Delta 9 Cannabis Inc. Fundamental Analysis (TSX: DN.TO)
Delta 9 Cannabis Inc. Fundamental Analysis (TSX: DN.TO)
Delta 9 Cannabis Inc. (TSX: DN.TO) shows moderate financial fundamentals with a PE ratio of -0.05, profit margin of -24.65%, and ROE of 48.99%. The company generates $0.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 140.3/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze DN.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakDN.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDN.TO trades at attractive valuation levels.
Growth Score
WeakDN.TO faces weak or negative growth trends.
Financial Health Score
ModerateDN.TO shows balanced financial health with some risks.
Profitability Score
ModerateDN.TO maintains healthy but balanced margins.
Key Financial Metrics
Is DN.TO Expensive or Cheap?
P/E Ratio
DN.TO trades at -0.05 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DN.TO's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values Delta 9 Cannabis Inc. at -0.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 50.24 times EBITDA. This signals the market has high growth expectations.
How Well Does DN.TO Make Money?
Net Profit Margin
For every $100 in sales, Delta 9 Cannabis Inc. keeps $-24.65 as profit after all expenses.
Operating Margin
Core operations generate -30.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $48.99 in profit for every $100 of shareholder equity.
ROA
Delta 9 Cannabis Inc. generates $-23.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Delta 9 Cannabis Inc. generates limited operating cash flow of $5.44M, signaling weaker underlying cash strength.
Free Cash Flow
Delta 9 Cannabis Inc. produces free cash flow of $4.34M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.01 in free cash annually.
FCF Yield
DN.TO converts 1.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-0.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
-0.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-8.87
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
48.99
vs 25 benchmark
ROA
Return on assets percentage
-0.24
vs 25 benchmark
ROCE
Return on capital employed
-0.78
vs 25 benchmark
How DN.TO Stacks Against Its Sector Peers
| Metric | DN.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -0.05 | 32.14 | Better (Cheaper) |
| ROE | 4898.73% | 550.00% | Excellent |
| Net Margin | -24.65% | 30133.00% | Weak |
| Debt/Equity | -8.87 | 0.56 | Strong (Low Leverage) |
| Current Ratio | 0.40 | 5.70 | Weak Liquidity |
| ROA | -23.64% | 3.00% | Weak |
DN.TO outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROE, but lagging in Net Margin.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Delta 9 Cannabis Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation