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Cresco Labs, Inc.

  • Market Cap: Small Cap
  • Industry: Other Agricultural Products
  • ISIN: CA22587M1068
  • CNQ: CL
CAD
1.11
0.08 (7.77%)

Sep 22

CNQ

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Rogers Sugar, Inc.
Green Thumb Industries, Inc.
Curaleaf Holdings, Inc.
Cresco Labs, Inc.
Canopy Growth Corp.
Aurora Cannabis, Inc.
Terrascend Corp.
Trulieve Cannabis Corp.
Verano Holdings Corp.
Planet 13 Holdings, Inc.
Glass House Brands, Inc.

Why is Cresco Labs, Inc. ?

1
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)
2
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 -26.97%, its profits have risen by 95.1%
3
Consistent Underperformance against the benchmark over the last 3 years
  • Along with generating -26.97% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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.
-26.97%
-0.56
145.56%
S&P/TSX 60
20.36%
1.67
12.21%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
2.79%
EBIT Growth (5y)
20.76%
EBIT to Interest (avg)
1.40
Debt to EBITDA (avg)
2.97
Net Debt to Equity (avg)
0.72
Sales to Capital Employed (avg)
0.77
Tax Ratio
8.39%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.13%
ROCE (avg)
9.31%
ROE (avg)
0.45%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.80
EV to EBIT
7.12
EV to EBITDA
4.45
EV to Capital Employed
0.90
EV to Sales
1.02
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
12.71%
ROE (Latest)
-1.05%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

16What is working for the Company
DEBTORS TURNOVER RATIO(HY)

Highest at 16.18 times

NET SALES(Q)

Highest at CAD 239.97 MM

NET PROFIT(Q)

Highest at CAD 36.39 MM

EPS(Q)

Highest at CAD 0.05

-7What is not working for the Company
OPERATING CASH FLOW(Y)

Lowest at CAD 60.22 MM

PRE-TAX PROFIT(Q)

At CAD 8.16 MM has Fallen at -42.26%

CASH AND EQV(HY)

Lowest at CAD 179.68 MM

DEBT-EQUITY RATIO (HY)

Highest at 147.17 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.5 times

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

Net Profit
At CAD 36.39 MM has Grown at 286.14%
over average net sales of the previous four periods of CAD -19.55 MM
MOJO Watch
Near term Net Profit trend is very positive

Net Profit (CAD MM)

Net Sales
Highest at CAD 239.97 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CAD MM)

Net Profit
Highest at CAD 36.39 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS
Highest at CAD 0.05
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Debtors Turnover Ratio
Highest at 16.18 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Pre-Tax Profit
At CAD 8.16 MM has Fallen at -42.26%
over average net sales of the previous four periods of CAD 14.12 MM
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Operating Cash Flow
Lowest at CAD 60.22 MM
in the last three years
MOJO Watch
The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Cash and Eqv
Lowest at CAD 179.68 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio
Highest at 147.17 %
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

Inventory Turnover Ratio
Lowest at 3.5 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio

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