OrganiGram Holdings (OGI) AI Stock Analysis

• Market Cap: $297.22M
• Dividend Yield: N/A
• Average Volume (3M): 84.04K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 2.07
• Revenue Growth: 38.86%
• EPS Growth: N/A
• Country: CA
• Employees: 1,093
• Sector: Healthcare
• Sector Strength: 43
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.05
• Shares Outstanding: 133,883,930
• 10 Day Avg. Volume: 133,320
• 30 Day Avg. Volume: 84,038
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.57
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 2.67
• Enterprise Value/Ebitda: 24.15
• 1Y Price Target: $2.50
• Price Target Upside: 16.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: C$2.50 ▲(16.82% Upside)

OrganiGram Holdings receives a strong overall score due to robust financial performance, positive technical indicators, and strategic growth initiatives highlighted in recent earnings calls and corporate events. While profitability and cash flow management remain challenges, the company's solid balance sheet and market leadership position it well for future growth.

Positive Factors

Financial Performance

Revenues were up significantly while EBITDA showed an improvement as well.

Synergies and Margins

The Company has increased its expected synergies to $15M from $10M that is expected to drive margin improvements into fiscal 2026.

Negative Factors

Acquisition Costs

Organigram announced its entry into the U.S. market through the acquisition of Collective Project Limited for upfront consideration of $6.2M.

OrganiGram Holdings Business Overview & Revenue Model

Company Description

Organigram 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 Money

OrganiGram generates revenue primarily through the sale of cannabis products to both medical and recreational consumers. Its revenue model includes direct sales to retailers, wholesale distribution to licensed cannabis shops, and online sales through its own e-commerce platform. Key revenue streams include dried flower sales, cannabis oils, and pre-rolled joints. The company also benefits from strategic partnerships with other cannabis producers and distributors, enhancing its market reach and product offerings. Additionally, OrganiGram has been involved in international markets, exploring opportunities for exporting products, which can further contribute to its revenue growth.

OrganiGram Holdings Financial Statement Overview

Summary

OrganiGram Holdings shows strong revenue growth and improved gross margins. However, profitability and cash flow remain concerns. The balance sheet is solid with low leverage, offering financial stability.

Income Statement

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

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

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	159.84M	149.21M	145.81M	79.16M	86.80M
Gross Profit	47.52M	35.07M	31.57M	-28.40M	-56.49M
EBITDA	-23.59M	-207.62M	10.96M	-95.59M	-121.47M
Net Income	-45.44M	-229.48M	-14.28M	-130.70M	-136.16M
Balance Sheet
Total Assets	407.86M	298.45M	577.11M	554.02M	417.62M
Cash, Cash Equivalents and Short-Term Investments	107.57M	33.86M	98.91M	183.84M	74.73M
Total Debt	4.46M	4.72M	3.36M	4.96M	103.67M
Total Liabilities	101.87M	26.83M	69.05M	74.21M	118.10M
Stockholders Equity	305.99M	271.62M	508.06M	479.81M	299.53M
Cash Flow
Free Cash Flow	-1.47M	-62.70M	-84.99M	-40.92M	-123.78M
Operating Cash Flow	3.87M	-35.80M	-36.21M	-28.59M	-45.13M
Investing Cash Flow	-38.77M	1.35M	44.03M	-115.11M	-138.20M
Financing Cash Flow	107.78M	-817.00K	5.33M	174.46M	160.37M

OrganiGram Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.14
• 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:OGI, the sentiment is Positive. The current price of 2.14 is above the 20-day moving average (MA) of 2.03, above the 50-day MA of 1.95, and above the 200-day MA of 1.92, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 60.08 is Neutral, neither overbought nor oversold. The STOCH value of 70.91 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OGI	72 Outperform	$297.22M	21.23	1.86%	―	38.86%	―
Sector *	60 Neutral	HK$18.30B	5.54	-4.00%	3.33%	9.92%	-18.97%
CGC	―	$339.55M	―	-98.42%	―	―	―
ACB	―	$303.74M	97.05	-0.70%	―	―	―
CRON	―	$962.23M	53.05	1.73%	―	―	―
CURLF	―	$2.23B	―	-24.93%	―	―	―
TCNNF	―	$1.44B	―	-12.60%	―	―	―

OrganiGram Holdings Corporate Events

Organigram Reports Record Q3 Fiscal 2025 Results, Expands Internationally

Organigram Holdings reported record financial results for the third quarter of fiscal 2025, with significant increases in revenue and adjusted EBITDA. The company achieved a 72% year-over-year increase in net revenue, driven by the acquisition of Motif Labs and international sales growth. Organigram’s strategic expansion into the U.S. market and its leadership in the Canadian cannabis sector underscore its ambition to become a global player. Despite a net loss due to changes in financial instruments, the company continues to optimize its operations and expand its brand portfolio, aiming for further international growth.

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.

Organigram to Announce Q3 Fiscal 2025 Results on August 13

Organigram Global Inc. announced it will release its third quarter fiscal 2025 earnings results on August 13, 2025. The company will host a conference call to discuss these results, reflecting its continued focus on market leadership and expansion in the cannabis industry. This announcement underscores Organigram’s commitment to transparency and stakeholder engagement, potentially impacting its market positioning and investor relations.

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.

Organigram Expands U.S. Presence with Hemp-Derived THC Beverage Launch

Organigram Global Inc. has launched an e-commerce platform in the U.S. for its Collective Project brand, marking a significant step in its expansion into the U.S. hemp-derived THC beverage market. This move is part of a broader strategy to capitalize on the growing demand for THC beverages, with the market projected to reach $4 billion by 2028. The launch includes a diverse range of products, enhancing Organigram’s market presence and offering a new revenue stream, while reinforcing its position as a leader in the cannabis industry.

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.

Organigram Global Announces CEO Succession Amidst Strong Growth

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.