We assign a fundamental rating of 1 out of 10 to HEXO. HEXO was compared to 190 industry peers in the Pharmaceuticals industry. HEXO has a bad profitability rating. Also its financial health evaluation is rather negative. HEXO has a expensive valuation and it also scores bad on growth.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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

The Profit Margin and Operating Margin and Gross Margin are not available for HEXO so they could not be analyzed.

		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

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 1 year ago, HEXO has more shares outstanding
Compared to 1 year ago, HEXO has an improved debt to assets ratio.

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.
Looking at the Altman-Z score, with a value of -7.92, HEXO is doing worse than 70.64% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that HEXO is not too dependend on debt financing.
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 Rank	Sector Rank
Debt/Equity	0.01
Debt/FCF	N/A
Altman-Z	-7.92

ROIC/WACCN/A

WACC3.02%

2.3 Liquidity

A Current Ratio of 0.41 indicates that HEXO may have some problems paying its short term obligations.
HEXO's Current ratio of 0.41 is on the low side compared to the rest of the industry. HEXO is outperformed by 93.12% of its industry peers.
A Quick Ratio of 0.24 indicates that HEXO may have some problems paying its short term obligations.
With a Quick ratio value of 0.24, HEXO is not doing good in the industry: 93.58% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	0.41
Quick Ratio	0.24

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

HEXO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 90.82%, which is quite impressive.
The Revenue for HEXO has decreased by -47.74% in the past year. This is quite bad
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

The Earnings Per Share is expected to grow by 18.92% on average over the next years. This is quite good.
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.

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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.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for HEXO. No positive earnings are expected for the next year.