HEXO Corp (HEXO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:HEXO - CA4283044069 - Common Stock
0.88 CAD
+0.01 (+1.15%)
We assign a fundamental rating of 1 out of 10 to HEXO. HEXO was compared to 34 industry peers in the Pharmaceuticals industry. HEXO may be in some trouble as it scores bad on both profitability and health. HEXO does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- HEXO had negative earnings in the past year.
- HEXO had a negative operating cash flow in the past year.
1.2 Ratios
- HEXO has negative profitability rations, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- HEXO does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- HEXO does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for HEXO has been increased compared to 1 year ago.
- Compared to 1 year ago, HEXO has an improved debt to assets ratio.
2.2 Solvency
- HEXO has an Altman-Z score of -7.93. This is a bad value and indicates that HEXO is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of HEXO (-7.93) is worse than 76.09% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that HEXO is not too dependend on debt financing.
- The Debt to Equity ratio of HEXO (0.01) is better than 80.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -7.93 |
ROIC/WACCN/A
WACC2.8%
2.3 Liquidity
- HEXO has a Current Ratio of 0.41. This is a bad value and indicates that HEXO is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.41, HEXO is not doing good in the industry: 78.26% of the companies in the same industry are doing better.
- A Quick Ratio of 0.24 indicates that HEXO may have some problems paying its short term obligations.
- The Quick ratio of HEXO (0.24) is worse than 76.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 90.82% over the past year.
- HEXO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -47.74%.
- HEXO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 115.62% yearly.
EPS 1Y (TTM)90.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%98.6%
Revenue 1Y (TTM)-47.74%
Revenue growth 3Y59%
Revenue growth 5Y115.62%
Sales Q2Q%-52.63%
3.2 Future
- Based on estimates for the next years, HEXO will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.92% on average per year.
- HEXO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.44% yearly.
EPS Next Y99.88%
EPS Next 2Y41.35%
EPS Next 3Y25.96%
EPS Next 5Y18.92%
Revenue Next Year-42.24%
Revenue Next 2Y-21.51%
Revenue Next 3Y-9.95%
Revenue Next 5Y-5.44%
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for HEXO. In the last year negative earnings were reported.
- Also next year HEXO is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- A more expensive valuation may be justified as HEXO's earnings are expected to grow with 25.96% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.35%
EPS Next 3Y25.96%
5. Dividend
5.1 Amount
- No dividends for HEXO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HEXO Corp / HEXO.CA FAQ
Can you provide the ChartMill fundamental rating for HEXO Corp?
ChartMill assigns a fundamental rating of 2 / 10 to HEXO.CA.
What is the valuation status of HEXO Corp (HEXO.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to HEXO Corp (HEXO.CA). This can be considered as Overvalued.
Can you provide the profitability details for HEXO Corp?
HEXO Corp (HEXO.CA) has a profitability rating of 1 / 10.
How financially healthy is HEXO Corp?
The financial health rating of HEXO Corp (HEXO.CA) is 1 / 10.