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Flora Growth (FLGC)
NASDAQ:FLGC
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Flora Growth
(NASDAQ:FLGC)
43Neutral
Flora Growth (FLGC) vs. S&P 500 (SPY)
Market Cap
$15.25M
Dividend YieldN/A
Average Volume (3M)249.91K
Price to Earnings (P/E)―
Beta (1Y)2.71
Revenue Growth-28.78%
EPS Growth86.97%
CountryUS
Employees64
SectorHealthcare
Sector Strength41
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.04
Shares Outstanding22,568,653
10 Day Avg. Volume479,358
30 Day Avg. Volume249,908
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)2.06
Price to Sales (P/S)0.00
P/FCF Ratio-2.55
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue0.05
Enterprise Value/Gross Profit1.19
Enterprise Value/Ebitda-0.21
Forecast
1Y Price Target
$1.50Price Target Upside120.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Flora Growth Business Overview & Revenue Model
Company DescriptionFlora Growth Corp., together with its subsidiaries, engages in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products to pharmacies, medical clinics, and cosmetic companies worldwide. It cultivates, processes, and supplies medicinal-grade cannabis oil, and cannabis derived medical and wellness products; offers skincare and beauty products; develops plant-based and medical-grade pharmaceuticals, phytotherapeutics, and dietary supplements; and designs and markets loungewear made from hemp-derived fabric and materials. The company also manufactures, distributes, and retails cannabidiol (CBD) derived products, such as gummies, topicals, tinctures, and vape products; lifestyle wellness products, including edibles, bath and body, pets, sports recovery, etc.; provides cannabis consumption accessories, personal storage, and travel accessories for vape and dry herb categories; and offers juices, exotic fruits coated with chocolate, and chocolate bars, as well as dried fruits, beans, and pulp from Amazonian fruits in supermarkets, discount retailers, coffee shops, restaurants, and airports. In addition, it engages in the manufacturing, promotion, and distribution of beverage products; manufacture and sale of product formulations for pain relief; and development of pharmaceutical cannabinoid formula for the prevention of Sars-Cov-2. The company sells its products under the JustCBD, Vessel, Mind Naturals, Mambe, Stardog, Tonino Lamborghini, and Kalaya brands. Flora Growth Corp. was incorporated in 2019 and is headquartered in Toronto, Canada.
How the Company Makes MoneyFlora Growth makes money through several key revenue streams. The primary source of revenue comes from the cultivation and sale of cannabis products, which includes dried flower, oils, and other derivatives. Additionally, the company generates income from its wellness and cosmetics brands, which utilize cannabis-derived ingredients. Flora Growth's revenue model is supported by strategic partnerships and distribution agreements that enable the company to expand its market reach both domestically and internationally. These partnerships often involve collaborations with other companies in the pharmaceutical, cosmetics, and consumer goods industries, enhancing product accessibility and brand recognition. The company's vertically integrated operations, from cultivation to distribution, allow it to maintain cost efficiencies and maximize profitability.
Flora Growth Financial Statement Overview
Summary
Flora Growth is facing significant financial challenges, with declining revenue and persistent losses impacting its ability to generate positive earnings. The balance sheet reflects increased leverage and reduced equity, highlighting financial instability. While there is some improvement in free cash flow, the overall financial position is weak, requiring strategic changes to improve profitability and reduce financial risk in a highly competitive industry.Income Statement
Flora Growth's income statement shows a significant decline in revenue from $76.07 million in 2023 to $59.51 million in 2024, indicating a negative revenue growth rate of -21.75%. Additionally, the company has been consistently operating at a loss with a negative net profit margin, as net income remains negative across the years, reaching -$15.91 million in 2024. Gross profit margin has also declined from 23.32% in 2023 to 21.00% in 2024, reflecting reduced operational efficiency. These factors point to struggles in maintaining profitability and revenue growth.35
Negative
Balance Sheet
The balance sheet of Flora Growth highlights a challenging financial position, with a debt-to-equity ratio that has risen to 1.09 in 2024, reflecting increased leverage. Stockholders' equity has decreased significantly, from $6.40 million in 2023 to $4.51 million in 2024. The equity ratio has also declined to 17.20% in 2024, suggesting a lower proportion of equity financing. The company faces potential risks due to its high leverage and declining equity position.40
Negative
Cash Flow
Cash flow analysis for Flora Growth reveals some improvement in free cash flow, which, while still negative at -$5.17 million in 2024, has improved from -$8.56 million in 2023. However, operating cash flow remains negative, indicating continuous cash outflows from core operations. The operating cash flow to net income ratio remains unfavorable, given the negative net income. Despite the improvement in free cash flow, the company faces challenges in generating positive cash flow from operations.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 59.51M | 76.07M | 37.17M | 8.98M | 106.00K | Gross Profit |
| 12.50M | 17.74M | 14.41M | 2.42M | 71.00K | EBIT |
| -15.91M | -50.35M | 3.29M | -18.95M | -12.34M | EBITDA |
| -15.10M | -45.87M | -17.91M | -20.61M | -14.19M | Net Income Common Stockholders |
| -15.91M | -57.04M | -52.63M | -21.36M | -14.26M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 6.02M | 4.35M | 9.54M | 37.61M | 15.52M | Total Assets |
| 26.23M | 23.63M | 80.99M | 85.48M | 19.45M | Total Debt |
| 4.90M | 3.67M | 4.14M | 1.34M | 649.00K | Net Debt |
| -1.12M | -678.00K | -5.39M | -36.28M | -14.87M | Total Liabilities |
| 21.72M | 17.22M | 24.57M | 8.54M | 3.20M | Stockholders Equity |
| 4.51M | 6.40M | 56.82M | 77.17M | 16.36M |
| Cash Flow | Free Cash Flow | |||
| -5.17M | -8.56M | -17.23M | -24.63M | -8.65M | Operating Cash Flow |
| -5.03M | -8.40M | -15.94M | -20.65M | -8.42M | Investing Cash Flow |
| 203.00K | -234.00K | -15.80M | -14.55M | -2.16M | Financing Cash Flow |
| 6.49M | 3.15M | 4.41M | 58.11M | 25.82M |
Flora Growth Technical Analysis
Neutral
0.68
Price Trends
0.60
Positive
0.75
Negative
1.04
Negative
Market Momentum
0.03
Negative
57.11
Neutral
70.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLGC, the sentiment is Neutral. The current price of 0.68 is above the 20-day moving average (MA) of 0.62, above the 50-day MA of 0.60, and below the 200-day MA of 1.04, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 57.11 is Neutral, neither overbought nor oversold. The STOCH value of 70.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FLGC.
Flora Growth Risk Analysis
Flora Growth disclosed 59 risk factors in its most recent earnings report. Flora Growth reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Flora Growth Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $5.15B | 3.02 | -44.64% | 2.83% | 16.44% | -0.47% | |
52 Neutral | $347.35M | ― | -9.20% | ― | -3.02% | 26.00% | |
44 Neutral | $507.64M | ― | -31.06% | ― | 11.22% | -108.58% | |
43 Neutral | $15.25M | ― | -336.65% | ― | -28.78% | 86.97% | |
39 Underperform | $7.65M | ― | -201.88% | ― | ― | ― | |
31 Underperform | $23.68M | ― | -576.46% | ― | ― | 38.50% | |
30 Underperform | $8.46M | ― | -8.46% | ― | -9.22% | 89.90% |
* Healthcare Sector Average
Performance Comparison
FLGC
Flora Growth
0.68
-0.55
-44.72%
KALA
Kala Pharmaceuticals
3.67
-2.96
-44.65%
YCBD
cbdMD
0.95
-4.79
-83.45%
TLRY
Tilray
0.50
-1.44
-74.23%
SNDL
SNDL
1.35
-1.05
-43.75%
IXHL
Incannex Healthcare Limited Sponsored ADR
0.26
-2.30
-89.84%
Flora Growth Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q3-2024)
| % Change Since: -6.85%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant strategic expansions and leadership changes that position Flora Growth for future growth in both the U.S. and European markets. However, the company faced challenges with declining revenue and increased operating expenses. Despite these challenges, the substantial reduction in net loss and strong performance of key brands suggest a cautiously optimistic outlook.Q3-2024 Updates
Positive Updates
Strategic Expansion in the U.S. and Germany
Flora Growth is leveraging its brands, JustCBD and Vessel, to capture market share in the U.S. with a focus on the growing infused beverage market. In Germany, the company is launching a Parallel Import business to meet the demand for affordable pharmaceuticals.
Significant Reduction in Net Loss
The net loss for the period was reduced to $9.8 million from $47.3 million, an improvement of $37.5 million or 79%.
Strong Performance of JustCBD and Vessel
JustCBD maintained a gross profit margin of 40% with $4.2 million in sales, while Vessel maintained a gross profit margin of 55% with $1.1 million in sales. Both brands continued to expand their wholesale customer base.
New Leadership in European Operations
Dr. Manfred Ziegler, former Managing Director of CC Pharma, was appointed to lead operations in Europe, bringing extensive experience and a successful track record.
Potential Policy Advancements in the U.S.
Positive signals from U.S. political leaders regarding cannabis regulation and the introduction of the Cannabinoid Safety and Regulations Act could benefit Flora's operations.
Negative Updates
Decline in Revenue
Revenues for Q3 2024 were $12.5 million, down from $17.3 million in Q3 2023. Revenue for the first nine months of 2024 was $46.2 million, compared to $58.1 million for the same period in 2023.
Increased Operating Expenses
Total operating expenses increased to $6.5 million in Q3 2024 from $5.5 million in Q3 2023.
Challenges in the German Market
The company experienced softness in its existing German business due to increased competition and the need for business model adjustments.
Company Guidance
During the Flora Growth Corporation Q3 2024 earnings call, the company provided guidance reflecting strategic initiatives and financial metrics. Flora's revenues for the third quarter of 2024 were $12.5 million, down from $17.3 million in the same quarter of 2023, primarily due to discontinuing unprofitable lines. The company reported a net loss of $9.8 million, a significant improvement from the $47.3 million loss in the prior year. Total operating expenses increased to $6.5 million compared to $5.5 million in Q3 2023. JustCBD maintained a gross profit margin of 40% on $4.2 million in sales, while Vessel achieved a 55% margin on $1.1 million in sales. Parallel Import business and regulatory advancements in the U.S. and Germany are seen as key drivers for future growth. The company ended the quarter with $4.2 million in cash and $21.3 million in current assets, including $7.9 million in saleable inventory. Flora is optimistic about leveraging federal rescheduling in the U.S. and regulatory developments in Germany to enhance market presence.Flora Growth Corporate Events
Private Placements and FinancingBusiness Operations and StrategyRegulatory Filings and Compliance
Flora Growth Ends Agreement with Aegis Capital
Neutral
Dec 12, 2024
Flora Growth Corp. and Aegis Capital Corp. have jointly decided to terminate their At-The-Market Issuances Sales Agreement, effective December 12, 2024. Subsequently, Flora Growth filed a prospectus supplement to de-register the common shares previously registered for issuance under this agreement, indicating a shift in their capital raising strategy.
Executive/Board Changes
Flora Growth Restructures Board with New Appointments
Positive
Dec 11, 2024
Flora Growth Corp. announced the resignation of Brendan Cahill from its board of directors and the appointment of Sammy Dorf and Manfred Leventhal as new directors. Sammy Dorf, a notable figure in the cannabis industry, has been appointed as Executive Chairman, bringing significant expertise and potential growth opportunities to Flora Growth. Manfred Leventhal’s appointment as an independent director strengthens Flora’s compliance with Nasdaq’s audit committee requirements and enhances its corporate governance.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.