Cannara Biotech Inc.
Cannara Biotech Inc. Fundamental Analysis
Cannara Biotech Inc. (LOVFF) shows strong financial fundamentals with a PE ratio of 14.33, profit margin of 10.48%, and ROE of 11.63%. The company generates $0.1B in annual revenue with strong year-over-year growth of 31.28%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LOVFF's fundamental strength across five key dimensions:
Efficiency Score
WeakLOVFF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLOVFF trades at attractive valuation levels.
Growth Score
ExcellentLOVFF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentLOVFF maintains a strong and stable balance sheet.
Profitability Score
WeakLOVFF struggles to sustain strong margins.
Key Financial Metrics
Is LOVFF Expensive or Cheap?
P/E Ratio
LOVFF trades at 14.33 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LOVFF's PEG of -0.73 indicates potential undervaluation.
Price to Book
The market values Cannara Biotech Inc. at 1.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.74 times EBITDA. This is generally considered low.
How Well Does LOVFF Make Money?
Net Profit Margin
For every $100 in sales, Cannara Biotech Inc. keeps $10.48 as profit after all expenses.
Operating Margin
Core operations generate 18.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.63 in profit for every $100 of shareholder equity.
ROA
Cannara Biotech Inc. generates $6.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cannara Biotech Inc. produces operating cash flow of $22.63M, showing steady but balanced cash generation.
Free Cash Flow
Cannara Biotech Inc. generates strong free cash flow of $12.65M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.13 in free cash annually.
FCF Yield
LOVFF converts 7.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.73
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How LOVFF Stacks Against Its Sector Peers
| Metric | LOVFF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.33 | 29.78 | Better (Cheaper) |
| ROE | 11.63% | 792.00% | Weak |
| Net Margin | 10.48% | -23280.00% (disorted) | Strong |
| Debt/Equity | 0.31 | 0.25 | Weak (High Leverage) |
| Current Ratio | 2.70 | 4.60 | Strong Liquidity |
| ROA | 6.79% | -18077.00% (disorted) | Weak |
LOVFF outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cannara Biotech Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
3113.05%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
172.32%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
263.92%
Industry Style: Defensive, Growth, Innovation
High Growth