Lowell Farms (LOWL) AI Stock Analysis

• Market Cap: C$272.55K
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -2.73
• Revenue Growth: -35.79%
• EPS Growth: 62.59%
• Country: CA
• Employees: 96
• Sector: Healthcare
• Sector Strength: 55
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -1.49
• Shares Outstanding: 18,149,650
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.03
• Enterprise Value/Market Cap: 67.24
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: -1.92
• Enterprise Value/Ebitda: -0.17
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 34 Underperform
• Price Target: ―

Lowell Farms faces critical financial and operational challenges, with consistent revenue declines and negative profitability metrics. High leverage and negative cash flows exacerbate the risk profile. Despite some strategic expansions and cost-cutting measures, the company struggles with supply chain issues and a weak financial position. Technical indicators are neutral, but the overall financial health remains a significant concern.

Lowell Farms Business Overview & Revenue Model

Company Description

Lowell Farms Inc. engages in the cultivation, extraction, manufacturing, sale, marketing, and distribution of cannabis products to retail dispensaries in California. The company provides flowers, vape pens, oils, extracts, chocolate edibles, mints, gummies, topicals, tinctures, and pre-rolls under the Lowell Herb Co., Lowell Smokes, Cypress Reserve, Flavor Extracts, Kaizen, House Weed, Moon, Altai, Humble Flower, Original Pot Company, and CannaStripe brands. It also offers manufacturing, extraction, and distribution services to third-party cannabis and cannabis branding companies. The company was formerly known as Indus Holdings, Inc. and changed its name to Lowell Farms Inc. in March 2021. Lowell Farms Inc. was founded in 2014 and is based in Salinas, California.

How the Company Makes Money

Lowell Farms makes money through the sale of its cannabis products across various segments, including wholesale and retail distribution. The company's key revenue streams include direct sales of its branded flower and pre-roll products through retail dispensaries and partnerships with other cannabis retailers. Lowell Farms also generates revenue from its extraction and manufacturing capabilities, producing oils and concentrates that are sold under its own brand or white-labeled for other companies. Significant partnerships with distribution networks and retail chains increase its market reach and contribute to its earnings. The company focuses on maintaining a strong brand presence and product quality to drive sales and business growth.

Lowell Farms Financial Statement Overview

Summary

Lowell Farms is facing severe financial challenges, characterized by persistent losses, high leverage, and negative cash flows. The income statement shows declining revenue and margins, the balance sheet reflects high debt and negative equity, and cash flow metrics indicate significant cash management issues.

Income Statement

Lowell Farms has shown a declining trend in revenue over the years, with the latest TTM revenue being significantly lower than previous years. The company has consistently reported negative gross profit margins and net profit margins, indicating operational inefficiencies and sustained losses. EBIT and EBITDA margins are also negative, further highlighting the unprofitability. The revenue growth rate has been negative, reflecting shrinking sales volumes.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio, indicating substantial leverage that may pose financial risks, especially given the negative equity trend. The return on equity is negative due to consistent net losses, leading to diminished shareholder value. The equity ratio is low, reflecting a high dependency on debt financing. The declining total assets and stockholders' equity are concerning.

Cash Flow

Lowell Farms' cash flow situation is troubling, with negative operating and free cash flows, signaling cash outflows exceeding inflows. The free cash flow growth rate remains negative, demonstrating a lack of improvement in cash generation. Ratios of operating and free cash flow to net income are not meaningful due to negative values, highlighting persistent cash management issues.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
19.34M	28.27M	43.53M	53.72M	42.62M	37.05M
	Gross Profit
-9.54M	-7.44M	-1.84M	2.48M	19.09M	-9.23M
	EBIT
-17.89M	-17.56M	-17.12M	-20.95M	-28.00K	-46.40M
	EBITDA
-17.63M	-14.10M	-10.21M	-15.60M	-15.15M	-44.99M
	Net Income Common Stockholders
-20.72M	-37.34M	-24.56M	-24.68M	-7.62M	-50.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.18K	3.44M	1.10M	7.89M	25.75M	1.34M
	Total Assets
18.11K	37.61M	118.82M	137.38M	112.38M	69.21M
	Total Debt
56.50K	17.52M	64.39M	59.61M	54.05M	35.26M
	Net Debt
43.31K	15.21M	63.30M	51.73M	28.30M	33.91M
	Total Liabilities
193.02K	26.14M	70.71M	67.07M	66.26M	44.85M
	Stockholders Equity
―	11.48M	48.12M	70.31M	46.12M	24.36M
Cash Flow		Free Cash Flow
-5.76M	-6.18M	-10.69M	-29.64M	-14.60M	-49.31M
	Operating Cash Flow
-5.68M	-6.04M	-6.44M	-26.05M	-7.75M	-39.32M
	Investing Cash Flow
516.47K	-135.00K	-4.19M	-7.77M	-5.61M	-10.06M
	Financing Cash Flow
-60.38K	7.39M	3.85M	15.96M	37.77M	40.42M

Lowell Farms Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LOWL, the sentiment is Negative. The current price of 0.02 is equal to the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 12.77 is Positive, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LOWL.

Lowell Farms Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$5.34B	3.27	-45.10%	3.30%	16.80%	0.02%
LOWL	34 Underperform	C$272.55K	―	-145.29%	―	-35.79%	62.59%
MLCL		C$488.91K	―		―	―	―
GHG		C$485.83K	―		―	―	―
XCX	23 Underperform	C$516.55K	―	5.70%	―	―	―
TRLFF		$514.08K	―		―	―	―
GAIA		$230.03K	―		―	―	―

Lowell Farms Corporate Events

Lowell Farms Appoints New Chief Financial Officer

Lowell Farms Inc. has appointed Philippe Faraut as the new Chief Financial Officer, bringing a wealth of financial expertise from his previous roles in the cannabis and investment sectors. This strategic move aims to drive growth and innovation as Lowell Farms continues to expand its footprint in the competitive cannabis industry.

Lowell Farms Faces Revenue Dip Amid Expansion

Lowell Farms Inc. reported a 48% drop in third-quarter net revenue, reaching $3.2 million as compared to the previous year, amid a challenging California cannabis market. Despite the decline, the company is optimistic about its strategic expansion into retail dispensary management, aiming to strengthen its brand presence and promote sustainable growth.