Cannara Biotech (LOVE) AI Stock Analysis

• Market Cap: $154.52M
• Dividend Yield: N/A
• Average Volume (3M): 45.69K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.15
• Revenue Growth: 30.64%
• EPS Growth: 101.12%
• Country: CA
• Employees: 461
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.04
• Shares Outstanding: 91,433,136
• 10 Day Avg. Volume: 37,006
• 30 Day Avg. Volume: 45,690
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.39
• Enterprise Value/Gross Profit: 3.15
• Enterprise Value/Ebitda: 5.28
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: C$2.00 ▲(11.11% Upside)

Cannara Biotech's strong financial performance and positive corporate events are the most significant factors driving the score. Technical analysis and valuation are neutral, indicating a balanced outlook. The absence of earnings call data does not impact the overall score.

Positive Factors

Revenue Growth

Cannara Biotech's substantial revenue growth of over 30% year-over-year indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Market Share Expansion

Significant market share gains demonstrate Cannara's competitive positioning and ability to capture consumer loyalty, enhancing its market leadership in the cannabis sector.

Operational Expansion

Expanding cultivation capacity by 100% over four years positions Cannara for future growth, increasing production capabilities to meet rising demand.

Negative Factors

Free Cash Flow Concerns

Declining free cash flow growth could hinder Cannara's ability to reinvest in operations and manage debt, potentially impacting long-term financial health.

Debt Management

Using equity to settle debt may dilute existing shareholders and indicates potential challenges in managing leverage, affecting financial stability.

Leadership Change

The loss of a key board member could impact strategic direction and leadership continuity, posing risks to Cannara's governance and decision-making processes.

Cannara Biotech Business Overview & Revenue Model

Company Description

Cannara Biotech Inc., together with its subsidiaries, engages in the indoor cultivation, processing, and sale of cannabis and cannabis-derivated products in Canada. It also offers hemp-based CBD products through e-commerce platform. The company was incorporated in 2017 and is headquartered in Saint-Laurent, Canada.

How the Company Makes Money

Cannara Biotech generates revenue through multiple streams, primarily by selling its cannabis products to retail dispensaries and directly to consumers through its online platform. The company benefits from the growing legalization of cannabis in various jurisdictions, allowing it to expand its market reach. Key revenue streams include wholesale distribution to licensed retailers, direct sales through e-commerce, and potential partnerships with other cannabis companies for co-branding and product development. Additionally, Cannara's focus on quality and compliance with regulatory standards enhances its marketability and pricing power, contributing to its overall profitability.

Cannara Biotech Financial Statement Overview

Summary

Cannara Biotech exhibits strong financial performance with impressive revenue growth and profitability. The balance sheet is stable with a prudent approach to leverage, though attention is needed on improving free cash flow growth.

Income Statement

Cannara Biotech has demonstrated strong revenue growth over the years, with a notable increase in total revenue from 2024 to 2025. The company maintains healthy gross and net profit margins, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also robust, reflecting operational efficiency. Overall, the income statement shows a positive growth trajectory and profitability.

Balance Sheet

The balance sheet reveals a stable financial position with a manageable debt-to-equity ratio, indicating a balanced approach to leveraging. The return on equity has improved over the years, showcasing effective use of equity to generate profits. The equity ratio is strong, suggesting a solid capital structure. However, the company should continue to monitor its debt levels to maintain financial stability.

Cash Flow

Cannara Biotech's cash flow statement shows a positive operating cash flow, which is a good indicator of the company's ability to generate cash from its operations. However, the free cash flow growth rate has declined recently, which could be a concern if it continues. The operating cash flow to net income ratio is healthy, but the company should focus on improving free cash flow to ensure long-term financial health.

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	107.62M	―	107.32M	81.75M	57.26M	35.84M
Gross Profit	47.52M	―	47.22M	29.79M	27.23M	17.33M
EBITDA	28.39M	―	28.18M	15.16M	15.77M	9.54M
Net Income	13.08M	―	13.08M	6.44M	6.95M	2.31M
Balance Sheet
Total Assets	168.65M	―	168.65M	154.72M	141.52M	125.62M
Cash, Cash Equivalents and Short-Term Investments	14.36M	―	14.36M	6.62M	4.27M	12.11M
Total Debt	41.58M	―	41.58M	48.33M	45.78M	48.39M
Total Liabilities	66.43M	―	66.43M	66.77M	61.78M	58.88M
Stockholders Equity	102.22M	―	102.22M	87.95M	79.74M	66.74M
Cash Flow
Free Cash Flow	12.82M	―	13.65M	3.21M	-4.44M	-21.55M
Operating Cash Flow	19.18M	―	20.01M	10.68M	5.44M	-6.08M
Investing Cash Flow	-5.95M	―	-5.95M	-5.19M	-9.48M	-15.35M
Financing Cash Flow	-6.32M	―	-6.32M	-3.14M	-3.72M	25.46M

Cannara Biotech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LOVE, the sentiment is Positive. The current price of 1.8 is above the 20-day moving average (MA) of 1.70, above the 50-day MA of 1.70, and above the 200-day MA of 1.56, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 60.50 is Neutral, neither overbought nor oversold. The STOCH value of 86.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LOVE.

Cannara Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOVE	73 Outperform	$154.52M	9.86	13.39%	―	30.64%	101.12%
XLY	64 Neutral	$195.25M	4.23	31.46%	―	27.38%	―
DB	64 Neutral	$77.85M	5.19	21.77%	―	15.11%	―
OGI	59 Neutral	C$354.62M	88.00	1.86%	―	38.86%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
JUSH	49 Neutral	C$167.19M	-2.05	―	―	3.17%	-24.07%
PLTH	42 Neutral	$89.48M	-1.31	-83.55%	―	2.19%	-91.41%

Cannara Biotech Corporate Events

Cannara Biotech Grants Incentive Awards Amid Growth

Cannara Biotech Inc. announced the approval of incentive awards under its stock option and restricted share unit compensation plans. The grants, marking the completion of the company’s fiscal year, include 3,625,000 stock options for employees and 145,000 restricted share units for board members, reflecting Cannara’s five years of commercial operations and consistent revenue growth.

The most recent analyst rating on (TSE:LOVE) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Cannara Biotech stock, see the TSE:LOVE Stock Forecast page.

Cannara Biotech Expands Credit Facility to Boost Production Capacity

Cannara Biotech Inc. announced an amendment and upsize of its credit facility with the Bank of Montreal, adding a $10 million capital expenditures facility to fund the expansion of its Valleyfield facility. This expansion aims to enhance Cannara’s processing capabilities and increase its annual production capacity to 100,000 kg, reflecting the company’s growth strategy and operational performance. The improved financial flexibility and reduced financing costs position Cannara to deliver sustained value to shareholders while maintaining a strong balance sheet.

The most recent analyst rating on (TSE:LOVE) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Cannara Biotech stock, see the TSE:LOVE Stock Forecast page.

Cannara Biotech Boosts Financial Flexibility with Strategic Asset Sale

Cannara Biotech Inc. has successfully completed the sale of a non-core building under construction and a related parcel of land at its Valleyfield site for $5.5 million, as part of its asset optimization plan. The proceeds from the sale will reduce the company’s long-term debt by $5.45 million, enhancing its financial flexibility, capital structure, and supporting future growth within its core cannabis operations.

Cannara Biotech Achieves Record Revenue and Profitability in Q3 2025

Cannara Biotech reported its highest revenue and profitability since inception in fiscal Q3 2025, with a 40% increase in revenue and a 110% rise in gross profit compared to the previous year. The company achieved significant milestones, including a 26% yield improvement in cultivation and the acceptance of five SKUs for the Quebec vape category, enhancing its market position and operational efficiency.

Cannara Biotech Expands into Québec’s Vape Market with New Product Launch

Cannara Biotech has secured preliminary acceptance from the Société Québécoise du Cannabis for five vape cartridge products, marking a significant entry into Québec’s new vape cartridge category. This move positions Cannara to capture a substantial share of the Québec market, which is seen as a major growth opportunity in Canada’s legal cannabis sector. The company is also launching its first live rosin vape cartridges, emphasizing its commitment to high-quality, solventless products and further strengthening its market presence.