TerrAscend Corp (TSND) AI Stock Analysis

• Market Cap: C$131.35M
• Dividend Yield: N/A
• Average Volume (3M): 482.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: -6.80%
• EPS Growth: 11.94%
• Country: CA
• Employees: 950
• Sector: Healthcare
• Sector Strength: 46
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.07
• Shares Outstanding: 306,511,400
• 10 Day Avg. Volume: 230,878
• 30 Day Avg. Volume: 482,004
• PEG Ratio: -0.06
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.23
• 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$1.77
• Price Target Upside: 391.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 45 Neutral
• Price Target: C$0.50 ▲(38.89%Upside)

TerrAscend Corp faces significant challenges, primarily due to weak financial performance and bearish technical indicators. While strategic acquisitions indicate potential for growth, the current financial and market conditions pose considerable risks to investors.

Positive Factors

Financial Strategy

New US$140MM loan facility removes the late-2024 maturity cliff.

Revenue Growth

Ohio acquisition now top priority, Ohio could quickly be a sizable revenue driver.

Negative Factors

Sales Forecast

3Q guidance calls for flat to slightly down sales.

TerrAscend Corp Business Overview & Revenue Model

Company Description

TerrAscend Corp (TSND) is a leading North American cannabis operator with a diversified business model encompassing cultivation, manufacturing, distribution, and retail operations. The company operates in both the United States and Canada, providing high-quality cannabis products for medical and adult-use markets. TerrAscend is known for its portfolio of premium brands, which includes a range of flower, edibles, extracts, and topicals designed to cater to varied consumer preferences.

How the Company Makes Money

TerrAscend Corp generates revenue through multiple key streams: cultivation and production of cannabis products, wholesale distribution to other dispensaries and retailers, and direct retail sales through its own branded dispensaries. The company benefits from vertical integration, allowing it to control the production process from seed to sale, ensuring product quality and margin optimization. TerrAscend also engages in strategic partnerships and acquisitions to expand its market presence and enhance its distribution network, further contributing to its revenue growth. Additionally, the company leverages its expertise in regulatory compliance to operate efficiently across different legal jurisdictions, maximizing its market opportunities.

TerrAscend Corp Financial Statement Overview

Summary

TerrAscend Corp shows mixed financial health with improvements in gross profit and cash flows but faces challenges in achieving profitability and reducing high liabilities. Continued focus on operational efficiency and revenue growth is essential for enhancing financial performance.

Income Statement

TerrAscend Corp's income statement reveals challenges in achieving profitability, with consistent net losses despite improvements in gross profit over the years. The gross profit margin improved to 48.9% in 2024, indicating efficient cost management. However, the company struggles with negative EBIT and EBITDA margins, reflecting operational inefficiencies. There is also a concerning decline in revenue growth, with a notable drop of 3.4% from 2023 to 2024, which may impact future profitability.

Balance Sheet

The balance sheet shows moderate financial stability with a debt-to-equity ratio of 1.39 in 2024, down from previous years, indicating reduced leverage. Return on equity remains negative due to net losses, but the equity ratio improved to 29.1% in 2024, signifying better equity financing. Despite some improvement, high total liabilities pose a risk to financial flexibility.

Cash Flow

Cash flow analysis highlights positive trends with a significant increase in free cash flow to $27.4 million in 2024, supported by improved operating cash flow. The operating cash flow to net income ratio is strong, suggesting effective cash management. However, the company needs to maintain this trajectory to counterbalance past negative cash flows and ensure sustainable growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	306.68M	317.33M	433.51M	310.32M	198.32M
Gross Profit	149.96M	159.70M	160.66M	170.92M	26.34M
EBITDA	6.16M	-1.38M	-431.22M	133.23M	-96.45M
Net Income	-80.23M	-91.10M	-577.08M	―	-155.12M
Balance Sheet
Total Assets	607.23M	666.52M	1.28B	936.84M	603.88M
Cash, Cash Equivalents and Short-Term Investments	28.11M	24.15M	55.27M	128.21M	75.41M
Total Debt	246.18M	255.70M	449.36M	340.38M	271.12M
Total Liabilities	430.41M	425.78M	692.57M	568.25M	592.76M
Stockholders Equity	176.96M	319.76M	580.39M	359.94M	1.19M
Cash Flow
Free Cash Flow	27.40M	18.04M	-118.07M	-113.26M	-28.10M
Operating Cash Flow	37.95M	27.47M	-44.79M	-49.00M	33.01M
Investing Cash Flow	-12.25M	-16.22M	-49.14M	-213.42M	-251.60M
Financing Cash Flow	-24.72M	-12.50M	―	291.13M	284.71M

TerrAscend Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TSND, the sentiment is Negative. The current price of 0.36 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.45, and below the 200-day MA of 0.89, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 40.17 is Neutral, neither overbought nor oversold. The STOCH value of 39.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TSND.

TerrAscend Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOVE	78 Outperform	C$126.18M	9.29	15.63%	―	28.97%	112.89%
OGI	71 Outperform	C$242.33M	18.16	4.76%	―	26.93%	―
XLY	70 Outperform	$112.05M	5.65	18.60%	―	26.78%	―
Sector *	46 Neutral	C$190.36M	-4.25	-8.56%	3.10%	13.57%	-1.98%
TSND	45 Neutral	C$131.35M	―	-38.89%	―	-6.80%	11.94%
CBST	39 Underperform	$227.80M	―	-554.70%	―	-14.45%	44.87%
TILT	35 Underperform	C$213.77M	―	-955.11%	―	-35.53%	-54.28%

TerrAscend Corp Corporate Events

TerrAscend Corp. Announces AGM Results, Reaffirms Leadership and Financial Strategy

TerrAscend Corp. announced the results of its annual general meeting, where shareholders approved the re-election of key directors and the re-appointment of MNP LLP as the company’s auditor. Additionally, a resolution was passed to modify the exercise prices of certain stock options. These decisions are expected to maintain stability in the company’s leadership and financial oversight, potentially impacting its strategic positioning in the cannabis industry.

The most recent analyst rating on (TSE:TSND) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on TerrAscend Corp stock, see the TSE:TSND Stock Forecast page.

TerrAscend Announces CFO Transition Amid Strategic Growth

TerrAscend Corp announced the departure of its Chief Financial Officer, Keith Stauffer, who will leave the company on July 18, 2025, to pursue opportunities outside the cannabis industry. Alisa Campbell, currently the Senior Vice President of Corporate Finance & Accounting, will take over on an interim basis. The company is conducting a comprehensive search for a permanent replacement. This transition is significant as Stauffer played a crucial role in strengthening TerrAscend’s financial foundation and strategic growth. The leadership change is expected to maintain continuity in the company’s financial strategy, with Campbell’s extensive experience and involvement in the company’s financial operations.

The most recent analyst rating on (TSE:TSND) stock is a Buy with a C$3.75 price target. To see the full list of analyst forecasts on TerrAscend Corp stock, see the TSE:TSND Stock Forecast page.

TerrAscend Expands into Ohio with Strategic Dispensary Acquisition

TerrAscend Corp has announced the acquisition of Ratio Cannabis LLC, marking its entry into Ohio, its sixth U.S. state. This acquisition is expected to enhance TerrAscend’s financial performance immediately and expand its retail presence to 39 dispensaries across North America. The company plans to further expand its footprint in Ohio by acquiring additional dispensaries, aiming to reach the state limit of eight. This strategic move is significant for TerrAscend’s growth and positioning in the competitive cannabis industry, especially given the legal complexities of operating in the U.S. market.

TerrAscend Expands New Jersey Presence with Fourth Dispensary Acquisition

TerrAscend Corp has announced an agreement to acquire its fourth dispensary in New Jersey, Union Chill, which generates over $11 million in annualized revenue. This acquisition is expected to enhance TerrAscend’s leadership in the state and improve its EBITDA and cash flow. The company plans to introduce its premium brands to Union Chill to boost sales and margins, and is exploring further expansion opportunities in New Jersey. The acquisition will increase TerrAscend’s retail footprint to 39 dispensaries across North America.

TerrAscend to Announce Q1 2025 Financial Results

TerrAscend Corp announced it will host a conference call to discuss its first quarter 2025 financial results on May 8, 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.