Cannara Biotech (LOVE) AI Stock Analysis

• Market Cap: C$158.18M
• Dividend Yield: N/A
• Average Volume (3M): 105.02K
• Price to Earnings (P/E): 11.6
• Beta (1Y): <0.01
• Revenue Growth: 28.97%
• EPS Growth: 112.89%
• Country: CA
• Employees: 461
• Sector: Healthcare
• Sector Strength: 44
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.04
• Shares Outstanding: 91,433,136
• 10 Day Avg. Volume: 161,521
• 30 Day Avg. Volume: 105,024
• PEG Ratio: 0.11
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 45.68
• 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: C$1.49
• Price Target Upside: -13.18% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: C$2.00 ▲(16.28%Upside)

Cannara Biotech's stock is supported by strong financial performance, as reflected in robust revenue growth and profitability. The company's strategic initiatives, market expansion, and operational efficiencies further bolster its position. Despite some technical indicators suggesting overbought conditions, the stock's fundamental strengths and positive corporate events provide a compelling investment case.

Cannara Biotech Business Overview & Revenue Model

Company Description

Cannara Biotech Inc. is a Canadian cannabis company engaged in the cultivation and sale of high-quality cannabis and cannabis-derived products. Operating within the legal cannabis sector, the company focuses on leveraging advanced cultivation techniques and technology to produce premium cannabis for both the medical and adult-use markets.

How the Company Makes Money

Cannara Biotech generates revenue through the cultivation and sale of cannabis flower and derivative products. The company operates large-scale, state-of-the-art cultivation facilities, which allow for efficient production and high-quality yields. Revenue streams primarily include wholesale distribution to licensed retailers and direct sales to consumers in legal markets. Cannara Biotech also explores partnerships and supply agreements to expand its market reach and enhance its product offerings. Additionally, the company may engage in strategic initiatives, such as product innovation and branding, to drive growth and profitability.

Cannara Biotech Financial Statement Overview

Summary

Cannara Biotech shows strong financial growth with robust revenue increases and profitability improvements. The income statement highlights healthy margins, while the balance sheet reflects a solid equity position and manageable leverage. Cash flow is positive, though there is room for improvement in cash flow generation relative to income.

Income Statement

Cannara Biotech has demonstrated robust growth with significant revenue increases in recent years. The TTM (Trailing-Twelve-Months) gross profit margin stands at 33.19%, reflecting strong cost management. The net profit margin improved to 14.22%, up from previous periods, indicating enhanced profitability. Additionally, the revenue growth rate from the previous year is an impressive 15.28%, showcasing a positive growth trajectory. The EBIT and EBITDA margins are healthy at 11.39% and 25.59% respectively, suggesting efficient operations.

Balance Sheet

The balance sheet shows a solid equity position with a debt-to-equity ratio of 0.52, indicating manageable leverage levels. The company's return on equity (ROE) is 14.22%, reflecting efficient use of shareholder funds to generate profits. The equity ratio stands at 58.34%, suggesting a strong equity base relative to total assets, providing a cushion against potential liabilities. However, the level of total debt remains a point of consideration for future financial flexibility.

Cash Flow

Cannara Biotech's cash flow analysis reveals moderate strength, with a positive free cash flow in the TTM period of $3.5 million. The free cash flow growth rate is 8.99%, showing improvement. The operating cash flow to net income ratio is 0.73, reflecting reasonable cash generation from operations relative to net income. While these metrics are positive, the company should aim to further enhance its cash flow conversion for greater financial stability.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	81.75M	57.26M	35.84M	17.02M	2.55M
Gross Profit	29.79M	27.23M	17.33M	10.30M	1.22M
EBITDA	15.16M	15.77M	9.54M	3.22M	-9.15M
Net Income	6.44M	6.95M	2.31M	-3.09M	-13.81M
Balance Sheet
Total Assets	154.72M	141.52M	125.62M	92.02M	54.85M
Cash, Cash Equivalents and Short-Term Investments	6.62M	4.27M	12.11M	8.16M	7.77M
Total Debt	48.33M	45.78M	48.39M	20.90M	12.94M
Total Liabilities	66.77M	61.78M	58.88M	27.91M	16.49M
Stockholders Equity	87.95M	79.74M	66.74M	64.12M	38.36M
Cash Flow
Free Cash Flow	3.21M	-4.44M	-21.55M	-33.17M	-18.14M
Operating Cash Flow	10.68M	5.44M	-6.08M	-2.09M	-9.32M
Investing Cash Flow	-5.19M	-9.48M	-15.35M	-30.83M	-8.55M
Financing Cash Flow	-3.14M	-3.72M	25.46M	33.25M	-914.82K

Cannara Biotech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.72 is above the 20-day moving average (MA) of 1.55, above the 50-day MA of 1.37, and above the 200-day MA of 1.08, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 65.75 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, 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	80 Outperform	C$158.18M	11.57	15.63%	―	28.97%	112.89%
OGI	71 Outperform	$266.43M	19.21	4.76%	―	26.93%	―
DB	71 Outperform	C$49.02M	3.83	20.78%	―	-15.44%	―
XLY	70 Outperform	$193.62M	8.93	18.60%	―	26.78%	―
JUSH	52 Neutral	C$104.25M	―	155.52%	―	-0.38%	30.79%
Sector *	46 Neutral	C$197.02M	-3.33	-23.14%	2.65%	20.75%	-0.36%
PLTH	44 Neutral	$81.34M	―	-39.53%	―	29.90%	55.23%

Cannara Biotech Corporate Events

Cannara Biotech to Host Investor Webcast on Business Operations

Cannara Biotech announced that it will host an investor webcast on June 25, 2025, where CFO Nicholas Sosiak will present key aspects of the company’s business. The webcast will include an interactive Q&A session, providing investors an opportunity to engage with the company. This event is part of Cannara’s efforts to maintain transparency with stakeholders and potentially strengthen its market position by showcasing its business operations and strategic advantages.

Cannara Biotech Wins Awards and Reduces Debt Costs

Cannara Biotech Inc. announced its Tribal brand won ‘Brand of the Year’ and its Nugz Happle product received ‘Accessory of the Year’ at the 2025 Grow Up Awards Gala, highlighting its strong brand presence and commitment to premium-quality cannabis. Additionally, the company has reduced its cost of debt through a partial repayment of its Olymbec convertible debenture and a reduction in the interest rate on its BMO credit facility, demonstrating disciplined financial management and strengthening its market position.

Cannara Biotech Achieves Record Q2 2025 Results Amid National Expansion

Cannara Biotech reported record financial results for Q2 2025, with net revenues reaching $26.6 million, a 35% increase from the previous year, driven by national brand growth and product innovation. The company achieved a 52% rise in gross profit and a 102% increase in Adjusted EBITDA, marking its sixteenth consecutive quarter of positive results. Cannara expanded its national market share to 3.9%, with significant gains in Québec, Ontario, and Alberta, and activated two new grow zones, increasing its production capacity. These achievements underscore Cannara’s strong financial foundation and strategic execution, positioning it for continued growth and value delivery to consumers and shareholders.