Negative Earnings: The Cannabist Company Holdings Inc. is expected to report an EPS of -$0.04, indicating the company is not currently profitable.
Valuation Metrics: With a P/S ratio of 0.33 and an EV/Sales ratio of 1.24, CBSTF’s stock is valued at about one-third of its sales, reflecting investor caution.
Liquidity and Debt Concerns: A debt-to-equity ratio of 19.26 and a current ratio of 0.92 highlight potential financial and liquidity risks.
The Cannabist Company Holdings Inc., known for its cannabis cultivation, manufacturing, and retail operations in the U.S., trades under the symbol CBSTF on the OTCQX. As a key player in the cannabis industry, the company is set to release its quarterly earnings on March 13, 2025. Wall Street anticipates an earnings per share (EPS) of -$0.04 and revenue of $110.38 million.
The company’s financial results for the fourth quarter and full year ending December 31, 2024, reveal a challenging financial landscape. With a negative P/E ratio of -0.19. This indicates that the company is not currently profitable. CBSTF’s price-to-sales ratio of 0.33 suggests that the stock is valued at about one-third of its sales. This valuation reflects investor caution, given the company’s financial challenges. The enterprise value to sales ratio of 1.24 further emphasizes the company’s total valuation relative to its sales, indicating a higher valuation compared to its sales figures.
The enterprise value to operating cash flow ratio of -33.75 highlights difficulties in generating cash flow from operations. This is a critical concern for investors, as it suggests that the company may struggle to sustain its operations without external financing. The earnings yield of -5.25% further underscores the negative earnings scenario.
CBSTF’s debt-to-equity ratio of 19.26 indicates a heavy reliance on debt financing, which could pose risks if the company cannot manage its debt effectively. Additionally, the current ratio of 0.92 suggests potential challenges in meeting short-term liabilities, as the company’s short-term assets may not be sufficient to cover its obligations.
