Charlotte's Web Holdings (CWEB) AI Stock Analysis

• Market Cap: C$20.62M
• Dividend Yield: N/A
• Average Volume (3M): 19.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: -11.84%
• EPS Growth: 20.29%
• Country: CA
• Employees: 112
• Sector: Healthcare
• Sector Strength: 46
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.06
• Shares Outstanding: 158,617,770
• 10 Day Avg. Volume: 9,821
• 30 Day Avg. Volume: 19,125
• PEG Ratio: 0.02
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.15
• Enterprise Value/Market Cap: 3.38
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 3.28
• Enterprise Value/Ebitda: -0.67
• 1Y Price Target: C$0.50
• Price Target Upside: 286.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

The overall stock score of 52 reflects significant financial challenges, including declining revenues and negative cash flows, which weigh heavily on the company's prospects. However, positive corporate events, such as new product launches and strategic expansions, provide a hopeful outlook. Technical analysis indicates potential stability, though valuation remains a concern due to ongoing losses and the lack of dividends.

Charlotte's Web Holdings Business Overview & Revenue Model

Company Description

Charlotte's Web Holdings, Inc. engages in farming, manufacturing, marketing, and selling hemp-derived cannabidiol (CBD) wellness products. The company's products categories include hemp extract oil tinctures, such as liquid products; gummies comprising sleep, stress, immunity, and exercise recovery products; and capsules, CBD topical creams, and lotions, as well as products for pets under the Charlotte's Web, CBD Medic, CBD Clinic, and Harmony Hemp brands. Its products contain naturally occurring phytocannabinoids, including CBD, cannabichromene, cannabigerol, cannabinol, terpenes, flavonoids, and other beneficial hemp compounds. The company distributes its products through retail outlets and health care practitioners, as well as online through its website. It has a collaboration between its CW Labs science division and the University at Buffalo's Center for Integrated Global Biomedical Sciences to advance hemp cannabinoid science through a research program; and scientific collaboration with McLean Hospital. The company was formerly known as Stanley Brothers Holdings Inc. and changed its name to Charlotte's Web Holdings, Inc. in July 2018. Charlotte's Web Holdings, Inc. was founded in 2013 and is headquartered in Denver, Colorado.

How the Company Makes Money

Charlotte's Web Holdings generates revenue primarily through the sale of its hemp-based CBD products. The company's key revenue streams include direct-to-consumer sales via its e-commerce platform and retail sales through a broad network of retail partners, including health food stores, pharmacies, and wellness shops. Additionally, Charlotte's Web has established partnerships and distribution agreements that help expand its reach and market presence. The company's earnings are significantly influenced by consumer demand for natural wellness solutions, regulatory changes in the CBD industry, and its ability to maintain high-quality product standards.

Charlotte's Web Holdings Financial Statement Overview

Summary

Charlotte's Web Holdings is facing significant financial challenges, marked by declining revenues, negative profitability, and increasing financial risk due to higher leverage. Negative cash flows and strained margins suggest potential operational difficulties.

Income Statement

The company has faced declining revenues over the years, with a significant drop in the most recent year. Gross profit margin has also deteriorated from 54% in 2021 to 43% in 2024, indicating pressure on profitability. The net profit margin remained negative, reflecting ongoing losses. Despite efforts, EBIT and EBITDA margins remain negative, indicating operational challenges.

Balance Sheet

The debt-to-equity ratio increased from 0.09 in 2021 to 2.19 in 2024, suggesting a significant rise in leverage. The equity ratio dropped from 76% in 2021 to 24% in 2024, indicating reduced financial stability. Return on equity remains negative, highlighting profitability issues. The balance sheet reflects increasing financial risk due to higher debt levels.

Cash Flow

Operating cash flow has remained negative, with free cash flow worsening over the period. The free cash flow to net income ratio is negative due to ongoing losses. The operating cash flow to net income ratio is also negative, reflecting cash flow challenges. The company faces difficulties in generating positive cash flow, which could impact its ability to fund operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.67M	63.16M	74.14M	96.09M	95.23M
Gross Profit	21.26M	35.57M	19.41M	48.59M	52.26M
EBITDA	-22.01M	-24.90M	-41.68M	-38.03M	-42.53M
Net Income	-29.85M	-23.80M	-59.31M	-137.72M	-47.19M
Balance Sheet
Total Assets	113.44M	152.55M	187.64M	171.51M	310.88M
Cash, Cash Equivalents and Short-Term Investments	22.62M	47.82M	66.96M	19.49M	52.80M
Total Debt	59.34M	60.44M	57.63M	22.60M	23.36M
Total Liabilities	86.36M	96.99M	110.14M	41.07M	56.65M
Stockholders Equity	27.09M	55.56M	77.50M	130.45M	254.23M
Cash Flow
Free Cash Flow	-25.11M	-19.08M	-5.58M	-34.48M	-76.85M
Operating Cash Flow	-21.26M	-15.39M	-5.32M	-29.56M	-48.59M
Investing Cash Flow	-3.80M	-3.51M	395.00K	-11.79M	-19.44M
Financing Cash Flow	-145.00K	-251.00K	52.39M	8.04M	52.28M

Charlotte's Web Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CWEB, the sentiment is Positive. The current price of 0.13 is below the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.13, and below the 200-day MA of 0.15, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CWEB.

Charlotte's Web Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWEB	52 Neutral	C$20.62M	―	-78.03%	―	-11.84%	20.29%
Sector *	51 Neutral	$7.41B	0.32	-61.11%	2.34%	16.99%	1.69%
CXXIF		$18.05M	―	-12.58%	―	―	―
ROMJF		$21.25M	―	-2.68%	―	―	―
VEXTF		$24.38M	―	-24.12%	―	―	―
AVCNF		$20.81M	―	-203.40%	―	―	―
GWAY	44 Neutral	C$27.62M	―	-31.24%	―	44.21%	21.93%

Charlotte's Web Holdings Corporate Events

ONE HEMP Applauds Veto of Hemp Product Ban, Calls for Science-Based Regulation

ONE HEMP, a coalition of industry leaders in the hemp-derived cannabinoid sector, expressed strong support for Governor Greg Abbott’s veto of Senate Bill 3, which would have banned certain hemp wellness products in Texas. The group emphasizes the need for a science-based regulatory framework that distinguishes between intoxicating and non-intoxicating hemp products, advocating for policies that protect public safety without hindering access for those who rely on these products for health reasons. ONE HEMP calls on lawmakers to collaborate with experts to create regulations that protect minors, enforce strict standards, and maintain access to safe hemp products.

The most recent analyst rating on (TSE:CWEB) stock is a Buy with a C$0.50 price target. To see the full list of analyst forecasts on Charlotte’s Web Holdings stock, see the TSE:CWEB Stock Forecast page.

Charlotte’s Web Holdings Announces 2025 Shareholder Meeting Results

Charlotte’s Web Holdings announced the results of its 2025 annual general meeting of shareholders, where votes were cast for the election of directors. The meeting saw a total of 58,493,957 votes, representing 36.87% of the total voting shares. The election results showed strong support for most directors, with Maureen Usifer receiving the highest approval at 87%. This announcement reflects the company’s ongoing governance processes and could impact its strategic direction and stakeholder confidence.

The most recent analyst rating on (TSE:CWEB) stock is a Buy with a C$0.50 price target. To see the full list of analyst forecasts on Charlotte’s Web Holdings stock, see the TSE:CWEB Stock Forecast page.

Charlotte’s Web Launches Brightside™: A New Era in Hemp-Derived THC Wellness

Charlotte’s Web Holdings has launched Brightside™, a new line of low-dose THC gummies aimed at enhancing wellness routines with precision and care. This product line, featuring rapid onset technology, caters to the growing demand for low-dose THC edibles and reflects the company’s commitment to innovation and evidence-based wellness. The launch coincides with a pivotal moment in the hemp industry, as consumer interest in THC products rises, and aligns with the company’s strategic focus on sustainable growth and trust-based innovation.

The most recent analyst rating on (TSE:CWEB) stock is a Buy with a C$0.50 price target. To see the full list of analyst forecasts on Charlotte’s Web Holdings stock, see the TSE:CWEB Stock Forecast page.

Charlotte’s Web Holdings Sees Revenue Growth and Strategic Expansion in Q1 2025

Charlotte’s Web Holdings reported its first year-over-year revenue increase in over three years for Q1 2025, indicating positive traction from its transformation strategy. The company has upgraded its e-commerce platform, expanded its digital and retail presence, and improved operational efficiencies, including in-house gummy production. These initiatives, along with a reengineered cost structure, are expected to drive further growth and improve cash flow, positioning the company for sustained success.

The most recent analyst rating on (TSE:CWEB) stock is a Buy with a C$0.50 price target. To see the full list of analyst forecasts on Charlotte’s Web Holdings stock, see the TSE:CWEB Stock Forecast page.