High Tide Inc. (NASDAQ: HITI)

Sector: Healthcare Industry: Pharmaceutical Retailers CIK: 0001847409
Market Cap 193.98 Mn
P/B 3.10
P/E -5.35
P/S 0.46
ROIC (Qtr) -5.34
Div Yield % 0.00
Rev 1y % (Qtr) 16.92
Total Debt (Qtr) 78.46 Mn
Debt/Equity (Qtr) 1.25
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About

Investment thesis

Bull case

  • Tangible assets of 156.79M provide exceptional 27.48x coverage of deferred revenue 5.71M, showing strong service capability backing.
  • Robust tangible asset base of 156.79M provides 5.94x coverage of working capital 26.40M, indicating strong operational backing.
  • Tangible assets of 156.79M provide robust 8.74x coverage of other current liabilities 17.95M, indicating strong asset backing.
  • Strong cash position of 34.20M provides 1.91x coverage of other current liabilities 17.95M, indicating excellent liquidity.
  • Cash reserves of 34.20M provide solid 0.85x coverage of other non-current liabilities 40.05M, indicating strong liquidity.

Bear case

  • Operating cash flow of 17.05M barely covers its investment activities of (15.92M), with a coverage ratio of -1.07, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 34.20M provide limited coverage of acquisition spending of (8.78M), which is -3.90x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 17.05M provides minimal -954.64x coverage of tax expenses of (17857.14), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (22.56M) show weak coverage of depreciation charges of 17.36M, with a -1.30 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 17.36M relative to operating cash flow of 17.05M, which is 1.02x suggests significant maintenance capital requirements affecting free cash flow.

Peer comparison

Companies in the Pharmaceutical Retailers
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 HITI High Tide Inc. 193.98 Mn -5.35 0.46 78.46 Mn
2 PETS Petmed Express Inc 63.41 Mn -0.98 0.35 0.65 Mn
3 WGRX Wellgistics Health, Inc. 15.67 Mn -0.20 0.46 29.99 Mn
4 RDGT Ridgetech Inc. 8.37 Mn 0.82 0.07 -
5 HKPD Cellyan Biotechnology Co., Ltd 6.31 Mn -233.33 0.31 -
6 SCNX Scienture Holdings, Inc. 0.98 Mn -0.05 1.50 2.56 Mn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.52 0.47
EV to Cash from Ops. EV/CFO 7.66 5.03
EV to Debt EV to Debt 1.66 8.90
EV to EBIT EV/EBIT -5.79 9.46
EV to EBITDA EV/EBITDA 11.29 3.44
EV to Free Cash Flow [EV/FCF] EV/FCF 13.61 9.08
EV to Market Cap EV to Market Cap 0.67 2.07
EV to Revenue EV/Rev 0.31 1.66
Price to Book Value [P/B] P/B 3.10 1.49
Price to Earnings [P/E] P/E -5.35 -39.85
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -372.81
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.00
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.00
Interest Coverage Int. cover (Qtr) -1.65 -16.58
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -13.73 -99.80
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -0.14 115.50
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -437.61 -3,924.57
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -55.37 -422.54
EBIT Growth (1y) % EBIT 1y % (Qtr) -397.14 -957.55
EBT Growth (1y) % EBT 1y % (Qtr) -915.15 -968.58
EPS Growth (1y) % EPS 1y % (Qtr) -1,122.29 -5,744.05
FCF Growth (1y) % FCF 1y % (Qtr) -50.05 -541.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 6.20 88.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.22 1.33
Cash Payout Ratio Cash Payout Ratio 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.48 0.32
Current Ratio Curr Ratio (Qtr) 1.37 1.26
Debt to Equity Ratio Debt/Equity (Qtr) 1.25 1.09
Interest Cover Ratio Int Coverage (Qtr) -1.65 -16.58
Times Interest Earned Times Interest Earned (Qtr) -1.65 -16.58
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1.20 -466.75
EBIT Margin % EBIT Margin % (Qtr) -7.44 -473.13
EBT Margin % EBT Margin % (Qtr) -8.55 -581.27
Gross Margin % Gross Margin % (Qtr) 25.80 27.92
Net Profit Margin % Net Margin % (Qtr) -8.50 -568.27