Christina Lake Cannabis (CLC) AI Stock Analysis

• Market Cap: $10.14M
• Dividend Yield: N/A
• Average Volume (3M): 28.63K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.38
• Revenue Growth: 15.54%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 60
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): <0.01
• Shares Outstanding: 225,315,350
• 10 Day Avg. Volume: 14,400
• 30 Day Avg. Volume: 28,631
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Christina Lake Cannabis shows strong revenue growth and improved profitability, with positive technical indicators and a low P/E ratio suggesting undervaluation. However, operational efficiency and cash flow challenges, alongside increased leverage, present risks. The recent private placement is a positive move to strengthen financials.

Christina Lake Cannabis Business Overview & Revenue Model

Company Description

Christina Lake Cannabis Corp. engages in growing, harvesting, processing, and selling cannabis products in the British Columbia, Canada. It offers cannabis oil, hemp oil, and other hemp and cannabis derived products, as well as distillate oils. The company was formerly known as Cervantes Capital Corp. and changed its name to Christina Lake Cannabis Corp. in December 2018. Christina Lake Cannabis Corp. was incorporated in 2014 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Christina Lake Cannabis generates revenue primarily through the sale of its cannabis products, including dried flower, oils, and extracts. The company utilizes its large outdoor cultivation space to produce cannabis at a lower cost compared to indoor operations, which allows it to offer competitive pricing. CLC also engages in business-to-business (B2B) transactions, supplying bulk cannabis and derivatives to other companies in the cannabis sector. Additionally, the company may enter into strategic partnerships and licensing agreements to expand its market reach and product offerings. These activities, combined with its focus on innovation and quality, contribute to its earnings.

Christina Lake Cannabis Financial Statement Overview

Summary

Christina Lake Cannabis has shown commendable revenue growth and improved profitability over recent years. However, the company faces challenges with operational efficiency and cash flow management. Increased leverage adds financial risk, although asset growth and equity improvement are encouraging. Continuous focus on enhancing cash flow and managing debt levels will be essential for sustainable growth.

Income Statement

The company has shown significant revenue growth, increasing from $3.63 million in 2021 to $13.61 million in 2024. Gross profit margin in 2024 is strong at approximately 68.4%, indicating efficient cost management. However, the net profit margin remains low at approximately 6.4% in 2024, and EBIT was zero, suggesting potential operational efficiency issues. The company has transitioned from a net loss in previous years to a positive net income, reflecting improving financial performance.

Balance Sheet

The debt-to-equity ratio is relatively high at approximately 0.95 in 2024, indicating increased leverage, which could pose risks if not managed properly. Stockholders' equity has grown, showing a positive trend. The equity ratio is moderate at around 46.2%, suggesting a balanced approach to financing assets. Overall, while the company's leverage has increased, the growth in equity and assets is a positive sign.

Cash Flow

Free cash flow has significantly decreased from $0.78 million in 2023 to negative $4.13 million in 2024, indicating potential cash flow management issues. Operating cash flow to net income ratio is low, suggesting that net income is not effectively translating into cash flow. The company needs to focus on improving cash flow generation to support its operations and growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
13.61M	11.78M	10.07M	3.63M	0.00
	Gross Profit
9.31M	3.61M	2.98M	56.72K	4.77M
	EBIT
0.00	-880.55K	-1.56M	-6.30M	1.50M
	EBITDA
3.25M	-2.62M	-938.92K	-5.97M	-2.14M
	Net Income Common Stockholders
865.00K	-4.13M	-1.74M	-6.78M	-5.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.85M	1.47M	1.84M	1.08M	1.84M
	Total Assets
23.37M	15.96M	18.79M	18.97M	17.80M
	Total Debt
10.27M	6.15M	6.45M	3.81M	4.06M
	Net Debt
8.46M	4.68M	4.64M	2.74M	2.21M
	Total Liabilities
12.57M	8.50M	7.66M	9.23M	8.35M
	Stockholders Equity
10.79M	7.46M	11.14M	9.74M	9.46M
Cash Flow		Free Cash Flow
-4.13M	781.46K	394.55K	-5.85M	-8.10M
	Operating Cash Flow
221.02K	1.38M	1.18M	-4.62M	-3.32M
	Investing Cash Flow
-4.47M	-571.37K	-790.41K	-1.20M	-4.78M
	Financing Cash Flow
4.59M	-1.15M	369.17K	5.06M	9.20M

Christina Lake Cannabis Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CLC, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.05, and above the 200-day MA of 0.04, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 38.96 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CLC.

Christina Lake Cannabis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLC	63 Neutral	$10.14M	6.82	9.27%	―	15.54%	―
Sector *	52 Neutral	$5.24B	3.76	-41.88%	2.85%	17.01%	0.78%

Christina Lake Cannabis Corporate Events

Christina Lake Cannabis Completes First Tranche of Private Placement

Christina Lake Cannabis announced the closure of the first tranche of a non-brokered private placement, raising CDN $1,138,910.55 through the issuance of 22,778,211 units. This move, involving significant participation from company directors and officers, is part of a strategic financial maneuver to settle existing debts and is subject to regulatory approvals. The offering is expected to impact the company’s financial structure positively and potentially enhance its market positioning by strengthening its capital base.

Spark’s Take on TSE:CLC Stock

According to Spark, TipRanks’ AI Analyst, TSE:CLC is a Neutral.

Christina Lake Cannabis is showing significant revenue growth and improved profitability, bolstered by positive technical indicators. However, the company faces challenges with operational efficiency and cash flow management. The strategic expansion in cultivation capacity is a positive step towards reducing costs and driving growth. The stock appears undervalued with a low P/E ratio, though the lack of dividend yield might deter some investors.

To see Spark’s full report on TSE:CLC stock, click here.

Christina Lake Cannabis Launches $2.5M Private Placement

Christina Lake Cannabis Corp. announced a non-brokered private placement aiming to raise up to $2,500,000 through the issuance of units priced at $0.05 each. The proceeds will be used for constructing a new secured storage facility, purchasing equipment, and general working capital, potentially impacting the company’s operational capacity and market positioning.

Spark’s Take on TSE:CLC Stock

According to Spark, TipRanks’ AI Analyst, TSE:CLC is a Neutral.

Christina Lake Cannabis is showing significant revenue growth and improved profitability, bolstered by positive technical indicators. However, the company faces challenges with operational efficiency and cash flow management. The strategic expansion in cultivation capacity is a positive step towards reducing costs and driving growth. The stock appears undervalued with a low P/E ratio, though the lack of dividend yield might deter some investors.

To see Spark’s full report on TSE:CLC stock, click here.