Organigram Global Inc. (NASDAQ: OGI)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001620737
Market Cap 195.26 Mn
P/B 0.77
P/E -10.88
P/S 1.04
ROIC (Qtr) -7.45
Div Yield % 0.00
Rev 1y % (Qtr) 76.52
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

Price action

Investment thesis

Bull case

  • Tangible assets of 334.19M provide robust 12.49x coverage of other current liabilities 26.75M, indicating strong asset backing.
  • Strong cash position of 60.58M provides 2.26x coverage of other current liabilities 26.75M, indicating excellent liquidity.
  • Cash reserves of 60.58M provide solid 0.96x coverage of other non-current liabilities 62.99M, indicating strong liquidity.
  • Cash position of 60.58M represents healthy 0.53x of working capital 115.03M, demonstrating strong operational liquidity.
  • Strong tangible asset base of 334.19M provides 4.56x coverage of intangibles 73.21M, indicating robust asset quality.

Bear case

  • Operating cash flow of (5.50M) barely covers its investment activities of (58.74M), with a coverage ratio of 0.09, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (58.74M) provide weak support for R&D spending of 7.93M, which is -7.41x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 60.58M provide limited coverage of acquisition spending of (47.55M), which is -1.27x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (5.50M) shows concerning coverage of stock compensation expenses of 3.06M, with a -1.80 ratio indicating potential earnings quality issues.
  • Free cash flow of (17.75M) provides weak coverage of capital expenditures of 12.25M, with a -1.45 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. 60.50 Bn 29.70 7.78 7.27 Bn
2 TAK Takeda Pharmaceutical Co Ltd 56.17 Bn 77.42 1.96 36.56 Bn
3 HLN Haleon plc 50.10 Bn 27.80 3.57 -
4 TEVA Teva Pharmaceutical Industries Ltd 39.77 Bn 28.20 2.30 17.09 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.67 Bn 17.04 6.93 0.00 Bn
6 VTRS Viatris Inc 17.75 Bn 22.09 1.06 14.44 Bn
7 NBIX Neurocrine Biosciences Inc 14.02 Bn 32.76 5.23 0.43 Bn
8 RGC Regencell Bioscience Holdings Ltd 13.94 Bn -3,890.00 0.00 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.19 32.39
EV to Cash from Ops. EV/CFO -13.70 -110.47
EV to Debt EV to Debt 0.00 345.43
EV to EBIT EV/EBIT -2.70 -42.53
EV to EBITDA EV/EBITDA -26.64 -44.40
EV to Free Cash Flow [EV/FCF] EV/FCF -4.25 -54.30
EV to Market Cap EV to Market Cap 0.39 -3.42
EV to Revenue EV/Rev 0.40 -1,175.08
Price to Book Value [P/B] P/B 0.77 36.75
Price to Earnings [P/E] P/E -10.88 -135.15
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.36
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.49
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 3.93
Interest Coverage Interest Coverage 0.00 -38.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -272.48 -148.82
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -37.87 45,342.22
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.85
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 46.30 27.06
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 83.69 19.86
EBIT Growth (1y) % EBIT 1y % (Qtr) 16.44 86.71
EBT Growth (1y) % EBT 1y % (Qtr) 16.44 84.03
EPS Growth (1y) % EPS 1y % (Qtr) 59.92 -17.49
FCF Growth (1y) % FCF 1y % (Qtr) -3,910.95 -53.73
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 87.08 26.02
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.33 0.50
Cash Payout Ratio Cash Payout Ratio 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.66 2.11
Current Ratio Curr Ratio (Qtr) 2.26 3.95
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 -1.12
Interest Cover Ratio Interest Cover Ratio 0.00 -38.53
Times Interest Earned Times Interest Earned 0.00 -38.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -7.90 -63,232.43
EBIT Margin % EBIT Margin % (Qtr) -20.51 -64,062.36
EBT Margin % EBT Margin % (Qtr) -14.87 -67,582.30
Gross Margin % Gross Margin % (Qtr) 34.80 8,439.27
Net Profit Margin % Net Margin % (Qtr) -9.60 -67,583.72