Last Updated: 07 Nov 2024
Executive Summary
OrganiGram Holdings Inc. (OGI) is a Canadian producer and seller of cannabis and cannabis-derived products. The company has a market capitalization of $182.54 million and trades on the NASDAQ exchange. OGI reported a loss per share of $1.65 in its latest quarter, with revenue of $149.2 million. The company's gross profit margin is 23.5%, and its operating margin is -12.3%. OGI is currently trading at a forward price-to-earnings ratio of 28.99 and a price-to-sales ratio of 1.223.
Company Overview
OrganiGram Holdings Inc. was founded in 2013 and is headquartered in Moncton, New Brunswick. The company operates two indoor cannabis production facilities in Canada, with a total annual production capacity of 113,000 kilograms. OGI sells its products to provincial cannabis boards, private retailers, and medical cannabis patients.
Fundamental Analysis
OGI's financial performance has been mixed in recent quarters. The company reported a loss per share of $1.65 in its latest quarter, with revenue of $149.2 million. This compares to a loss per share of $1.49 and revenue of $149.6 million in the same quarter last year. OGI's gross profit margin has improved slightly in recent quarters, but its operating margin remains negative.
OGI's balance sheet is relatively strong, with total assets of $236.7 million and total liabilities of $134.2 million. The company has $48.5 million in cash and cash equivalents.
Technical Analysis
OGI's stock price has been trending lower in recent months. The stock is currently trading at $1.68, which is below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 34.6, which indicates that the stock is oversold.
Short Term Outlook
OGI's stock price is likely to remain under pressure in the short term. The company is facing competition from a number of other cannabis producers, and it is still unprofitable. However, OGI's balance sheet is strong, and the company has a number of growth initiatives in the pipeline.
Long Term Outlook
OGI's long-term outlook is more positive. The company is well-positioned to benefit from the growing demand for cannabis in Canada and around the world. OGI has a strong brand, a loyal customer base, and a number of growth initiatives in the pipeline.
Analyst Recommendations
Analysts are mixed on OGI's stock. One analyst has a buy rating on the stock, while another has a hold rating. The average analyst target price for OGI is $8.80.
