Cresco Labs, Inc. (CL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Curaleaf Holdings, Inc.

Aurora Cannabis, Inc.

Cresco Labs, Inc.

Terrascend Corp.

Verano Holdings Corp.

Planet 13 Holdings, Inc.

Glass House Brands, Inc.

Why is Cresco Labs, Inc. ?

Poor Management Efficiency with a low ROCE of 6.77%

The company has been able to generate a Return on Capital Employed (avg) of 6.77% signifying low profitability per unit of total capital (equity and debt)

Negative results in Dec 24

NET PROFIT(HY) At CAD -22.62 MM has Grown at -200.86%
INTEREST COVERAGE RATIO(Q) Lowest at 254.42
OPERATING PROFIT(Q) Lowest at CAD 49.28

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -54.26%, its profits have fallen by -104.1%

Below par performance in long term as well as near term

Along with generating -54.26% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Cresco Labs, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Cresco Labs, Inc.

34.65%

-0.87

95.45%

S&P/TSX 60

23.72%

1.43

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.59%

EBIT Growth (5y)

19.12%

EBIT to Interest (avg)

0.30

Debt to EBITDA (avg)

2.88

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

0.76

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.12%

ROCE (avg)

6.77%

ROE (avg)

0.45%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.27

EV to EBIT

8.51

EV to EBITDA

5.26

EV to Capital Employed

1.13

EV to Sales

1.17

PEG Ratio

Dividend Yield

ROCE (Latest)

13.32%

ROE (Latest)

-1.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

Bearish

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

ROCE(HY)

Highest at -12.02%

PRE-TAX PROFIT(Q)

At CAD 18 MM has Grown at 74.82%

NET PROFIT(Q)

Highest at CAD 8.42 MM

-5What is not working for the Company

INTEREST(Q)

At CAD 21.02 MM has Grown at 13%

RAW MATERIAL COST(Y)

Grown by 7.82% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 117.21 %

EPS(Q)

Lowest at CAD -0.07

Here's what is working for Cresco Labs, Inc.

Net Profit

At CAD 8.42 MM has Grown at 124.76%

over average net sales of the previous four periods of CAD -34.02 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Pre-Tax Profit

At CAD 18 MM has Grown at 74.82%

over average net sales of the previous four periods of CAD 10.3 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 8.42 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Here's what is not working for Cresco Labs, Inc.

Interest

At CAD 21.02 MM has Grown at 13%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

EPS

Lowest at CAD -0.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Debt-Equity Ratio

Highest at 117.21 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 7.82% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales