Fundamental Analysis of HEXO CORP(NASDAQ:HEXO) stock

Fundamental Rating

Taking everything into account, HEXO scores 1 out of 10 in our fundamental rating. HEXO was compared to 198 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.

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1. Profitability

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 had negative earnings in each of the past 5 years.

HEXO had a negative operating cash flow in each of the past 5 years.

1.2 Ratios

The profitability ratios for HEXO are negative, so there is not much use analyzing them.

		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

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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.

The number of shares outstanding for HEXO has been increased compared to 1 year ago.

The number of shares outstanding for HEXO has been increased compared to 5 years ago.

HEXO has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of -7.92, we must say that HEXO is in the distress zone and has some risk of bankruptcy.

With a Altman-Z score value of -7.92, HEXO is not doing good in the industry: 70.64% of the companies in the same industry are doing better.

HEXO has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.

HEXO has a Debt to Equity ratio (0.01) which is comparable to the rest of the industry.

		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.

Looking at the Current ratio, with a value of 0.41, HEXO is doing worse than 93.12% of the companies in the same industry.

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 amonst the worse of the industry: HEXO underperforms 93.58% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.41
Quick Ratio	0.24

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WACC

Debt/Equity

How to determine the health of a company

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 growth Q2Q98.6%

Revenue 1Y (TTM)-47.74%

Revenue growth 3Y59%

Revenue growth 5Y115.62%

Revenue growth 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.

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

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.

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%

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5. Dividend

5.1 Amount

No dividends for HEXO!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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HEXO CORP

NASDAQ:HEXO (6/22/2023, 7:09:01 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)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap30.80M

Analysts

Price Target

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Dividend Growth(5Y)

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

Max EPS beat(2)

EPS beat(4)

Avg EPS beat(4)

Min EPS beat(4)

Max EPS beat(4)

EPS beat(8)

Avg EPS beat(8)

EPS beat(12)

Avg EPS beat(12)

EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

Avg Revenue beat(2)

Min Revenue beat(2)

Max Revenue beat(2)

Revenue beat(4)

Avg Revenue beat(4)

Min Revenue beat(4)

Max Revenue beat(4)

Revenue beat(8)

Avg Revenue beat(8)

Revenue beat(12)

Avg Revenue beat(12)

Revenue beat(16)

Avg Revenue beat(16)

PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA

EPS(TTM)

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	N/A
ROE	N/A
ROCE
ROIC
ROICexc
ROICexgc
OM	N/A
PM (TTM)	N/A
GM	N/A
FCFM

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

ROCE(3y)

ROCE(5y)

ROICexcg growth 3Y

ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover0.31

Health

		Industry Rank	Sector Rank
Debt/Equity	0.01
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio	0.41
Quick Ratio	0.24
Altman-Z

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

Profit Quality(3y)

Profit Quality(5y)

Growth

EPS 1Y (TTM)90.82%

EPS 3YN/A

EPS 5Y

EPS growth Q2Q

EPS Next Y99.88%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)-47.74%

Revenue growth 3Y59%

Revenue growth 5Y

Revenue growth Q2Q

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

EBIT Next Year

EBIT Next 3Y

EBIT Next 5Y

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y

HEXO CORP (HEXO)

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

More info and screens