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Cannara Biotech (TSE:LOVE)
:LOVE
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Cannara Biotech (LOVE) AI Stock Analysis

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TSE:LOVE

Cannara Biotech

(OTC:LOVE)

Rating:84Outperform
Price Target:
C$2.00
▲(11.11%Upside)
Cannara Biotech receives a high score based on a combination of strong financial performance, bullish technical indicators, and positive earnings call outcomes. The company's strategic initiatives and market expansion efforts are promising, though attention to cash flow and debt management is advised.

Cannara Biotech (LOVE) vs. iShares MSCI Canada ETF (EWC)

Cannara Biotech Business Overview & Revenue Model

Company DescriptionCannara 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 MoneyCannara Biotech generates revenue primarily through the cultivation and sale of cannabis products. The company's key revenue streams include selling dried cannabis flower and pre-rolled joints to both wholesale distributors and directly to consumers in the medical and recreational cannabis markets. Additionally, Cannara Biotech may engage in strategic partnerships and licensing agreements to expand its market reach and product offerings. The company's revenue is influenced by factors such as cannabis market demand, regulatory changes, and its production capacity in its advanced cultivation facilities.

Cannara Biotech Earnings Call Summary

Earnings Call Date:Apr 28, 2025
(Q2-2025)
|
% Change Since: 28.57%|
Next Earnings Date:Jul 28, 2025
Earnings Call Sentiment Positive
Cannara Biotech demonstrated strong financial performance and market share growth, primarily driven by innovative product launches and operational efficiencies. However, they faced challenges in maintaining market share in certain provinces and managing cash flow. Overall, the positive achievements significantly outweigh the challenges.
Q2-2025 Updates
Positive Updates
Record-Breaking Financial Performance
Cannara Biotech reported record revenue of CAD 26.6 million, up 6% quarter-over-quarter and 35% year-over-year. The company also achieved record gross profit of CAD 10.8 million and adjusted EBITDA of CAD 7.1 million, representing over 100% year-over-year growth.
Market Share Expansion
Cannara holds third market position in Quebec with a 12.8% market share, up over 40% from the prior year. Nationally, they are the seventh largest with a 3.9% market share, up from 2.9% the previous year.
Operational Efficiency and Growth
The company has increased its cultivation capacity by 20% with minimal capital expenditure and plans to further expand, aiming to produce up to 100,000 kilograms annually.
Innovative Product Launches
Cannara launched several new products, including the Tribal Trifecta infused pre-rolls and new genetic strains, contributing to their category leadership in infused pre-rolls and premium vapes.
Negative Updates
Market Share Decline in Saskatchewan and Manitoba
Cannara experienced a decline in market share in Saskatchewan and Manitoba due to a transition to a new wholesale partner and prioritization of other markets.
Operational Cash Flow Challenges
The company reported an operating cash flow outflow of CAD 2.6 million for the quarter, impacted by early excise tax payments and advance deposits for packaging materials.
Company Guidance
Cannara Biotech's fiscal Q2 2025 earnings presentation highlighted the company's strong financial performance, marked by record high net revenues of CAD 26.6 million, representing a 6% increase quarter-over-quarter and a 35% increase year-over-year. The company reported a gross profit before fair value adjustments of CAD 10.8 million, achieving a gross margin of 41%. Adjusted EBITDA reached CAD 7.1 million, reflecting an 18% increase quarter-over-quarter and over 100% growth year-over-year, translating to a 27% adjusted EBITDA margin. Cannara's competitive advantages include its vertically integrated operations, cost-efficient cultivation, and premium product offerings, which have led to a 12.8% market share in Quebec and a 3.9% share nationally. With plans to expand cultivation capacity and introduce new products, Cannara aims to continue capturing market share while maintaining industry-leading margins.

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
85
Very Positive
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
78
Positive
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
72
Positive
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue81.75M57.26M35.84M17.02M2.55M
Gross Profit29.79M27.23M17.33M10.30M1.22M
EBITDA15.16M15.77M9.54M3.22M-9.15M
Net Income6.44M6.95M2.31M-3.09M-13.81M
Balance Sheet
Total Assets154.72M141.52M125.62M92.02M54.85M
Cash, Cash Equivalents and Short-Term Investments6.62M4.27M12.11M8.16M7.77M
Total Debt48.33M45.78M48.39M20.90M12.94M
Total Liabilities66.77M61.78M58.88M27.91M16.49M
Stockholders Equity87.95M79.74M66.74M64.12M38.36M
Cash Flow
Free Cash Flow3.21M-4.44M-21.55M-33.17M-18.14M
Operating Cash Flow10.68M5.44M-6.08M-2.09M-9.32M
Investing Cash Flow-5.19M-9.48M-15.35M-30.83M-8.55M
Financing Cash Flow-3.14M-3.72M25.46M33.25M-914.82K

Cannara Biotech Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.80
Price Trends
50DMA
1.42
Positive
100DMA
1.37
Positive
200DMA
1.11
Positive
Market Momentum
MACD
0.12
Positive
RSI
65.60
Neutral
STOCH
65.71
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 1.8 is above the 20-day moving average (MA) of 1.66, above the 50-day MA of 1.42, and above the 200-day MA of 1.11, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 65.60 is Neutral, neither overbought nor oversold. The STOCH value of 65.71 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

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
$164.58M12.1115.63%28.97%112.89%
54
Neutral
C$118.02M155.52%-0.38%30.79%
52
Neutral
$7.61B0.10-63.03%2.08%16.34%0.32%
$204.04M22.214.76%
$147.24M9.2418.60%
$64.37M-39.53%
$40.14M4.2320.78%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:LOVE
Cannara Biotech
1.80
1.16
181.25%
TSE:JUSH
Jushi Holdings
0.64
-0.16
-20.00%
OGI
OrganiGram Holdings
1.51
-0.12
-7.36%
CBWTF
Auxly Cannabis Group
0.11
0.08
266.67%
PLNH
Planet 13 Holdings
0.22
-0.26
-54.17%
DBCCF
Decibel Cannabis Company
0.07
0.03
75.00%

Cannara Biotech Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Cannara Biotech Expands into Québec’s Vape Market with New Product Launch
Positive
Jul 24, 2025

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.

Financial Disclosures
Cannara Biotech to Release Q3 2025 Financial Results
Neutral
Jul 21, 2025

Cannara Biotech Inc. announced it will release its fiscal third-quarter financial results on July 28, 2025. The company will host an earnings webcast featuring prepared remarks and a live Q&A session led by CFO Nicholas Sosiak. This announcement is significant as it provides stakeholders with insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor confidence.

Business Operations and Strategy
Cannara Biotech to Host Investor Webcast on Business Operations
Positive
Jun 19, 2025

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.

Product-Related AnnouncementsPrivate Placements and FinancingBusiness Operations and Strategy
Cannara Biotech Wins Awards and Reduces Debt Costs
Positive
Jun 18, 2025

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.

Business Operations and StrategyFinancial Disclosures
Cannara Biotech Achieves Record Q2 2025 Results Amid National Expansion
Positive
Apr 28, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025