HEXO Corp (HEXO.CA) Fundamental Analysis & Valuation

TSX:HEXO • CA4283044069

Current stock price

0.88 CAD
+0.01 (+1.15%)
Last:

This HEXO.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

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1. HEXO.CA Profitability Analysis

1.1 Basic Checks

  • In the past year HEXO has reported negative net income.
  • HEXO had a negative operating cash flow in the past year.
HEXO.CA Yearly Net Income VS EBIT VS OCF VS FCFHEXO.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 -200M -400M -600M -800M -1B

1.2 Ratios

  • The profitability ratios for HEXO are negative, so there is not much use analyzing them.
Industry RankSector 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
HEXO.CA Yearly ROA, ROE, ROICHEXO.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 -100 -200 -300

1.3 Margins

  • The Profit Margin and Operating Margin and Gross Margin are not available for HEXO so they could not be analyzed.
Industry RankSector 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
HEXO.CA Yearly Profit, Operating, Gross MarginsHEXO.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 -200 -400 -600

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2

2. HEXO.CA Health Analysis

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.
HEXO.CA Yearly Shares OutstandingHEXO.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
HEXO.CA Yearly Total Debt VS Total AssetsHEXO.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B

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.
  • HEXO's Altman-Z score of -7.93 is on the low side compared to the rest of the industry. HEXO is outperformed by 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 RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Altman-Z -7.93
ROIC/WACCN/A
WACC2.8%
HEXO.CA Yearly LT Debt VS Equity VS FCFHEXO.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 200M -200M 400M 600M

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.
  • HEXO has a Current ratio of 0.41. This is in the lower half of the industry: HEXO underperforms 78.26% of its industry peers.
  • HEXO has a Quick 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.
  • HEXO has a Quick ratio of 0.24. This is in the lower half of the industry: HEXO underperforms 76.09% of its industry peers.
Industry RankSector Rank
Current Ratio 0.41
Quick Ratio 0.24
HEXO.CA Yearly Current Assets VS Current LiabilitesHEXO.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. HEXO.CA Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 90.82% over the past year.
  • Looking at the last year, HEXO shows a very negative growth in Revenue. The Revenue has decreased by -47.74% in the last year.
  • Measured over the past years, HEXO shows a very strong growth in Revenue. The Revenue has been growing by 115.62% on average per year.
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

  • The Earnings Per Share is expected to grow by 18.92% on average over the next years. This is quite good.
  • Based on estimates for the next years, HEXO will show a decrease in Revenue. The Revenue will decrease by -5.44% on average per year.
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

  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
HEXO.CA Yearly Revenue VS EstimatesHEXO.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2030 100M 200M 300M 400M 500M
HEXO.CA Yearly EPS VS EstimatesHEXO.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 -200 -400 -600 -800

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Find the best growth stocksShow best growing peers

1

4. HEXO.CA Valuation Analysis

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 RankSector Rank
PE N/A
Fwd PE N/A
HEXO.CA Price Earnings VS Forward Price EarningsHEXO.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
HEXO.CA Per share dataHEXO.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 -10 -20 -30 -40

4.3 Compensation for Growth

  • HEXO's earnings are expected to grow with 25.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.35%
EPS Next 3Y25.96%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. HEXO.CA Dividend Analysis

5.1 Amount

  • HEXO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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Find the best dividend stocksShow peers with best dividend

HEXO.CA Fundamentals: All Metrics, Ratios and Statistics

HEXO Corp

TSX:HEXO (6/26/2023, 7:00:00 PM)

0.88

+0.01 (+1.15%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)N/A
Earnings (Next)12-14
Inst Owners10.9%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap38.18M
Revenue(TTM)124.10M
Net Income(TTM)-267.16M
Analysts46.67
Price Target1.64 (86.36%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3004.62%
Min EPS beat(2)-5995.95%
Max EPS beat(2)-13.29%
EPS beat(4)1
Avg EPS beat(4)-1525.55%
Min EPS beat(4)-5995.95%
Max EPS beat(4)97.53%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-25.3%
Min Revenue beat(2)-34.46%
Max Revenue beat(2)-16.13%
Revenue beat(4)0
Avg Revenue beat(4)-16.54%
Min Revenue beat(4)-34.46%
Max Revenue beat(4)-5.76%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-27.5%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)76.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-25.43%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.31
P/FCF N/A
P/OCF N/A
P/B 0.27
P/tB 0.53
EV/EBITDA N/A
EPS(TTM)-40.48
EYN/A
EPS(NY)-0.71
Fwd EYN/A
FCF(TTM)-1.1
FCFYN/A
OCF(TTM)-0.89
OCFYN/A
SpS2.86
BVpS3.29
TBVpS1.67
PEG (NY)N/A
PEG (5Y)N/A
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA N/A
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM 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
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score3
Asset Turnover0.31
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 32.53%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.41
Quick Ratio 0.24
Altman-Z -7.93
F-Score3
WACC2.8%
ROIC/WACCN/A
Cap/Depr(3y)357.42%
Cap/Depr(5y)1584.68%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)90.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%98.6%
EPS Next Y99.88%
EPS Next 2Y41.35%
EPS Next 3Y25.96%
EPS Next 5Y18.92%
Revenue 1Y (TTM)-47.74%
Revenue growth 3Y59%
Revenue growth 5Y115.62%
Sales Q2Q%-52.63%
Revenue Next Year-42.24%
Revenue Next 2Y-21.51%
Revenue Next 3Y-9.95%
Revenue Next 5Y-5.44%
EBIT growth 1Y54.08%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year99.56%
EBIT Next 3Y26.3%
EBIT Next 5Y19.3%
FCF growth 1Y-17.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-118.11%
OCF growth 3YN/A
OCF growth 5YN/A

HEXO Corp / HEXO.CA Fundamental Analysis 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 for HEXO stock?

ChartMill assigns a valuation rating of 3 / 10 to HEXO Corp (HEXO.CA). This can be considered as Overvalued.


What is the profitability of HEXO stock?

HEXO Corp (HEXO.CA) has a profitability rating of 1 / 10.


Can you provide the financial health for HEXO stock?

The financial health rating of HEXO Corp (HEXO.CA) is 1 / 10.