Bedrijfsoverzicht
22nd Century Group, Inc. is a specialized entity within the consumer defensive sector, specifically operating in the tobacco industry, where it focuses on the manufacturing, distribution, and sale of proprietary reduced nicotine tobacco products. The company's business model centers on offering combustible cigarette products with very low nicotine content as well as reduced nicotine content tobacco options to the United States market, alongside providing contract manufacturing services. This operational scope positions the firm as a niche player with a market capitalization of $1.45 million and an annual revenue stream of $7.05 million, supported by a workforce of 32 employees. The relatively small market cap and modest revenue figures indicate that the company operates on a micro-cap scale, suggesting limited market penetration and a position far removed from the dominance of major multinational tobacco conglomerates.
Financiële gezondheid
The financial statements for the trailing twelve months reveal a revenue of $7.05 million, yet this income is offset by a net income loss of $17,796,000 and an EBITDA of $-10,504,000, highlighting a significant disparity where costs substantially exceed generated income. This substantial gap between revenue and net income points to a highly inefficient cost structure or the recognition of significant non-operational expenses that erode profitability across the board. The company generated free cash flow of $-11,770,375, which indicates a lack of financial flexibility and an inability to fund operations or capital expenditures without external capital injection. Profitability is further compromised by a gross margin of -44.5%, an operating margin of -253.1%, and a profit margin of -71.7%, all of which demonstrate severe losses at every stage of the value chain, from production to the final sale. Despite these losses, the balance sheet retains $7.15 million in cash against total debt of $1.48 million, resulting in a debt-to-equity ratio of 7.99, which characterizes the capital structure as heavily leveraged relative to its equity base. Liquidity is supported by a current ratio of 2.42, suggesting the company possesses sufficient current assets to cover short-term obligations, although this buffer is being consumed by ongoing operational deficits. Return on equity stands at -116.6% and return on assets is -29.3%, metrics that reveal management's current inability to generate value for shareholders or utilize the company's asset base to produce positive returns.
Waarderingsbeoordeling
Valuation metrics for 22nd Century Group, Inc. present a complex picture given the negative earnings, with a trailing twelve-month P/E ratio of N/A and a forward P/E of -0.13. The absence of a trailing P/E ratio reflects the company's lack of profitability over the past year, while the negative forward P/E implies that analysts or market models anticipate earnings that are either still negative or insufficient to support a traditional multiple. The price-to-book ratio is calculated at 0.07, indicating that the market values the company's equity at a fraction of its accounting book value, which often suggests a deep discount or potential distress in the firm's perceived future cash flows. Alternative valuation methods yield a price-to-sales ratio of 0.21 and an enterprise value to EBITDA of 0.15, figures that suggest the market is pricing the stock based on asset liquidation value or minimal revenue expectations rather than earnings power. Price action shows a 52-week high of $489.90 and a 52-week low of $1.66, meaning the current trading price is situated extremely close to the bottom of this range, reflecting a severe depreciation in market sentiment relative to the stock's historical peak. The beta of 1.12 indicates that the stock's price volatility is slightly higher than the broader market, suggesting that price movements are amplified by market swings, which is typical for small-cap stocks with high leverage and low revenue.
Growth & Income
Growth dynamics for the company are characterized by a revenue growth year-over-year of -43.1%, while earnings growth is marked as N/A due to the negative earnings base. The contraction in revenue is the primary driver of the financial decline, and since earnings are already negative, the lack of positive earnings growth does not necessarily imply an acceleration in profitability but rather a continuation of losses relative to the shrinking revenue stream. The company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, which signifies that any retained earnings are currently insufficient to support shareholder distributions and are instead consumed by operational deficits. Consequently, the overall growth and income profile of 22nd Century Group, Inc. is defined by significant revenue contraction and a complete absence of income generation or capital return to shareholders through dividends.