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OrganiGram Holdings (TSE:OGI)
TSX:OGI

OrganiGram Holdings (OGI) AI Stock Analysis

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OrganiGram Holdings

(TSX:OGI)

Rating:73Outperform
Price Target:
C$2.00
▲(5.26%Upside)
OrganiGram Holdings demonstrates strong growth potential with impressive revenue increases and strategic market positioning. While technical indicators support a positive outlook, the company needs to address profitability and cash flow challenges to enhance financial health. The earnings call underscored significant achievements and future growth prospects, contributing positively to the overall score.
Positive Factors
Financial Performance
Revenues were up significantly while EBITDA showed an improvement as well.
Market Expansion
Organigram announced its entry into the U.S. market through the acquisition of Collective Project Limited for upfront consideration of $6.2M.
Revenue Growth
Organigram reported Q2/F25 net revenue of $65.6M, representing an increase of 74.3% Y/Y, largely as a result of the Motif acquisition.
Negative Factors
Cash Flow
The cash balance has decreased by approximately $55M as a result of the acquisition of Motif Labs and associated.

OrganiGram Holdings (OGI) vs. iShares MSCI Canada ETF (EWC)

OrganiGram Holdings Business Overview & Revenue Model

Company DescriptionOrganigram Holdings Inc., through its subsidiaries, produces and sells cannabis and cannabis-derived products in Canada. It offers medical cannabis products, including cannabis flowers, cannabis oils, and vaporizers for civilian patients and veterans; adult use recreational cannabis under the Edison Cannabis Co., Trail Blazer, SHRED, SHRED'ems, Big Bag O' Buds, and Monjour brands; and cannabis edibles products and concentrates. The company also engages in the wholesale shipping of cannabis plant cuttings, dried flowers, blends, pre-rolls, and cannabis derivative based products to retailers and wholesalers for adult-use recreational cannabis. It sells its products through online, as well as telephone channels. Organigram Holdings Inc. was founded in 2013 and is headquartered in Moncton, Canada.
How the Company Makes MoneyOrganiGram Holdings generates revenue primarily through the sale of cannabis and cannabis-related products. The company's key revenue streams include the sale of adult-use recreational cannabis, medical cannabis, and cannabis derivatives. OrganiGram has established significant partnerships and distribution agreements with provincial and territorial cannabis boards across Canada, which play a crucial role in its distribution network. Additionally, the company engages in export activities to international markets where medical cannabis is legal, further contributing to its earnings. OrganiGram's focus on innovation, such as developing new strains and products, helps maintain its competitive edge and supports revenue growth.

OrganiGram Holdings Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q2-2025)
|
% Change Since: 15.85%|
Next Earnings Date:Jul 10, 2025
Earnings Call Sentiment Positive
Organigram Global's earnings call revealed strong revenue performance and market leadership in Canada, driven by strategic acquisitions and international sales growth. However, there are challenges in penetrating the US market and navigating regulatory frameworks. The integration of recent acquisitions is showing positive synergies, and future growth is anticipated with strategic investments and market expansion.
Q2-2025 Updates
Positive Updates
Record-Breaking Revenue
Organigram Global reported a record-breaking quarter by revenue, with gross sales up 79% year-over-year, surpassing $100 million for the first time in any given quarter. Net revenue was up 74% year-over-year to reach $65.6 million.
Market Leadership in Canada
Organigram became the #1 LP by market share in both vapes and pre-rolls in Canada, with a leading 21.7% share in vapes. They have a strong presence in flower, vapes, and pre-rolls, representing around 85% of the total market.
International Sales Growth
International sales increased 177% year-over-year to $6.1 million, with growth driven by expanded orders from existing partners like Sanity Group and customers in Australia.
Successful Integration of Motif Acquisition
The integration of the Motif acquisition is progressing well, with operational efficiencies being realized, including increased extraction capacity and expected higher synergies than initially estimated.
Collective Project Expansion
Entry into the US hemp-derived THC beverage market with products distributed in 10 US states. The Collective Project brand won recognition at the 2025 High Spirits Awards.
Negative Updates
Challenges in US Market Penetration
While there is excitement about the US market, the focus remains on driving trial and awareness with significant investment, indicating it is still a nascent stage for profitability.
Impact of Regulatory Frameworks
The Canadian and US markets face different regulatory challenges, with the potential for greater price compression in international markets as competition grows.
Company Guidance
In the Organigram Global Second Quarter Fiscal 2025 earnings call, the company provided robust guidance, highlighting record-breaking performance and strategic growth initiatives. Organigram reported an impressive 74% year-over-year increase in net revenue, reaching $65.6 million, driven by the Motif acquisition and organic growth. The company maintained a strong presence in the Canadian cannabis market, holding a 21.7% market share in vapes, and saw international sales increase by 177% to $6.1 million. The Collective Project acquisition marked their entry into the US hemp-derived THC beverage market, with projections to grow this sector significantly. Organigram anticipates realizing $15 million in annual synergies from the Motif integration by next year and expects adjusted gross margins to stabilize around 35% for fiscal 2025, with a long-term target of 40% in the second half of fiscal 2026. Additionally, they are investing in capacity enhancements and innovative technology to further strengthen their market position and drive future growth.

OrganiGram Holdings Financial Statement Overview

Summary
OrganiGram Holdings shows strong revenue growth and improved gross margins, but faces challenges with profitability and cash flow. The balance sheet is solid with low leverage, indicating financial stability.
Income Statement
72
Positive
OrganiGram Holdings has demonstrated strong revenue growth, with a 21.4% increase in TTM revenue compared to the previous year. The gross profit margin improved significantly to 32.7% in TTM, indicating effective cost management. However, the company is still facing challenges with profitability, as evidenced by negative EBIT and a net profit margin of 8.7% in TTM. The EBITDA margin is positive, reflecting improvements in operational efficiency.
Balance Sheet
65
Positive
The balance sheet shows a solid equity base, with an equity ratio of 72.6% in TTM, indicating financial stability. The debt-to-equity ratio is low at 0.02, which reduces financial risk. Return on equity is modest at 4.3%, suggesting potential for improvement in generating profits from shareholder equity.
Cash Flow
58
Neutral
Cash flow analysis reveals a challenging picture, with negative free cash flow in TTM. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash. There is a notable decrease in free cash flow compared to the previous year, highlighting cash management issues.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
194.09M159.84M149.21M145.81M79.16M86.80M
Gross Profit
63.46M47.52M35.07M31.57M-28.40M-56.49M
EBIT
-23.65M-35.67M-242.74M-38.75M-91.82M-145.51M
EBITDA
7.15M-23.59M-207.62M12.33M-95.59M-121.47M
Net Income Common Stockholders
16.88M-45.44M-229.48M-14.28M-132.55M-136.16M
Balance SheetCash, Cash Equivalents and Short-Term Investments
41.24M107.57M33.86M98.91M183.84M74.73M
Total Assets
502.28M407.86M298.45M577.11M554.02M417.62M
Total Debt
86.98M4.46M4.72M3.36M4.96M103.67M
Net Debt
45.89M-102.29M-29.14M-65.16M-50.40M79.07M
Total Liabilities
124.17M101.87M26.83M69.05M74.21M118.10M
Stockholders Equity
378.10M305.99M271.62M508.06M479.81M299.53M
Cash FlowFree Cash Flow
-26.74M-1.47M-62.70M-84.99M-40.92M-123.78M
Operating Cash Flow
-15.60M3.87M-35.80M-36.21M-28.59M-45.13M
Investing Cash Flow
-110.36M-38.77M1.35M44.03M-115.11M-138.20M
Financing Cash Flow
107.52M107.78M-817.00K5.33M174.46M160.37M

OrganiGram Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.90
Price Trends
50DMA
1.62
Positive
100DMA
1.74
Positive
200DMA
2.04
Negative
Market Momentum
MACD
0.06
Positive
RSI
62.82
Neutral
STOCH
64.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OGI, the sentiment is Positive. The current price of 1.9 is above the 20-day moving average (MA) of 1.83, above the 50-day MA of 1.62, and below the 200-day MA of 2.04, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 62.82 is Neutral, neither overbought nor oversold. The STOCH value of 64.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:OGI.

OrganiGram Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSOGI
73
Outperform
$248.35M17.824.76%26.93%
54
Neutral
$5.31B3.26-45.10%2.79%16.76%0.02%
CGCGC
$349.87M-122.10%
ACACB
$312.62M36.934.78%
$766.26M15.514.61%
$675.31M-25.08%
$754.19M-12.39%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:OGI
OrganiGram Holdings
1.90
-0.29
-13.24%
CGC
Canopy Growth
1.62
-5.70
-77.87%
ACB
Aurora Cannabis
5.82
-0.08
-1.36%
CRON
Cronos Group
1.96
-0.52
-20.97%
CURLF
Curaleaf Holdings
0.88
-3.48
-79.82%
TCNNF
Trulieve Cannabis
3.82
-5.80
-60.29%

OrganiGram Holdings Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Organigram Global Announces CEO Succession Amidst Strong Growth
Positive
May 27, 2025

Organigram Global Inc. announced the retirement of CEO Beena Goldenberg at the end of the fiscal year, with a comprehensive search for a successor underway. Under Goldenberg’s leadership, Organigram grew significantly, becoming Canada’s market leader in cannabis with substantial revenue growth and international expansion. The company is well-positioned for future growth, with the Board expressing confidence in its strategic direction and leadership team.

The most recent analyst rating on (TSE:OGI) stock is a Buy with a C$3.00 price target. To see the full list of analyst forecasts on OrganiGram Holdings stock, see the TSE:OGI Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Organigram Holdings Achieves Record Q2 Fiscal 2025 Results
Positive
May 12, 2025

Organigram Holdings reported record financial results for the second quarter of fiscal 2025, with gross revenue reaching $102.8 million and net revenue at $65.6 million, marking significant growth from the previous year. The company’s acquisition of Motif Labs has contributed to increased revenue and is expected to provide $15 million in annual cost synergies. Organigram’s strategic expansion into international markets and the U.S. hemp-derived beverage space, along with its strong market position in Canada, indicates a promising trajectory for future growth.

Product-Related AnnouncementsBusiness Operations and Strategy
Organigram’s Collective Project Wins Big at 2025 High Spirits Awards
Positive
May 7, 2025

Organigram Global Inc.’s recently acquired brand, Collective Project, has achieved significant recognition at the 2025 High Spirits Awards in California, winning a gold medal for its Blood Orange, Yuzu & Vanilla beverage and a platinum medal for its Mango, Pineapple & Coconut beverage. These accolades highlight the brand’s rapid success in the U.S. market and reinforce Organigram’s strategy to expand in the cannabis beverage industry, indicating a strong consumer connection and innovative product offerings. The Collective Project’s availability across several U.S. states and upcoming eCommerce platform further support its growth trajectory.

Business Operations and Strategy
Organigram Global Wins Exporter of the Year at 2025 New Brunswick Export Awards
Positive
May 5, 2025

Organigram Global Inc. has been awarded ‘Exporter of the Year’ at the 2025 New Brunswick Export Awards, recognizing its exceptional growth in international cannabis exports, driven by innovation and strategic market expansion. The company has made significant investments in New Brunswick, employing over 725 people and contributing to the local economy. This accolade underscores Organigram’s commitment to enhancing Canada’s position in the global cannabis market and its potential to capture a substantial share of the estimated $140 billion global cannabis industry.

Financial Disclosures
Organigram to Announce Q2 Fiscal 2025 Results on May 12
Neutral
May 2, 2025

Organigram Global Inc. announced it will release its second quarter fiscal 2025 earnings results on May 12, 2025. The company will host a conference call to discuss these results, with a webcast replay available for 90 days. This announcement is significant as it provides insights into Organigram’s financial performance and strategic positioning within the competitive cannabis market.

Business Operations and Strategy
Organigram Calls for Government Support in Cannabis Sector Growth
Positive
Apr 29, 2025

Organigram Global Inc., Canada’s leading cannabis company, congratulates Prime Minister Mark Carney on his election win and urges the new government to recognize the cannabis sector as a key component of Canada’s economic growth strategy. The company calls for reforms in taxation, elimination of interprovincial trade barriers, and the development of a national cannabis export strategy to enhance the sector’s financial viability and competitiveness against the illicit market. Organigram highlights the significant economic contributions of the legal cannabis industry, which has added over $43 billion to Canada’s GDP and supports more than 80,000 jobs, advocating for government support to unlock the sector’s full potential.

Product-Related AnnouncementsBusiness Operations and Strategy
Organigram’s Brands Shine at Cannabis Awards
Positive
Apr 24, 2025

Organigram Global Inc., a leading Canadian cannabis company, announced that its brands SHRED, Edison, and Trailblazer received accolades at the CNB Leadership Conference and Cannabis NB Cup. SHRED was recognized for its exceptional in-store branding, Edison Sonics Kiwi Berry was awarded Best New Edible, and Trailblazer’s Gary Dunk 3.5g earned third place in the Indica category. These awards highlight Organigram’s strong market presence and commitment to innovation and consumer satisfaction, contributing to its continued growth and leadership in the Canadian recreational cannabis market.

Business Operations and Strategy
Organigram Global Shares Insights from OG Investor Session
Positive
Apr 22, 2025

Organigram Global Inc. has released the recording of its OG Investor Session, which includes presentations from senior leadership, facility tours, and a Q&A session. The session highlights Organigram’s strategic initiatives, such as strengthening its position in branded cannabis products, leveraging science for innovation, and expanding international sales. This event serves as a resource for stakeholders to gain insights into the company’s performance and future strategies.

Business Operations and Strategy
Canadians See Cannabis as Key Economic Pillar Amid Global Tensions
Positive
Apr 16, 2025

Organigram Global Inc. released a survey revealing strong Canadian support for the legal cannabis industry as a key economic pillar amid global trade tensions. The survey indicates a national desire for economic renewal through homegrown industries, with cannabis seen as a significant contributor to GDP and job creation. The data suggests Canadians expect political leadership to support the cannabis sector, viewing it as an under-leveraged advantage for economic resilience and innovation.

Delistings and Listing ChangesBusiness Operations and Strategy
Organigram Global Hosts Inaugural Investor Event and Announces Name Change
Positive
Apr 2, 2025

Organigram Global Inc. announced its inaugural virtual investor event, the OG Investor Session, scheduled for April 10, 2025. This event aims to provide investors with insights into the company’s growth strategy and innovation, featuring presentations from key executives. Additionally, the company has officially changed its name on the TSX and NASDAQ to ‘Organigram Global Inc.’ and will continue trading under the symbol ‘OGI’. This rebranding reflects Organigram’s commitment to innovation and market leadership in the cannabis industry.

M&A TransactionsBusiness Operations and Strategy
Organigram Expands into U.S. and Canadian Beverage Markets with Acquisition
Positive
Apr 1, 2025

Organigram has acquired Collective Project Limited, marking its entry into the U.S. hemp-derived THC beverage market and the Canadian cannabis beverage sector. This strategic acquisition allows Organigram to leverage Collective Arts’ brand strength and infrastructure, positioning itself to capitalize on the growing demand for alternative beverages as consumers shift away from alcohol. The move is expected to enhance Organigram’s market presence and revenue potential in both countries.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.