Company Overview
IM Cannabis Corp. engages in the breeding, growing, and supply of medical cannabis products within the Israel and Germany markets. The company offers medical cannabis dried flowers and cannabis extracts distributed under the IMC, BLKMT, WAGNERS, and LOT420 brands specifically for medical patients. Operating within the Healthcare sector as a Drug Manufacturer specializing in Specialty & Generic products, the firm focuses on the cultivation and processing of cannabis rather than recreational distribution. The company's current market capitalization stands at $3.02M, while its trailing twelve-month revenue is reported at $52.38M, with an employee count listed as N/A. These valuation and revenue figures indicate that IM Cannabis Corp. operates as a small-cap entity with significant revenue generation relative to its market valuation, suggesting a market capitalization that is substantially lower than its annual revenue base.
Financial Health
The company reported revenue of $52.38M for the trailing twelve months, yet it recorded a net income of $-4,696,000 and an EBITDA of $-3,117,000. The substantial gap between the positive revenue of $52.38M and the negative net income of $-4,696,000 reveals a cost structure where operating expenses significantly exceed gross profits. Free cash flow stands at $-10,820,500, which indicates that the company is burning cash and lacks immediate financial flexibility to fund operations without external capital injection. Gross margin is reported at 23.5%, operating margin is -7.8%, and profit margin is -9.0%, indicating that while gross profitability exists, overhead costs and other expenses are eroding those gains to result in a loss at the operating and net levels. Total cash on hand is $1.18M, which is far below total debt of $17.56M, creating a negative cash conversion cycle relative to obligations. The debt-to-equity ratio is 408.16, which suggests a highly leveraged balance sheet where debt obligations vastly outweigh shareholder equity. The current ratio is 0.82, indicating that current assets are insufficient to cover current liabilities, pointing to potential short-term liquidity constraints. Return on equity is -119.7% and return on assets is -6.7%, revealing that management effectiveness in generating returns for shareholders and utilizing assets has been negative over the trailing period.
Valuation Assessment
The trailing P/E ratio is N/A due to negative earnings, while the forward P/E is -0.39, implying that the market prices in a turnaround or that future earnings are expected to be negative in the near term. The price-to-book ratio is 0.94, indicating that the stock trades at a slight discount to its book value rather than commanding a premium. The price-to-sales ratio is 0.06, and the EV/EBITDA is -6.23, suggesting that traditional valuation multiples are distorted by the company's loss-making status and high debt load. The 52-week high is $7.12 and the 52-week low is $0.49; without a specific current price provided in the source data, the exact trading position relative to this range cannot be numerically calculated, but the wide range suggests high price volatility. The beta value is 2.11, which means the stock is expected to be more than twice as volatile as the broader market, reflecting high sensitivity to market movements and sector-specific news.
Growth & Income
Revenue growth year-over-year is -0.2%, and earnings growth year-over-year is N/A, indicating a stagnation in top-line performance and a lack of reported earnings expansion. Since earnings are negative and revenue growth is essentially flat, the company is not growing faster than its revenue, and there is no earnings growth to drive the business forward. As a non-dividend payer, the company has a dividend yield of N/A and a payout ratio of 0.0%, meaning it does not distribute profits to shareholders but instead retains all cash flow to attempt to cover losses or fund operations. The overall growth and income profile is characterized by declining or stagnant revenue, negative earnings growth, and a complete absence of dividend income, highlighting a business in a developmental or distressed phase rather than a mature income-generating stage.