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Summary
- Cannabis producer Fire & Flower Holdings Corp (TSX:FAF) reported a 157 per cent year-over-year (YoY) increase in its quarterly revenue of C$ 43.2 million in Q4 FY20.
- The Edmonton-based company announced its fourth quarter and fiscal year results ending 30 January 2021 on Tuesday morning, April 27.
- Following the announcement, the penny pot stock registered a marginal spike of 0.97 per cent at the time of writing this (11AM EST).
Cannabis producer Fire & Flower Holdings Corp (TSX:FAF) reported a 157 per cent year-over-year (YoY) increase in its quarterly revenue of C$ 43.2 million in Q4 FY20. The Edmonton-based company announced its fourth quarter and fiscal year results ending 30 January 2021 on Tuesday morning, April 27.
Following the announcement, the penny pot stock registered a marginal spike of 0.97 per cent at the time of writing this (11AM EST).
Let’s take a closer look at this Toronto Stock Exchange (TSX)-listed penny cannabis stock’s latest financials and stock performances.
Fire & Flower (TSX:FAF) Stock Performance
Fire & Flower, with a market cap of nearly C$ 252 million, posts a price-to-book ratio of 104 and a debt-to-equity ratio of 25.99 on TMX.
The pot stock skyrocketed by about 61 per cent in the last one year, while securing a growth of over 18 per cent year-to-date (YTD). Its YTD growth currently outperforms the TSX 300 Composite Index, which grew by about eight per cent this year.
1-year chart of stock performance of Fire and Flower (Source: EODHD/Others/Thomson Reuters)
Fire & Flower Latest Financials
Fire & Flower reported in its latest financials that is saw a 150 per cent YoY jump in its annual revenue of C$ 128.1 million in fiscal 2020. The company’s cash and cash equivalents amounted to C$ 30.6 million in the latest fiscal year, up from that of C$ 22.9 million in fiscal 2019.
Its total gross profit stood at C$ 45.4 million in 2020, which was 35 per cent of its total revenue.
Cannabis Industry In North America
According to a report by Research and Markets, the value of the cannabis market in North America is likely to reach US$ 65.2 billion in the next six years. In 2019, its estimated value was US$ 6 billion, and it is projected to grow at a compound annual growth rate (CAGR) of 29.9 per cent, as per the report.
Cannabis is becoming increasingly popular in Canada. Government figures show that some 7.13 million packaged units of dried cannabis were sold in the country as of December 2020. Meanwhile, the total number of packaged units sold for medical and non-medical purposes (majorly dried and edible cannabis) was around 11.3 million.
A Statistics Canada report also revealed that the sales in Canada's legal cannabis industry amounted to over C$ 2.62 billion in 2020, up by 120 per cent YoY.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
