Last Updated: 09 Nov 2024
Executive Summary
22nd Century Group Inc. (XXII) is a leading manufacturer of reduced nicotine tobacco products, with a market capitalization of $5.39 million. Despite strong revenue growth, the company remains unprofitable, with a negative EBITDA of $27.08 million and an EPS of -$22.9. The stock has been trading at $0.12, below its 52-week high of $6.56.
Company Overview
22nd Century Group is focused on developing and commercializing reduced nicotine tobacco products, including cigarettes, e-cigarettes, and nicotine pouches. The company's flagship product, VLN, is a cigarette that contains 95% less nicotine than traditional cigarettes.
Fundamental Analysis
Revenue: Revenue grew by 0.013% year-over-year to $19.23 million in the latest quarter.
Profitability: The company remains unprofitable, with a gross profit of -$3.06 million and an operating margin of -0.258%.
Valuation: The stock trades at a price-to-sales ratio of 0.28 and a price-to-book ratio of 0.381.
Financial Health: The company has a negative book value of -$0.103 and a high beta of 1.453.
Technical Analysis
Trend: The stock is in a downtrend, trading below its 50-day and 200-day moving averages.
Support and Resistance: Key support levels are at $0.0925 and $0.10, while resistance levels are at $0.204 and $0.25.
Volume: Trading volume has been low, indicating a lack of interest in the stock.
Short Term Outlook
In the short term, the stock is likely to remain under pressure due to its weak fundamentals and technical indicators. The stock may test the $0.0925 support level in the coming weeks.
Long Term Outlook
The long-term outlook for 22nd Century Group is uncertain. The company faces significant competition from traditional tobacco companies and other reduced nicotine tobacco product manufacturers. The company's profitability remains a concern, and it may need to raise additional capital to fund its operations.
Analyst Recommendations
Analysts have a "Hold" rating on 22nd Century Group, with a target price of $7.20. The target price is significantly higher than the current stock price, indicating that analysts believe the stock has potential for growth in the long term. However, investors should be aware of the company's risks and should consider their own investment goals and risk tolerance before investing.
