years, which reduces financial flexibility. Equity is still positive (~$9.9M), but returns on equity remain negative (ROE ~-7.6% TTM), reflecting continued net losses. Assets are relatively stable (~$32.4M), but the capital structure is still a risk factor given the combination of high leverage and negative earnings.

Cash Flow

Cash generation is currently the weakest area: TTM (Trailing-Twelve-Months) operating cash flow is slightly negative (~-$0.24M) and free cash flow is also negative (~-$0.48M), with a sharp decline in free cash flow growth versus the prior annual period. While last year showed positive operating and free cash flow, the recent reversal raises concerns about the durability of the turnaround and near-term funding needs if losses persist.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.46M	8.95M	5.23M	5.62M	1.98M	0.00
Gross Profit	3.26M	1.68M	-335.38K	741.99K	844.02K	487.88K
EBITDA	2.34M	972.53K	-2.21M	-632.92K	-1.36M	-727.12K
Net Income	-753.24K	-2.06M	-4.72M	-2.61M	-2.92M	-1.23M
Balance Sheet
Total Assets	32.38M	32.26M	33.09M	35.30M	35.63M	25.11M
Cash, Cash Equivalents and Short-Term Investments	1.77M	3.14M	1.53M	3.64M	7.48M	3.46M
Total Debt	15.68M	15.79M	16.02M	13.96M	16.67M	13.85M
Total Liabilities	22.48M	22.21M	21.17M	20.36M	18.77M	14.85M
Stockholders Equity	9.90M	10.05M	11.92M	14.95M	16.86M	10.26M
Cash Flow
Free Cash Flow	-482.91K	1.61M	-4.96M	-4.38M	-4.10M	-5.95M
Operating Cash Flow	-239.54K	1.81M	-2.05M	2.23M	-1.97M	-592.08K
Investing Cash Flow	-243.37K	-194.37K	-2.92M	428.31K	-2.12M	-5.36M
Financing Cash Flow	0.00	0.00	2.85M	-6.49M	8.12M	7.97M

Greenway Greenhouse Cannabis Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GWAY, the sentiment is Negative. The current price of 0.17 is below the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.17, and below the 200-day MA of 0.20, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.55 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GWAY.

Greenway Greenhouse Cannabis Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROMJ	55 Neutral	C$30.23M	9.76	7.78%	―	28.55%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GWAY	49 Neutral	C$21.16M	-28.07	-7.43%	―	19.66%	84.34%
AVCN	46 Neutral	C$24.18M	-12.50	-77.67%	―	2.41%	74.61%
LABS	45 Neutral	C$27.35M	-3.37	-19.10%	―	18.06%	34.58%
PCLO	44 Neutral	C$13.85M	-2.51	―	―	15.64%	58.47%
AYR.A	40 Neutral	C$18.10M	-0.04	―	―	0.63%	-31.86%

Greenway Greenhouse Cannabis Corp. Corporate Events

Greenway Leverages Efficiency Gains and International Expansion to Accelerate Next Growth Phase

In its 2025 year-in-review, Greenway highlighted a year of disciplined execution marked by improved cultivation efficiency, stronger yields and tighter cost controls, which management views as a durable step-change underpinning its profitability strategy. The company advanced its international wholesale program with product now reaching multiple European jurisdictions and Australia, and it signed a strategic supply agreement with 4C Labs to serve the U.K. medical cannabis market, while delivering a 20% increase in annual revenue and a more than 40% rise in average selling price per gram. With additional cultivation capacity already built out that can lift production by over 75% without significant new capital spending, Greenway plans to ramp output in a measured, demand-driven manner, aiming to leverage growing international sales channels to drive higher volumes, revenue growth and operating leverage despite ongoing volatility in the Canadian cannabis sector.

The most recent analyst rating on (TSE:GWAY) stock is a Hold with a C$0.18 price target. To see the full list of analyst forecasts on Greenway Greenhouse Cannabis Corp. stock, see the TSE:GWAY Stock Forecast page.

Greenway Greenhouse Cannabis Corp. Reports Strong Q2 Financials and Strategic Expansion

Greenway Greenhouse Cannabis Corporation reported significant financial improvements in its second quarter of fiscal 2026, with a 60% increase in average net sales price per gram and a 28% reduction in cash cost per gram. The company achieved a gross profit of $827,178, marking a substantial turnaround from a previous gross loss, and improved its gross margin to 40%. The company also entered a supply agreement with 4C LABS in the UK, indicating strategic international expansion. These developments underscore Greenway’s operational efficiency and market positioning, setting a strong foundation for future growth and shareholder value.