Organigram Global Inc. (NASDAQ: OGI)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001620737
Market Cap 176.12 Mn
P/B 0.65
P/E 13.28
P/S 0.86
ROIC (Qtr) -5.97
Div Yield % 0.00
Rev 1y % (Qtr) 56.29
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

Investment thesis

Bull case

  • Strong free cash flow of (26.87M) provides 5.70x coverage of acquisition spending (4.71M), indicating disciplined M&A strategy.
  • Tangible assets of 314.89M provide robust 18.78x coverage of other current liabilities 16.77M, indicating strong asset backing.
  • Strong cash position of 45.37M provides 2.71x coverage of other current liabilities 16.77M, indicating excellent liquidity.
  • Cash reserves of 45.37M provide solid 0.93x coverage of other non-current liabilities 49.03M, indicating strong liquidity.
  • Strong tangible asset base of 314.89M provides 4.35x coverage of intangibles 72.46M, indicating robust asset quality.

Bear case

  • Operating cash flow of (14.18M) barely covers its investment activities of (17.41M), with a coverage ratio of 0.81, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (17.41M) provide weak support for R&D spending of 7.78M, which is -2.24x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 45.37M provide limited coverage of acquisition spending of (4.71M), which is -9.63x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (14.18M) shows concerning coverage of stock compensation expenses of 2.67M, with a -5.30 ratio indicating potential earnings quality issues.
  • Free cash flow of (26.87M) provides weak coverage of capital expenditures of 12.69M, with a -2.12 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 59.62 Bn 29.27 7.67 9.24 Bn
2 TAK Takeda Pharmaceutical Co Ltd 57.33 Bn 79.02 2.00 36.56 Bn
3 HLN Haleon plc 51.85 Bn 33.06 3.83 -
4 TEVA Teva Pharmaceutical Industries Ltd 39.45 Bn 27.98 2.29 17.09 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.54 Bn 16.94 6.89 0.00 Bn
6 RGC Regencell Bioscience Holdings Ltd 16.16 Bn -4,510.00 0.00 -
7 ELAN Elanco Animal Health Inc 12.79 Bn 355.14 2.78 4.32 Bn
8 NBIX Neurocrine Biosciences Inc 12.71 Bn 26.56 4.44 0.42 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.18 38.12
EV to Cash from Ops. EV/CFO -5.00 -121.97
EV to Debt EV to Debt 0.00 403.43
EV to EBIT EV/EBIT 22.09 -55.05
EV to EBITDA EV/EBITDA 24.47 -57.64
EV to Free Cash Flow [EV/FCF] EV/FCF -2.64 -65.56
EV to Market Cap EV to Market Cap 0.40 -4.24
EV to Revenue EV/Rev 0.35 -1,205.44
Price to Book Value [P/B] P/B 0.65 43.48
Price to Earnings [P/E] P/E 13.28 -46.00
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.36
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.52
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.04
Interest Coverage Interest Coverage 0.00 -46.13
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -278.71 -154.90
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -4.87 86,151.29
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.89
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 136.27 31.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 122.65 9.88
EBIT Growth (1y) % EBIT 1y % (Qtr) 108.78 91.77
EBT Growth (1y) % EBT 1y % (Qtr) 108.78 90.13
EPS Growth (1y) % EPS 1y % (Qtr) 124.41 -12.06
FCF Growth (1y) % FCF 1y % (Qtr) -201.79 -224.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 91.83 26.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.39 0.49
Cash Payout Ratio Cash Payout Ratio 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.66 2.12
Current Ratio Curr Ratio (Qtr) 2.73 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 -1.15
Interest Cover Ratio Interest Cover Ratio 0.00 -46.13
Times Interest Earned Times Interest Earned 0.00 -46.13
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 8.60 -59,714.97
EBIT Margin % EBIT Margin % (Qtr) 2.15 -60,539.44
EBT Margin % EBT Margin % (Qtr) 1.57 -64,118.78
Gross Margin % Gross Margin % (Qtr) 35.60 8,658.69
Net Profit Margin % Net Margin % (Qtr) 6.50 -64,120.53