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HEXO CORP (HEXO) Stock Fundamental Analysis

NASDAQ:HEXO - Nasdaq - CA4283044069 - Common Stock - Currency: USD

0.71  +0.02 (+2.45%)

After market: 0.69 -0.02 (-2.82%)

Fundamental Rating

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We assign a fundamental rating of 1 out of 10 to HEXO. HEXO was compared to 193 industry peers in the Pharmaceuticals industry. Both the profitability and financial health of HEXO have multiple concerns. HEXO has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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1. Profitability

1.1 Basic Checks

In the past year HEXO has reported negative net income.
In the past year HEXO has reported a negative cash flow from operations.
In the past 5 years HEXO always reported negative net income.
In the past 5 years HEXO always reported negative operating cash flow.
HEXO Yearly Net Income VS EBIT VS OCF VS FCFHEXO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 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 Yearly ROA, ROE, ROICHEXO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 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 Yearly Profit, Operating, Gross MarginsHEXO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 -200 -400 -600

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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.
HEXO has a better debt/assets ratio than last year.
HEXO Yearly Shares OutstandingHEXO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
HEXO Yearly Total Debt VS Total AssetsHEXO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B

2.2 Solvency

HEXO has an Altman-Z score of -7.92. This is a bad value and indicates that HEXO is not financially healthy and even has some risk of bankruptcy.
HEXO has a worse Altman-Z score (-7.92) than 70.64% of its industry peers.
HEXO has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
HEXO's Debt to Equity ratio of 0.01 is in line compared to the rest of the industry. HEXO outperforms 55.05% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Altman-Z -7.92
ROIC/WACCN/A
WACC3.02%
HEXO Yearly LT Debt VS Equity VS FCFHEXO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 200M -200M 400M 600M

2.3 Liquidity

A Current Ratio of 0.41 indicates that HEXO may have some problems paying its short term obligations.
HEXO has a worse Current ratio (0.41) than 93.12% of its industry peers.
A Quick Ratio of 0.24 indicates that HEXO may have some problems paying its short term obligations.
HEXO has a Quick ratio of 0.24. This is amonst the worse of the industry: HEXO underperforms 93.58% of its industry peers.
Industry RankSector Rank
Current Ratio 0.41
Quick Ratio 0.24
HEXO Yearly Current Assets VS Current LiabilitesHEXO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M

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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.
The Revenue is expected to decrease by -5.44% on average over the next years.
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 Yearly Revenue VS EstimatesHEXO 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 Yearly EPS VS EstimatesHEXO 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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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 RankSector Rank
PE N/A
Fwd PE N/A
HEXO Price Earnings VS Forward Price EarningsHEXO 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 Per share dataHEXO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 -10 -20 -30

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%

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5. Dividend

5.1 Amount

No dividends for HEXO!.
Industry RankSector Rank
Dividend Yield N/A

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HEXO CORP

NASDAQ:HEXO (6/22/2023, 8:09:01 PM)

After market: 0.69 -0.02 (-2.82%)

0.71

+0.02 (+2.45%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)06-14 2023-06-14/amc
Earnings (Next)10-31 2023-10-31/amc
Inst Owners2.75%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap30.80M
Analysts46.67
Price Target1.23 (73.24%)
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)-0.7%
PT rev (3m)-17.75%
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 0.33
P/FCF N/A
P/OCF N/A
P/B 0.29
P/tB 0.56
EV/EBITDA N/A
EPS(TTM)-30.52
EYN/A
EPS(NY)-0.54
Fwd EYN/A
FCF(TTM)-0.83
FCFYN/A
OCF(TTM)-0.67
OCFYN/A
SpS2.16
BVpS2.48
TBVpS1.26
PEG (NY)N/A
PEG (5Y)N/A
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
ROICexcg growth 3YN/A
ROICexcg 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 -7.92
F-Score3
WACC3.02%
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