Cannara Biotech (LOVE) AI Stock Analysis

• Market Cap: $160.92M
• Dividend Yield: N/A
• Average Volume (3M): 49.44K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.09
• Revenue Growth: 33.04%
• EPS Growth: 191.50%
• Country: CA
• Employees: 461
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.04
• Shares Outstanding: 91,433,136
• 10 Day Avg. Volume: 50,567
• 30 Day Avg. Volume: 49,443
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 1.47
• Enterprise Value/Gross Profit: 3.29
• Enterprise Value/Ebitda: 5.58
• 1Y Price Target: $2.00
• Price Target Upside: 13.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: C$2.00 ▲(13.64% Upside)

Cannara Biotech's strong financial performance, characterized by impressive revenue growth and profitability, is the primary driver of its stock score. The technical analysis suggests potential buying opportunities despite short-term bearish momentum. The valuation indicates the stock is reasonably priced, supporting its growth strategy. The absence of earnings call and corporate events data did not impact the score.

Cannara Biotech Business Overview & Revenue Model

Company Description

Cannara Biotech Inc., together with its subsidiaries, engages in the indoor cultivation, processing, and sale of cannabis and cannabis-derivated products in Canada. It also offers hemp-based CBD products through e-commerce platform. The company was incorporated in 2017 and is headquartered in Saint-Laurent, Canada.

How the Company Makes Money

Cannara Biotech generates revenue through multiple streams, primarily by selling its cannabis products to retail dispensaries and directly to consumers through its online platform. The company benefits from the growing legalization of cannabis in various jurisdictions, allowing it to expand its market reach. Key revenue streams include wholesale distribution to licensed retailers, direct sales through e-commerce, and potential partnerships with other cannabis companies for co-branding and product development. Additionally, Cannara's focus on quality and compliance with regulatory standards enhances its marketability and pricing power, contributing to its overall profitability.

Cannara Biotech Financial Statement Overview

Summary

Cannara Biotech exhibits strong financial performance with robust revenue growth and profitability improvements. The income statement highlights healthy margins and growth rates, while the balance sheet shows a solid equity position with manageable leverage. Cash flow performance is positive, though there is room for improvement in cash flow generation relative to income.

Income Statement

Cannara Biotech has demonstrated robust growth with significant revenue increases in recent years. The TTM (Trailing-Twelve-Months) gross profit margin stands at 33.19%, reflecting strong cost management. The net profit margin improved to 14.22%, up from previous periods, indicating enhanced profitability. Additionally, the revenue growth rate from the previous year is an impressive 15.28%, showcasing a positive growth trajectory. The EBIT and EBITDA margins are healthy at 11.39% and 25.59% respectively, suggesting efficient operations.

Balance Sheet

The balance sheet shows a solid equity position with a debt-to-equity ratio of 0.52, indicating manageable leverage levels. The company's return on equity (ROE) is 14.22%, reflecting efficient use of shareholder funds to generate profits. The equity ratio stands at 58.34%, suggesting a strong equity base relative to total assets, providing a cushion against potential liabilities. However, the level of total debt remains a point of consideration for future financial flexibility.

Cash Flow

Cannara Biotech's cash flow analysis reveals moderate strength, with a positive free cash flow in the TTM period of $3.5 million. The free cash flow growth rate is 8.99%, showing improvement. The operating cash flow to net income ratio is 0.73, reflecting reasonable cash generation from operations relative to net income. While these metrics are positive, the company should aim to further enhance its cash flow conversion for greater financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	102.03M	81.75M	57.26M	35.84M	17.02M	2.55M
Gross Profit	45.47M	29.79M	27.23M	17.33M	10.30M	1.22M
EBITDA	26.86M	15.16M	15.77M	9.54M	3.22M	-9.15M
Net Income	15.52M	6.44M	6.95M	2.31M	-3.09M	-13.81M
Balance Sheet
Total Assets	170.09M	154.72M	141.52M	125.62M	92.02M	54.85M
Cash, Cash Equivalents and Short-Term Investments	14.41M	6.62M	4.27M	12.11M	8.16M	7.77M
Total Debt	47.47M	48.33M	45.78M	48.39M	20.90M	12.94M
Total Liabilities	71.49M	66.77M	61.78M	58.88M	27.91M	16.49M
Stockholders Equity	98.59M	87.95M	79.74M	66.74M	64.12M	38.36M
Cash Flow
Free Cash Flow	14.15M	3.21M	-4.44M	-21.55M	-33.17M	-18.14M
Operating Cash Flow	19.54M	10.68M	5.44M	-6.08M	-2.09M	-9.32M
Investing Cash Flow	-5.14M	-5.19M	-9.48M	-15.35M	-30.83M	-8.55M
Financing Cash Flow	-6.29M	-3.14M	-3.72M	25.46M	33.25M	-914.82K

Cannara Biotech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.76
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LOVE, the sentiment is Positive. The current price of 1.76 is below the 20-day moving average (MA) of 1.76, below the 50-day MA of 1.81, and above the 200-day MA of 1.33, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 48.99 is Neutral, neither overbought nor oversold. The STOCH value of 74.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LOVE.

Cannara Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DB	76 Outperform	72.09M	4.81	13.88%	―	-0.53%	0.00%
LOVE	73 Outperform	$160.92M	10.27	16.92%	―	33.04%	191.50%
XLY	71 Outperform	188.76M	6.48	-14.14%	―	27.24%	0.00%
OGI	66 Neutral	330.44M	82.00	2.02%	―	38.86%	0.00%
PLTH	47 Neutral	94.36M	-1.38	-42.41%	―	18.62%	52.09%
JUSH	44 Neutral	178.99M	-2.20	74.01%	―	0.31%	-1.42%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Cannara Biotech Corporate Events

Cannara Biotech Grants Incentive Awards Amid Growth

Cannara Biotech Inc. announced the approval of incentive awards under its stock option and restricted share unit compensation plans. The grants, marking the completion of the company’s fiscal year, include 3,625,000 stock options for employees and 145,000 restricted share units for board members, reflecting Cannara’s five years of commercial operations and consistent revenue growth.

The most recent analyst rating on (TSE:LOVE) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Cannara Biotech stock, see the TSE:LOVE Stock Forecast page.

Cannara Biotech Expands Credit Facility to Boost Production Capacity

Cannara Biotech Inc. announced an amendment and upsize of its credit facility with the Bank of Montreal, adding a $10 million capital expenditures facility to fund the expansion of its Valleyfield facility. This expansion aims to enhance Cannara’s processing capabilities and increase its annual production capacity to 100,000 kg, reflecting the company’s growth strategy and operational performance. The improved financial flexibility and reduced financing costs position Cannara to deliver sustained value to shareholders while maintaining a strong balance sheet.

The most recent analyst rating on (TSE:LOVE) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Cannara Biotech stock, see the TSE:LOVE Stock Forecast page.

Cannara Biotech Boosts Financial Flexibility with Strategic Asset Sale

Cannara Biotech Inc. has successfully completed the sale of a non-core building under construction and a related parcel of land at its Valleyfield site for $5.5 million, as part of its asset optimization plan. The proceeds from the sale will reduce the company’s long-term debt by $5.45 million, enhancing its financial flexibility, capital structure, and supporting future growth within its core cannabis operations.

Cannara Biotech Achieves Record Revenue and Profitability in Q3 2025

Cannara Biotech reported its highest revenue and profitability since inception in fiscal Q3 2025, with a 40% increase in revenue and a 110% rise in gross profit compared to the previous year. The company achieved significant milestones, including a 26% yield improvement in cultivation and the acceptance of five SKUs for the Quebec vape category, enhancing its market position and operational efficiency.

Cannara Biotech Expands into Québec’s Vape Market with New Product Launch

Cannara Biotech has secured preliminary acceptance from the Société Québécoise du Cannabis for five vape cartridge products, marking a significant entry into Québec’s new vape cartridge category. This move positions Cannara to capture a substantial share of the Québec market, which is seen as a major growth opportunity in Canada’s legal cannabis sector. The company is also launching its first live rosin vape cartridges, emphasizing its commitment to high-quality, solventless products and further strengthening its market presence.